1.0  Introduction

 

Best
Buy as a retailer has a good reputation, and now the brand also reminds
business owners how to manage human resources. Best Buy has been so effective
and profitable that it has been used as an ideal role model for many other
companies in strategic management.

 

Best Buy Co., Inc. is an
American worldwide consumer electronics establishment
headquartered in Richfield, Minnesota,
a Minneapolis suburb. Best Buy is a leading
retailer of technology products, services and solutions, with approximately 1,600
stores in North America and nearly $40 billion in annual revenue. Nationwide,
Best Buy has employs more than 125,000 people in including
large-format and Best Buy Mobile stores. Intercontinentally,
it also runs in Canada and Mexico. This company was originated by
Richard Schulze and Gary Smoliak in 1966 an audio specialty store and called Sound of
Music before the name changed to Best Buy in 1983 rebranded
with more emphasis sited on consumer electronics .In the past it was operational in China until February
2011 (when this company was joined with Five Star) and in Europe until 2012.

 

Best
Buy agreements professional service at an unbeatable price more than 1.5
billion times a year to the consumers, small business owners and educators who
visit our stores, involve with Geek Squad Agents or use BestBuy.com or the Best
Buy app. Seventy percent of the U.S. population lives within 15 minutes of a
Best Buy store, and Best Buy also has operations in Canada and Mexico.

2.0  Organizational
Stakeholder

 

An
individual, group, or organization that is interested or concerned in the organization.
Stakeholders can influence or be affect by the organization’s actions, goals
and policies. Some examples of key stakeholders are communities from which
creditors, directors, employees, governments (and their agencies), owners
(shareholders), suppliers, unions, and businesses derive resources.

 

For
Best Buy, key stakeholders may be listed as the shareholders, customers,
government (and its agencies) and employees. Firstly, the government can depend
largely on the company’s contribution. They deduct part of the profits from
various taxes. In addition, the successful operation of Best Buy shows that the
government performs well, especially in terms of management. If any company
violates ethics and environment, the government will be blamed. If Best Buy’s
performance problems, each customer’s interests will also be harmed, not to
mention those who heavily rely on Best Buy customers. In the last three months
in the United States, 60.9 million people shop at Best Buy stores and the brand
has been reported by Deloitte as one of the world’s leading e-retailers. Some
people are turning to Best Buy to listen to product descriptions even while
doing other things. In addition, given the company’s large size and extensive
global network, large numbers of suppliers and creditors will face difficulties
if Best Buy encounters problems. Internal stakeholders include employees and
shareholders. Salaries and bonuses depend on the productivity of employees, and
most of the other factors directly related to their lives are controlled by
managers. Likewise, shareholders are also affected by the financial impact of
the company. They invest money for profit, but when their results fail to meet
expectations, they have to lose money and sometimes sacrifice their own money
to pay for company’s debt.

 

Not
all stakeholders who are equal companies have the right to fair trade
practices, but they do not have the same rights as their employees. An example
of the negative impact on stakeholders is the company’s need to cut costs and
plan layoffs.

This
has had a negative impact on the workers’ community in the area and on the
local economy. People who own shares in businesses like Microsoft are having a
positive impact, for example, when the company releases new equipment and sees
their profits, so the stock price increase.

 

 

 

 

3.0  Environmental
Factors

 

Environmental factors mean identifiable
elements in the physical, cultural, demographic, economic, political,
regulatory and technological environments that affect the organization’s
survival, operations and development.

 

Firstly,
is social. It is irrefutable that people are relying more and more on large
technology machines including cars, dishwashers, televisions, and small
machines like laptops and smartphones … we can barely see commuters now reading
the newspaper on the subway; instead, they look to the phone screen and browse
some interesting websites and social networks. Children have access to online
information and are good at using devices at a younger age. Best Buy’s
professional products by new and old customers of great concern. Therefore, in
the near future, Best Buy should pay more attention to demand, focusing on
maximizing production resources.

 

Moreover,
consumers are increasingly aware of how their money is really spent on it. In
other words, for many people, their spending did not stop when they finished
buying and bringing home the product. They worry about what the next sum of
money will hold. If a producer has a reputation for funding philanthropy or
environmental events, people tend to favor the brand even if they never come to
any store to buy anything. Conversely, producers may be severely criticized and
boycotted if they are holding large amounts of income in order to increase
their numbers without paying attention to the society in which they live. For
example, housewives in the Danish factory quickly turned to Ajinomoto after
dumping wastes in Vietnam illegally in 2005, with a clearer background (Dara,
2005).

 

Secondly,
is technology. In addition to driving customer trends, technology also helps
directly with the performance of all retailers, including Best Buy. In 2011, as
the Internet started to spread to every place of life, Best Buy described that
the number of orders received over the Internet grew 35%, which is
understandable. Technology not only makes consumer shopping more comfortable,
but also makes Best Buy’s promotions and sales easier. The entire process from
receipt of an order to delivery of the product is done by a small computer. The
company can put all its databases in one locked account, saving millions of
dollars in rented warehouses. In fact, Best Buy uses an online feedback system
so that any buyer can express their opinion after shopping at Best Buy. They
receive hundreds of feedback messages daily, instead of going out for
interviews or surveys as they used to. Especially on the first day of
development, one of Best Buy’s major sales channels is television. Therefore,
technological progress is not an aid, but a major force that leads the vigorous
development.

 

Third,
is Economic. The world temporarily shunned the deadly crisis that took place
four years ago and pushed the mighty powers such as France, Britain and China
to the brink of the budget. Experts believe that the global economic growth
rate is not as fast as expected in the fall of 2015, but it is stable and
reliable. Global demand will grow 3.1% in 2015 and reach 3.4% in 2016. People
have more opportunities to invest and profit domestically and internationally.
As budgets increase, people are more willing to buy bargains and luxury items,
or even buy items as they only like and do not in fact need. Recently conducted
a survey at a Circuit City store, one of Best Buy’s major competitors. Among
the 500 customers, 310 admitted they had gone to the e-store at least twice to
buy the products they did not use at home. Similarly, a higher standard of
living has been benefiting Best Buy for many years.

 

With
the gradual growth of the market, Best Buy is expected to face the
transformation, reduce energy and commodity prices. If Best Buy is an electronics
manufacturer, it can take advantage of this change at a lower cost, resulting
in lower prices and a competitive market. Best Buy, however, is the largest
electronics retailer in the United States, with a declining commodity price
placing a heavy burden on Best Buy.

 

4.0  Selection
Method of Candidates

 

Selection refers to the
process of individuals (selected from job-seekers) who have the necessary qualifications
and ability to fill the work in the organization. On the Best Buy, they
advocates Equal Employment Opportunity (EEO) policy. May not be limited to age,
sex, race, colour, religion, race, sexual orientation, gender identity, sex, alienation
or disability, marital status, military or veteran status, State or local laws,
regulations or decrees, and any other legally documented basis for
fortification.  

 

Best
Buy is one of the world’s largest electronic retailers. The company is also a
big employer for entry-level employees and must hire talented people. So, Best
Buy uses the following methods to recruit more talent. Firstly, is by interviews
there here will be not at all unavailability of interviews during any hiring
process. In the interview, the employer can directly put forward what he
considers necessary to judge the candidate’s enactment. On the other hand,
sitting in front of managers and human resources staffs, virtually nobody can
hide their true personality. This is a great opportunity for interviewers to
create an impression of the candidate’s nature. Through the dressing and
speech, the candidate also showed his professionalism and commitment, which cannot
be accurately bore in the test. Some applicants even have the opportunity to
demonstrate their aptitude for this job.

 

Candidates
for well-known companies such as Google, Microsoft and Facebook can easily
download frequently asked questions from the Internet because interviews have
become irreplaceable in the hiring process and the results play an important
role in manager’s on decisions making.

 

Secondly,
is General mental ability (GMA) then in the past, employers preferred in specialized
tests because knowledge and principles were considered indispensable to
employees working in the areas of their choice. However, people soon realized
that knowledge is not something that good working performance. A classic
example is Bill Gates, who abandoned Harvard and wants him to produce software
for every home-owned computer in the near future. He did not acquire the same
professional knowledge as other students, but does not have graduates are
richer and more successful than he is.

 

Therefore,
another method is to design in the form of testing, but the problem is more
diverse, you can determine the people’s comprehensive ability. GMA tests
people’s cognitive abilities related to a variety of jobs in a variety of
industries. Cognition is something that everyone has taken for granted since
birth, and people do not need any special training to do that, so the result of
this test will be more objective than a professional bank or accounting test.
Testing includes familiar issues and can be done in as little as half an hour,
but the results can be interpreted in a variety of ways, depending on the work
assigned.

 

Third,
is Judgment through realistic situation on interviews are effective at
connecting both parties through direct dialogue, but they are done in the ideal
environment and can also help improve the candidate’s profile. However, whether
he works well or not depends on how he behaves in the absence of certain
interviews.

 

In
this way, the candidate is in a fast situation that reflects the real
situation. Only in the face of practical problems can he demonstrate his
ability to solve problems before the judge. In addition, the judge has another
factor to consider before making a final decision.

 

 

 

5.0  Strategies
reward approaches to retain key employees

 

1.      Appropriate
rewards and benefits

Passionate
employees, no matter how much money they collect, work purely for passion, but
there is no doubt that wages and benefits at work are a source of strong
motivation for workers. After that, people put their own health and time into
work so that they and their families can have a better life. Money is the
ultimate tool to help them achieve their aspirations.

 

However,
some companies overemphasize the role of financial reward rather than motivate
them, leading employees to make unreasonable plans to get as much money as
possible. For example, in May 2010, the footwear plant in Ohio, NYK, decided to
implement a bonus plan on a yield basis because NYK was unable to keep up with
all the needs of the time. By the end of the month, the number of shoes
produced has doubled and many employees have rewarded them handsomely, but only
one-third of the products are sold to the market as employees rush to
production targets without concern for quality.

 

Therefore,
the appropriate financial and non-financial incentives should be based on the
real needs of employees. Some employees value praise and encouragement more
than money, and some employees prefer money. Providing what they need will give
any employee a sense of understanding and concern.

 

2.     
Environment for development and training.

Workers’
preferences now shift from simple tasks to those that can learn and develop
multiple skills. In addition to remuneration, employers should provide
employees with a working environment that is free to ask questions and can be
satisfactorily answered.

 

On
Facebook, employees tend to switch to other departments after working and take
experience in one area. They must be accustomed to new knowledge, which is why
they never get tired of their work. In the meantime, Google is known for deducting
training hours as they teach professors and employees to be profitable investments
in the future.

 

 

 

3.      Flexible
working hours.

Best
Buy has successfully applied this approach and has achieved positive results in
terms of employee attitudes and productivity. When an employee, as usual, does
not rigidly adhere to the rigid eight hours, he may feel more comfortable and
more relaxed. In addition, as long as he can meet the deadline, he can choose
to work as long as he feels or is inspired to get the job done.

 

For
Best Buy, productivity soared 41%. Voluntary turnover dropped from 12% to 8%
with an average annual sales increase of 2%.

 

 

6.0  Conclusion

 

Best
Buy as a retailer has a good reputation, and now the brand also reminds
business owners how to manage human resources. Best Buy has been so effective
and profitable that it has been used as an ideal role model for many other
companies in strategic management.

Research
shows that there is a lot of misunderstanding about what ROWEs are and what
they are not. To be clear, ROWE should be redefined and discussed what ROWE is
and not. However, Best Buy needs staff training most of the time, not in the
office, and the lack of communication with colleagues can lead to indifference
and ignorance. ROWE is not flextime nor is it the concept of working from home.
Companies whose management teams are obsessed with schedules are not effective.

 

Despite
Best Buy’s fast and busy job, Best Buy employees seem to be pro-active and
focused on work because they are free to choose how long to work and how to get
their job done.

ROWE
is a concept for companies that want to allow their employees to work as they
wish and forgive mandatory meetings so that employees have the flexibility to
schedule their time as employees reach their desired goals. The company should
follow the steps Apple, Facebook, Google and other technology companies,
attaches great importance to the improvement of staff quality.