This document contains information about case studies for a strategic management course, including analyses of Rupayan Housing Estate Limited, Walmart, Google, Whole Foods, Best Buy, and Chrysler. It provides details on the board of directors and top management of Walmart and Google. The case studies are compared based on their current situations and corporate governance structures.

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MGT 504: STRATEGIC MANAGEMENT
Course Instructor:
Mr. Tanvir H DeWan
Course Coordinator, College of Business Administration
IUBAT- International University of Business Agriculture & Technology
List of Case Studies:
Rupayan Housing Estate Limited (Local One)
Wal-Mart
Google
Whole Food
Best Buy
Chrysler
Prepared by:
Nurer Rahman Asif
Abdullah Al Mamun
Md. Delwar Hossain
Date of exam:
April 25, 2015, Friday, 6.00 PM

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RUPAYAN HOUSING ESTATE LIMITED
SWOT ANALYSIS
 Strengths
 Experienced management and large number of projects around the Bangladesh
 Quality products and services
 Company reputation and goodwill
 Large number of Branches all over the country
 Expanding market, expanding sales & profitability
 A healthy industry sector with quality business
 Good purchasing power of target customers group
 Government keen interest to solve housing problem with the rapid increase of urban population
 Open market economy, recent housing policy etc. may favor sustainable growth of housing
industry
 Dependency of the major housing companies in the market
 Weaknesses
 Lack of adequate marketing (advertising and promotion) effort
 Lack of full scale automation
 Lack of training facilities for the employees
 Strong competition among the existing players of the industry
 Increased price of industrial materials will be difficult to pass on the customers because the
agreement in response of the price and construction standard is made 2 to 3 years before the actual
handing over of the apartments
 The industry as a whole does not follow any standard business rules, therefore there remains
uncertainty practices by some of the developers
 Opportunities
 Regulatory environment favoring private sector development
 Value addition in products and services
 Increasing purchasing power of people
 Increasing trend in international business
 Increasing the population of Bangladesh
 A high profitable investment opportunity for individuals as well as financial institutions
 A very wide scope is prevailing for foreign investor also

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 Urban population is developing favorable attitudes towards apartment living, although the present
market of apartment business is limited within high income groups of the society, there exists
opportunity for middle and lower level income groups
 Threats
 Frequent changes of inhabitation rule of Bangladesh Government or RAJUK
 Market pressure for lowering of lending rate
 National and global political unrest
 Lack of land of Bangladesh
 Political instability and unrest directly or indirectly threats all the business sectors including
housing industry
 Bureaucratic complexity imposed by RAJUK, WASA, DESA, and many other Government and
semi Government agencies
 Cooperation and rendered by rational board of revenue in relation to the taxation and import
facilities (Tax Concession)
COMPARISON OF CASE STUDIES
A. CURRENT SITUATION
(a) WAL-MART
Wal-Mart belongs to the Variety Stores and All Other General Merchandise Stores industry according to
the United States SIC and NAICS Code(s). They are also known as discount variety stores, general
merchandise discount stores, mass merchandisers, full-line discounters, or discount houses. Today the
“Big Three” discount retailers are the Wal-Mart, Target and Kmart chains. In addition to the “Big Three”
there are several smaller regional discount retailers, all operating a low-cost differentiation strategy.
During the 1990s in a battle for market share the discount retailers began several new initiatives. First,
they began to focus and market to specific ethnic groups by hiring bilingual clerks, advertising in other
languages, and stocking certain ethnic goods. Secondly, many began environmental awareness programs
to attract environmentally conscious consumers, including advertising recyclable and environmentally
friendly goods, using recycled paper for advertisements, and other programs. Specifically, Wal-Mart
opened an “environmental demonstration store”; Kmart implemented a recycling program for cassette
tapes, tires, and batteries; and Target started an environmental youth program called Kids for Saving the
Earth. During the late 1990s and early 2000s the industry began to focus on brand names, partnering, and

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proprietary brands as the industry continued to grow. Additionally, however, the industry faced further
bankruptcy, mergers and acquisitions.
Throughout its history, the discount variety store industry has continued to grow and adapt to the changing
consumer business environment, whether through the adoption of new technologies, tapping into new
consumer target markets, or following consumer preference trends. Additionally the dominant players
have also grown and adapted, becoming huge international companies, led by the “Big Three” whose
combined sales have exceeded $125 billion. The industry itself has grown from a $2 billion industry in
1960 into a $200 billion industry today.
(b) GOOGLE
Google Inc., starting from just a smart algorithm, has developed a totally new business model, has become
in a few years the world leading search engine, has developed winning applications as Google Earth,
Google Video, Google Maps, Gmail, and is enjoying a huge success. Google, starting from scratch, has
won the challenge against a giant like Microsoft and against the previous search engine market leaders
Yahoo, Lycos, AltaVista, hotbot and Excite. Google‟s main competitors, Yahoo, and Microsoft (operating
under their respective brands - MSN and Live Search), posted revenues of $7.0 billion and $51.1 billion
respectively (Google, 2007).There is a dizzying amount of money made in this industry. Presently, Google
commands 57% of internet searches in the United States.
Google Inc. revenues for the quarter ended December 31, 2013 were $16.86 billion, an increase of 17%
compared to the fourth quarter of 2012.
(c) BEST BUY
Best Buy has the largest advertising budget of any of its direct competitors. With annual promotions
budgets of $712 million for 2005, $675 million for 2004 and $567 for 2003, Best Buy is able to reach a
broad audience. Best Buy‟s advertising consists primarily of television, and print ads. In major cities,
Best Buy runs a several page ad 2-5 times every week detailing the in-store specials and sales for the
current and upcoming weeks. Best Buy focuses its advertising dollars on promoting products in the bricks
and mortar locations as well as the online store. In addition to traditional advertising, Best Buy also runs
many price promotions such as rebates throughout the year. Starting in 2006, rebates will be phased out
however. In their place, more items will be run on traditional sales. Running alongside promotional
offers, customers participate in a loyalty program in which they can earn points toward future purchases. In
addition to traditional advertising, Best Buy has a community outreach program through which it generates
goodwill by sponsoring charitable events throughout the country. Best Buy also donates 1.5% of EBIT to
various charitable programs.

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(d) WHOLE FOOD
Reflecting back over his three decades of experience in the grocery business, John Mackey smiled to
himself over his previous success. His entrepreneurial history began with a single store which he has now
grown into the nation‟s leading natural food chain. Whole food carries both natural and organic food,
offering customers a wide variety of products. Natural refers to food that is free of growth hormones or
antibiotics, whereas certificated organic food conforms to the standards, as defined by the U.S department
of agriculture (USDA) in October 2002. Whole foods market is the world‟s leading retailer of natural and
organic foods, with 193 stores in 31 states, Canada and the United Kingdom. Whole food has grown over
the years through mergers, acquisitions and new store openings. The entity‟s success is $565 million
acquisition of its lead competitor. Wild Oats, in 2007 firmly set Whole Foods as the leader in the natural
and organic food market and led to 70 new stores. The U.S Federal Trade Commission (FTC) focused its
attention on the merger on antitrust grounds. The dispute was settled in 2009, with Whole Foods closing 32
wild oats stores and agreeing to sell the wild oats market brand. Although the majority of Whole Foods
locations are in the United States, European expansion provides enormous potential growth due to the
large population and it hold a more sophisticated organic foods market than U.S in terms of suppliers and
acceptance by public. Whole Food targets its locations specifically by areas demographics. The company
targets locations where 40% or more of the residents have a college degree as they are more likely to be
aware of nutritional issues. Whole Foods recognizes it is only a supermarket, management it working
toward fulfilling their vision within the context of the industry. They strive to conduct business in a
manner consistent with their mission and vision. By offering minimally processed, high quality food
engaging in ethical business practices, and providing a motivational, respectful work environment, the
company believes it is on the path to a sustainable future.
(e) CHRYSLER
The company was founded by Walter Chrysler (1875–1940) on June 6, 1925 when the Maxwell Motor
Company (est. 1904) was re-organized into the Chrysler Corporation. Walter Chrysler arrived at the ailing
Maxwell-Chalmers company in the early 1920s. He was hired to overhaul the company's troubled
operations (after a similar rescue job at the Willys-Overland car company). In late 1923 production of the
Chalmers automobile was ended. In January 1924, Walter Chrysler launched the well-received Chrysler
automobile. The Chrysler was a 6-cylinder automobile, designed to provide customers with an advanced,
well-engineered car, but at a more affordable price than they might expect. (Elements of this car are
traceable to a prototype which had been under development at Willis during Chrysler's tenure). The
original 1924 Chrysler included a carburetor air filter, high compression engine, full pressure lubrication,
and an oil filter, features absent from most autos at the time. Among the innovations in its early years were
the first practical mass-produced four-wheel hydraulic brakes, a system nearly completely engineered by

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Chrysler with patents assigned to Lockheed, and rubber engine mounts to reduce vibration. Chrysler also
developed a wheel with a ridged rim, designed to keep a deflated tire from flying off the wheel. This wheel
was eventually adopted by the auto industry worldwide. In 2014, Chrysler Group LLC is the seventh
biggest automaker in the world by production.
Chrysler is the quintessential American brand as seen in its popular advertising campaigns. In 2011, the
Chrysler brand launched the popular Imported from Detroit campaign with a Super Bowl ad this
invigorated the brand and led to record-breaking sales.
Chrysler Group invested nearly a billion dollars into the Sterling Heights, Michigan manufacturing plant
for the production of the All-New 2015 Chrysler 200. Redesigned from the ground up, the All-New 2015
Chrysler 200 debuted in January 2014. The vehicle features craftsmanship of the highest quality with a
beautiful exterior design, a thoughtful, exquisitely crafted interior and an exceptional driving experience,
thanks to a segment-first nine-speed automatic transmission+ and 36 hwy mpg+.
The Chrysler brand, with its ambitious American ingenuity, continues to stand for substance and style. At
its core are the hallmarks of quality, design, craftsmanship, performance, efficiency, innovation and
technology, all at a very affordable price.
B. CORPORATE GOVERNANCE: BOARD OF DIRECTORS AND TOP MANAGEMENT
(a) WAL-MART
Board of directors
Vice president of grocery marketing for Vlasic foods international had approved the deal. In 1978 the
company was sold to the Campbell soup company. As part of Campbell, the Vlasic brand prospered due to
increased investment in both advertising expenditures and R&D. The 1994 roll-out of the Vlasic stackers
line of pickle slices intended for sandwiches continued to help build the brand into a major line of pickle
products accounting for over a third of the U.S pickle brand America. However the overall pickle market
had been flat for a few years and Valsics had only achieved small gains in the nineties. In March 1998
Campbell spun off a newly public company called Vlasic foods international. The newly spun-off
company however held debt of over $500 million along with an annual sales volume of $1.1 billion. The
Vlasic was its strongest business, accounting for sales of over $251 million in 2000. Bob Bernstock,
president of the newly formed Vlasic foods, knew that Wal-Mart was essential to his company. By 1998 it
was well-established not just at Vlasic that a contract with Wal-Mart by definition was very important to a
company‟s growth and success. Major deals and programs had to be approved by the president of sales,
Maurice Lane. Both Steven Young, vice president for grocery sales, and Pat Hunn, team leader for the

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Wal-Mart account, reported to the president of sales. Vlasic had financial troubles that went way beyond
the sale of pickles. Wal-Mart was a great customer sales with Wal-Mart now reached 33% of the Vlasic
foods business. On the revenue side, Valsics business was up with a dramatic shift upward in Wal-Mart
sales.
Top management
Doug McMillon is the president and chief executive officer of Wal-Mart Stores, Inc. (Wal-Mart). From
February 2009 to February 2014, Doug served as president and chief executive officer of Wal-Mart
International, a fast-growing segment of Wal-Mart‟s overall operations, with more than 6,400 stores and
nearly 800,000 associates in 26 countries outside the United States. From 2006 to 2009, he served as
president and chief executive officer of Sam‟s Club, an operating segment of Wal-Mart, with sales of more
than $46 billion annually during his tenure.
William S. Simon is president and Chief Executive Officer of Wal-Mart U.S. He is responsible for the
strategic direction and performance of Wal-Mart‟s U.S. business, leading 1.3 million associates and about
4,000 stores. Bill and his team are focused on executing Wal-Mart‟s core business model lowering costs in
order to offer customers lower prices – and fulfilling the company‟s mission of saving people money so
they can live better.
Don Frieson is executive vice president of operations for Sam‟s Club and is responsible for the operations
of more than 600 Sam‟s Clubs in the United States and Puerto Rico. Don joined Sam‟s Club in November
2012 as senior vice president for replenishment and planning. Prior to that, he served in Wal-Mart
International as chief integration officer for Massmart Holdings, a chain of more than 300 stores operating
in 13 sub-Saharan Africa nations. His responsibilities included supply chain, merchandising, global
sourcing and total integration into the Wal-Mart business.
Patrick Hunn, team leader of Wal-Mart sales, for Valsics foods international. Bob Bern stock, president
of the newly formed Vlasic foods, knew that Wal-Mart was essential to his company. Maurice Lane,
major deals and programs had to be approved by the president of sales.
(b) GOOGLE
Board of directors
 Eric Schmidt, 54, served as Chairman of the Board from 2001 to 2004 and from 2007 to the
present, as well as Chief Executive Officer and board member since 2001.

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 Sergey Brin, 36, was cofounder and President of Technology. He served on the board since its
inception in 1998.
 Larry Page, 37, was cofounder and President of Products. He served on the board since its
inception in 1998.
 L. John Doerr, 58, served as board member since 1999. He has been General Partner of the
venture capital firm Kleiner Perkins Caufield since August 1980.
 John L. Hennessy, 57, served as Lead Independent Director since 2007. He served on the board
since 2004. He has been President of Stanford University since 2000 and previously served as
Dean of the Stanford School of Engineering and Chair of the Stanford Department of Computer
Science.
 Ann Mather, 49, served as board member since 2005. She also served as Executive Vice President
and Chief Financial Officer of Pixar from 1999 to 2004 and held various executive positions at
Village Road show Pictures and Walt Disney Company.
 Paul S. Otellini, 59, served as board member since 2004. He has been CEO and President of Intel
Corporation since 2005 and served previously in various Intel executive positions.
 K. Ram Shriram, 52, served as board member since 1998. He has been Managing Partner of
Sherpalo Ventures, an angel venture investment company, since 2000. He previously served as VP
of Business Development at Amazon.com.
 Shirley M. Tilghman, 63, served as board member since 2005. She has been President of
Princeton University since 2001. Previously she served as Professor of Bioch.
Top Management
 Eric Schmidt, 54, Chairman of the Board and CEO, joined Google in 2001 and helped grow the
company from a Silicon Valley startup to a global enterprise. Prior to joining Google, Schmidt
was the Chief Technology Officer at Sun Microsystems and the President of Sun Technology
Enterprises.
 Sergey Brin, 36, cofounder, served as a member of the board of directors since Google‟s inception
in September 1998 and as the President of Technology since July 2001. From September 1998 to
July 2001, Sergey served as President. Sergey holds a Master‟s degree in computer science from
Stanford University and a Bachelor of Science degree with high honors in mathematics and
computer science from the University of Maryland at College Park.
 Larry Page, 37, cofounder, has served as a member of the board of directors since Google‟s
inception in September 1998 and as the President of Products since July 2001. Larry served as
Chief Executive Officer from September 1998 to July 2001 and as Chief Financial Officer from
September 1998 to July 2002. Larry holds a Master‟s degree in computer science from Stanford
University and a Bachelor of Science degree in engineering, with a concentration in computer
engineering, from the University of Michigan.

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 Nikesh Arora, 41, has served as President, Global Sales Operations and Business Development,
since April 2009. Prior to that, Nikesh worked for Deutsche Telekom, Putnam Investments, and
Fidelity Investments.
 David C. Drummond, 46, served as Senior Vice President of Corporate Development since
January 2006 and as Chief Legal Officer since December 2006. Prior to joining Google, David
served as Chief Financial Officer of Smart Force, an educational software applications company.
 Patrick Pichette, 47, served as Chief Financial Officer and Senior Vice President since August
2008. Prior to joining Google, Patrick served as President–Operations for Bell Canada, a
telecommunications company.
 Jonathan J. Rosenberg, 48, served as Senior Vice President of Product Management since January
2006. Prior to joining Google, Jonathan served as Vice President of Software for palmOne, a
provider of handheld computer and communications solutions, and held various executive
positions at Excite@Home, an Internet media company.
 Shona L. Brown, 43, served as Senior Vice President of Business Operations since January 2006.
Prior to joining Google, Shona was at McKinsey & Company, a management consulting firm,
where she had been a partner in the Los Angeles office since December 2000.
 Alan Eustace, 53, served as Senior Vice President of Engineering and Research since January
2006. Previously, he served as a Vice President of Engineering since July 2002.
(c) BEST BUY
Board of directors
As Best Buy Co. Inc. seeks to improve its financial performance, the company is moving quickly to get its
corporate house in order.
The board of directors recently decided to no longer lease aircraft from entities owned by Best Buy
founder and chairman emeritus Richard Schulze, according to proxy documents filed late Monday with the
U.S. Securities and Exchange Commission. Some corporate governance experts have long suggested the
arrangement was a conflict of interest, as Best Buy has paid millions of dollars to rent private jets from
Schulze over the past decade.
The move is one of several changes implemented by the company over the past year to strengthen a culture
badly shaken by boardroom turmoil and governance practices that have been criticized by shareholders.
Among other new rules, the company now requires executives terminated with cause to give back cash, a
sharp break from the past when executives only lost their stock options.

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“Best Buy is working very hard to send all of the right signals,” said Billie Blair, founder of Change
Strategists, an organizational management consulting firm that advises CEOs and board of directors. “They
really want to rectify what went wrong in the past and make things right for the future.”
Top management
 Hubert Joly., President and Chief Executive Officer
 Sharon McCollam, Chief Administrative Officer and Chief Financial Officer
 Shari Ballard, President, U.S. Retail and Chief Human Resources Officer
 Chris Askew, President, Services
 Matt Furman, Chief Communications and Public Affairs Officer
 Mary Lou Kelley, President, e-Commerce
 Mike Mohan, Chief Merchandising Officer
 Keith Nelsen, General Counsel
(d) WHOLE FOOD
Board of directors
The setup of the organic grocery store is key component to whole foods success. The store‟s setup and its
products are carefully researched to ensure that they are meeting the demands of the local community.
Locations are primarily in cities and are chosen for their large space and heavy foot traffic. According to
Whole Foods 10-k. approximately 88% of their existing stores are located in the top 50 statistical
metropolitan areas. The company uses a specific formula to choose store sites that is based upon several
metrics, which include but are not limited to incomes levels, education, and population density.
Top management
 John Mackey, Co-Chief Executive Officer and Co-Founder
 Walter Robb, Co-Chief Executive Officer
 A.C. Gallo, President and Chief Operating Officer
 Glenda Flanagan, Executive Vice President, Chief Financial Officer
 David Lannon, Executive Vice President of Operations
 Kenneth J. Meyer, Executive Vice President of Operations
 Jim Sud, Executive Vice President, Growth and Business Development
(e) CHRYSLER
Board of directors
 Stephen Wolf
 Leo W. Houle

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 Erickson N. Perkins
 Ruth J. Simmons
 Alfredo Altavilla
 Sergio Marchionne, Chairman and Chief Executive Officer
 Ronald L. Thompson
 Douglas Steenland
 John Lanaway
Top management
 Mark Chernoby, Senior Vice President of Quality
 Reid Bigland, Ram brand CEO, U.S. sales chief & President and CEO Chrysler Canada
 Saad Chehab, President and CEO - Chrysler brand
 Mark M. Chernoby, Senior Vice President of Product Development
 Olivier Francois, Chief Marketing Officer, Chrysler Group and Fiat Group Automobiles, Head of
Fiat Brand
 Scott R. Garberding, Senior Vice President of Manufacturing
 Ralph Gilles, SRT brand CEO and President of Design
 Pietro Gorlier, Mopar brand CEO and President of Service, Parts and Customer Care
 Bill Cousins
 Mircea Gradu, Head of Transmission Powertrain and Driveline Engineering (departing)
 Peter M. Grady, Vice President of Network Development and Fleet
 Michael J. Keegan, Senior Vice President of Supply Chain Management
 Timothy Kuniskis, President and CEO of Dodge brand
 Scott G. Kunselman
 Jody Trapasso
 Jason Stoicevich
 Robert (Bob) Lee, Head of Engine, Powertrain and Electrified Propulsion Systems Engineering
 Robert E. Lee
 Holly E. Leese
 Laurie A. Macaddino
 Michael Manley, President and CEO Jeep brand and COO APAC (Asia Pacific Region)
 Richard Palmer, Senior Vice President and Chief Financial Officer
 Barbara J. Pilarski
 Nancy A. Rae, Senior Vice President of Human Resources
 Gualberto Ranieri
 Scott A. Sandschafer

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 Joseph Trapasso
 Joseph Veltri
 Daniel W. Devine, Vice President, Office of Tax Affairs
C. EXTERNAL ENVIRONMENT
(a) WAL-MART
General Environment
Political/legal: Wal-Mart must carefully analyze the business-related polices. Competition laws, taxation
laws, and labor training laws are areas in which policies can affect Wal-Mart‟s operation and profitability a
lot. Wal-Mart is facing an issue regarding discrimination of employees based on their gender. Women are
discriminated by not allowing them to sit in supervisory and managerial levels (Wal-Mart: An Analysis,
2008). There are said to be pending lawsuits waiting for Wal-Mart‟s notions as the company has allegedly
went against the labor laws. This negative reputation could result in a loss of competitive advantages,
sales, and possibly Wal-Mart‟s reputation as the world‟s leading Retail Company. Therefore, engaging in
gender equality practices will help contribute to Wal-Mart‟s success.
Social: The social cultural segment is concerned with a society‟s attitudes and cultural values. A major
social cultural trend is the continued growth of suburban communities. The increasing number of people
living in the suburbs has a number of effects. Wal-Mart continues expanding its current store capacity to
include new products and services for customers. Wal-Mart will build new supercenters in previously
unexplored regions in Canada, which includes plans for 37 new stores in the next fiscal year (Canadian
Press, 2013). In America alone, Wal-Mart established 4,017 stores in central and convenient locations to
serve communities (Global Responsibility, 2013).
Economic: Wal-Mart is always sensitive towards economy growth, their sales model which depends on
low margins of profit and a high volume of sales, could alter relatively fast. When economy doing well,
Wal-Mart‟s low price strategy would be of less importance to customers, in the other hand, during a time
of recession Wal-Mart goal of high volume of sales would be threatened. As a result of the previously
mentioned points, Wal-Mart should conduct a thorough study before entering an unbalanced economy
(Wal-Mart, 2013).
Demographic: For Wal-Mart, demographic segments are analyzed on a global basis, because it operates
internationally. Demographic segments are concerned with many areas such as population size, age
structure and geographic distribution. Wal-Mart is using its wealth of sales and inventory data to segment
based on demographics, allowing it to market to specific age, ethnicity and income brackets (Brian, 2006).
By analyzing the demographic segment, Wal-Mart will know their customers better, so better services
could be provide. Segment based on demographics, allowing it to market to specific age, ethnicity and

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income brackets (Brian, 2006). By analyzing the demographic segment, Wal-Mart will know their
customers better, so better services could be provide.
Technological: Wal-Mart embraced technology to become an innovator in the way stores track inventory
and restock their shelves (Traub, 2012). Wal-Mart has invested heavily in its unique cross docking
inventory system, which can help Wal-Mart to achieve economies of scale to reduce the costs. With its
successful system, Wal-Mart is able to responds quickly at demand changing, maintain low costs and
satisfy its customers. The effort that Wal-Mart put into the supply chain management makes the company
become the leader of this area
Global: Wal-Mart focus on the global market, the company expands into many different countries.
However, there are different cultures and laws apply to in different countries, which may increase the risk
and expenditure of the company to enter into a new market.
Industrial environment
Rivalry among Competing Firm: They don‟t have major competitor but they have competitor on the
market. Their products are very well and a characteristic is also so much well. These products are not so
much costs and they have lot of products capacity.
Bargaining power of buyers: There bargaining power of buyer is high because there are lots of pickles
products in the market. And the buyers have power to buy any products.
Bargaining power of supplier: Here the bargaining power of supplier is low because there are lots of
pickles products in the market.
Threats of new entrants: They have very high products quality. They want to take their position on the top
level. They have very hard threat on new entrants, because they want to develop their products.
Threat of substitute products or services: A substitute products is a product that appears to be different
but can satisfy the same need as other products. They have strong threat on the substitute products or
services.
(b) GOOGLE
General Environment
Political/Legal Forces: Formal institutions have not significantly affected Google‟s operations, although
Google has faced pressure from the Department of Justice to relinquish archived search terms (Buncombe,
2006) and from the Chinese government to censor search results (Liedtke, 2005). Google‟s “Don‟t be evil”
mantra has been put to the test as users ask whether cooperation with governments undermines their
privacy and freedoms. In 2008, Google responded to customer concerns when it added a privacy link to its
home page. This link took users to a Privacy Center where they could learn about Google‟s policies in

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regard to political and legal issues (Google, 2008). Google has also faced concern on copyright issues
because the company stores copies of third party web pages and images on their servers. They have
responded to this criticism by releasing a copyright information page. The page provides the relevant
information regarding digital information and provides links to notify both Google and the U.S. Copyright
Office of suspected infringement (Google, 2008).
Economic Forces: The United States was currently in a period of recession and stocks were trading at 52-
week lows. However, technology companies like Google are relatively isolated because search and
consequently internet-based advertisements has become a staple to the world society and economy. In fact,
a recent wired magazine article says that Google “looks particularly well positioned to weather the
downturn. Google's focus on highly targeted, measurable advertising makes it more recession-proof than
many other businesses in tech.” (Schiffman, 2008) The crucial need to stay informed and constantly
connected keeps such services vibrant despite the parched surroundings.
Social Forces: The world is increasingly becoming more connected due to the means of communication
available through the internet. And, for many people, the search giants like Google make the internet
navigable. As internet use increases among all age groups and across all cultures, we will become
increasingly more dependent on internet search. In addition, most new cell phones are internet capable
devices. People will use these devices for driving directions, to locate restaurants, check sports scores,
download music, and even quick research. Google stands to benefit from this with an increased number of
search queries. To enable more people to access Google‟s services from their mobile devices, the company
has released its Android Mobile Phone Platform and Operating System as well as the Google Mobile App
that can be downloaded on other platforms such as the Apple iPhone. Google is well positioned in
demographics because it has a relatively young userbase. This means that it will be less affected as the
Baby Boomers age in comparison to other companies that depend on the 50 to 60 year-old demographic
group. Internet search is also not a gender-specific issue, and would not be hurt by changes in the ratio of
female to males. The company will however benefit when some traditional and paternalistic societies begin
using the internet more frequently.
Technological Forces: Technology is obviously always improving and Google has taken specific
measures to make sure it does not fall behind. Google can use commodity computer parts (cheap
components) knowing they will fail by ensuring that every component always has a duplicate. The
components are attached to the computer with Velcro rather than screws which allows for quick swapping
and upgrading (May, 2007). Internet search is applicable to most cultures all over the world freeing Google
from geographic dependence. In fact, the company now has 20 offices in the U.S. and international
locations in over 30 countries working on research, sales, and marketing (Google, 2008). Google offers a
personalized search engine for more than 115 countries, and as language support improves, the company is
likely to gain market share. As computers become more affordable, many people in economically

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disadvantaged countries are gaining access to the internet for the first time and Google would like to route
them through its search and productivity products, like Gmail, Docs, and Sites. Google‟s web applications
are now bundled into the operating system on low-cost Linux- based computers (Blankenhorn, 2008).
Industry Environment
Bargaining Power of Customers:
 The numerous internet users and no switching cost between search engines lowers power of
buyers.
 Users require and demand more sophisticated search engines and additional services to remain
loyal to a firm.
 Since search engines are free, firms depend on the amount of traffic flow to receive money from
advertising companies.
 Greater or lower traffic flow implies that advertising firms will pay more or less to the search
engine company, respectively.
 Buyers are not very powerful but firms cannot increase price as there are numerous online search
engines available to users.
Bargaining Power of Suppliers:
 Strong threat of forward integration as search engines may not work as efficiently with new
Microsoft or Apple software. These companies can create their own search engines to prevent
other search engines from performing well.
 Online search engine firms can buy their computers and networking devices from many suppliers,
lowering supplier power.
 Software engineers, web developers and programmers are growing in numbers, so internet search
engine firms have more available resources to choose from, decreasing the power of suppliers.
 Search engine companies rely on advertising companies to provide ads an don users to view the
ads, in order to make a profit. Hence firms must maintain a firm supplier-seller relationship to
keep the power of suppliers low.
Potential entrants / Barriers to entry:
 High barriers to entry as current competitors have many years of data accumulated, through
servers worldwide.
 Very difficult for new entrants to gain market share, as it is very hard to gather enough reputation
to pull customers off Yahoo! and Google.
 Maturing market, requiring more sophisticated search algorithms.

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 There is no perfect search engine, so there is always risk of a better search engine being
introduced to the market.
 Search algorithms can easily be copied by competitors.
 Yahoo! and Google provide additional services to internet users to establish a strategic lock-in. i.e.
Google and Yahoo! provide users with email, and social networking which retains users to their
sites
Power of Substitutes:
 The threat of substitutes is very low, as there are no real substitutes for internet search engines.
 Possible substitutes are online encyclopedias and libraries; however these do not present a threat
to the search engine industry.
 It is costly for customers to switch alternatives, as encyclopedias are expensive or there may be an
entrance fee for libraries; however internet search engines are free.
Potential Competitors/ Rivalry:
 The main competitors in the internet search engine industry are Google,Yahoo!, Microsoft‟s Bing,
Ask Jeeves, Baidu and AOL. There are other competitors but they have a negligible amount of
traffic flow.
 Numerous numbers of firms creates stronger rivalry.
 Growing and always improving market.
 No customer switching cost between search engines enhances competition.
(c) BEST BUY
General Environment
The external-environment refers to all forces that are part of the larger society and affect internal
environment. Economic environment, natural environment, technological environment, political
environment, cultural environment etc. are the major factors to Best Buy (BBY).
Political: The political environment exercises great impact on industry and business. The political factors
that affect Best Buy are:
 Form of Government
 Political stability
 Tax Laws
 Laws related to the hiring and promotion of employee.

17. 17 | D A M
Cultural
 Best Buy continues expanding its current store capacity to include new products and services
focusing on multicultural customers. It operates more than 4,100 stores in multiple formats.
 Best Buy has built 1,200 square foot Best Buy Mobile store as well as 20,000, 30,000 and 45,000
square foot Best Buy big box stores in U.S. In Canada, Future Shop stores average 26,000 square
feet and Canadian Best Buy stores average 32,000 square feet. In Europe, The Carphone
Warehouse and The Phone House stores average 800 square feet.
Economic: Economic Environment is a vital component of the mega environment from the standpoint of
strategic planning. The economic environment of Best Buy is:
 Best Buy provides a great deal of financial information, including current and past years' annual
reports and SEC filings.
 They survey economic Conditions of different segments of population, their disposable income
and purchasing power.
 Analyze trends in income distribution and consumer-spending pattern, income, savings and credit
availability.
 Well informed of Rate of inflation, Tax rates & Interest rates and exchange rates.
 Monitor & observe the behavior of capital markets: The corporate sector and capital market are
important indicators of sophistication and growth of an economy.
Natural
 Best Buy launched „‟Greener Together‟‟ to increase the energy efficiency of its products as well
as reduce consumer waste through more recyclable packaging and proper disposal of certain
electronic components such as rechargeable batteries, and empty ink cartridges.
 Best Buy introduced a recycling program in 2009 that has since collected nearly half-a-billion
pounds of consumer electronics and e-waste and is available at all their stores for free. These
items are then handed over to certified recyclers in the U.S. for proper recycling. The company's
goal is to collect one billion pounds of recycling
Technological
 Best Buy stay is always informed of newest trends so they can be part of the next big thing, rather
than becoming outdated and suffering the consequences financially.

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 Best Buy is a leader in the use of technology to maximize operational efficiency. Very early on,
the company realized the value of proactive investments in technology and deployed a private
satellite network.
 Best Buy also managed much of its own logistics through a central hub-and-spoke system of
warehouses and distribution centers. It was estimated that the corporate logistics handled over
million loads each year.
Industry Environment
Threat of new entrants: As globalization spread and use of the Internet grew, barriers to entering the
consumer electronics industry were diminished. When the industry was dominated by brick-and-mortar
companies, obtaining the large capital resources needed for entry into the market was a barrier for those
looking to gain any significant market share. Expanding a business meant purchasing or leasing large
stores that incurred high initial and overhead costs. However, the Internet significantly reduced the capital
requirements needed to enter the industry.
Intensity of competitive rivalry: Rivalry among Existing Players is high. Strong competition from large
scale retailers (Walmart, Target).
Bargaining power of suppliers: Due to high industry concentration of top players they must offer
significant discounts for the larger retailers. So, Bargaining Power of Suppliers is low.
Bargaining power of customers (buyers): Customers are able to compare prices directly online and
choose the least costly. So, Bargaining Power of Customers is high.
Threat of substitute products or services: Threat of Substitutes is high, because online retailing offers
lower prices and convenience of home delivery.
(d) WHOLE FOOD
General Environment:
Political-legal: On May 23rd, the SEC intervened now Whole Foods will have to wait another month to
finish its acquisition of Boulder-based competitor Wild Oats because federal regulators are taking an
unexpectedly lengthy look at the deal.
Economic: With an economy that is becoming conscious of their environment, whole foods market is
doing the right thing: Farming Organically in a Complex World Environmentally, organic farmers has a
much gentler impact on the earth than their conventional counterparts. The organic farmer pays a price for
that in higher labor but the rewards are commensurate if you believe in the land and want to take care of it.

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Organic products cost more than conventional products because the price more accurately reflects the
actual cost of food production. Society as a whole bears the health and environmental costs of toxic
chemical use in agriculture, such as the cleanup of soil and water contamination, while organic farmers
must bear the cost of the increased labor and intensive management required as a substitute for chemicals
and the use of genetically modified seeds.
Societal environment: Whole Foods present and future threats are growing at a rapid speed and the SEC is
now starting to look at its operations as far as purchasing its leading competitors. The SEC doesn‟t want
Whole Foods to monopolize the industry. An opportunity for Whole Foods is organic farming can take a
strong leadership role in the restoration of life's value and meaning. Whole Foods competitors are its
threats. The top competitors are Wild Oats and GNC.
Technological: People are looking for something better. They're looking for meaning and value in their
lives." In today's world, farming organically seems to be a step back from our technologically advanced
society. "Food is part of the foundation of culture and community - we need to pay more attention to it.
Sociocultural: Clean, nutritious food untainted by toxic chemicals and grown in healthy soil teeming with
beneficial life is what more and more people want these days. As a result, while total US food sales have
increased between two to four percent a year for the last seven years; organic products have grown on
average more than twenty percent a year, making it the fastest growing segment of agriculture.
In essence, the purpose of organic farming is to work as a partner with nature to promote natural and
compassionate husbandry of plants and animals while conserving soil and water resources. As mandated
by the USDA National Organic Standards, soil and plants are not treated with toxic chemicals or persistent
pesticides. No toxic fertilizers or sewage sludge is used to promote growth, nor are genetically engineered
seeds allowed. Animals are fed organic feeds and their natural behaviors must be accommodated to make
their lives as comfortable and stress-free as possible. The use of synthetic growth hormones and antibiotics
are forbidden.
Industrial environment
Rivalry among Existing Firm: They have very high products quality here threat of new entrant is high.
Bargaining power of buyers: Here bargaining power of buyer is high because there is lot of supermarket.
Bargaining power of supplier: Here bargaining power of supplier is low because there is lot of
supermarket.
Threats of new entrants: Their position is not well on rivalry among competitor because there is Wall-
Mart is a standard supermarket.
Threat of substitute products or services: Threat of subtitle products or services is high.

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(e) CHRYSLER
General Environment
Political: The Government‟s role is to stimulate the car industry, yet impose controls over the use of cars
in order to provide an acceptable national infrastructure and the demanded perception of freedom.
Governments can support carmakers because they provide jobs. For example, the United States (US)
Government rescued Chrysler Corporation with a special Federal Loan Guarantee Program. Car makers
have to deal with national governments about environment and security policies. DaimlerChrysler AG is
organized under the laws of the Federal Republic of Germany.
Economic:
 It‟s the time for mergers. If companies want to stay alive, they have to grow fast and mergers are a
good way. It‟s the motto “eat or be eaten”.
 Car prices in European Union are likely to fall as the Euro. Europe‟s single currency will create
greater price transparency. It will probably increase the merger mania. Economists and auto
industries expect a slowdown in auto sales.
 Competition for market share is rising and put increased pressure on prices and margins. Price of
fuel can disadvantage companies. Today we are faced with a great degree of overcapacity in the
car industry running at 5%.
Social: During the last century, the car has transformed the lives of people in developed countries,
providing a new degree of freedom and new opportunities for work and leisure. DaimlerChrysler has
mainly a position in three automotive markets Europe, North America and Asia. These three markets are
composed by a rich population. They can buy car easily. DaimlerChrysler sells a large range of products
which touches all the class of the society. We can also say that the population changes it becomes older
and more single. European and US markets are good for DaimlerChrysler because it‟s a source of national
pride for Americans to buy Chrysler and for Germans to buy Mercedes.
Technological: DaimlerChrysler must take care about new fuel which can change car making. It must also
take care of the growth of the Internet because there is a lot of information about DaimlerChrysler and you
can also make advertising. A lot of Money is spent in technology to preserve the environment and to
secure the customer (e.g. airbag). They also develop entertainment in car like DVD lectors.
DaimlerChrysler has a large range of products in different markets. They product in each market luxury car
(Mercedes), sedans, coupes, convertibles, minivans, jeeps, compacts, sport-utility vehicles, trucks,
commercial vehicles like heavy trucks and buses. They also have Automotive Electronics which products
automotive electronics applications.

21. 21 | D A M
Industry Environment
Threat of New Entrants: MEDIUM
It is not that easy for an entrant to enter into a car industry because of the brand loyalty of customers.
However, some of the well-known foreign companies entered into US car industry easily. The expansion
of the foreign entrants decreases the market of Chrysler.
Bargaining Power of Suppliers: LOW
Suppliers have a little power in Chrysler. That‟s because numerous suppliers rely on some particular auto
manufacturers to buy their products. Each manufacturer has many suppliers. The main qualifications of the
suppliers are the quality, cost, and delivery of the products. If suppliers can‟t meet those basic
considerations, it is hard for them to survive.
Bargaining Power of Customers: HIGH
There are various brands and models of the cars to choose from nowadays. The factors that affect
consumer to make a buying decision are: the appearance, quality, price, and environmental effect. People
always want a new and nice looking car. For those rich people who love cars, they always purchase the
new released and attractive model. Besides that, the quality of the car is an important issue. The car has to
efficient, which means saving gas, protecting our safety, and running fast. Based on a variety of the
lifestyles, people choose to purchase a car in a different way.
Threats of Substitutes: LOW
It is true that there are many of transportations substituting automobiles. They are bicycles, subways,
buses, and trains. These substitutions really make our life easier if we live in the cities. On the other hand,
for those people who live in Utah, upstate NY or suburb area, car is the only transportation tool other than
walking.
Competitive Rivalry between Existing Players: LOW
Competition between existing automobile companies is high because there are too many choices for the
customers. That may cause the industry earning lower profits when the cost of the competition is high.
D. INTERNAL ENVIRONMENT
(a) WAL-MART
Corporate Structure:
The stores of Wal-Mart are considered as one of the large retail chains of the world. The corporation's
operations comprise three business segments: Wal-Mart U.S. engulfs diverse formats through which it
operates large retail chain in regions of the United States. These formats and brands come under the
umbrella of Wal-Mart brand. In addition, Wal-Mart is also engaged in online retail operations which are

22. 22 | D A M
known as Wal-Mart.com. It is an international online retail chain that regulates its retail operations in 14
different countries; moreover, the enterprise controls different retail stores and restaurants that also include
discount stores in order to retain the consumer. The Sam's Club comprises warehouse clubs that offer
memberships in the U.S. and caters diverse online retail operations (samsclub.com).
Corporate Culture:
Culture can be analyzed by observing how the company behaves, including rituals, routines, systems,
histories and structures. There are certain clues about the presumptions that are mostly taken for granted.
Wal-Mart's rituals of corporate life incorporate meetings, special events which emphasize what is
important to strengthen the way of doing things. The one major factor faced by North American companies
is the cultural management in Asian business environment. Most of past literature on international
expansion deals with the issue of workforce diversity and managing across cultures. National culture is
defined as the set of characteristics, norms, beliefs and values commonly held by a society. Any practice or
procedures, which are against the national culture of the host country, will result in failure for MNC. The
resulting conflicts between consumer preferences and the company can have further implications for a
business, both advertising expenditure and R&D.
Marketing:
As a retail company, Wal-Mart offers a wide array of products to consumers. These products include
groceries, toys, and apparel for women, men and children, jewelry as well as hard goods. All other
products are generally sold at reasonable and affordable prices. Every year millions of companies dream of
selling their products to Wal-Mart, the largest company worldwide. Approximately 10,000 companies
present their products to Wal-Mart but only 200 are successful annually. That is, 98% of the companies
present their products to Wal-Mart fail. There are some firms that succeed and others do.
Finance:
 The consumer‟s point of view, the $2.97 deal was the Wal-Mart Every Day Low Price.
 Sources at Vlasic reported that profit was down 25%-50%.
 The product was selling and the Wal-Mart business grew to more than 30%of Vlasic Food
International‟s business.
Human Resources:
It was a well-known fact that Wal-Mart advocates stringent standards of employment of fair labor practice,
but this fact was clouded by its own employees' cry for abuse and discontentment. Lawsuits were filed
against Wal-Mart for unfair labor practices.
Research and Development:
 Wal-Mart due to new stores, but existing stores were growing and showing healthy revenue and
profit gains.
 Vlasic brand prospered due to increase investment in both advertising expenditure and R&D.

23. 23 | D A M
Capabilities/core competencies:
Culture: One core competency Wal-Mart has is its culture. Wal-Mart‟s employees are hardworking,
efficient, and process oriented. In the video “The Age of Wal-Mart” it pointed out that Sam Walton,
founder of Wal-Mart, called his employees associates and treated them as partners. He wanted their input
and ideas on how to make the company better.
Low Cost Operations- As the video pointed out, Sears was a leading retailer during the 70‟s, but was
greatly affected by the recession. They targeted middle class families, expanded their overhead, and
developed in larger cities.
Distribution- Wal-Mart operates an unrivaled global network of 146 distribution centers (Troy, 2003).
Because of this, the trickle-down effect happens.
(b) GOOGLE
Corporate Culture:
 It‟s really the people that make Google the kind of company it is. They hire people who are smart
and determined, and they favor ability over experience.
 Googlers share common goals and visions for the company, they hail from all walks of life and
speak dozens of languages, reflecting the global audience that they serve.
 When not at work, Googlers pursue interests ranging from cycling to beekeeping, from Frisbee to
foxtrot.
 Google strive to maintain the open culture often associated with startups, in which everyone is a
hands-on contributor and feels comfortable sharing ideas and opinions.
 In weekly (TGIF) meetings Googlers ask questions directly to Larry, Sergey and other execs about
any number of company issues.
 Google‟s offices and cafes are designed to encourage interactions between Googlers within and
across teams, and to spark conversation about work as well as play.
Marketing
The core strategy for Google success is not other than Viral Marketing. As Google has never used any
advertisement for its success, it only exploits the social media networks to reach out to the large number of
customers, forwarding power of e-mails & comments of blog spots. Google still continues to enjoy the
number one position in the industry due to Viral Marketing itself.
Finance
Google reported revenues of $5.51 billion in the first quarter of 2009, representing a 6% increase over first
quarter 2008 revenues of $5.19 billion and a 3% decrease from fourth quarter 2008 revenues of $5.70
billion.

24. 24 | D A M
R&D
These are a few of the blue-sky products Google -0.98% is pouring money into developing at the moment.
And to any investors who might consider them a waste of capital, CEO Larry Page offered a strong
rebuttal on Wednesday‟s third-quarter earnings call. “It‟s actually very difficult to spend meaningful
amounts of money, relative to Google‟s scale, on things that are speculative,” Page said. While the internet
Goliath certainly spends on research and development over $1.8 billion in the three months ending Sept.
30, including what it spent at Motorola Mobile Page said 99% of that spending typically goes toward
making incremental improvements on existing products. “I kind of view my job as the opposite thing to get
people to spend money on long-term R&D,” he said.
Human Resources Management (HRM)
 Small Teams enhancing speed and creativity
 Every Googlers idea is considered for betterment of company
 Provides resources to turn great ideas into reality
 Flexible working environment with perks (car wash, onsite doctors, dry-cleaning, massages)
 80-20 work-fun time at office
 Lend a helping hand
 Life is beautiful
 Appreciation is the best motivation
 Work and play are not mutually exclusive
 Love employees, and want them to know it
 Innovation is the bloodline
 Good company everywhere you look. (from neurosurgeons, CEOs, and U.S. puzzle champions to
alligator wrestlers and Marines)
 Uniting the world, one user at a time
 Boldly go where no one has gone before
 There is such a thing as a free lunch after all
Information Systems (IS)
Google couldn‟t organize the world‟s information and make it universally accessible and useful without a
number of key teams who take care of our own information--from the inside out. Google's corporate
computing environment is global, state-of-the-art and a world-leading innovator in the use of cloud
technologies. Our Corporate Engineering team provides the technology that makes Google great--writing
software applications, developing video conferencing solutions and open-sourcing desktop platform
management tools. The teams support some of the best engineering talent in the world, so employee
productivity is at the core of all we do. It also means finding innovative and creative technical solutions for
our power users as we enable and empower our users through technology.

25. 25 | D A M
Capabilities/ Core Competencies of the Firm
 Yahoo! and Google are very different companies, each taking different paths to become the
cyberspace leader. „„Yahoo! is the premier digital media company‟‟ (Yahoo!, 2011), whereas
Google is primarily a search engine based on technological innovation. Each company however,
has their own core competences which help them succeed and deliver qualitative customer value.
These competences are next identified, individually for Google and Yahoo!
 Google has the best programmers and engineers creating superior search engine technology to
provide the best and fastest results than any other search engine. (Google, 2011)
 Google is all about search engine devoting „„more engineering time to search than to any other
product, because search can always get better and faster ‟‟(Google, 2011).
 Google offers advertisers „„measurable, cost-effective and highly relevant advertising‟‟ (Google,
2011), through their advertising technologies such as „AdWords‟, „Display Network‟, „Double
Click‟, and mobile advertising.
 Google‟s AdSense advertising technology selects particular ads, and places them on sites with
information related to these ads, making them useful to users and advertisers. (Google, 2011)
 Google „„offers advertisers the ability to run search ad campaigns on mobile devices with popular
mobile-specific ad formats, such as click-to-call ads‟‟ (Google, 2011).
 Google has a strong social media, YouTube, which generates a high traffic flow, and Google+ to
compete with the social networking giants.
 Google „„offers software like Google Chrome to help users browse the web quickly and easily‟‟
(Google, 2011)
 Google has an extended product line, including Gmail, Google Buzz, Android, Google Earth,
Maps, News, Documents, Translators, Google Scholar and Google Sketch up to name a few.
 Google is an innovative firm, always improving, developing and inventing new products.
(c) BEST BUY
Corporate Structure
Best Buy‟s mission was to make technology deliver on its promises to customers. To accomplish this, Best
Buy helped customers realize the benefits of technology and technological changes so they could enrich
their lives in a variety of ways through connectivity: “To make life fun and easy,”1 as Best Buy put it. This
was what drove the company to continually increase the tools to support customers in the hope of
providing end-to-end technology solutions.
Corporate Culture
As a public company, Best Buy‟s top objectives were sustained growth and earnings. This was
accomplished in part by constantly reviewing its business model to ensure that it was satisfying customer

26. 26 | D A M
needs and desires as effectively and completely as possible. The company strived to have not only
extensive product offerings but also highly trained employees with extensive product knowledge. The
company encouraged its employees to go out of their way to help customers understand what these
products could do and how customers could get the most out of the products they purchased. Employees
recognized that each customer was unique and thus determined the best method to help that customer
achieve maximum enjoyment from the product(s) purchased.
Marketing
Best Buy‟s marketing goals were four-fold: (1) to market various products based on the customer centricity
operating model, (2) to address the needs of customer lifestyle groups, (3) to be at the fore front of
technological advances, and (4) to meet customer needs with end-to-end solutions. Best Buy prided itself
on customer centricity that catered to specific customer needs and behaviors. Over the years, the retailer
created a portfolio of products and services that complemented one another and added to the success of the
business.
Finance
While Best Buy‟s increase in revenue was encouraging recent growth had been fueled largely by
acquisition, especially Best Buy‟s fiscal year 2009 revenue growth. At the same time, net income and
operating margins had been declining. Although this could be a function of increased costs, it was more
likely due to pricing pressure. Given the current adverse economic conditions, prices of many consumer
electronic products had been forced down by economic and competitive pressures. These lower prices
caused margins to decline, negatively affecting net income and operating margins.
Operations and Logistics
Best Buy‟s operating goals included increasing revenues by growing its customer base, gaining more
market share internationally, successfully implementing marketing and sales strategies in Europe, and
having multiple brands for different customer lifestyles through M&A(Merger and Acquisition).
Human Resources Management (HRM)
The objectives of Best Buy‟s human resources department were to provide consumers with the right
knowledge of products and services, to portray the company‟s vision and strategy on an everyday basis,
and to educate employees on the ins and outs of new products and services. Best Buy employees were
required to be ethical and knowledgeable. This principle started within the top management structure and
filtered down from the retail field officer through district managers, and through store managers to the
employees on the floor. Every employee must have the company‟s vision embedded in their service and
attitude.

27. 27 | D A M
Information Systems (IS)
Best Buy used its customer centricity model, which was built around a significant database of customer
information, to construct a diversified portfolio of product offerings. This allowed the company to offer
different products in different stores in a manner that matched customer needs. This in turn helped keep
costs lower by shipping the correct inventory to the correct locations. Since Best Buy‟s costs were
increased by the high level of training needed for sales associates and service professionals, it had been
important that the company remain vigilant in keeping costs down wherever it can without sacrificing
customer experience.
Capabilities/ Core Competencies of the Firm
Most players in the consumer electronics industry focused on delivering products at the lowest cost (Wal-
Mart: brick-and-mortar, Amazon: web-based). Best Buy, however, took a different approach by providing
customers with highly trained sales associates who were available to educate customers regarding product
features. This allowed customers to make informed buying decisions on big-ticket items. In addition, with
the Geek Squad, Best Buy was able to offer and provide installation services, product repair, and ongoing
support. In short, Best Buy provided an end-to-end solution for its customers.
(d) WHOLE FOOD
Corporate Structure:
The company has differentiated itself from competitors by focusing on quality as excellence and
innovation that allows it to charge a premium price for premium products.Whole Foods Market is the
world‟s leading retailer of natural and organic foods, with 193 stores in 31 states, Canada and the United
Kingdom.
Corporate Culture:
Whole Foods Market is highly selective about:
 What it sells,
 Dedicated to stringent quality standards, and
 Committed to sustainable agriculture
It believes in a virtuous circle entwining the food chain, human beings and Mother Earth: each is reliant
upon the others through a beautiful and delicate symbiosis.
Organizational Activities Analysis:
Whole food recognizes it is only a supermarket; management is working toward fulfilling their vision
within the context of the industry. They strive to conduct business in a manner consistent with their
mission and vision. By offering minimally processed, high quality food, engaging in ethical business
practices.

28. 28 | D A M
Marketing:
Whole Foods Market‟s vision of a sustainable future will be living in a world that value:
 Human creativity,
 Diversity
 Individual choice
The markets preservation and sustainability are followed while providing high-quality goods to customers
and high profit to investors. Whole Foods carries only natural and organic products. The best tasting and
most nutritious food available is found its purest state-unadulterated by artificial additives, sweeteners,
colorings, and preservatives.
Finance:
 The $565 million acquisition of its lead competitor. Wild Oats, in 2007 firmly set Whole Foods as
the leader in the natural and organic food market and led to 70 new stores.
 Sales of organic foods increased by 5.1% in 2009 despite the fact that U.S. food sales overall only
grew by 1.6%.
 The average cost to open a new store ranges from $2 to $3 million and it takes on average 8 to 12
months.
Research and Development:
 Food markets providing a motivational, respectful work environment, the company believes it is
on the path to a sustainable future.
 Whole Foods supermarket becomes clear that the company attempts to sell the consumer on the
entire experience.
Capabilities/ Core Competencies of the Firm
 Highest quality brand reputation
 Dedicated to the social ethics of organics
 Industry best customer service
 Strong supply chain
 Private label program
(e) CHRYSLER
Corporate Culture:
The company was founded by Walter Chrysler (1875–1940) on June 6, 1925, when the Maxwell Motor
Company (est. 1904) was re-organized into the Chrysler Corporation.
Walter Chrysler arrived at the ailing Maxwell-Chalmers company in the early 1920s. He was hired to
overhaul the company's troubled operations (after a similar rescue job at the Willys-Overland car
company). In late 1923 production of the Chalmers automobile was ended.

29. 29 | D A M
In January 1924, Walter Chrysler launched the well-received Chrysler automobile. The Chrysler was a 6-
cylinder automobile, designed to provide customers with an advanced, well-engineered car, but at a more
affordable price than they might expect. (Elements of this car are traceable to a prototype which had been
under development at Willys during Chrysler's tenure). The original 1924 Chrysler included a carburetor
air filter, high compression engine, full pressure lubrication, and an oil filter, features absent from most
autos at the time. Among the innovations in its early years were the first practical mass-produced four-
wheel hydraulic brakes, a system nearly completely engineered by Chrysler with patents assigned to
Lockheed, and rubber engine mounts to reduce vibration. Chrysler also developed a wheel with a ridged
rim, designed to keep a deflated tire from flying off the wheel. This wheel was eventually adopted by the
auto industry worldwide.
Corporate structure
 Chrysler Group‟s day-to-day operations are managed by a highly skilled and motivated
management team. As part of the reorganization of its management, experienced leaders were
drawn from both Chrysler Group and Fiat and the organizational structure was flattened.
 To facilitate collaboration and enhance speed of decision-making, two management committees
chaired by Sergio Marchionne, the Chief Executive Officer of both Chrysler Group and Fiat, meet
regularly to consider significant operational matters.
 The Product Committee oversees capital investment, engineering and product development, while
the Commercial Committee oversees matters related to sales and marketing.
 This structure further fosters cooperation, information sharing and timely decision-making.
Marketing
There was a market test of the Chrysler plan, but unfortunately it was a test that no one could believe
adequately revealed Chrysler‟s underlying value, as what was put to market was the sub Rosa plan itself.
Chrysler and the government asked the court to only permit the firm to be marketed with multiple pre-
bankruptcy claims on Chrysler intact, including the United Automotive Workers‟ retiree claims. But that‟s
exactly what was at stake: whether Chrysler‟s assets were more valuable without those claims.
On March 30, 2009, the U.S. Treasury and the U.S. Auto Task Force rejected Chrysler‟s stand-alone
Viability Plan. The U.S. Auto Task Force announced that it would provide another US$6 billion federal
loan to Chrysler. However, in order to get the additional loan, Chrysler would have to form an alliance
with Fiat by April 30, 2009. In addition, the company would have to restructure its debt and would have to
negotiate with the UAWand CAWunions to reduce employee benefits and increase productivity.
Finance
In 2007, Chrysler reported a net loss of US$1.6 billion. The company‟s financial problems continued in
2008, due to declining sales. (See Exhibit 1 for Chrysler‟s annual U.S. sales between 2000 and 2008.) In
October 2008, Cerberus and General Motors Corporation (GM) 26 engaged in discussions regarding the

30. 30 | D A M
merger of GM and Chrysler. Under the deal, it was proposed that GM would acquire Chrysler‟s
automotive operations and Cerberus would get a 49% stake in General Motors Acceptance Corporation
(GMAC).27 However, the deal did not materialize.
In November 2008, NarChrysleri announced in the media that Chrysler required US$4 billion to run its
operations until March 2009. Overall, Chrysler sought US$7 billion financial aid from the U.S.
government. On December 17, 2008, Chrysler announced that on December 19, 2008, it would close its 12
North American plants due to weak demand. In December 2008, the sales figure of Chrysler declined by
54% as compared to the sales reported in the corresponding month of 2007.
Operation and Logistics
Chrysler Group Logistics Operations began developing plans to minimize the impact of such actions and
were approached by officials of Canadian Pacific Expressway Division to consider using their newly
launched intermodal system, which runs between Detroit and Montreal with a stop in Toronto, as an
alternative.
A major crisis never materialized but Steve Tripp, Senior Manager of Chrysler Group Logistics
Operations, was intrigued by the possibilities this new system presented, particularly with such a positive
impact on the environment and on the congestion in the Windsor-Toronto corridor. The concept was given
to the Plant Delivery Analysts for further investigation. A preliminary market study was done to determine
the financial viability of the program. While the study was under way, I was contacted by delivery
operations to investigate this option from the standpoint of the DaimlerChrysler, Brampton Assembly
Plant. A small team was assembled which consisted of myself, Debbie Hall – Brampton Assembly Just-In-
Time Coordinator and Markus Gerlinger, a Just-In-Time Team Leader from the Mercedes plant in
Sindelfingen Germany, who was working at Brampton as part of an ongoing information exchange
program between the two plants.
Human Resources Management (HRM)
Chrysler Group LLC is an American multinational automaker headquartered in the Detroit suburb of
Auburn Hills, Michigan. Chrysler was first organized as the Chrysler Corporation in 1925. On June 10,
2010, Chrysler Group LLC emerged from Chapter 11 reorganization and announced a plan for a
partnership with Italian automaker Fiat. Fiat holds a 25% stake in the new company, with an option to
increase its stake to 35%, and up to 51%, if it meets financial and developmental goals for the company.
Fiat's stake cannot go beyond 49% until the government has been paid back in full.
Information System (IS)
Despite heavy investment in information technology, GM's information systems were virtually archaic. It
had more than 100 mainframes and 34 computer centers but had no centralized system to link computer
operations or to coordinate operations from one department to another. Each division and group had its
own hardware and software so that the design group could not interact with production engineers via

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computer. GM adopted a "shotgun" approach, pursuing several high-technology paths simultaneously in
the hope that one or all of them would pay off. GM also believed it could overwhelm competitors by
outspending them. GM does spend more than its competitors on information systems. It spends 2.5 percent
of sales on information systems, whereas Ford spends 1.6 percent and Chrysler 0.9 percent of sales on
information systems budgets. GM also tried to use information technology to totally overhaul the way it
does business.
Recognizing the continuing power of the divisions and the vast differences among them, Roger Smith,
CEO of GM from 1981 to 1990, sought to integrate their manufacturing and administrative information
systems by purchasing Electronic Data Systems of Houston for $2.5 million. EDS supplies GM's data
processing and communications services. EDS and its talented system designers were charged with
conquering the administrative chaos in the divisions: more than 16 different electronic mail systems, 28
different word processing systems, and a jumble of factory floor systems that could not communicate with
management. Even worse, most of these systems were running on completely incompatible equipment.
Core Competencies of the firm
In 2002 companies will continue to grow and become market leaders only if their ability to examine the
company's core competencies by identifying, cultivating, and exploiting these competencies continues now
and beyond into the future. Failure to do so could be catastrophic for even the most powerful of
companies, not in the short run but over time competitors will get ahead and the technology gap is so
significant in core competencies that these corporations will never be able to catch up. That is why as we
progress into the 21st century core competencies of a company is what is going to keep the company
competitive and ahead of the rest, and on the brink of technological breakthroughs in their specified area.
The goal of core competencies is “to build world leadership in design and development of a particular class
of product functionality” (Brad more, Joy, Kimberley, & Walker, 1997). Having advantages and control
over core products is critical for several reasons. A dominant position in core competencies and core
products enables a company “to shape the evolution of applications and end markets” (Jain, 2000).
Strategic core products born from the evolution of core competencies leads companies to economies of
scale and scope.
E. ANALYSIS OF STRATEGIC FACTORS
(a) WAL-MART
Strengths
 Wal-Mart is a powerful retail brand. It has a strong reputation for value of money, convenience
and wide range of products all in one store.

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 Low pricing is one of the strength of Wal-Mart. Their low rated pricing attract the customer very
effectively.
 Their product quality is very high. They are supplying qualified product to the consumers
 They are giving special features to the customers, as well as good quality product and service.
 Record breaking deal with a lot of product producing companies is strength
 In one store they offer a huge selection of goods at very competitive, if not the best, prices in a one
stop store. Because of their size they can get huge discounts from suppliers and so pass these
savings on to the customers.
 They manufacture they own branded goods as well as supply goods from local suppliers and other
major brands.
 Their size and buying power is a great strength. They also are frugal in their management style
very careful with how they spend their money and manage their resources.
Weaknesses
 Normal or ordinary planning system for the overall organization
 Financial table are not maintaining in the organization
 Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT
advantages, could leave it weak in some areas due to the huge span of control.
 Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may
not have the flexibility of some of its more focused competitors.
 The company is global, but has a presence in relatively few countries Worldwide.
 Difficulty in controlling the organization. Just controlling such a huge organization is a huge
undertaking and in particular managing the employees.
 Suppliers are always under pressure with regard to price and their ability to supply when required.
Because of the low prices customers often question and are concerned at the quality of the goods.
This is offset to some extent by the satisfaction guarantees offered
Opportunities
 Strong presence in the market share is one of the good opportunities.
 To take over, merge with, or form strategic alliances with other global retailers, focusing on
specific markets such as Europe or the Greater China Region.
 New locations and store types offer Wal-Mart opportunities to exploit market development. They
diversified from large super centers, to local and mall-based sites.
 Opportunities exist for Wal-Mart to continue with its current strategy of large, supercenters.
 Expansion into other countries and forming partnerships to enter these countries is probably the
main opportunity employing 'more of the same' strategy. Taking over companies overseas is also
possible.

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 Online order and free home delivery is a great opportunity. Home delivery of orders placed
through the internet is a big opportunity.
 Creation of Wal-Mart convenience stores are a strong possibility. This overcomes local objections
and increased travel costs
Threats
 Less importance are given in the advertisement sector to create a positive emotion in the heart of
the consumers. If they don‟t give more attractive and glamorous advertisements in different way
their market will fall.
 Being number one means that you are the target of competition, locally and globally.
 Being a global retailer means that you are exposed to political problems in the countries that you
operate in.
 The cost of producing many consumer products tends to have fallen because of lower
manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the
World
 Strong competitive opposition from the local vendors. Local competing vendors hate the possible
arrival of Wal-Mart and a lot opposition is likely. Also competition from local convenience stores
is likely to increase as travel costs to Wal-Mart increase.
(b) GOOGLE
Strengths
 Search: Google web service provides the facilities given to the people how to find what they are
looking f in the websites. Image search, Google news, blog search, Google map etc facilities given
by the Google
 News: Thousands of present‟s news, thousands of new stories, thousands of information in a
different format, publics on their web page within a minute. On the home page of Google news
page stories are presented in such a way so that the user can change it according to them. They
gather all types of news from the English language from the worldwide. It‟s a 100% algorithms
generated sites and it is an important source of different media.
 Communication, Collaboration and Communities- The user can keep track important event,
appointment and special occasion by using Google calendar. Google calendar is a free online
sharable calendar. Google also offer free mail service like Gmail & social networks like Orkut
 Google GEO: The specific function of Google is Google earth & Google maps which provide user
with facility to see the location and learn about that area and they can get the satellite and aerial
images from their desktop.

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 Books: Google books provide information to purchase the books online. User can also read the
inside of the book online from the selected books.
 Videos: Google Video has millions of videos indexed for viewing. In late 2006 the Google
acquired YouTube for $1.65 billion. In the YouTube the user can search and watch the most
updated videos.
 Finance: They provide financial information and news on companies‟ .One of the feature is also
that its sites provide the latest data and latest news from the financial industry.
 Photo sharing: Google is having photo sharing option in the Picasa web album.
Weaknesses
 Commerce: Google earns 99% of its revenues from advertising and the remaining 1% comes from
licensing of service. Google portfolio does not have commerce feature.
 Context: IT is very difficult to Google to capture context because Google having one search box in
its delightfully simple interface.
 Content: There is one area where the Google is lagging behind yahoo. Google is always known as
a finder not as a producer.
 Personalization: The user can customize their page and they can organize the Google page like in
Orkut, Picasa, you tube etc. The user can go to the other user account and see the profile. This is
the criticism of the privacy.
 Business model: Google Ad sense is under serious threat from vertical AD network.
Opportunities
 To survive in this tough competitive world Google can add sticky like chat rooms and email
systems to attract its regular and new users.
 It can increase switching charges by tracking users‟ search histories only if they permit and could
remind them through emails for their relevant search updates as per their personal interest and
requirements.
 Yahoo and MSN are known as mass-market portal, Google can also become a mass market portal
and can increases witching cost for its users.
 Google can increase localized and personalized searching and can also add localized paid listings
of advertisers.
 It can start with some new services like product search, multimedia, print media and private
database.
 Just to lock in large number of advertisers and users Google can merge with an established mass-
market portal.
 Google can start providing full-fledged services on hand held mobile devices to acquire market
beyond conventional internet

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Threats
 Peer Search: There is a question asked by expert whether Google is worried about peer search.
And then the expert people rank search result which shows and provide some interesting and
related result than an algorithm yet can provide. Sometimes in the recent years this type of search
worried Google.
 Competitors: Google should be aware of new search engines which promise to improve search
experience compared to them. There is one best example of new search engine which was
supported by significant investors that is Power set.
 Merging of Microsoft and Yahoo: Since there were many discussions from MSN and Yahoo that
at some point of time they may merge but the question here is are they really wanted to merge or
just scaring Google.
(c) BEST BUY
Strength
 Largest Electronics Retailer with1100 Big Box Stores in US, 305Best Buy Mobile and
2861International Stores.
 Customer centric business model.
 Strong supporting infrastructure.
 Store Presence and Warranties.
 It has Loyalty Programs - “Reward Zone”.
 In this company there has Knowledgeable Staff.
 Best Buy entered the international market with the acquisition of Future Shop Ltd, a leading
consumer electronics retailer in Canada.
Weakness
 High fixed costs due to Big Box physical locations dragging down profit margins.
 Higher penetration of lower margin products will impact profitability.
 Increased promotions and reduced product prices adversely impact gross margin.
Opportunities
 High Growth business in Best Buy Mobile.
 Leverage brand awareness to grow online presence and compete with online retailers.
 Reduce store footprint to increase profit margins.

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Threats
 Cautious consumer and slow recovery in the US
 Uncertainty in Europe dragging down profits and expansion
 Intense competition from large retailers and online retailers squeezing margins
 Increased cost of procurement from China as labor costs surge
(d) WHOLE FOOD
Strengths
 Organic market leader
 Strong WFM-supplier collaboration
 Finest quality of goods
 Good distribution systems
 Minimal level of expensive advertising
 Well trained staff with specialized skills
 Community involvement
 Value price private-levels
Weaknesses
 Premium prices
 High cost in expansions
 High employee/customer ratio
 Large perishable inventory
 High inventory costs
 Shortage of inventory in certain categories
 Geographic limitations
Opportunities
 Growing market through development and penetration
 Popularity of healthy living
 Cross over of traditional grocers
 Leveraging of our market leading brand
 Consumers looking for value-priced goods
 Consumers looking for premium goods
Threats
 Growth relies on new stores and acquisitions
 Weak economy resulting in reduction of consumer spending

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 Increased competition
 Unionization
 Government regulations
 Limited capital
 Debt
 Stock price reductions
 Economic conditions could affect goodwill
(e) CHRYSLER
Strengths
 High Fleet Sales way above industry average. In US, over 1 million sales per annum
 Strong brand recall in North American markets
 Reputation for V-8 Hemi engines
 Domination in minivan market
 Strong customer focus and a strong employee base of over 50,000
Weaknesses
 Due to high fleet sales there is also seen a non-preference by customers for few of the model of
Chrysler
 Management problems have been a concern.
 Limited market share owing to increasing competition.
Opportunities
 Change in the management for better
 It may also assist it for selling its cars in new geographical markets
 Increasing demand for green vehicles where Chrysler has presence
Threats
 Decreasing confidence of dealers & other associates in the Company
 Strong reliance on the North American market
F. IDENTIFICATION OF STRATEGIC ISSUES
(a) WAL-MART
Wal-Mart wants speed and care. A system was connected at the individual store level allowing a given
supplier to receive reports of shelf movement via real-time. The accuracy and timeliness of this type of
system eliminated warehouse stock pile-ups, saving time and processing costs for the supplier. A supplier
that did not have this type of electronic data interchange throughout the supply chain usually had higher

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costs and therefore would be likely to have difficulty meeting Wal-Mart‟s demands. Like other Wal-Mart
suppliers, Vlasic knew that Wal-Mart did not tolerate late orders or out-of –stocks. Wal-Mart provided the
seamlessness for suppliers to maximize the efficiency of the supply chain and they expected their suppliers
to respond. Vlasic had had no difficulties meeting Wal-Mart‟ volume requirements. Wal-Mart was able to
go national with a new item in two weeks as compared to two months in many other chains.
After completing our SWOT analysis we found three possible strategic alternatives for Wal-Mart to
consider. Each of them has pros and cons to consider before making the best decision. These are: the
horizontal growth strategy (growth), the pause-proceed with caution strategy (stability), and the turnaround
strategy (retrenchment).
Alternatives:
 Horizontal Growth Strategy: Wal-Mart can achieve this strategy, both internally and externally, by
expanding their operations into more international locations while also offering more fashionable
products both domestically and internationally.
 The pros to this strategy include: the ability to form a joint venture with another country (develop
new products and technologies) and acquisitions (purchasing other companies already operating in
the area). The cons to this strategy
 The cons to this strategy are the fact that Wal-Mart has already entered some international markets
and did not succeed. They had to withdraw from South Korea because they failed to research the
geographic and demographic characteristics. They did not offer any products the majority of
customers shopped for.
 Pause/Proceed-with-caution strategy: Wal-Mart‟s current strategies work but the result is less
than expectation. Therefore a pause strategy may be appropriate.
 Pros: this give a temporary break (with a set time) to review, make adjustment, and then proceed
with all the necessary tools.
 Cons: it may set performance activities in limbo (especially with new hired managers) and may be
freeze (if sitting longer the needed time) or fall into the wrong direction.
 Turnaround Strategy: In this strategy Wal-Mart would place emphasis on improving their
operational efficiency. They could achieve this through contraction which would include cutting
back costs and expenses as well as eliminating up to 10% of their employees. Wal-Mart does not
have any critical corporate problems yet because they are still doing better than Target.
 The greatest pro to this strategy would be the improved competitive position because employees
would get involved with many productivity improvements. The company would then emerge from
this period much stronger and better organized than ever before.

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 The major con to this strategy would occur if Wal-Mart did not properly consolidate. They could
potentially lose many key employees. Consolidating (cutting cost and downsizing) is appropriate
but too much could put the company in a worse position allowing no improvements.
Recommended strategy
The qualitative finding reflects there is a performance gap exists (withdrawal from French, Japan, and
Korea). Therefore, a pause/proceed with caution strategy for six month would be appropriate. It allows
Wal-Mart to develop a corporate infrastructure and redesign its strategic business units and to
reengineering business process, in achieving its synergy include detailed laid-out job redesign (enrichment)
with cross-functional work teams and employee flexibility by carefully hiring, promoting, and training
especially with multi-functional in the multi-culture environment. That included effective communication
and diverse cultures (integration, assimilation, separation, or enculturation) management. Redesigning its
strategic business units and reengineering business process will prepare Wal-Mart coordinate strategies in
the economies of scales and increase flexibility to adapt strategic implementation processes and effectively
use of collaborated tools to reduce time on extra steps readily for mergers and multi-national acquisitions.
Then continue with horizontal growth strategy.
(b) GOOGLE
 Leadership & Culture Structure: Google follows a fairly regular functional structure with
management positions specialized by various value chain activities. As a globally diversified
company, these positions are further divided and grouped into regions of interest that aid the
company in managing the breadth of its operations.
 Employee Perks: Google is often lauded for the way the company treats its employees. Fortune
magazine ranked Google at the top of its lit of the best companies to work for in 2007 and 2008
(Fortune, 2008). Perhaps that‟s because Google‟s corporate vision includes such axioms as, “You
can be serious without a suit.” (Google, 2008)
 THE 70/20/10 RULE: Google allows employees to spend 70 percent of their time on the core
business, 20 percent on related projects, and 10 percent on unrelated new businesses. This rule is
so important that Google has people on staff to manage the 70/20/10 rule. The engineering and
design staff makes use of the “free time” to pursue new products and technologies, but even the
top-level managers adhere to the rule. According to Eric Schmidt, they spend 70% of time on
search and advertising, 20% on adjacent businesses like Google News and Google Earth, and 10%
on new things like the free wireless initiative (Battelle, 2005). The 20% rule has a good return on
investment since about half of Google‟s new product launches occur as a result of that “free” time.
 Production & Purchasing Strategies: Google is currently testing a new advertising program that
pays site owners based on a Cost Per-Click model. The program, called Cost-Per-Action, was

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revealed via an invitation e-mail from the Google AdSense team to Web site owners. Google is
investing in the new technologies to keep pace with the changing expectations of the users. As
Google's great IT advantage is its ability to build high-performance systems that are cost efficient
and that scale to massive workloads. Because of that, IT consultant Stephen Arnold argues,
Google enjoys huge cost advantages over competitors such as Amazon, eBay, Microsoft, and
Yahoo.
Strategic Alternatives and Recommendations
Google is left only with three strategic alternatives namely- defending current market share, market
modification & product modification. Out of the above mentioned strategies, market modification strategy
must be adopted. As Google can only grow its impressions by increasing:
 The frequency of searches by existing users,
 New searchers that didn't use search engines before, and
 Users that migrate from other search engines
 The traffic to sites in its search and advertising networks (over which it has no direct control,
unless... no, they wouldn't do that!)
(c) BEST BUY
Best Buy saw its largest rival, Circuit City, go bankrupt. However, a new archrival, Wal-Mart, was
expanding into consumer electronics and stepping up competition in a price war Wal-Mart hoped to win.
So to win with the competitors Best Buy have to do:
 Best buy needed to face the competition not by lowering prices.
 Best Buy had to determine the correct path to improve its ability to differentiate itself from
competitors, which was increasingly difficult given an adverse economic climate and the
company‟s financial stress.
 It needs to describe how Best Buy could maintain innovative products, top-notch employees, and
superior customer service while facing increased competition and operational costs was an open
question.
 More resources have to be directed at research of new products to make sure Best Buy continued
to offer the products consumer desire.
Oasis Consulting has identified has two challenges that Best Buy will face going forward. First, it is
unlikely that the U.S. economy will rebound to the levels that it had been experiencing for at least another
couple years. As housing prices continue to fall and lower people‟s wealth, so will consumer discretionary
spending. As shown in Figures 2 and 3, the amount of disposable income individuals have is closely
related to retail sales growth. For Best Buy, this is very problematic since its products are viewed as luxury
goods and otherwise unnecessary. The second problem Best Buy will face is increased long-term

41. 41 | D A M
competition from its discount competitors like Wal-Mart, Amazon.com and other internet retailers. The
shakeout in the consumer electronics retail industry has left only several players standing and competition
will intensify as companies seek to gain market share.
Furthermore, as internet retailing becomes easier and ubiquitous, Best Buy will stand to lose all of its
business if it does not reassess its business model. In short, Best Buy needs to address the following
questions:
 How can Best Buy support the anticipated fall in sales due to contracting consumer spending in
the short term?
 How can Best Buy compete with large discount competitors like Wal-Mart and
 Target as well as internet discount retailers like Amazon.com?
Oasis Consulting have developed several solutions to cope with issues above and strongly advises the
management of Best Buy to consider them.
(d) WHOLE FOOD
Whole Foods Market is the world‟s leading retailer of natural and organic foods, with 193 stores in 31
states, Canada, and the United Kingdom. The company has differentiated itself from competitors by
focusing on quality as excellence and innovation that allows it to charge a premium price for premium
products. Whole Foods Market is highly selective about what it sells dedicated to stringent quality
standards, and committed to sustainable agriculture. The message of preservation and sustainability are
followed while providing high-quality goods to customers and high profits to investors. Whole Foods has
grown over the years through mergers, acquisitions, and new store openings. While Whole Foods
recognizes it is only a supermarket, management is working toward fulfilling their vision within the
context of the industry. By offering minimally processed, high- quality food, engaging in ethical business
practices and providing a motivational respectful work environment, the company believes it is on the path
to a sustainable future. Whole Food incorporates the best practices of each location back into the chain.
Whole Foods encourages a team- based environment allowing each store to make independent decisions
regarding its operations. Teams consist of up to 11 employees and a team leader. The manger is referred to
as the “store team leader.” The setup of the organic grocery store is a key component to Whole Foods
success. The store‟s setup and its products are carefully researched to ensure that they are meeting the
demands of the local community. The company uses a specific formula to choose store sites that is based
upon several metrics, which include but are not limited to income levels education and population density.
Whole Foods exists in a time where customers equate going green and being environmentally friendly with
enthusiasm and respect.
Recommended Strategy
For the corporate level of WFM we are recommending global expansion and retail diversification. These
two are chosen to implement the growth strategy for WFM. Global expansion will give them more stores
and exposure. Retail diversification is very broad but will grow their business into a new segment. While