Internship SWOT Analysis for Best Buy - Essay Example

Running head: internship SWOT analysis 24th February Company profile Best Buy (BB) is a fashionoutsourcing company that was established in 1998. Based on the effective management and marketing strategies that the company has emulated, Best Buy has continued to enjoy high sales and sustainable profits. The company has established various outlets thus making it easier for the consumers to access their services and products. As the demand for its products increases, the company has embarked on providing internship opportunities to college and university students. This paper aims at discussing the SWOT analysis of the BB Company. Internal analysis One of the key strengths within the sales and marketing department is the strong marketing team that employs the digital tools of marketing. As a result, the company has benefited from an expansive market segment resulting to high sales. As the result of the increased revenue, the company has been able to expand its operations in the local markets. Similarly, the experienced marketing managers within the sales department have effectively handled all the issues ranging from employees welfare to customer complaints. In turn, there has been a strong positive relationship between the workers and their team leaders. However, there has been no adequate training of the sales executives a fact that has been noted as one of the weaknesses of this department (Hill and Westbrook, 1997). Within the Finance and Accounting department, the company employs computerized accounting packages including the QuickBooks and Sage. As a result, paper work within the department has greatly been reduced. Based on the haste and effectiveness of the modern accounting systems that the department has employed, it has been possible to easily compute the sales executive’s commissions and deductions. A notable weakness of the Finance and Accounting department is that very few employees know how to use the accounting packages they are using. As a result, during the days when the accounting package users are not at work, the company operations are negatively affected. One of the major strengths in the management section is the experienced and motivated human resources. Having worked in well known fashion companies in US including Acushnet Company, American Eagle Outfitters and The North Face, the management team has gained adequate experience that it uses to streamline the activities of BB Company. However, the management failure to involve the employees in decision making process and lack of regular workers evaluation are notable weaknesses within the department of management. This has not only limited the development of employees but also it has resulted to workers resistance of the changes that the management has put in place leading to unnecessary delays and go slows in the company. The use of modern technology and experienced researchers in the fashion industry are two major strengths in the Research & Development (R&D) department. This has resulted to production of quality brands that meet the high demand of the company services and products. Despite the importance of the R&D in the company, the cut on the budget within the department is a major weakness that has negative implications on the progress of the company activities. BB Company information systems department employs computers that have large memory in order to have adequate space to store the customer’s information. Additionally, the company has maintained adequate security including use of passwords to ensure that the information systems are protected from strangers (OBrian and Montazemia, 2004). Notable weakness in this department is that there have been regular failures that have been caused by computer viruses resulting to slow down of other company activities. External analysis BB Company targets wide range of customers. Thus, the company regularly undertakes research on the demographics in order to understand the need of its customers. Local population offers great opportunity through which the company can market its services and products. This will ultimately result to high sales in the long term. Similarly, through emulating effective corporate social responsibilities including assisting the hungry, the company will appropriately position itself in image of the public leading to strong customer awareness. Based on the changing economy in some countries including inflation especially in the developing countries, the demand for our products may reduce. Thus, low economic performance may pose a threat to the company that may result to low sales and profits. At the same time, improvement in the economy may result to increased level of employment and increased household income. As a result, the demand for our services will increase leading the company expansion. The socio-cultural factors will also pose an opportunity for the growth of the company. Due to the changes in the fashion as the society becomes more civilized, BB products will be highly demanded ultimately resulting to increased revenue for the company. Similarly, the high demand for the company brands especially by the female consumers will result to high sales for the company and sustainable growth for the company. Political-legal factors are likely to pose a threat to the BB Company. In the global market, political instability for example in the African and Middle East regions may negatively affect the distribution of our products. This may result to low sales that jeopardize the company expansion strategies. On its part, the improved technology for example in the communication sector will positively impact on the relationship between the company and its consumers. Similarly, modern technology in the fashion industry will make the company to emulate effective methods of production in its facilities. This will not only result to quality products but also it will make the company to meet the ever-growing demand for its brands based on the bulk production. As the BB Company customer base expands, it will increase its sales thus obtaining adequate revenue resulting to financial stability. It is therefore necessary for the company to introduce a feedback system that will ensure that the workers are provided with opportunities to give suggestions on the company operations (Menon, et al. 1999). While some companies do not recognize the importance of their competitors, BB competitors will greatly assist the company. The competitors will ensure that the company invests in innovation as a way of facing off its rivals. On their part, the suppliers ensure that the company has adequate raw materials that ensure the continuity in the company production process. Similarly, the suppliers will provide the services needed on credit bases thus regulating the cash outflow for the company. In this way, the company will maintain an appropriate liquidity. Recommendations As the demand for BB brands increase, it is appropriate that extensive marketing strategies are undertaken. Through the use of local fashion magazines, the company should advertise its services and products in order to create stronger consumer awareness. Use of local fashion magazines will work due to the large number of female consumers who are regular readers of the magazines. Thus, they will get adequate information on the company brands and services. It is vital for the company to undertake political risk analysis as a way of determining the political stability of the developing countries that can provide marketing opportunity for the company. The company should hire the services of risk analysts who have adequate experience. This implies that before entering new markets, the company will have enough and resourceful information. In this way, the company will avoid loss of assets that may be caused by political chaos. References Hill, T. & R. Westbrook (1997). SWOT Analysis: It’s Time for a Product Recall. Long Range Planning 30 (1): 46–52. Menon, A. et al. (1999). Antecedents and Consequences of Marketing Strategy Making. Journal of Marketing 63 (2): 18–40. OBrian, J and Montazemia, A. (2004). Management Information Systems. Canada: McGraw-Hill. Read More