Professional Documents
Culture Documents
Leadership Challenges
Organizational Change
Transformational
Incremental
Internal or External
Planned
Unplanned
Take Action
Choosing Action
Leadership Challenges
Types of Challenges
External (Social, Economic or Political) Internal (Fear, Confidence, Insecurities, or Prejudices) Challenges from Leadership Itself (overall responsibility of the companies vision, mission, and identity)
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Long tenured leaderships, natural progression to CEO roles resulted in lack of acceptance to shift in paradigm Richard Schulze 46 years (became Chairman from CEO) Brad Anderson partner of Schulze became CEO in 2002 Brian Dunn new CEO in 2009 with more sales background Lack of right internet strategy Away from big-box store culture Failure of Bestbuy.com lack of customer focus New emerging competitors such as Amazon.com
Competitions Attributes
Small stores, leased space lower overhead less costs to pass to consumer = lower prices
Commission only sales people lower overhead less costs to pass to consumer = lower prices
Training provided by product manufacturers lower overhead less costs to pass to consumer = lower prices Locations outside of the cities more accessible to the consumer Ability to bargain regarding prices cultural difference
We've become a service company in North America, and that's what we're doing in China, too Bob Willet CEO of Best Buy International
We were stupid and arrogant Dave Deno Best Buys former Asia Chief
Organizational Ethics
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Conclusion
Best Buys behaviors in dealing with change, decisions, and leadership resulted in its devaluation and poor public image
Conclusion Cont.
Best Buy needs to reevaluate itself (internally and externally.) If it does not alter its behavior as an organization it is doomed to extinction.