Valuation and Investment Analysis Term Paper Example | Topics and Well Written Essays - 750 words

Valuation and Investment Analysis - Term Paper Example Due to the slow U.S. economy, Best Buy has been plagued by declining sales during the last few years. Although the company reported losses of 2.4% for 2012, it was primarily due to the buyout of Best Buy Mobile for $1.3 billion. For 2013 the company reported a 0.5% loss, but the company was able to record a net profit of 1.3% in 2014 for the first time in the last three years. The company has been working hard to change its operating strategy and trim operations in order to turn around their financial performance. In 2012, the company hired new CEO and turnaround expert Hubert Joly which revised the companys strategy, closed down many of the less profitable big-box store, expanded many of the smaller retail store outlets, expanded their mobile best buy store outlets, streamlined and improved their online operations. Amid competition from giant retailers like Amazon.com and Wal-Mart in the consumer electronics business, Best Buy is looking to redirect their strategy through acquisitions and further expanding their mobile phone business in China and Mexico through their new venture of Best Buy Mobile. The company’s new strategy for their electronic business involves increasing the total number of retail stores, while decreasing their overall square footage in order to decrease fixed costs. The company seeks to improve their on-line revenues and customer experience by offering free shipping and more competitive pricing. By analyzing the companys overall financial performance, financial ratios and performing a valuation analysis this paper will determine whether Best Buy is a good long term investment. In order to evaluate the companys future financial performance I will need to calculate the companys growth rate and average discount rate. The growth rate was calculated by multiplying the return on operating capital by the retention rate. Based

HRM cast study Essay Example | Topics and Well Written Essays - 500 words

HRM cast study - Essay Example One of the aspects that will hinder the successful delivery of Ralph’s strategy is his father’s influence on management of the business. As seen from his management of the company, William always likes his ideas implemented. From the information provided, Ralph fears that his father might object the strategy. Putting into consideration the powerful position he holds, that of the chair to the company, William’s objection of the strategy will be effective on the level of its success. Another area that might hinder the delivery of this strategy is the role of the staff in the formulation of the strategy. A successful strategy should be drawn from the many decisions made by staff members over a period of time (Epstein 2004, p.24). Once compiled, this strategy will reflect the views of the staff. Considering that it is the same staffs that will be expected to implement it, the level of success of such a strategy will be expected to be high should they be involved in strategy formulation. This is not the case, however, with the strategy adopted by Random Alloys. The managing director, without incorporating all staff members, formulated the strategy. As indicated by the members of staff in their remarks in the questionnaires, there is a feeling among staff members that they are not included in any changes made in the company. The staff are only included when the changes are happening. Lack of a clear flow of information within the company can also hinder the level of success of its delivery (Alston & Bryson 2013, p.145). Currently, Random Alloys lacks a defined formula through which information is communicated to members of staff. This leaves staff members looking for information they need from only those they know in the various offices. Lack of clarity on who gathers and provides information within the company will translate to misunderstandings during the implementation of the