Internal and External Factors Within Best Buy

Only available on StudyMode
  • Download(s) : 943
  • Published : March 12, 2010
Open Document
Text Preview
External/Internal Factors
External and internal factors come in many forms that can impact a business in different ways. Assessing external and internal factors that an organization may face can be vital to the planning function of management. As with any organization, there are always four functions of management. These functions are planning, organizing, leading, and controlling (Bateman & Snell, 2009, p. 19). Within the organization, Best Buy, which is known to be an electronics store, has their own external and internal factors. Founded in 1966 as Sound of Music and incorporating in 1983 to become Best Buy, Inc. (, 2010, para. 1), accounting for 19% of the market (Metaweb, 2010, para. 1), has become one of the leading electronic stores in the nation. It takes management and the view of internal and external factors like globalization, technology, innovation, diversity, and ethics. Of course there are many more factors to consider but in the interest of Best Buy, Inc., these are some of the major factors. External and internal factors not only display how diversity or ethics are explained, they also affect the four functions of management. As companies are started such as Best Buy, Inc., with the view of success, external and internal factors are needed to achieve this success. Taking a look into the past, many organizations relied on people to work in sales. The majority of these people were men. As times changed, so did the way that a diverse organization did. As Best Buy continued to succeed and sound changed as well, so did the way that people viewed diversity in the workplace. Today, sound is much softer and women are salespeople. Diversity is all over the world now with Best Buy. Diversity in planning has shown that women can become salespeople as well as customers are diverse in the selections of electronics. In organizing, Best Buy must be diverse with customer service, accomplishments, and backgrounds. Leading, on the other hand, must show diversity to staff, customers, goals, and even personal standards. Finally with controlling, employees must be able to see their mistakes and correct them as they go. It takes these four functions of management to help an organization succeed. Instead of applying what Best Buy already knew when it came to globalizing, they knew they had to get involved in other markets and absorb what exactly was going on around the world. The plan was to buy into existing retailers and learn not only the latest innovative technologies but also operations, sourcing, and distribution. They decided to start with Canada, extending to China, Europe, and Mexico. They began in Canada knowing it was probably the simplest to conquer and most familiar in relation to technique. From there, the expansion and absorption of the much more ingenious technologies of china seemed almost inevitable. Best Buy learned quite a bit from the first initial expansion into Canada when they bought into Future Shop, Canada’s technology leader. Here they came up with the dual brand concept that involved both Best Buy and Future Shop working side-by-side instead of completely merging. They did this to satisfy two separate audiences with two different brands, each uniquely different to the customer. From there, Best Buy went to China knowing they had to learn what the world’s leading technology manufacturer was producing and distributing. The next step was to then go into cell-phones by entering the European market in acquisition of The Car Phone Warehouse, Europe’s leading cell-phone retailer. Best Buy believes that to grow they had to create an environment in which everyone contributes; they did this by enabling employees with innovative, global assets that gave them the advantage when it came to customer relations. Best Buy mainly focuses on a customer centric business model. By paying attention to productivity, Best Buy can determine if a strategy is...
tracking img