Strategic Management at Best Buy Case Study

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Best Buy Case StudyGiven Best Buy’s internal and external environment, does the company have appropriate functional strategies? Explain for each function in the company.Functional strategies are usually a part of the overall corporate strategy that is prepared for the various functional areas in the organizational structure (Wheelen, Hunger, Hoffman, & Bamford, 2018). Best Buy does have appropriate function strategies, which are finance strategy, marketing strategy, operations strategy, and human resources strategy. The financial strategy for Best Buy aimed at increasing revenue. To increase revenue, the company had to undertake some acquisitions and this worked perfectly for the company. The financial strategy focuses on the capital structure of the company by choosing the kind of structure that the company would prefer. Enterprise asset management also falls under this strategy.The functional marketing strategy focuses on promotional techniques and their application (Wheelen et al., 2018). Pricing optimization, distribution problems, the structure of production, company image, and public relations also fall under marketing strategy. Best Buy focused mostly on customer centricity to cater to specific customer behaviors and needs. Their marketing strategy aimed to market various products based on the customer-centricity model, address customer lifestyle group’s needs, be at the forefront of technological advances, and meet the needs of the customer with end-to-end solutions.The operating strategy goals for Best Buy were to increase revenues through an increase in customer numbers, successfully implementing sales and marketing strategies across Europe, gaining more market share internationally, and have multiple brands to cater for the different customer lifestyles by Merger and Acquisitions. This was the strategy that Best Buy focused upon and it worked pretty well for the company.The human resources strategy was to ensure that the employees are adequately trained to offer the customers the right knowledge regarding the products and services that the company sells. This functional area also focused on portraying the strategy and vision of the company on an everyday basis and educating employees on the ins and outs of any new products and services.What should be Best Buy’s strategic approach to its competitors, both online and Wal-Mart?Best Buy should focus on value addition to its consumers. With most of its competitors only interested in selling the product, Best Buy must differentiate itself by the value it adds to the consumer.

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The company should continue training its employees on the new products and services it is launching. This allows the sales staff to answer customer questions. They can also be able to advise the customers on the best fit for them based on their needs. This is a good value addition since the consumer will not get the same level of assistance anywhere else. Consumers who are not knowledgeable regarding electronics will benefit the most and…

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…If the consumers do not have the funds to purchase electronics they will seek the cheapest retailer regardless of the service offered. Best Buys should look into cutting down on staff training to ensure that it can manage to have competitive prices for its products. While staff training is vital, with a depressed economy peoples' spending power is reduced and they will only be buying what they can afford. If a product can be found elsewhere cheaply, they are likely to buy it there even if the service is not top-notch.Investing in strategies for tapping into the online marketplace is vital for the sustainability of the company. There has been growing popularity of online stores and people seem to be moving towards these stores. Therefore, the company should start making strides towards opening a fully functional online store to ensure it does not miss out on the revenue from this area. The company should have an experienced leader to undertake the daunting task of taking the company to the next level. Having an inexperienced leader will cost the company as the leader will have a problem leading the company into the next phase of development. The leadership changes taking place could negatively impact the company as the new CEO might not be capable of initiating the necessary changes for the company to move to the next phase….....

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