Assisngment 1.3

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Bellevue University **We aren't endorsed by this school
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BMAL 420
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Management
Date
Nov 5, 2023
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2
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Assignment 1.3: Answering the Question, "How is Business"? Best Buy's sales objectives for 2021 are a revenue of $43 billion (versus $39.4 billion in fiscal 2017), and operating income of $1.9 billion to $2.0 billion (versus $1.7 billion in fiscal 2017). It anticipates adjusted earnings of $4.75 to $5.00 per share, which represents an 8% to 9% compound annual growth rate from fiscal 2017 Sales goals give the company something to work toward and motivate all involved. Reaching these goals puts the company where it needs to be to be profitable and stay competitive. To help with profitability objectives, Best Buy is currently downsizing floor space in the brick-and-mortar stores to allow for more room to prep for Ecommerce (online orders). The company is also downsizing on staff, cutting costs for wages. "Online sales increased by nearly three times for Best Buy in the last quarter, but the company has had to cut jobs, Bloomberg reported. The remaining employees in Best Buy's approximately 1,000 U.S. stores are being trained to work in other parts of the stores. That, according to Best Buy, will drive efficiencies in labor planning and cost". Best Buy has done well in customer satisfaction by working to keep customers safe through the pandemic, serving customers' essential needs and working through the constantly changing conditions. As far as stockholders, the company announced that it would give a quarterly cash dividend of $.70 for each share. Best Buy continues to develop strong relationships with suppliers. Examples of this are its "store within a store" approach with both Samsung and Microsoft. The company is not doing well this year on satisfying its employee relationships; the company has done some resizing of the company and laid off 5,000 employees this year. Best Buy works to be known as a customer centric business. By focusing on the customers' experience, brand loyalty is gained, and customers return to the store for their next purchase. Customer centricity brings in revenue from repeat sales and keeps the company profitable. How is business at Best Buy? Overall, the company is doing well and continues to meet its objectives in customer satisfaction, earnings for stockholders and supplier relationships. The company will have to work a little harder this year to maintain employee relationships and morale, after shifting many positions and cutting 5,000 employees. Best Buys choice to focus more on Ecommerce seems to be a smart move with the market today and should provide success and keep the company competitive.
Best Buy Announces Regular Quarterly Cash Dividend. Best Buy Co., Inc. http://investors.bestbuy.com/investor-relations/news-and-events/financial- releases/news- details/2021/Best-Buy-Announces-Regular-Quarterly-Cash-Dividend- 276d80141/default.aspx . Klarna Seeks Additional $1B At $31B Valuation. Best Buy Tests Smaller, Digital-Friendly Store Format. https://www.pymnts.com/news/payment- methods/2021/klarna-seeks-additional-funding-valuation/ . Best Buy sets a $43 billion revenue goal for 2021. Chain Store Age. https://chainstoreage.com/technology/best-buy-sets-billion-revenue-goal-01
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