Bestbuy Opens Uk Store
Bestbuy Opens Uk Store
Retail Assignment
Paul Cherry, May 2010
Please discuss the importance of planning and control in the context of retail management. As an example, please evaluate the American retail Best Buys use of planning and control within their operation and how it has supported the development of a competitive advantage.
If we look at planning and control in its purest senses we can see that Slack et al (2007) tells us that it is the reconciliation of what the market wants out of its operation (known as demand) what the retailer can provide with its operation (supply). When we discuss demand we are focused upon predominantly upon products and services requested by customers and when we talk of supply, again we must consider the goods and services made available to the customers alongside the facilities to complete the transaction (outlet, staff and merchandising systems). Intrinsic to the successful planning and control system is a supply chain which is supported by technology, information systems and equipment.
A good example of planning and control in action, successfully helping to develop competitive advantage is Best Buy. The Best Buy retail formula was born from the American fashion for big box stores and it enjoyed its first opening of its first Best Buy outlet in the UK in May 2010. The store sell everything from £90,000 Tesla electric sports cars to the latest 3D flatscreen TVs, affordable digital cameras and mobile phones.
We can see elements of planning and control in Best Buys operation through its organisation of staff, the blue polo shirt-wearing staff are not paid on a commission basis, instead their bonuses are based on the stores overall performance. This planning could help to explain why the staff spend so much time on customers and are driven to providing excellent service, Best Buy holds friends and family events and it has been known that the stores television department have spent four and a half hours helping a single customer.
We can also see how Best Buys superior planning and control