Best Buy
Population
July 1, 2020Increasing the import duties
July 1, 2020Best Buy
he Case for the Midterm written assignment is Best Buy in Crisis (as revised in March 2014). If you purchased a course pack for this class, you can access the case by following the instructions that came with your course pack. It should be live no later than 1pm July 24. If you have a problem, contact the book store. If you did not purchase a new course pack for this class, you will need to find another way to access the case. You can buy the case direct from Harvard Business School Press on their website. You can also use a friend’s copy of the case because it was used as the midterm for the Spring semester. If you use a friend’s copy, be careful to use only the friend’s copy of the case, NOT the friend’s analysis.
Your assignment for the midterm is this:
It is shortly after the events in the case have takne place. G. Mike Mikan, the CEO of Best Buy, contacts you. He has heard from a mutual acquaintance that you are a very good advisor to CEO’s. Mikan leaves you the following phone message:
Things are pretty hectic here at Best Buy and I am under pressure to come up very quickly with some answers to our strategic issues. I may want your help with this. In order to see if you are the right person to help me, please send me your written answers to these two questions:
1. What is the most important problem or problems that I need to deal with? Why is this problem or these problems more important than other issues?
2. What should I do about this problem/these problems?
I am very busy. Do not send me more than five pages, including any illustrations or exhibits.
This is an individual assignment. Do not collaborate with anyone. You can produce a very good answer using only the information in the case but feel free to use other sources and any concepts that have been discussed in the course. I suggest you consider using the framework that I proposed for the CarMax case.
This is the framework mentioned above:
***Executive Summary***
In one paragraph, CarMax’s Situation, Complication, and Question (referencing a detailed SCEQ exhibits);
Top recommendations — at most three — for how to resolve the key question (referencing an exhibit that details the 5 Elements of Strategy for each recommendation); and
the key reasons that each recommendation would work (such as why the market is attractive, why CarMax can grow quickly in that market; and how CarMax would earn a return on its investment)
***Issue Analysis***
Linked to a three-branch issue tree exhibit, this section would include the key options considered and the key elements — such as market attractiveness, ability to compete, and ability to earn a return on the investment — used to analyze them
***Recommendations and Rationale. ***
For each recommendation:
Description of the recommendation — including target market, key products, staging of key actions, and estimate of investment required
More detailed explanation of why CarMax should pursue the recommendation expanding on topics such as
Why the market is attractive — possibly addressing market size, growth, profitability and key drivers
Why CarMax will be able to gain market share — analyzing ranked customer purchase criteria, CarMax’s capabilities, and why CarMax can outperform competitors in satisfying customer purchase criteria
How CarMax will earn a return on its investment — this could be a simple breakeven analysis
