Strategic Audit of Best Buy Co.

Company Overview4

Environmental Scanning4

External Environment4

Opportunities4

Threats5

Natural Environment6

Resources and Climate6

Societal Environment6

Task Environment7

Industry Analysis7

Internal Environment8

Strengths8

Weaknesses9

Structure/Chain of command10

Culture: (Beliefs, expectations, values)13

Values14

Resources14

Assets14

Skills16

Competencies16

Knowledge17

Strategy Formulation17

Mission17

Objectives17

Strategies18

Policies18

Strategy Implementation19

Programs19

Budgets20

Procedures21

Evaluation and Control22

References23

Strategic Audit of Best Buy Co.

Company Overview

Best Buy Co. Inc. was founded in 1966 with the name, “Sound of Music”, by Richard Schulze. The company was named Best Buy in 1983. The company had almost $50 billion in revenues during Fall year 2013. The company employs more than 145,000 people, worldwide. Best buy has more than 1,400 stores in United States. Best Buy's website is considered to be one of the most visited websites of United States. It has nearly 1 billion online shoppers/visitors, and about 600 million visitors shopping in their online stores in United States, Annually (Best Buy, 2013).

Environmental Scanning

External Environment

Opportunities

The opportunities are wide and open for Best Buy.

The company can dive into vast and profitable market of online sales.

Last year, company had only 6% of its revenues from online sales. The company can avail this noble opportunity with hard-working and visionary approach of company's new CEO, who has already made a very positive impact (Bennett, 2013).

The company has formed a joint venture with The Carphone Warehouse in Europe. This joint venture is a tremendous opportunity for the company to expand its operations in Europe.

Europe's music market, being one of the fastest growing markets, offers an exciting opportunity for Best Buy to break the shell.

The industry has seen a recent growth in mobile phone and tablet sales. Best Buy can have the advantage to expand its resources in these segments.

In a global culture, like today, electronics are a commodity and are counted in necessities with market seems to be growing dramatically.

The company can lower its production costs by outsourcing to China.

Best Buy's trained and customer centric sales staff assists customers during whole buying process. Others do not have such competency.

Acquisition of rivals can help boost sales and market share.

The bankruptcy of Circuit City will help Best Buy, due to decreased competition.

Threats

Wal-Mart is climbing rapidly on the ladder.

The strong competition is forcing to reduce prices.

The marketplace for its products is crowded with competitors (Direct & Indirect), which can cause a reduction in market share and revenues.

Rising labor wages can harm the bottom line.

As the operations and resources are widespread in many countries, the threat of economic, social and political tension between the countries exists.

Digital media is a big problem for Best Buy.

Online games are widely growing in popularity; this will limit gamers to go to a store t buy a game.

Natural Environment

Resources and Climate

The companies in manufacturing or industrial industry work with different types of machinery, equipments and chemical production agents (Jeanty, 2013). The businesses often have a reciprocal relationship with their environments. The effects of environment can be vital for businesses. Best Buy operates in many countries; it has outsourced many of its productions to many ...