Strategic audit of Best Buy Company
Natural physical environment on sustainability issues
Best Buy Corporation which has its headquarters at Richfield is a company dealing with sale of electronics. Its mission is to make customers enjoy the latest technology. It is more concerned with its customers and employees and does everything in support of the employees. It is easily reached by its customers as it provides online retail services. Financial crisis’s has contributed negative impacts to the company globally this resulting to a drop of sales in Best Buy. The net income in best buy has been reported to decline as a result of higher prices currently caused by unstable economic conditions. The prices of products from the electronic industry have been forced to go down as a result of many competitors and unstable conditions. The lower prices have led to low incomes thus affecting the company’s profitability. Climate and especially global warming has affected the running of the businesses where storms experienced causes damages to the company’s buildings and property. Environmental organizations have complained and advised Best Buy to remain environment friendly in carrying out its businesses as well as its competitors. The issue of climate is global issues where countries are supposed to treat the environment as it deserves for the global temperatures to remain normal.
Societal environment
Economic factors
The best buy company receives income and funding from different parts of the world. It has suffered debt problems which make its income low thus minimizing its profits. The current technological and economic decline has contributed to low incomes to the company. This becomes a great concern to all electronic industries since they suffer loses instead of huge profits.
Technological factors
These have contributed to positive and negative impacts in the income of the electronic industry. The use of current technology has increased the sales of best buy company as well as other retailers through use of internet and online services but there are challenges in use of modern technology which lead to future threats in the retail electronic industry.
Political legal factors
Best buy has respected the regulation and laws of the countries it has traded in as well as other electronics retailers. It is well managed by managers who bring positive impacts in to the retail market. The managers have always made the right strategic moves thereby making the company successful. The challenges are there due to the problem of economic downfalls but the management has always dealt with this problems.
Social cultural factors
The employees and customers have been treated right in this best buy electronic retail where it gives promotions to its customers which affect it futures success and enhances its growth as a result of more customers. Promotions will help in outdoing its key competitors who include Wal-Mart Company and RadioShack Corporation.
Task environment
Competition is the key theme in the retail electronic market. The forces of competition are high since there are a number of competitors in the field of electronic. The customers are given room for bargaining as a way of promoting them. There exists rivalry among the competitors where Wal-Mart is accused of selling products at very low prices which affects the other retailers in the market. The government is in support of retail market though taxes are charged at high rates which cause negative impacts to the market. The local communities are in support of retail market though the customer behavior changes from time to time which cause future threats.
Summary of external factors
Technological factors as well as economic factors will lead to good opportunities for the company as well as threats to the company. Improving the technology is a key factor in success of a business as well as improving the working environment of the employees. Lowering the price will attract more customers which will improve the economic returns of the Best Buy as well as other retail electronic globally.
