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BAB697
DECEMBER 2011
Best Buy:
op yo Merging Lean Six Sigma with Innovation
Culture of Innovation at Best Buy
Best Buy Co. Inc., based in Richfield, Minnesota, was a specialty retailer of consumer electronics and appliances, with 19% US market share and international operations in Mexico,
Canada, China, Turkey and the United Kingdom. Including its subsidiaries, the company operated more than 4,000 retail stores and automated shops in airports and malls. Sales for fiscal year 2010 hit nearly $50 billion with net income of more than $1.3 billion (Table 1).
tC
Table 1: Selected Financials
2009
2008
2007
2006
Revenues ($ millions)
49,694
45,015
40,023
35,934
30,848
Net Earnings ($ millions)
1,317
1,003
1,407
1,377
1,140
Assets ($ millions)
18,302
15,826
12,758
13,570
11,864
Number of Stores
4,027
3,942
1,314
1,177
941
No
2010
Source: Best Buy, FY11 10-K Report. Richfield, MN: Best Buy, 2010. http://www.sec.gov/Archives/edgar/data/764478/000104746911004045/a2203505z10 -k.htm, accessed 2011.
Do
This case was prepared by Sam Perkins under the direction of Jay Rao, Professor of Technology Operations and Information
Management at Babson College, based on published sources. It is intended for the sole purpose of aiding instructors in the use of
“Best Buy: Merging Lean Six Sigma with Innovation.” It provides analysis and questions that are intended ot present alternative approaches and suggestions to deepening students‟ learning of business issues and energizing classroom discussion rather than to illustrate effective or ineffective handling of an administrative situation. It is not intended to serve as an endorsement, source of primary data or illustration of effective or ineffective management.
Copyright © 2012 Babson College and licensed for publication to Harvard Business Publishing (HBP). All rights reserved. No part of this
BAB697
DECEMBER 2011
Best Buy:
op yo Merging Lean Six Sigma with Innovation
Culture of Innovation at Best Buy
Best Buy Co. Inc., based in Richfield, Minnesota, was a specialty retailer of consumer electronics and appliances, with 19% US market share and international operations in Mexico,
Canada, China, Turkey and the United Kingdom. Including its subsidiaries, the company operated more than 4,000 retail stores and automated shops in airports and malls. Sales for fiscal year 2010 hit nearly $50 billion with net income of more than $1.3 billion (Table 1).
tC
Table 1: Selected Financials
2009
2008
2007
2006
Revenues ($ millions)
49,694
45,015
40,023
35,934
30,848
Net Earnings ($ millions)
1,317
1,003
1,407
1,377
1,140
Assets ($ millions)
18,302
15,826
12,758
13,570
11,864
Number of Stores
4,027
3,942
1,314
1,177
941
No
2010
Source: Best Buy, FY11 10-K Report. Richfield, MN: Best Buy, 2010. http://www.sec.gov/Archives/edgar/data/764478/000104746911004045/a2203505z10 -k.htm, accessed 2011.
Do
This case was prepared by Sam Perkins under the direction of Jay Rao, Professor of Technology Operations and Information
Management at Babson College, based on published sources. It is intended for the sole purpose of aiding instructors in the use of
“Best Buy: Merging Lean Six Sigma with Innovation.” It provides analysis and questions that are intended ot present alternative approaches and suggestions to deepening students‟ learning of business issues and energizing classroom discussion rather than to illustrate effective or ineffective handling of an administrative situation. It is not intended to serve as an endorsement, source of primary data or illustration of effective or ineffective management.
Copyright © 2012 Babson College and licensed for publication to Harvard Business Publishing (HBP). All rights reserved. No part of this