Case Best Buy
Question 5:
Which resources are important for Best Buy in order to pursue its new strategy successfully? Can Best Buy sustain its competitiveness with P/L responsibilities residing with three different organizations? What should the company do to achieve a sustainable competitive advantage.
The most important resource of Best Buy are their extremely motivated and well trained personnel: the blue shirts. Mangers must find ways to keep them motivated and well trained and how their performance makes an difference in comparison to other competing stores.
Best Buy can sustain its competitiveness with P/L responsibilities residing with three different organizations, but it should be organized around end-to end ownership of horizontal initiatives. In the old situation it was unclear which one of the three sectors was the true “owner of insight”. When it is organized around end-to-end ownership of horizontal initiatives, it eventually will integrate into business teams an integrated operating model that has a merchant, a segment lead, and a field leader. That organization would be responsible for delivering end-to-end service to the customer and P&L to the shareholders.
According to Woodruff (1995), Best Buy should completing but, at the same time, moving beyond the quality management focus of the past two decades. This means that it will require a very different way of managing. It builds on the already excellent capabilities that Best Buy has acquired for managing the quality of internal processes and products, but it also requires a different set of skills to marry internal quality with external customer
Which resources are important for Best Buy in order to pursue its new strategy successfully? Can Best Buy sustain its competitiveness with P/L responsibilities residing with three different organizations? What should the company do to achieve a sustainable competitive advantage.
The most important resource of Best Buy are their extremely motivated and well trained personnel: the blue shirts. Mangers must find ways to keep them motivated and well trained and how their performance makes an difference in comparison to other competing stores.
Best Buy can sustain its competitiveness with P/L responsibilities residing with three different organizations, but it should be organized around end-to end ownership of horizontal initiatives. In the old situation it was unclear which one of the three sectors was the true “owner of insight”. When it is organized around end-to-end ownership of horizontal initiatives, it eventually will integrate into business teams an integrated operating model that has a merchant, a segment lead, and a field leader. That organization would be responsible for delivering end-to-end service to the customer and P&L to the shareholders.
According to Woodruff (1995), Best Buy should completing but, at the same time, moving beyond the quality management focus of the past two decades. This means that it will require a very different way of managing. It builds on the already excellent capabilities that Best Buy has acquired for managing the quality of internal processes and products, but it also requires a different set of skills to marry internal quality with external customer