Intenational Essay Example | Topics and Well Written Essays - 3000 words

Intenational - Essay Example Spain, France, and Holland launched various expeditions in order to establish colonies in the underdeveloped areas of the world, particularly in Asia, Africa, and South America. Despite the differences in methods, the objectives related to the launching of international and colonial trade in those times are not absolutely distinct to today’s globalisation. Globalisation in modern times is being pursued with the premise that former relationship of colonizers and colonies is no longer dominant. It is founded on the concept that the world is now made up mostly of independent countries that have sovereignty in managing their respective domestic economies and also have the capability of joining international trade. Free trade is the main objective of globalisation. It aims to make the entire world an open and free market, where people can easily avail of commodities coming from other countries. It allows businesses to expand beyond their countries of origin, thereby exporting not just goods but also capital. However, in doing so, it also seeks the removal of major barriers that each country may have established to deter the influx of too much imported goods as a result of unconstrained foreign trade. Consequently, this has an adverse effect on the sustainability of small local firms in any particular economy. The arrival of huge volumes of imports would lead into a competition strong enough to force their demise. This is the reason why debates on the nature of globalisation continue to be waged and international trade organisations and treaties are relentlessly being attacked by sectors that are most affected by its negative effects. This is also the basis why governments must not absolutely subject their economies to unconstrained foreign trade but instead legislate and enforce policies that would protect the small local firms. Apologists for unrestrained capitalism have always extolled the salient features of globalisation. Capitalism is an economic

Reasons Of Market Failure Economics Essay

Reasons Of Market Failure Economics Essay Market efficiency is the property of society maximizes the benefits it achieves from the use of its scarce resources. When the production is efficient, the economy will obtain all it can from the scarce resources that is available and there is no way to produce more than a good without producing less of other goods. Market failure is a circumstance which a market will overlook its own fails to allocate resources efficiently. Thus, there are several possibilities that can cause market failure such as externalities, market power and public goods as well as incomplete information. Externalities are based on the impact of an individual action on the well-being of a bystander. Hence, they enforced people other than the consumers and producers of goods and services. Thus, externalities are also described as spillover effects. Third parties are refer as people except consumers and producers who are affected by these side-effects of market exchanges. Externalities may be either positive or negative which it may cause beneficial or disadvantageous to the third party. For instance, we are off to bed and our neighbour is having a dancing party with high volume rock music. The action of our neighbour is imposing negative externality toward us and the third parties who are trying to sleep. As the results from annoyance of our neighbours playing the music, this is an example of a consumption externality. However, externalities are also an external positive externality too; by the way, negative externalities are only caused by market failure. On the other hand, the production externality is generated, for examples, depletion of natural resources are caused by atmospheric pollution from factories and the long-term environmental damage. The factories expel harmful gases such as CFC, carbon monoxides, hydrocarbons from the chimney that causes bystander health. The externality is considered to be an important factor contributing to economic growth. Market power is also one of the reasons of causing market failure. Market power, which refers to a firm, can influence the price by exercising control over its demand, and supply. It does not exist when there is a perfect competition, but it does when there is monopoly, cartels, or monopolistic competition. The invisible hand of the market leads to an allocation of resources that makes total surplus larger as it can be. As monopolies can lead to an allocation of resources unlike from a competitive market, the monopolists keep its prices and profits high by using its market power to restrict output below the socially efficient quantity. The monopolists choose the profit-maximizing quantity of output at the intersection of the marginal-cost curve and the marginal-revenue curve. It is not at the lowest point of the average total cost curve, intend that the available resources are not fully use and it will fail to produce an efficient allocation of resources. The inefficiency of monopoly also can be measured with a deadweight loss triangle area between the marginal-cost curve and the demand curve, which reflects the total surplus loss and the costs of the monopoly producer. Buyers who have willingness to pay less than the price will not buy it. It is the reduction in economic well-being that fall out from the monopolys use of its market power. Microsoft market shares in PC operating system in the natural monopoly are one of an example because everyone is using their products. It would also leads to an increase in competition and variety as well as cheaper products for consumers. Moreover, after determining the level of Microsofts market power, we know that the relevant market is the licensing of all Intel-compatible PC operating systems world-wide. In addition, some consumers may not interest on some types of application, they might seek for others, such as Apple Company. Other than those reasons above, the reason which will cause market failure happen is public goods. Public goods can define as goods that will not reduce the availability of it for consumption by others after people making consumption. By the way, once public goods are available, no one can be withheld to consume them for free. Public goods are usually provided by the government examples like protection provided by police, fire departments, and the military. Public goods may provide free rider problem, which means the private organizations cannot get all the benefits of the public goods which they have produced, there would be no incentive for them to voluntarily provide public goods; consumers can take advantage of public goods without contributing sufficiently to their creation. This situation can produce inefficiency and a resulting market failure. When markets failure occurs, it will eventually affect economic recession, social unemployment rate to increase, financial deficits, and inflation and so on. In order to seek full employment, price stability, maintain economic growth and international revenue as well as expenditure in balance; government will launch a series of economic policies to intervene the market economy and to correct market failures. Government policy is a kind of coercive force which is a noticeable act that controlled by individuals and organizations performance during the trade. Moreover, the government policies are divided into three parts, which consist of taxes, price control and subsidies. Tax is an imposed manner which the burden of a tax is shared among participants in the market. When a tax is imposed on goods, this will affect supply curve to shift upward by the amount of the tax. In addition, taxes can directly and indirectly affect on other area such as cigarettes, petrol, and alcoholic drinks. According to the text above it has already shows out that an increase in tobacco tax is the best means to reduce tobacco uses, particularly to prevent young people to become smokers. The price of tobacco products has increased by 70%; it can avoid 1/4 of smoking death rate in the world. In addition, an increase in tobacco tax will not only help or reduce in tobacco production and consumption; it will also be a great solution to the shortage of national financial revenue problem. In high-income countries, 10% of the rate increase in tobacco products can reduce a consumption of tobacco by 4%.Whereas, in low-income countries it can reduce about 8% but tobacco taxes but will increase by almost 7%.For example, in the U.S. government make the federal tobacco tax from 39 cents per pack to $ 1.01, which is by far the most significant U.S. government to raise the federal tobacco tax. Select a recession in the domestic tobacco tax increase to help smokers to quit and this will be great power. Britain is the worlds that has highest tobacco tax. However, in 2009, the United Kingdom has doubled up the tobacco tax. Price control is the import and export of goods or services on the enforcement of price-fixing measures. At the equilibrium price, there will be no shortage or surplus. The government may prefer to keep prices above or below the equilibrium. There will be a shortage, if government sets a maximum price below the equilibrium price. Price will not be allowed to rise to get rid of this shortage. This is called a price ceiling. There will be a surplus, if government sets a minimum price above the equilibrium price. Price will not be allowed to fall to get rid of this surplus. This is called a price floor. For instance, fluctuation in weather can affect the crops. If industry demand is price inelastic, prices are possibility to fluctuate severely at a minimum price that can prevent a fall in producers incomes that would accompany periods of low prices. Whilst, if government sets a maximum prices to prevent them from rising above a certain level. This will generally be done for reasons of fairness. In wartime, or times of famine, the government may set maximum price for fundamental goods so that poor people can afford to buy the goods. Government keeps prices down for the consumers. Besides that, subsidies are also other forms of public policies to overcome market failure. Government policies are very common in countries and it is benefit a lot of industries. Other than that, agriculture, education, free school meals, employment, state benefits, transport, working tax credits, regional development, housing are also some examples of the subsidies from government. In the Egyptian economy, food subsidies can be affected in various sectors. A major objective of a research was done in order to examine the agricultural policy-making in the environment of a growing foods subsidy system. In addition, misallocation and in efficiencies of resources in agriculture take place when food subsidies are hidden costs of such systems. Nevertheless, it is a vital to divide out from the entire bundle of policy goals and relate it with those instruments that are directly or indirectly related to food subsidies. A complete quantitative evaluation of a country`s agricultural policy and its determinants can be provided by its basis. Furthermore, commodities that are strictly controlled on the production section are also strictly rationed at a fixed price on the food distribution are such as sugar and rice. Product such as maize, wheat and meat are non-rationed or not strictly rationed commodities. Moreover, products that are not strictly rationed commodities are considerably to have less interference in allocation and marketing. The input and output prices of agricultural are distorted in different ways. Tax are usually taxed or given under the field of crops. Whereas, the production of milk and meat has been protected by the supply of subsidized and by import restrictions. Food policy may cause a consumer-to-producer to transfer and a producer-to-producer to transfer when a special situation for livestock or feed has been point out, in which it accompanies redistribution of income among the production sectors in an agriculture sectors. In conclusion, as market failure will arise and government will established several policies to improve the market allocation. According to the cases as stated above, obviously, subsidies is the best effective policies that can be under take by market inefficiency. As it is the one of a positive solution and it can encourage producers to put more effort on producing and fully used the resources. The producers have no hesitation about accepting the government most generous offer. They are willing to produce maximum outfit by using subsidies that had given from the government. Hence, subsidies are no way to compare with other policies.

Amistad :: Film Review, Movie

Amistad   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the study of world history, the ideology of “divide and conquer'; is studied and glorified as the most effective strategy for colonialism. The institution of slavery and the transporting of Africans across the ocean to serve as slaves in the “New World'; depict the most blatant use of coerced division in the Europeans efforts to completely enfeeble African slaves.   Ã‚  Ã‚  Ã‚  Ã‚  The middle passage portrays the Europeans efforts to divide African cultures by separating the slaves so that they were amongst those that spoke different languages and therefore could not communicate with them. The results of this “middle passage'; experience left the African confused, alone, and virtually powerless in an environment foreign to him in every way. Amistad illustrates the result of not separating the Africans and attempting to “conquer'; them without stripping them of the ability to communicate with one another. Without instituting the process of “cultural division'; (and eventual extinction) resulting from the “middle passage';, efforts to conquer the African people were worthless.   Ã‚  Ã‚  Ã‚  Ã‚  Films like Amistad, and the few presentations and rhetoric that portray realistic viewpoints of Africa in the past and present, illustrate the physical, emotional, and spiritual strength of African people. They enable African Americans to be proud of their heritage, and eliminate the false pretenses set by many that African Americans have no connection to the “motherland';. Learning about Africa from coast to coast, and seeing the array of environments from the most primitive tribes, to the big cities and metropolitan areas annul many whites efforts to continue to enfeeble African Americans by portraying the entire continent as “uncivilized';. Amistad :: Film Review, Movie Amistad   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the study of world history, the ideology of “divide and conquer'; is studied and glorified as the most effective strategy for colonialism. The institution of slavery and the transporting of Africans across the ocean to serve as slaves in the “New World'; depict the most blatant use of coerced division in the Europeans efforts to completely enfeeble African slaves.   Ã‚  Ã‚  Ã‚  Ã‚  The middle passage portrays the Europeans efforts to divide African cultures by separating the slaves so that they were amongst those that spoke different languages and therefore could not communicate with them. The results of this “middle passage'; experience left the African confused, alone, and virtually powerless in an environment foreign to him in every way. Amistad illustrates the result of not separating the Africans and attempting to “conquer'; them without stripping them of the ability to communicate with one another. Without instituting the process of “cultural division'; (and eventual extinction) resulting from the “middle passage';, efforts to conquer the African people were worthless.   Ã‚  Ã‚  Ã‚  Ã‚  Films like Amistad, and the few presentations and rhetoric that portray realistic viewpoints of Africa in the past and present, illustrate the physical, emotional, and spiritual strength of African people. They enable African Americans to be proud of their heritage, and eliminate the false pretenses set by many that African Americans have no connection to the “motherland';. Learning about Africa from coast to coast, and seeing the array of environments from the most primitive tribes, to the big cities and metropolitan areas annul many whites efforts to continue to enfeeble African Americans by portraying the entire continent as “uncivilized';.

Love and Morning: From the Perspective of John Donne and Sylvia Plath Essay

John Donne’s The Good-Morrow and Sylvia Plath’s Morning Song at first glance, seem to talk about two different things. However, if one were to analyze the depth of these two poems, it will eventually reveal its shared views about love and its distinct relation to morning. Both poems reveal an overwhelming feeling of love that is influenced by another individual. For Donne, it was his love interest while for Plath, it was one of her children. The two poems equally used colorful imagery of love in its early stages, although taken into different contexts. Donne’s first few lines in The Good-Morrow had described his romantic feelings toward his lover by throwing questions of his worthiness in love. In lines 2 to 4, he compares his past life to that of an infant being weaned from the bottle or breast, in order to satisfy his childish whims. This could also denote a lustful past in which he had looked for instant gratification as that of a child, only to find that the right love could only be understood with a mature outlook in life (3). With regard to Plath’s Morning Song, lines 13 to 15 paint a different picture of a child in the context of love as she sees the act of breastfeeding as a sign of her contentment in being a mother. Lines 1 t o3 expresses her joy in the birth of her child as she simply describes the invincible link of a mother to her child. In particular, line 3 indicates the wonderment of life through love when Plath states â€Å"Took its place among the elements† (48) when she describes the birth of her child. Line 4 conveys her happiness at the arrival of her child, associating the infant to a statue in a museum, and she, a mere astonished observer. This is in contrast with Donne’s view in his poem when he wrote in line 19 â€Å"Whatever dies was not mixed equally† (3). What Donne referred to in this line is an old belief that described the cause of death as an imbalance in the body. This line signifies Donne’s hope that the love that he and his lover shared would make them equally whole. Both lines described the powerful connection that they have with their loved ones, yet it was illustrated in opposing contexts as life and death. Another noteworthy similarity of the two poems lies in their views of being united with their loved one. Lines 7 to 9 of Plath’s poem basically illustrate the oneness that she feels toward her baby when she speaks of not seeing her own reflection in the presence of her child. In Donne’s poem, line 15 corresponds to a combined notion of oneself with his loved one, as he states â€Å"My face in thine eye, thine in mine appears† (3). In the context of morning, both poems take on a seemingly parallel course to describe the joy one feels in expressing love. Lines 8 to 14 of Donne’s poem vibrantly illustrates the connection he feels toward his loved one when he likens the meeting to a greeting of souls as they both start afresh, just as the dawn of a new day signals another day to live. Donne also describes this fortunate meeting as an acknowledgment of his loved one’s significance in his world as he points out that his existence merely coincides with the presence of his lover (3). As for Plath, the perspective of morning is wholly dedicated to her joy in being a mother as she creatively narrates her experiences in nursing her child. Lines 10 to 15 principally describe how she looks forward to waking up every morning as she awakens to the sound of her child’s cry due to hunger (48). Line 18 of Plath’s poem fully conceives the notion as to why she looks forward to anew day. Her morning song is the cry of her baby in the morning, describing it as â€Å"The clear vowels rise like balloons† (48). Based on the analysis of Donne’s poem, one could deduce that the references made to a child in describing infantile love is seen as a transitory phase from an unconstructive feeling to pure admiration and content. Donne shows the maturation of love as though it was a living and breathing creature. In Plath’s vision, love was embodied concretely in the bond between parent and child, specifically between a mother and her child. Plath depicts a sort of love that is basic and nurturing; one that does not expect reciprocity or uncertainty, but a depth of feeling that could only be felt through the birth of life. Both of these poems have described two types of love that we may experience in our lifetime and their poetic revelations indicate that life is riddled with moments that are full of love. Works Cited: Donne, John. â€Å"The Good-Morrow. † Poems of John Donne. Ed. E. K. Chambers. London: Lawrence & Bullen, 1896. 3. Plath, Sylvia. â€Å"Morning Song. † The Norton Introduction to Literature. Ed. Booth, Alison, J. Paul Hunter, and Kelly J. Mays. 9th ed. New York: W. W. Norton, 1961. 48.

Case History on Best Buy

Best Buy, Inc. Case Study: Case History Clayton Bender, Justin Swanson, Kaitlyn Krause, Michelle Chambers, Elmon Tanielian Company Background: Best Buy Co. , Inc. operates as a multinational retailer of consumer electronics within the services industry. Founded in 1966 under the name Sound of Music, Inc. , Best Buy underwent a name change in 1988. It was founded by Mr. Richard M. Schulze and is headquartered in Richfield, Minnesota. Best Buy operates under a Board of Directors but is a publicly traded company owned by stockholders.The company operates retail stores and call centers and conducts online retail operations under a range of brand names such as Best Buy, Best Buy Mobile, The CarPhone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales and The Phone House. Best Buy is the 11th largest online retailer worldwide and ranks #468 on the Forbes Global 2000 (Global 2000 Leading Companies, 2012). The mission of Best Buy, though not directly outlined a s such, can be summed up by a quote from the CEO. Our formula is simple: we’re a growth company focused on better solving the unmet needs of our customers—and we rely on our employees to solve those puzzles. Thanks for stopping† (About. com). Best Buy’s vision is, â€Å"To make a meaningful and lasting impact on the quality of life in the countries and communities we serve. † Best Buy has four primary values that govern decision-making processes; unleash the power of our people, learn from challenges and change, show respect, humility and integrity, and have fun while being the best (Code of Business Ethics, 2013).Best Buy’s Market Philosophy: Best Buy operates in all 50 states, districts and territories within the United States. Various brand names under the Best Buy Inc. umbrella exist throughout the geographic area including Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales (Best Buy 10k Report, 2012). In the US alone, Best Buy reaches nearly 1 billion consumers each year in stores, on BestBuy. com and on m. BestBuy. com or the mobile shopping website. Out of the $165 billion per year spent on electronics in the U. S. , more than 6% of that is at Best Buy —ahead of Wal-Mart Stores (12%), Amazon. com (5%), Costco (3. 5), and Target (2. 5%) (On Best Buy Media Network, 2011). Within the domestic market, store development is aimed at multi-channel retail points of presence that focus on a given local environment, while simultaneously decreasing overall store square footage. To do this, the company anticipates closing approximately 50 large format U. S. Best Buy branded stores in fiscal year 2013 to explore other options, as well as downsizing to appeal to increasingly popular online shopping trends.They have also decided to close all Best Buy branded stores in the UK, Turkey, and China. They instead chose to focus their attention on their Five Star branded stores in China, and their Car Phone Warehouse, and Phone House stores in Europe. Best Buy’s international market is comprised of operations in Canada (Best  Buy, Best  Buy Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad), Europe (The CarPhone Warehouse, The Phone House and Geek Squad), China (Five Star), and Mexico (Best Buy and Geek Squad) (Best Buy 10k Report, 2012).These varied brands allow the company to include several lines of consumer retail products such as mobile phone products, entertainment products, appliances and related services that are tailored to appeal to each niche market. In 2012, international markets generated 26% of Best Buy’s revenue (Best Buy 10k Report, 2012). In the Canadian market, Best Buy is the fastest-growing specialty retailer and â€Å"e-tailer† of consumer electronics, PCs, and entertainment software.Best Buy focuses on children and communities, attempting to â€Å"help youth develop their skill set, discover their talents, and sustain a las ting interest in education† (About Us, 2013). Best Buy has decided to close their large-format Best Buy branded stores in China, Turkey, and the United Kingdom in order to reach areas that offer the best growth opportunity to particular locations (Best Buy 10k Report, 2012). Competitive Environment: Best Buy’s competitors range between online retailers (Amazon), big box retailers (Target and Wal-Mart), club stores (Sam’s Club and Costco), pecialty electronic retailers (Apple), and home improvement stores (Home Depot and Lowes). Some Best Buy rivals compete purely on price, while others compete on experience. Best Buy believes that online retailers will have their price advantage reduced as state governments around the country re-evaluate sales tax laws that allow some online competitors to offer lower prices. Additionally to combat price wars Best Buy also has price matching policies for other brick and mortar retailers and during this last holiday shopping seaso n even matched some online retailers’ prices (Best Buy to Match Online Prices, 2012).With the elimination of Best Buy’s biggest rival, Circuit City, they are left to focus on competitors such as Amazon, Wal-Mart, and Home Depot. None of these stores compete directly with Best Buy in every segment, but each of them offers products that compete directly with Best Buy. As shown in Exhibit 1, while Best Buy does compete with Home Depot and Lowes, the effect of appliances on Best Buy’s sales is quite small, accounting for only 5% of sales in 2011.Because there are no stores which offer a value proposition exactly like Best Buy, it presents a problem when analyzing financial statements of Best Buy’s main competitors (Best Buy 10k Report, 2012). See Exhibits 2-5 for detailed copies of Amazon and Wal-Mart financial statements. Trends- Best Buy competes in the electronics stores and consumer electronics industries. The industry overall is heading into new territor y as online shopping continues to take over the market. Recently, traditional big box stores such as Best Buy have been threatened by an increase in online consumption tendencies.Often, consumers will use stores such as Best Buy as a showroom to test new products, make a purchase decision, but then go home and find a cheaper price online. With many established, online retailers of consumer electronics on the web, retailers must find a new way to attract customers. The various methods of promotional channels such as large and small structured stores, websites, and kiosks, are all ways the company is tailoring to the market they are attempting to reach. Marketing: Products and Services- Best Buy specializes in technological goods and services.This includes home office, consumer electronics, appliances, and entertainment software. Best Buy is an ideally suited ‘one-stop-shop’. Best Buy offers Geek Squad Technical Support to consumers to aid with any difficulties or defects , to ensure customer happiness, and build loyalty. Also offered is a low-price-guarantee, where Best Buy will match the price if you find a lower price on an identical available product at a local retail competitor's store, a local Best Buy retail store or BestBuy. com (Best Buy 10k Report, 2012).As Best Buy is not a manufacturer of unique products, the main differentiating factors would be their low-price-guarantee and the in-home service â€Å"The Geek Squad†, which offers personalized technical support. In addition, there are many products that are exclusive to Best Buy, such as certain televisions, video games, and computer devices. Distribution- Best Buy sells products through both its 1,103 retail locations and their website bestbuy. com. Domestic Distribution- Inside the U. S. , most Best Buy products are shipped directly from the manufacturers to the regional distribution centers.The exceptions to this method are large TV’s and appliances which are shipped from producers to specific satellite warehouses in each major market. In certain cases, where release dates play a large role in a product, the item will go directly from the producer to individual Best Buy stores (Best Buy 10k Report, 2012). Products purchased online are either picked up in store, or shipped directly to consumers via the same regional distribution centers the stores receive their products from. International Distribution-In Europe, Best Buy’s two small cell phone stores have their products shipped from manufacturers to regional distribution centers and then to the stores. Individual stores hold only immediate stock requirements while distribution centers hold additional merchandise. Best Buy stores in Canada and Mexico follow the distribution method used in the U. S. (Best Buy 10k Report, 2012). Promotion- The customer base is primarily centered on high income earners (75,000+), 24-54 aged males who have children (ad example targeting this listed in exhibit 6).B est Buy shoppers are viewed as mobile, technically savvy, advanced digital users, who are highly engaged in learning about technology as well as encourage their children to learn about technology, too (On Best Buy Media Network, 2011) (promotion example targeting this listed in exhibit 7). Including selling, general and administrative expenses, promotional costs were $995,000,000 in fiscal year 2012, $862,000,000 in 2011, and $709,000,000 in 2010 (Best Buy 10k Report, 2012).Best Buy has traditionally focused on media involving print, television, large-scale events, and is now shifting gears more towards digital advertising for promotional efforts due to consumer changes in shopping habits. Best Buy spends most of the promotional budget during the holiday season in response to high sales during Thanksgiving, Black Friday, Cyber Monday, and Christmas (Best Buy 10k Report, 2012). A detailed list of quarterly expenses can be found in exhibit 8. One of the largest and most expensive prom otional efforts undertaken by Best Buy is the commercial segments aired during the Super Bowl.Best Buy has utilized this tactic for the past three years. In 2011, the commercial featured the celebrities Justin Bieber and Ozzy Osbourne. In 2012, it featured mobile innovations such as Instagram and the popular game, Angry Birds. For this upcoming Super Bowl, Best Buy will feature the comedian Amy Poehler. These are significant decisions considering this year’s thirty-second ad placement cost $4 million and is projected to reach over 100 million viewers (The Associated Press, 2013). Leadership:Best Buy’s Board of Directors, elected by the shareholders, is responsible for overseeing the business and affairs in order to manage the long-term interests of the company (Best Buy, Inc. , 2013). The Board of Directors is in charge of selecting and evaluating the performance of senior executives. There are four distinct committees structured within the Board: Audit Committee, Comp ensation and Human Resources Committee, Finance and Investment Policy Committee, and Nominating, Corporate Governance, and Public Policy Committee.A detailed visual of the organizational structure can be viewed in exhibit 9. Organizational Culture: Traditionally, Best Buy has been known for enforcing strict policies and encouraging employees to work overtime. In 2003, however, the corporate culture was radically changed to a system designed by two of the company’s own human resource department employees, Cali Ressler and Jody Thompson (Brandon, 2007). This system, known as ROWE or the results-only-work-environment, allows personnel to come and go as they please.Many corporate employees have no official office or work schedule. Similar systems have become popular in the advanced technical industry, including companies such as IBM, but no such corporate culture existed in a large retail company before Best Buy. The system is working to meet their goals, as employee turnover dec reased drastically after implementation. However, recently, employee satisfaction has suffered as a result of a decrease in company profitability (Conlin, 2006). Stakeholders:The primary stakeholders are the stockholders; the individuals that have an active interest in the company’s successes and failures because their personal investments are directly impacted. Additional stakeholders include employees (who rely on the company to stay in business and guarantee their employment), consumers (who depend on the products and services of the company), and the surrounding community which Best Buy is committed to serving in their values. Currently, a general concern of stakeholders is the increasingly competitive nature of the of the electronic retail market.With e-retail and internet stores becoming more significant players in the market place, Best Buy seems to have become a place of research and testing by the consumer, rather than actual purchasing. Stakeholders are calling for innovative and differentiating factors to emerge for Best Buy to remain a key player in the consumer electronic market. In addition, as typical of most companies, the stakeholders of Best Buy want increased sales and profit margins, to hopefully lead to increased stock prices as well. Financials: Balance Sheet-Best Buy currently has approximately $16 Billion in assets, $12 Billion in liabilities, and $3 Billion in stockholder equity. Over the past three years, total assets and stockholder equity have been decreasing while total liabilities have been increasing. (Best Buy Balance Sheet) A detailed balance sheet can be found in exhibit 10. Income Statements- Best Buy had a loss in net income during FY 2012 of $1. 2 billion compared to net earnings of $1. 3 billion in 2011. A detailed balance sheet can be found in exhibit 11. Objectives ; Performance Strategy:Best Buy competes in a competitive retail industry constantly affected by the current state of the economy and consumer confiden ce. Such an industry presents difficulty in predicting consumer behaviors and corresponding sales. These tough times have forced Best Buy to begin transforming the company and hone in on strategies they believe will â€Å"offer the best opportunities to improve returns† (Best Buy 10k Report, 2012). Best Buy has committed to focusing on four main initiatives all revolving around that transformation and improving financial performance. Multi-year Cost Reductions-Best Buy aims to lower the cost structure of various areas of their business through improvements in efficiency as well as current investments designed to provide long term earnings benefits. These changes will include closing 50 of their large, brick-and-mortar stores within fiscal year 2013. In addition they aim to decrease the costs of goods sold as well as reduction in corporate and support structures (Best Buy 10k Report, 2012). U. S. Store Format Improvements- Best Buy will be revising their store formats in order to â€Å"increase points of presence, while decreasing overall square footage†.These changes will occur through increasing the number of their Best Buy Mobile stand-alone stores, decreasing their large-format stores, and to remodel key market Best Buy stores into their smaller, leaner, â€Å"Connected Stores (Best Buy 10k Report, 2012). Growth Initiatives- Best Buy will execute growth initiatives in e-commerce, connections, services, and China. They will approach growth in e-commerce with â€Å"more competitive online pricing, broader use of free shipping, the expansion of our online assortment, and further development of Best Buy Marketplace†.There will be a focus on increasing all mobile connection expertise, all product services, and store locations in China. Improved Customer Experience- Best Buy believes that they differentiate themselves from competitors through careful and persistent attention to the experiences their customers have. Through programs such as t heir â€Å"Perfect Match Promise† which provides customers with a 30 day period of full technical support, hassle-free returns, and competitor price matching as well as their Reward Zone loyalty programs, they desire to provide their customers with an incomparable experience as they shop at Best Buy.Finally, Best Buy aims to increase their enhanced training for employees in order to meet these customer service goals (Best Buy 10k Report, 2012). Works Cited Global 2000 Leading Companies. (2012, April). Retrieved from Forbes: http://www. forbes. com/companies/best-buy/ Best Buy Balance Sheet. (n. d. ). Retrieved from Yahoo Finance: http://finance. yahoo. com/q/bs? s=BBY+Balance+Sheet;annual Best Buy Income Statement. (n. d. ). Retrieved from Yahoo Finance: http://finance. yahoo. com/q/is? s=BBY+Income+Statement;annual Best Buy, Inc. (2011, January 23).On Best Buy Media Network. Retrieved from Best Buy Media Kit: http://www. bestbuymediakit. com/assets/files/Media_Kit_Presentati on. pdf Best Buy, Inc. (2012). Best Buy 10k Report. Richfield: Best Buy. Best Buy, Inc. (2013, January 22). About Us. Retrieved from Best Buy Canada: http://www. bestbuy. ca/en-CA/about-best-buy-canada. aspx? path=9825360f7559258208ae2438cb28c580en99 Best Buy, Inc. (2013, January 22). Code of Business Ethics. Retrieved from Ethics Point: https://secure. ethicspoint. com/domain/media/en/gui/32565/code. html? 3 Brandon, J. (2007, April 4).Rethinking the Time Clock. Retrieved from CNN Money: http://money. cnn. com/magazines/business2/business2_archive/2007/03/01/8401022/index. htm Conlin, M. (2006, December 10). Smashing the Clock. Retrieved from Bloomberg Businessweek Magazine: http://www. businessweek. com/stories/2006-12-10/smashing-the-clock Kerrigan, H. (2012, April). Results-Only Work Environment Goes Public Sector. Retrieved from Governing: http://www. governing. com/topics/public-workforce/gov-results-only-work-environment-goes-public-sector. html The Associated Press. (2013, J anuary 22).Best Buy Super Bowl branding spot will focus on humor, enlists Amy Poehler. The Washington Post, p. 1. Zimmerman, A. (2012, 10 12). Best Buy to Match Online Prices. Wall Street Journal. Exhibit 1: Best Buy’s Domestic Sales Allocation (Best Buy 10k Report, 2012) Exhibit 2: AMZN Income Statement Exhibit 3: AMZN Balance Sheet Exhibit 4: WMT Income Statement Exhibit 5: WMT Balance Sheet Exhibit 6: Promotional Ad Example Promotional Ad Source Exhibit 7: Promotion Example-Scholarship Program Promotion Example-Scholarship Program Source Exhibit 8: US Promotional Focuses Broken Down in Quarters On Best Buy Media Network, 2011) Exhibit 9: Organizational Chart Exhibit 10: BBY Balance Sheet Exhibit 11: BBY Income Statement Here are my thoughts†¦ The purpose of this Case History is to provide data for the next document, the Case Analysis. You should examine your Case History to ensure that it contains sufficient data for a complete Strategic Analysis—an Environment Analysis and a Company Analysis. For example, do you have sufficient data to conduct a PEST Analysis? Do you have sufficient data for conducting a complete Competitive Forces Analysis?On page 5, you do not provide data under the heading of â€Å"Leadership†. On a more comprehensive scale, does the Case History tell the story of Best Buy, or is the Case History a collection of different pieces of data? Does the sequence of the data facilitate a story? From the Heading â€Å"Balance Sheet Analysis† to the end of the document’s text, you seem to be presenting an analysis. The purpose of the Case History, though, is to present data. The analysis should be saved for the next document, the Case Analysis. Midnight- Sunday, February 3rd Other points to Add: 5 Forces Model Highlights: Risk of Entry by competitors- * Low everyone is in that wants to be * Intensity of Rivalry * High * Bargaining power of buyers * High price and experience dictate where we go * Bargaining power of suppliers * Low buyers took control * Closeness of substitutes * No idea what a substitute would be †¦ * Power of complement providers * †¦ PEST Analysis: * Political * * Economic * disposable income levels affect the amount people want to spend on these goods * Social * Trending products * Technological * whoever continues to provide/produce the newest gadgets