A CASE ANALYSIS OF
BEST BUY’S FAILURE TO SUCCEED IN CHINESE RETAIL
INDUSTRY
UNIVERSITY OF MINDANAO – DIGOS
COLLEGE OF BUSINESS ADMINISTRATION EDUCATION
SUBMITTED BY:
SUBMITTED BY:
FEBRUARY 2024
1.0 TIMEFRAME
2006 - 2011
2.0 VIEWPOINT
The Head
3.0 STATEMENT OF THE PROBLEM
4.0 STATEMENT OF THE OBJECTIVES
5.0 AREAS OF CONSIDERATION
5.1 INTERNAL ENVIRONMENT
5.1.1 STRENGTHS
5.1.2 WEAKNESSES
5.2 EXTERNAL ENVIRONMENT
5.2.1 OPPORTUNITIES
5.2.2 THREATS
6.0 ETHICAL AND UNETHICAL PRACTICES IN BUSINESS
7.0 STATEMENT OF ALTERNATIVES COURSE OF ACTION
8.0 ANALYSIS OF ACA
Advantages:
Disadvantages:
6.0 CONCLUSION
6.1 DECISION MATRIX
Objective 1: To attain a substantial market share in Chinese retail industry.
CRITERIA ACA #1 ACA #2 ACA #3
Increase profit margin 5 3 5
Stimulate greater supply scale 4 5 4
Timeliness 3 4 5
Objective 2: To enhance operational efficiency in alignment with Chinese consumer preferences.
CRITERIA ACA #1 ACA #2 ACA #3
Market condition adaptability 5 5 5
Customer-centricity 5 5 4
Timeliness 5 5 5
Objective 3: To establish a competitive edge by strengthening pricing strategies and reducing costs.
CRITERIA ACA #1 ACA #2 ACA #3
Cost leadership 4 5 4
Price matching flexibility 2 5 5
Timeliness 3 3 4
TOTAL 36 40 41
Rating Scale:
5 – Strongly Agree
4 – Agree
3 – Neutral
2 – Disagree
1 – Strongly Disagree
6.2 ACA SELECTION
After analyzing the case study's findings, it becomes evident that Alternative Course of
Action #3, which entails integrating operations between Best Buy and Five Star to leverage on
synergies and shared strategies, emerges as the most advantageous option. ACA#3 has met all
the criteria outlined in the objective analysis among the three proposed alternatives, achieving an
exceptional rating of 41 points in the summary results, making it the optimal course of action to
address the problem presented in this case study.
7.0 ACTION PLAN
Action Undertaken Person's Time Frame Estimated Budget
Responsible
Conduct a comprehensive CEO, COO, 3 months $20,000 /
assessment of Best Buy and and PHP 1,118,000
Five Star operations to Department
identify areas for integration Heads
and synergy leveraging
Establish cross-functional Chief 1 month $60,000 /
integration teams to oversee Operating PHP 3,356,000
the integration process, Officer
including representatives (COO)
from IT, Finance, Operations,
and Supply Chain
Develop a detailed Integration 2 months $50,000 /
integration plan outlining Project PHP 2,796,725
timelines, objectives, and key Manager
performance indicators
(KPIs)
Conduct training sessions for HR Manager 2 weeks $30,000 /
employees to familiarize and PHP 1,678,035
them with the integration Integration
plan and ensure buy-in and Project
commitment to the process Manager
Implement IT systems IT 4 months $45,000 /
integration to streamline Department PHP 2,517,000
processes and facilitate data Heads
sharing between Best Buy
and Five Star
Consolidate finance and CFO and 3 months $50,000 /
accounting processes to Finance PHP 2,796,000
optimize resource allocation Department
and financial reporting Heads
Develop a communication HR Manager Ongoing $30,000 /
plan to keep employees and PHP 1,678,035
informed about the Communicati
integration progress and on Specialist
address any concerns or
questions
Monitor integration progress CEO and Ongoing $25,000 /
through regular meetings and Department PHP 1,398,362
updates, adjusting strategies Heads
as needed to ensure
successful integration
