XMGT/230: Organizational Structure

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Organizational Structure Paper XMGT/230 All companies regardless of their size and purpose have to have an organizational structure in order to efficiently function. It is the key to a successful business. Walmart is a great example of a sound organizational structure. Best Buy was founded in 1966 by Richard M. Schulze. At that time it was called "Sound of Music" and then renamed "Best Buy" in 1983. Since then Best Buy has spawned many subsidies like CinemaNow, Geek Squad and Magnolia Audio Video. It eventually became one of the most success retail stores in the world by selling consumer electronics like cellular phones, computers…show more content…
The way best Buy approaches marketing is a good example of that. The main purpose of the company is to sell electronics to their customers but not all of them are suitable for every customer. For instance, customer A could be looking for a computer to do their school work with, while customer B could want a computer that is perfectly equipped for their gaming needs. It's the marketing departments' job to appeal to their target customer base and effectively display how diverse their merchandise is so they can appeal to their needs. Developing marketing strategies plays a large role in the success of any company so it is in their best interest to constantly come up with new ideas. This can help to mold the organizational structure because marketing is typically one of the biggest departments in the company so more of the company's budget is allocated towards it. It is also possible for the marketing department to be so big that it garners its own organization structure that contains it's own chain of commands that is specially designed to fit the needs of that…show more content…
The company is currently in the process of undergoing a "transformation strategy". Perhaps Best Buy could help fix some of their problems by reconstructing their organizational structure. For instance, Best Buy has been criticized in the past for misleading their customers about the prices of their merchandise via their website. They also neglected to inform their customers that the analog televisions they sold them would not receive over-the-air stations after the digital transition in 2009. Despite Best Buy's minor flaws it is still not too late for them to get back on track and dominate in selling consumer electronics. They just need to re-examine the company and figure out what needs to changed. The consumer electronics industry is extremely competitive and the company will only continue in this downhill spiral if they don't stop making careless

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