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Financial Spreadsheet Analysis
Best buy case presents a scenario where by the
organization went through quite a number of issues that had
significant adverse implication to the organization performance.
The financial spreadsheet analysis of this company will help
give us some reliable trend from the performance evaluation
that can be used later to come up with an effective prediction on
the company’s future. There were several major issues that took
place in this organization right from its inception though in
some years the events were more adverse than the others. These
issues had different implication on the strategic theme of the
organization. When we critically examine these issues and the
events in line with the organizational performance, we will be
able to come up with an effective trend to have control on the
organizational performance and behavior. In this case we will
cover three years to ensure that our trend is quite valid and also
increase the reliability.
The company went through some sort of turning point at the end
of 2009 financial year. There was that change in the leadership
of the organization. Bran Anderson handed over to Brian Dunn,
this was such a crucial issue considering the fact that the
management has significant implication in the management.
This change in management meant that the operation system and
the leadership and management strategy would change
significantly. In a conclusive analysis for the trend this
organization is taking, it is important that we try evaluating the
previous approaches and the management theme. Every
organization has some specific way of control the management
performance to hit the leadership goals (Ferguson, 2014).
In as much as the general performance of the initial
leadership was quite impressive, there were some areas of
weakness that required adjustments. The company had opened
quite a number of new stores in 2006 when the company
decided to go international. In as much as this move meant the
company wanted to increase its market radius though. This
move did not work so well for the company because the market
shares in the industry did not rise significantly in respect to this
move.
The new leadership under the new CEO brought different
strategy to help handle this case. There was no longer opening
of new stores. The company under the new management
promised to reduce the general capital expenditure by
approximately 50%. Apparently this would be such a bold
strategical transformation. The company decided to drive the
growth by simply testing new product categories. The previous
financial year 2009 the high margin private label sales was at
40%, the company decided to make this move to change the
performance of the organization (Lal, Knoop & Tarsis, 2006).
In as much as the organization initiated some changes in
the leadership to change things and the general performance of
the organization, there were still some problems as well. There
was that wrangle between the senior management of the
organization. The company apart from the sloppy performance
also had some internal division in the management, there was
some significant retirement of the CEO, CFO, and COO retiring
in some quick succession.
Best buy had substantial changes and there were so many
transformations that took place in the organization. There are
several events that took place throughout the years, at some
point changes took place that implicated the strategies of the
company to try and fix the crisis that the company had within
the period. The change in leadership had substantial changes in
the organization in 2010.
References
Lal, R., Knoop, C. I., & Tarsis, I. (2006). Best buy co., inc.:
Customer-centricity.
Ferguson, J. L. (2014). Implementing price increases in
turbulent economies: Pricing approaches for reducing
perceptions of price unfairness. Journal of Business
Research, 67(1), 2732-2737.

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Financial Spreadsheet AnalysisBest buy case presents a scenar.docx

  • 1. Financial Spreadsheet Analysis Best buy case presents a scenario where by the organization went through quite a number of issues that had significant adverse implication to the organization performance. The financial spreadsheet analysis of this company will help give us some reliable trend from the performance evaluation that can be used later to come up with an effective prediction on the company’s future. There were several major issues that took place in this organization right from its inception though in some years the events were more adverse than the others. These issues had different implication on the strategic theme of the organization. When we critically examine these issues and the events in line with the organizational performance, we will be able to come up with an effective trend to have control on the organizational performance and behavior. In this case we will cover three years to ensure that our trend is quite valid and also increase the reliability. The company went through some sort of turning point at the end of 2009 financial year. There was that change in the leadership of the organization. Bran Anderson handed over to Brian Dunn, this was such a crucial issue considering the fact that the management has significant implication in the management. This change in management meant that the operation system and the leadership and management strategy would change significantly. In a conclusive analysis for the trend this organization is taking, it is important that we try evaluating the previous approaches and the management theme. Every organization has some specific way of control the management performance to hit the leadership goals (Ferguson, 2014). In as much as the general performance of the initial leadership was quite impressive, there were some areas of weakness that required adjustments. The company had opened quite a number of new stores in 2006 when the company
  • 2. decided to go international. In as much as this move meant the company wanted to increase its market radius though. This move did not work so well for the company because the market shares in the industry did not rise significantly in respect to this move. The new leadership under the new CEO brought different strategy to help handle this case. There was no longer opening of new stores. The company under the new management promised to reduce the general capital expenditure by approximately 50%. Apparently this would be such a bold strategical transformation. The company decided to drive the growth by simply testing new product categories. The previous financial year 2009 the high margin private label sales was at 40%, the company decided to make this move to change the performance of the organization (Lal, Knoop & Tarsis, 2006). In as much as the organization initiated some changes in the leadership to change things and the general performance of the organization, there were still some problems as well. There was that wrangle between the senior management of the organization. The company apart from the sloppy performance also had some internal division in the management, there was some significant retirement of the CEO, CFO, and COO retiring in some quick succession. Best buy had substantial changes and there were so many transformations that took place in the organization. There are several events that took place throughout the years, at some point changes took place that implicated the strategies of the company to try and fix the crisis that the company had within the period. The change in leadership had substantial changes in the organization in 2010. References Lal, R., Knoop, C. I., & Tarsis, I. (2006). Best buy co., inc.: Customer-centricity. Ferguson, J. L. (2014). Implementing price increases in turbulent economies: Pricing approaches for reducing
  • 3. perceptions of price unfairness. Journal of Business Research, 67(1), 2732-2737.