Best Buy company in 2012

Best Buy company in 2012 The company best buy was facing several issues in 2012. To improve its financial position, the company launched a strategic plan it called â€Å"renew blue†. The plan called for strengthening relationships with vendors, revamping stores, increasing same-store sales, eliminating unnecessary costs, and ramping up Best Buy’s online business. The company has been able to reduce cost by closing underperforming stores, shrinking its workforce, and making supply chain efficiencies. It aims to reduce cost further by reducing product returns, replacements, and damages, and by streamlining its logistics and supply chain, as well as its procurement process. To mitigate competition, Best Buy has arranged to open stores-within-a-store with certain key suppliers. In response to competition with Amazon, Best Buy is now highly focused on growing its online business. The company has extended its online sales distribution network with its ship-from-store concept. As part of its turnaround strategy, Best Buy is also revamping its stores and trying to encourage more robust store traffic. Best Buy is closing underperforming stores, optimizing space, and improving the ease with which customers can shop in stores. One of Best Buy’s optimization goals is to avoid out-of-stock situations online, especially during holiday season. Best Buy increased inventory availability by rolling out its ship-from-store concept. This has helped boost online sales, as previously, products were shipped only from select stores. Best buy announced that it would fight show rooming by offering low-price guarantees online as well as at its retail stores. Best Buy sp ent millions of dollars on a holiday TV campaign to combat show rooming. Thus Best Buy is aggressively implementing restructuring initiatives to take back market share. Some of these initiatives include cost-reduction measures, online business expansion, and the sale of underperforming stores.Tyco was accused of corporate fraud in 2002. Its top management was accused of misusing the company’s loan system and misrepresenting the company’s financial status. The first thing the company did in its effort to transformation is the replacement of executive position. The entire corporate management team needed to be changed. They established new systems, hired new talent, and set a new strategic direction for the company. The company followed the highest standards of business practices and ethics, which made it easier to recruit high-quality talent. Many of the former board members had had strong financial, rather than operational, backgrounds. There weren’t clear delineations between finance and operations management. as a part of the restructuring process the audit function reports directly to the board’s audit committee rather than to the CFO; utilizes a more formalized risk-based planning process; and leverages rigorous audit techniques to better monitor internal controls, the integrity of the company’s financial information, and compliance with company policies and procedures. With a mix of board members who have run large public and private organizations, and who have financial and accounting expertise, today the company have a stronger orientation toward operations and toward a philosophy of controllership and accountability.