Best Buy Executive Summary

Best Buy

Callistus, thank you for outlining the growth that Best Buy has achieved. Based on the information you’ve provided in your post, it’s noteworthy to mention additional data specified in Best Buy 10K report, and highlight critical success factors that this organization will be focusing on to maintain their competitive advantage. To your point, Best Buy has experience exponential consistent growth experiencing an increase in operating income for fiscal 2017 of 479 million which equates to 4.7% of their revenue, this was primarily due to an increase in gross profit rate and decrease in restructuring activity. Gross profit in 2016 increase by .9%, net income increase by 39.6% in 2016, and up 19.1% in fiscal 2017. Best Buy is in

a healthy position when examining the liquidity and capital resources reflecting a 19.5% gain in cash, cash equivalents and short-term investments as they attribute it to having sufficient funds to repay debts, pay dividends of 1.2 billion and share repurchases, without having to use credit as they reflect a 1.5/.8 current and quick ratio (Best Buy, 2017). Even though, Best Buy is a stable organization and the data reflects growth, most successful organizations must have strategic tools in place to advance financial performance while maintaining a competitive advantage.
Therefore, Best Buy has established critical success factors for 2017 that will address structure, resources, capabilities and competencies, and when addressing these factors will allow an organization to use “their internal capabilities to neutralize potential threats and avoid weaknesses” giving them the ability to expand on their competitive advantage” (Daniela, 2014, p.525). Therefore, through launching of the Best Buy 2020 initiative will give the customer an outstanding shopping experience through utilizing customer friendly omni-channels (S & P, 2017). The second, initiative is to continue to be productive by reducing cost to efficiently fund investments. The third initiative mentioned, but not the last is to advance growth initiatives, inclusive of enriching the customer experience through consultative selling approaches and expansion on product categories and lines (Best Buy, 2017). Furthermore, organizations, such as Best Buy, cannot rest on their laurels, but must continue to build strong customer relations, improve the quality of goods and services and reduce cost to keep their competitive advantage (Kuzhda, &Vovk. 2016).