Internal and External Factors of Best Buy
July 14, 2013
MGT/230 Management Theory and Practice
Instructor: RICHARD ROGERS
There are four functions of management. These factors are planning, leading, organizing, and controlling (Bateman, T.S. & Snell, S.A. 2011). There are numerous internal and external factors that affect these four functions of management, both positively and negatively. Some of these factors are internal and external communication, internal structure, and economy. In this paper we will be covering some of these factors using the globalization, technology, innovation, diversity, and ethics of Best Buy.
With the changing of business and internet came the urge for many companies to take their organizations global, Best Buy was one of them. The globalization of Best Buy began in 2003 when they opened a store in China and then continued to open others in place like Turkey. This was the effect of internal communication of the corporate management team of Best Buy. This looked like a great move for them until the demand for new homes dropped off the table when the economy crashed in late 2008 (Bateman, T.S., & Snell, S.A. 2011). With the drop of the economy and other external factors Best Buy decided they needed “a change of business strategy”, so they closed all of their nine outlets in China in 2011(Zhang, M. 2011). By doing this Best Buy expects to save $70 million annually by 2013 (Zhang, M. 2011). The Best Buy Co. Inc. called the Chinese and Turkish operations “Test Stores” (Zhang, M. 2011). Saying that they were using these stores as examples of how they can do globally and have learned what to do and not to do from these stores. This was a time that Best Buy’s management new they needed to find a way to adapt to the new circumstances. The functions of management that was affected the most by internal and external factors were, planning and controlling. Best Buy came up with new planning to focus on its Five Star branded...
References: Bateman, T. S., & Snell, S. A. (2011). Management: Leading & collaborating in a competitive world (9th ed.). New York, NY: McGraw-Hill Irwin.
Best Buy. (2013) Best Buy Code of Business Ethics. Retrieved from https://secure.ethicspoint.com/domain/media/en/gui/26171/code.pdf/
Best Buy. (2003-2008). Diversity Giving Community Program. Retrieved from http://www.bestbuy-jobs.com/content/diversity-giving/
Cheng, A. (2013). Best Buy, Microsoft ink deal for Windows shops. Retrieved from http://www.marketwatch.com/story/best-buy-microsoft-ink-deal-for-windows-shops-2013-06-13
The impact of technology on retail. (2010). Retrieved from http://www.examiner.com/article/the-impact-oftechonlogy-on-retail/
Zhang, M. (2011). Best Buy Closes China Stores to Focus on Five Star Retail Brand (itsv-asia.com). Internet Television For Business – China Insiders. http://www.itv-asia.com/article/best-buy-closes-china-stores-focus-five-star-retail-brand/
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