Business Finance Homework Help

I WILL PROVIDE MORE TIME AFTER GETTING THE FIRST CASE DISCUSSION AND RESPONSE.

I need the questions and please answer the questions in paragraph format. I also need 3 replies for these case studies and I will provide more details for the reply after giving me one by one discussion. I will provide more time but I need you to finish one case study and send it to me. so I will send you information for the response.

Case study 1: Walmart

a. What is Walmart’s overall strategy?

b. In comparison to Walmart’s competitors, why is Walmart so successful?

Case study 2: Phillip Morris :

What is the impact the Phillip Morris Company effect the industry?

Case study 3: Best Buy

a.How well is BEST BUY doing compared to Amazon in 2017? ( Provide detail)

b. What were the strategic challenges facing BEST BUY in 2012?

This is for discussion board reply

What is Walmart’s Overall Strategy?

Walmart’s overall strategy was simply to have Everyday Low Prices (EDLP) something every customer on this earth would appreciate. This is arguably the best way to keep customers happy and obtain new noncustomers. Walmart was easily able to expand by decent size discount stores in small towns that every other competitor was neglecting. In later years Walmart was able to introduce supercenters which included: hair salons, optical services, and one-hour photo processing stations. By implementing a hub-and-spoke network of distribution centers Walmart was able to cut out its ties with brokers. This would benefit them by leading them to use data mining to best suit the needs of their customers. Walmart’s overall strategy of everyday low prices is essentially the key to the success of Walmart.

2. In comparison to Walmart’s competitors, why is Walmart so successful?

Walmart became very successful by being able to keep their main value of everyday low prices while offering almost every item you can think of in a supermarket. This makes their customers feel appreciated by knowing they have somewhere to go when they are low on funds. EDLP attracts every customer on earth because they know there is not one customer who is too good to pass up on saving money by shopping with their company. “The company operates in 24 countries, with roughly 10,500 stores and e-commerce sites under 48 banners. It employs more than 2.2 million people, with the large majority of employees based in the U.S”(Reiff,2021). Being this successful takes a lot of proper foundation from within the company and loyalty from customers who appreciate how they do business.

References:

Reiff, N. (2021, April 7). How Walmart Makes Money: U.S. and E-commerce Sales Are Growing Fastest. Investopedia. https://www.investopedia.com/articles/personal-finance/011815/how-walmart-model-wins-everyday-low-prices.asp.

Philip morris reply—

According to (Ruback, 1993), Philip Morris Company profited from the sales of cigarettes both from the local market and the international market through exportation. However, the company’s main strategy was to ditch the tobacco business for an all-food diversification strategy initiated in 1966. At that time, Kraft Incorporation was among the leading food industry in the world. To adapt its strategy, Philip Morris Company offered Kraft Incorporation a tender to buy it for $90. The giant food industry declined as an undervalue. From this buyout offer, there were some impacts on the industry, including changes in the financial positions of industries, a leveraged buyout attempt by the management of Kraft Inc. with the most unprecedented price in the company’s history. Additionally, uncertainty about the market value of food assets grew significantly, restructuring plan which caused the dislocation of industries, legal actions were to be taken on Philip Morris Company, and an increase in the price of Kraft’s common stock, increasing the dividends of shareholders.

Ruback, R. (1993). Philip Morris Company and Kraft, Inc. Lecture, Havard Business School.

This is the reply for best buy ………………………………….

How well is BEST BUY doing compared to Amazon in 2017?

In the year 2017, as Amazon was expanding its presence in electronics, Best Buy was growing bigger and better. Best Buy mainly focused on selling in prime locations. Best Buy suffered a huge loss when Amazon entered the retail space. Consumers used to do window shopping at Best Buy but purchased from Amazon because they provided the products at lower prices. Business strategists predicted that it was the end for Best Buy, but Best Buy made its business model right by launching the Renew Blue. They again focused on the main assets of their business which are location and scale. To get an upper hand over Amazon, Best Buy introduced the policy of matching prices. The policy bridged the gap between online and in-store sales by having online retailers collect taxes. Best Buy also introduced the concept of stores-within-stores along with Samsung and Microsoft. Soon after Samsung and Microsoft, Google too partnered with Best Buy and the two shared both the risks and the rewards. Best Buy was doing better than Amazon because it was continuously enjoying the synergies coming from the growing base of customers (Vithayathil, Dadgar, & Osiri, 2020). The company noticed that most of the customers lived at a distance of 15 minutes from their stores so, Best Buy offered them same-day delivery. A new element in-home consultation was added to the growth strategies by Best Buy. There was a report that domestic online sales of Best Buy had increased by 24.1% in the third quarter and with this, the company completed its turnaround. Best Buy was able to eradicate the threat that it was facing by Amazon. All the strategies adopted by Best Buy and Renew Blue helped Best Buy to turn around its fate and give Amazon tough competition. Renew Blue and these strategies were the main reasons to why Best Buy did well as compared to Amazon in the year 2017 (Wu, Wang, & Zhu, 2018).

2. What were the strategic challenges facing BEST BUY in 2012?

Everything seemed to be going wrong with Best Buy in the year 2012. The CEO of Best Buy Brian Dunn announced that he will be cutting costs by $800 million by March. He also said that 50 box-size stores will be closed in the United States by him. Just a month later the CEO resigned because of an improper relationship with another employee. The incident brought out the poor management of employees in the company. In June, Schulze who was the chairman of Best Buy stepped down from his position because he acted improperly by not revealing the allegations against Brian Dunn. In August Hubert Joly was chosen as the CEO of Best Buy but he previously had the experience of being a CEO of a hotel, a cruise ship, and a restaurant company which made him unqualified to be the CEO of Best Buy as he doesn’t possess any experience of working in the retail sector (Tabesh, Mousavidin, & Hasani, 2019). The incident triggered the share price of the company to fluctuate by more than 10% which is $18.19. In November 2012 when Best Buy announced a transformation strategy regarding Renew Blue then it faced two problems. The first problem was that the sales became comparably low. The other problem was that the company saw a decline in the rate of operating income. In the same year, Best Buy was facing severe repercussions due to the failure in many of the services provided to the customers. The lack of innovation and the failure to realize that their big box stores would turn into liabilities rather than assets due to the growing disruptive force were the reasons for the rough time that Best Buy faced in the year 2012 (Tabesh, Mousavidin, & Hasani, 2019).

References:

1. Vithayathil, J., Dadgar, M., & Osiri, J. K. (2020). Social media use and consumer shopping preferences. International Journal of Information Management, 54, 102117.

2. Wu, C., Wang, K., & Zhu, T. (2018). Price match guarantees in the age of showrooming: An empirical analysis. Available at SSRN 3271305.

3. Tabesh, P., Mousavidin, E., & Hasani, S. (2019). Implementing big data strategies: A managerial perspective. Business Horizons, 62(3), 347-358.