Best Buy

Best Buy

Introduction

Best Buy is considered one of the top consumer electronics companies in the United States with a major share in the industry. Over the years, the company has made tremendous improvements to its operations that have resulted in higher profits and higher levels of customer satisfaction. However, after achieving its peak a few years ago, the company has started to decline due to which major restructuring and innovations have been planned. These plans have begun to material since January 2013 with the aim of maintaining the company's status as one of the leading companies in the industry (Lee, 2013).

Operational Effectiveness

After a bad year in 2012 in terms of profitability, the company has taken strong steps in order to improve its performance. This includes restructuring the management and reducing the size of its stores while increasing its numbers. This move is expected to increase the organizations footprint and increase the number of its customers.

The effectiveness of its operational strategy can be judged from the fact that despite facing tough competition, it is still leading the way in the market. One reason for the success of its operational effectiveness is its consumer centric approach. This approach has led to consumers being attracted to the store because of the services being offered at competitive costs (Bangor Daily News, 2012).

In order to improve its efficiency, the company has recently adopted a plan whereby it has increased the frequency of its shipment while reducing the size of each shipment.

Balanced Scorecard

Best Buy has recently implemented the balanced scorecard in 2003 and since then has witnessed a significant increase in dividends, stock price, and revenue. In order to improve performance, the company continuously measures performance and publishes them so that employees may know their targets and their current standings. This leads to major improvements in performance and the behavior of the employees. According to the management, the strategy of the company needs to be linked to the performance of the employees so that they may directly have an impact on the company (Benjamin, 2013).

Measures have been created for all the categories of the balanced scorecard and employees are provided a proper summary after certain intervals. These categories include financial results, customer results, process, and behavioral. The financial results are perhaps the biggest indicator as they show the standings of the company. Along with this, the loyalty of customers signifies how many customers are returning and the ...