ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 25: Global Business Environment (5076)

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Table of Contents
1. Executive summary .................................................................................................................. 5
2. Impact of globalization on organizations .................................................................................. 6
2.1. McKinsey model: ............................................................................................................... 6
2.1.1. Theory and applied to BestBuy ................................................................................... 6
2.1.2. Globalization impacts BestBuy .................................................................................. 11
2.2. Ethical and sustainable globalization................................................................................ 16
3. Global strategic options ......................................................................................................... 17
3.1. Production strategy ......................................................................................................... 18
3.2. Retail strategy ................................................................................................................. 20
3.3. Global Integration versus local responsiveness ................................................................ 21
4. Conclusion ............................................................................................................................. 24
References .................................................................................................................................... 25

Figure 1: Best Buy's logo .................................................................................................................. 5

Figure 2:The McKinsey 7S ................................................................................................................ 6

Table 1: SWOT of BestBuy (Contributor, 2022) ............................................................................... 18

Table 2: Advantages and disadvantages of these 3 methods: export, licensed outsourcing, and
offshoring production ................................................................................................................... 19
Table 3: Advantages and disadvantages of these 3 methods: licensing, company-owned stores, and
e-commerce. ................................................................................................................................. 20
 1. Executive summary
Consumer electronics, home office items, entertainment products, appliances, and related services are
all offered by Best Buy Co., Inc., a global retailer. Domestic and international business segments make
up the company's operational structure. The activities in all states, districts, and territories of the United
States that operate under a variety of brand names, including but not limited to Best Buy, Best Buy
Mobile, Geek Squad, Magnolia Audio Video, Napster, and Pacific Sales, are included in the Domestic
section. All operations outside of the United States and its territories, including those in Canada,
Europe, China, Mexico, and Turkey, are included in the international sector. In addition, the business
sells its goods under the following brand names: Best Buy, Audiovisions, Best Buy Mobile, The Carphone
Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales, and The
Phone House. In 1983, the company's name was changed from Sound of Music, Inc. to Best Buy Co.,
Inc. Richard M. Schulze established Best Buy in 1966, and it is headquartered in Richfield, Minnesota
(Chcom, 2021).

Figure 1: Best Buy's logo

 2. Impact of globalization on organizations
2.1. McKinsey model:
2.1.1. Theory and applied to BestBuy
 Theory

The McKinsey 7S

The McKinsey 7S Model is a framework for organizational performance that holds that in order for a
company to succeed, seven internal variables must be aligned and strengthened (Kenton, 2022).

Figure 2:The McKinsey 7S

Structure: The corporate hierarchy, the chain of command, and the divisional make up of the company
define how the activities work and are connected. In essence, it describes the structure of management
and employee roles (Kenton, 2022).

Strategy: The organization's strategy is the blueprint it uses to stay competitive in its market and
industry. Establishing a long-term strategy that is compatible with the other components of the model
and makes it obvious what the organization's mission and goals are is the best course of action (Kenton,
2022).

Systems: The everyday process, decisions, and procedures that make up the organization's routine
operations are referred to as its systems (Kenton, 2022).

Skills: The abilities and talents of the organization's workers and management are referred to as skills,
and they might affect the kinds of accomplishments and work the business can complete. A time may
come when a business evaluates the abilities it now has and decides it has to make adjustments in order
to meet the objectives outlined in its plan (Kenton, 2022).

Style: Style refers to the direction and model that management sets for the business, as well as how
this affects output, performance, and corporate culture (Kenton, 2022).

Staff: Staff refers to the people who work for the company, how many people are employed there,
what drives them, and how well-trained and equipped they are to complete the tasks assigned to them
(Kenton, 2022).

Shared Values: Shared values are the recognized standards and conventions across the organization
that guide and restrain the actions of the entire workforce and management. Company policies that
are distributed to the staff may provide specifics on this. In reality, shared values are related to the
accepted conduct at work (Kenton, 2022).

 Applied to Best Buy

Strategy

The strategy of Best Buy serves as a clear-cut foundation for all of its business decisions. This clear
direction makes it easier to manage performance, coordinate activities, and create approaches that
work with the company's overall plan. It encourages accountability and openness within the
organization. The strategy also directs employee behavior toward SMART Goals that are in line with the
direction of the organization, promoting growth (Matthew , 2020).

The plan also takes competitive pressures into account and addresses them with strategic actions to
maintain sustainability by adjusting to shifting market conditions and customer needs. Best Buy's
business approach adapts to changing consumer wants and trends, enabling it to stay current and spot
market gaps. It strategically closes these holes with cutting-edge goods and marketing initiatives
(Matthew , 2020).

The strategy's adaptability allows Best Buy to react quickly to shifts in the global consumer landscape
and customize items for regional markets, which is a considerable strength. The company's ability to
adapt also gives it the opportunity to anticipate market developments and make proactive strategic
modifications. Overall, the strategy at Best Buy emphasizes transparency, adaptability, and market
knowledge, setting the business for success in the competitive consumer electronics sector (Matthew,
2020).

Structure

The specific qualities that contribute to Best Buy's operational effectiveness and goal accomplishment
determine the organizational structure of the company. A flatter hierarchy allows for a more direct line
of communication between staff and top management, which boosts trust, improves information
access, and speeds up decision-making. The focus on efficient inter-departmental coordination
facilitates collaboration through inter-departmental teams, fostering efficient work procedures and
successful goal attainment. The company's commitment to team dynamics promotes both individual
accountability and group effort, aligning with the overall strategy and values of Best Buy. The business
uses a hybrid approach to decision-making, giving employees the freedom to make decisions locally
while also maintaining central control to guarantee alignment with corporate objectives. Additionally,
the efficient information flow between levels and departments is guaranteed by Best Buy's well-
organized communication system, minimizing communication gaps and maintaining the integrity of
tasks and objectives. These elements work together to create an organizational structure that supports
Best Buy's dedication to operational excellence, strategic direction, and effective communication and
cooperation (Matthew, 2020).

System

The framework of a well-structured system underpins the operational success of Best Buy by facilitating
efficient management and reducing conflicts. The company's systems are established across numerous
divisions, including HR, finance, marketing, operations, and more, each with specialized performance
assessment tools. Continuous monitoring includes unofficial observations, conversations, and
continuous feedback in addition to formal, scheduled evaluations conducted by supervisors. By
incorporating each department's expertise inside the larger corporate goal, Best Buy maintains system
alignment. By allocating resources and establishing goals, strategic leadership promotes coordinated
efforts toward common company objectives. The dedication of Best Buy to effectiveness, performance,
and consistent corporate alignment is highlighted by this comprehensive system framework (Matthew,
2020).

Shared values

The foundation of a dynamic and supportive structure is made up of the company's basic principles,
which have been carefully developed and articulated. These principles—which include originality,
truthfulness, openness, responsibility, trust, quality, and heritage—empower workers, boost
motivation, and encourage corporate commitment. To ensure that all operations meet high moral
standards, Best Buy's ethical compass is subject to strict international standards (Matthew, 2020).

The corporate culture of Best Buy exemplifies inclusion and diversity, which is consistent with its global
reach and multi-national production facilities. This culture encourages creativity by giving people and
teams the freedom to advance both personally and professionally. The leadership is encouraging and
places a strong emphasis on visibility and accessibility, which boosts employee enthusiasm and job
happiness (Matthew, 2020).

All responsibilities and positions are in line with the company's values, ensuring seamless alignment.
Best Buy maintains a consistent and reliable brand image while fostering an authentic organizational
culture by aligning its operations, tactics, and strategies with its core principles. The company's core
values continue to exist as essential elements of change management, protecting the company's culture
and enabling systematic adjustments as appropriate (Matthew, 2020).

Style

The business uses a participative leadership approach, involving employees in managerial and decision-
making procedures. Through regular encounters, this involvement encourages management and staff
to resolve disputes and gather feedback. Best Buy develops a motivated staff with more ownership and
engagement through participative leadership (Matthew, 2020).
The organization's aims and vision can be realized with great success with this strategy. Employees feel
appreciated for their opinions and contributions, and leaders quickly spot and resolve conflicts. For a
worldwide company with interdependent tasks and responsibilities, Best Buy's supportive culture
fosters internal cooperation and collaboration. This cooperative environment, which is encouraged by
the organizational culture, is the reason why project teams succeed (Matthew, 2020).

In order to accomplish its goals, Best Buy embraces efficient and productive teams. Transparent growth
prospects are promoted by the organization's supportive management style, visionary leadership, and
extensive human resource procedures. Instead of producing ineffective groups, this strategy creates
strong teams that can handle project- and department-specific tasks. At Best Buy, establishing
organizational success and togetherness is based on the participative, collaborative leadership style
(Matthew, 2020).

Staff

According to the specific skill requirements and urgency, the organization sources individuals both
internally and outside to maintain a sufficient workforce across its international activities. Best Buy
ensures that employees have the skills required for their tasks through internal training to acclimate
them to the company's values and external training for skill growth, building a synergy between
employee capabilities and business objectives (Matthew, 2020).

Best Buy has a sizable staff, with variations in size by nation to accommodate local business and
operational requirements. The organization, which conducts business on a global scale, values diversity
and builds an inclusive team that works well together to achieve business success (Matthew, 2020).

In order to ensure alignment across departments, the company has a systematic procedure for
assessing competence and capacity needs. In order to find potential skill gaps or job openings, the
human resource function works in conjunction with other departments. In order to meet these
demands, the human resources division organizes temporary or contractual hiring as necessary and
also plans training sessions to fill skill shortages in the current staff. By taking proactive measures, Best
Buy can maintain a workforce that is committed to its strategic objectives and flexible enough to meet
shifting customer needs (Matthew, 2020).
Skill

The business places a lot of attention on selecting qualified candidates who will be supported in their
continued development. As a testament to Best Buy's commitment to hiring top talent, employees are
chosen based on their skills and merit (Matthew, 2020).

Best Buy carefully matches job requirements with employee skill sets. The corporation carefully defines
job roles and responsibilities to ensure that hired and trained personnel have the skills needed to excel
in their positions and consistently respect the company's values, culture, and strategic goals (Matthew,
2020).

An essential component of Best Buy's strategy is skill enhancement. Regular internal and externally
supervised training sessions and workshops are offered by the business to encourage the development
of its workers' personal and professional lives. This dedication to growth highlights Best Buy's
investment in its personnel (Matthew, 2020).

A key competitive advantage for Best Buy is the knowledge and abilities of its staff. By emphasizing the
development of job-specific skills, the organization produces a distinct and non-replicable competency.
This distinctive advantage gives Best Buy a competitive edge that is challenging for rivals to match, thus
enhancing the success of the business (Matthew, 2020).

2.1.2. Globalization impacts BestBuy

 Globalization’s Impact on Organizational Structure

Best Buy's organizational structure is significantly impacted by globalization because it is required to

handle the company's expanding global operations. A matrix organizational structure would be
appropriate given the complexity of operating in numerous markets and nations. Best Buy is able to
balance functional knowledge while also catering to regional and market-specific requirements thanks
to a matrix structure that incorporates both functional and divisional elements. With this organizational
structure, the business may adapt to various market conditions while still retaining its core
competencies (Hitt et al., 2012).

Vertical Structure: Centralized or Decentralized?

Best Buy would benefit from a decentralized strategy in the context of globalization. Decentralization
gives local teams the freedom to decide based on their knowledge of particular market dynamics and
cultural quirks. This improves flexibility and responsiveness, two qualities necessary for adjusting to the
various demands of international markets (Bartlett & Ghoshal, 1998).

Horizontal Structure: Functional, Regional, Product, or Matrix?

Best Buy would perform best in a hybrid structure that combines functional, regional, and matrix
components. This organizational structure enables Best Buy to maintain its functional expertise while
also meeting the particular needs of various markets and geographic areas. By doing this, the business
is guaranteed to be able to adapt its plans and operations to local conditions while still reaping the
advantages of pooled resources and coordinated efforts. (Eisenhardt & Brown, 1999).

It's vital to remember that Best Buy's ideal organizational structure would depend on a number of
variables, including its current operations, market position, and strategic goals. For Best Buy to succeed
in the age of globalization, a tailored strategy that strikes a balance between the advantages of
centralization and the requirement for flexibility in decision-making and regional responsiveness is
essential.

Leadership

In response to the problems presented by the COVID-19 epidemic, Best Buy's CEO, Corie Barry, took a
strategic and significant decision to prioritize e-commerce and alter the company's global operations.
For a variety of reasons, this choice has proven to be very successful. First off, Best Buy showed
exceptional agility by quickly adjusting to the quickly shifting business environment, demonstrating its
capacity to effectively react to unforeseen circumstances. Second, the choice was completely in line
with how customers' preferences are changing all across the world. By placing a strong emphasis on e-
commerce, Best Buy improved the shopping experience and met the expanding demand for online
buying in a number of different locations (Melissa, 2021).

The choice also demonstrated a robust risk management strategy. The corporation reduced the risks
associated with changing consumer behavior in various worldwide markets and unstable economic
conditions by diversifying its sales channels and putting a strong emphasis on e-commerce.
Furthermore, Best Buy's global competitiveness was boosted by the concentration on e-commerce. This
action put the business in a position to successfully compete with other online retail behemoths, both
domestically and globally, in a highly competitive global market (Melissa, 2021).

The choice was also a result of a carefully considered strategy that combined the benefits of online
convenience with in-person interaction. Physical stores were used as fulfillment centers as well as retail
areas, demonstrating a thought-out strategy for satisfying different client preferences around the
world. Finally, the decision's futuristic outlook emphasized the business' dedication to long-term
viability. Best Buy put itself in a position for ongoing relevance and success in the constantly changing
global retail landscape by recognizing the long-lasting effects of shifting consumer behavior (Melissa,
2021).

In light of the epidemic, Best Buy's leadership choice to prioritize e-commerce and restructure its
business has turned out to be a highly successful tactic. The company's flexibility, customer-centric
focus, risk management, global competitiveness, balanced approach, and dedication to long-term
success were all on display in this choice. It serves as evidence of Best Buy's aptitude for navigating the
complexity of the global landscape and seizing chances for resilience and growth (Melissa, 2021).

Improving Corporate Governance in the Globalization Context

In the age of globalization, Best Buy should put a stronger emphasis on accountability, transparency,
and moral behavior. Comprehensive disclosure of financial and non-financial performance would be
ensured by the adoption of international reporting standards, such as those offered by the Global
Reporting Initiative (GRI) (Global Reporting Initiative, n.d.).

It is critical to improve internal controls and risk management procedures. Regular evaluations and
audits in accordance with internationally recognized frameworks, such as COSO ERM (Committee of
Sponsoring Organizations of the Treadway Commission - Enterprise Risk Management), will improve
accountability and reduce risks (Christophe, 2020)

Culture

Geert Hofstede's Hofstede Model provides a thorough framework for comprehending and analyzing
cultural differences among various nations. It is made up of six cultural dimensions, each of which
highlights a different facet of a society's norms and practices. Power Distance, the first dimension,
measures how well-liked hierarchical power arrangements are. The debate between individualism and
collectivism looks at how to strike a balance between these two concepts. Comparing masculinity and
femininity assesses the relative importance of cooperative vs competitive traits. Uncertainty The
degree to which a society avoids uncertainty and change can be measured. Short-Term versus Long-
Term Orientation measures how much emphasis is placed on long-term goals vs short-term rewards.
Finally, Indulgence vs. Restraint examines how much basic human desires can be indulged in. By
revealing how cultural differences affect relationships and beliefs, these dimensions work as useful
instruments for cross-cultural management, communication, and international business (Hofstede,
1980)

Figure 3: The culture in VN and US (Sarason et al., 2018)

- Power distance: In Vietnam, a high power distance is fundamental to the way of life. In
essence, this indicates that people do not consider one another's positions to be equal.
Never do people confront authority. Regarding this cultural trait, the U.S. is essentially the
reverse. Everyone aspires to be thought of as equally significant. My communication
regarding power distance would need to be significantly altered if I were working for a
Vietnamese company. I would address my boss with a great deal of respect and refrain from
using his or her first name or acting casually in conversation. I'd address the boss as Mr. or
Mrs. (last name) (Sarason et al., 2018)
- Individualism (Collectivism): According to Hofstede, the major cultural difference between
the US and Vietnam is how each nation perceives individuals. Vietnamese culture places a
high priority on family and loyalty. The family as a whole frequently makes crucial decisions
for the good of the family as a whole. Large decisions are decided in the U.S. by the individual
and in that person's best interests (Sarason et al., 2018).
- Masculinity: Men and women are treated differently in different cultures. The U.S. has a
bigger proportion of men than women, thus we place more emphasis on striving for
personal success. Vietnam places lower on this measure because it emphasizes relationships
and life quality more. If I were a resident of Vietnam, I would change the way I communicate
so that it was less about slaving away to be rich and successful. I would work more slowly
and focus more on developing close ties with my loved ones by spending quality time with
them (Sarason et al., 2018).
- Uncertainty Avoidance: These two nations have different ways of avoiding uncertainty. In
the United States, we schedule everything and have more rigid schedules. Vietnamese
deadlines are less strict and more loose. All the time, I have to deal with this. I fret about the
future and attempt to organize everything. I would need to develop my ability to unwind
and "go with the flow" if I lived in Vietnam. Given that I am continuously worried about the
future, I think that this would be quite beneficial for me (Sarason et al., 2018).
- Long-Term Orientation: In terms of long-term direction, Vietnam does quite well, while the
United States performs very poorly. While America is more concerned with the now and
what will make people happy right now, as a whole, Vietnam is more concerned with long-
term advantages and the significance of planning for the future. Despite the fact that I reside
in the United States, I am prone to having a strong long-term orientation (Sarason et al.,
2018).
- Indulgence: There are noticeable disparities between Vietnam and the United States in
terms of indulgence, which gauges how much societies value freedom and personal
fulfillment. Tradition, family, and responsibility are frequently prioritized in Vietnam (35
score), which results in more controlled behaviors. The United States (68 score) has a
tendency toward individualism, self-expression, and personal happiness. As a result,
different lifestyles are more widely accepted, and leisure and amusement are prioritized.
 These disparities are the result of a number of things, such as social and religious influences,
consumerism, work-life balance, and cultural values. It's crucial to note that these are
merely generalizations and that there are individual differences within each of the two
nations (Sarason et al., 2018).

2.2. Ethical and sustainable globalization

Ethical Treatment of Workers in Developing Countries: Businesses that compete in the global market
frequently purchase goods from underdeveloped nations where labor costs are lower. This may give
rise to questions concerning the moral treatment of workers in these areas, including matters like pay
equity, workplace safety, and respect for labor laws. In the event that there are allegations of labor
exploitation or rights abuses in a company's supply chain, they risk public backlash and censure (Locke,
2013).

Cultural Sensitivity and Diversity: Operating in numerous nations with different cultures and beliefs
might present issues related to diversity and cultural sensitivity. If Best Buy's advertising, merchandise,
or business methods are viewed as culturally insensitive or improper in some areas, it may face criticism
or reaction. Additionally, it might be difficult to build a varied and inclusive staff that represents the
local populations in many nations, especially if the company's headquarters is located in a different
cultural setting. Best Buy should make an investment in cultural competence training, inclusive
recruiting procedures, and localized marketing techniques to solve this problem and make sure they
are considerate of the many cultures and communities they serve (impactly, n.d).

Recommendation

Best Buy should provide ethical treatment of workers in developing countries a higher priority and
address environmental effect and sustainability in order to achieve social sustainability while
conducting business in Vietnam. Best Buy should create a thorough supplier code of conduct that sets
expectations for fair labor practices, working conditions, and human rights for its supply chain partners
in order to uphold ethical treatment of workers. To maintain compliance and quickly resolve any
infractions, regular monitoring and open reporting procedures should be put in place. Working together
with suppliers is essential to empowering employees by educating them about their rights and
providing them with avenues to voice issues without intimidation. To enhance the prospects and well-
being of workers, fair salaries, benefits, and capacity-building efforts should be supported.

Best Buy can use a variety of tactical approaches to maintain social sustainability in terms of cultural
sensitivity and diversity when conducting business in Vietnam. The business should place a high priority
on employing a varied local workforce to overcome cultural barriers, starting with cultural training for
staff members to understand local customs and communication styles. Collaboration with community
leaders and groups can help to advance understanding across cultures. Respect for local values is shown
by adjusting marketing and product tactics to reflect Vietnamese preferences. Fostering a culturally
sensitive workplace requires the creation of inclusive workplace policies, moral supplier participation,
and the creation of Employee Resource Groups (ERGs) focused on diversity. The company's dedication
to social sustainability is highlighted by feedback channels, ongoing learning, and open reporting. Best
Buy can successfully negotiate cultural dynamics and guarantee a peaceful presence in the Vietnamese
market by putting these strategies into practice.

3. Global strategic options

Best Buy is in a potentially risky position in a market that is drastically changing, despite the fact that it
has managed to thrive even while some of its longtime competitors like Radio Shack and Circuit City
have gone under. A SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) might help us
determine whether Best Buy is likely to succeed or fail, like some of its rivals (Contributor, 2022).

SWOT of BestBuy

Strengths Weaknesses
Good reputation, especially among women Heavy dependence on brick-and-mortar
locations
Proven ability to retain customer loyalty Limited profit margin
Strong marketing expertise in electronics Limited cash flow
Large footprint in the United States (1,731 stores) Supplier credit dependency
Strong relationship with brands like Apple High operating expenses
Successful e-commerce track record Dependence on luxury items for sales
Growing market for consumer electronics
Large revenue flow ($39.49 billion)
Opportunities Threats
Growing electronics market Digital delivery reducing foot traffic
New product releases generate media attention Online retail platforms replacing stores
E-commerce expansion opportunities Online retailer discounting
Competitor disappearance leaves room for Big box retailer competition
growth
Sales holidays boost consumer interest Preference for online shopping
Technological advancements create new sales Perception of online savings
Manufacturer direct sales
Customer loyalty decline
Competitor e-commerce expansion
Technological changes impacting product sales
Table 1: SWOT of BestBuy (Contributor, 2022)

3.1. Production strategy

Methods Advantages Disadvantages
Export (Prateek, 2023) Increased Sales and Profits High Costs of Exporting
Market Diversification Risk of Non-Payment
Spreading Business Risk Cultural & Language Barriers
Increased Lifecycle of Products Political & Legal Risks
Economies of Scale Supply Chain Disruptions
Outsourcing (InbusinessInfo, Improved Focus on Core Service Delivery Challenges
n.d) Business
Increased Efficiency Confidentiality and Security
Controlled Costs Lack of Flexibility
Increased Reach Management Difficulties
Greater Competitive Advantage Instability
Business Flexibility and Agility Offshore Outsourcing
Challenges
 Offshoring production Access to Skilled Labor Quality Control Problems
(PlanetTogether, 2020) Development of the Business Rising Labor Costs
Reach New Markets Security Issues
Increase in Unemployment
Table 2: Advantages and disadvantages of these 3 methods: export, licensed outsourcing, and offshoring production

Best Buy carefully considered all of the internal and external aspects that were outlined in its SWOT
analysis before deciding to enter the Vietnam market by exporting. This tactical decision's strength
comes from the harmonious alignment of numerous important elements. The tremendous marketing
know-how of Best Buy and its successful history in e-commerce are in perfect harmony with the
changing Vietnamese market, which shows a growing propensity for online buying and a burgeoning
electronics industry.

The strategic interaction between Best Buy's inborn advantages—such as marketing acumen and e-
commerce success—and the distinctive prospects provided by the Vietnamese market—underscores
this deliberate choice. The exporting approach perfectly complements Best Buy's key strengths. This
strategy skillfully promotes the introduction of Best Buy's extensive product range to Vietnamese
consumers through online platforms by cleverly exploiting its strong distribution networks. The growing
trajectory of online purchasing in Vietnam, which closely syncs with Best Buy's e-commerce capabilities,
is also aligned with this plan.

Because of the strategic alignment, Best Buy is more appealing to a consumer group looking for the
accessibility and convenience that internet purchases represent. The key benefit of the exporting
strategy is its natural ability to overcome obstacles like restricted profit margins and complex cash flow
management. This plan skillfully empowers Best Buy to successfully manage these obstacles through
the careful application of cost-effective methodologies.

This method places a strong emphasis on cost management, which is important for preserving
operational agility. The obvious strategic fit of exporting is shown by the seamless synthesis of Best
Buy's strong advantages and the expanding opportunities within Vietnam's electronics sector. By
implementing this targeted strategy, Best Buy strategically positions itself to take advantage of the
growing demand for electronics in the Vietnamese market while maximizing its e-commerce expertise.
With this painstakingly planned strategy in place, Best Buy is ready to join the Vietnamese market in a
way that best utilizes its advantages and synchronizes with market dynamics. This all-encompassing
strategy serves as the cornerstone for a successfully executed market entry effort that expertly
navigates potential obstacles and seizes growth possibilities.

3.2. Retail strategy

Methods Advantages Disadvantages
Licensing (Luoma, 2019) Low initial investment Limited control over how
products are marketed
Access to local partner's Dependence on the licensee's
knowledge and network competence
Shared risks and costs Potential conflicts with licensee
Company-owned stores Full control over operations and High initial setup and operating
(Joseph, 2017) branding costs
Ability to maintain consistent Need for local market expertise
customer experience
Direct interaction with Regulatory hurdles and cultural
customers differences
E-commerce (Adil, 2022) Global reach and low entry Intense competition in the
barriers online space
Cost-effective and scalable Logistics and distribution
challenges
Data-driven insights for Limited touchpoints for
marketing customer interaction

Table 3: Advantages and disadvantages of these 3 methods: licensing, company-owned stores, and e-commerce.

From a thorough examination of the company's SWOT elements, the best market entrance strategy for
Best Buy to create a foothold in the Vietnam market is revealed. The best course of action is to
strategically combine company-owned storefronts with e-commerce, taking into account the
company's internal strengths, weaknesses, opportunities, and threats as well as the external
opportunities and dangers. This choice is carefully in line with a number of important factors. The
growing Vietnamese market, which strongly supports online shopping and electronics consumption,
resonates with Best Buy's strong marketing skills and great track record in e-commerce. This methodical
technique successfully handles numerous aspects found in the SWOT analysis.

First off, Best Buy's advantages—particularly its track record of successful online sales—align
astonishingly well with the opportunities presented by the Vietnamese market's expanding propensity
for doing business online. This tactic effectively makes use of the business's expertise in online
commerce to capitalize on Vietnam's rapidly growing electronics market. Second, this plan successfully
mitigates the SWOT analysis's shortcomings, particularly the issue of dependence on brick and mortar
sites and expensive operational costs. E-commerce offers a practical means of entering the Vietnamese
market without having to immediately invest heavily in physical infrastructure.

Additionally, this strategy cleverly takes advantage of openings created by the expanding electronics
market and the shift toward online retail, leveraging on Best Buy's advantages and market dynamics.
Its ability to successfully combat threats like decreased foot traffic brought on by digital delivery and
the expansion of competitors' e-commerce activities further emphasizes the strategic match. Best Buy
adopts a diverse approach that best matches with company strengths, neutralizes weaknesses, and
exploits opportunities while leveraging opportunities while neutralizing potential threats by entering
the market through both online and physical ways. This thoughtful synergy serves as the foundation for
a comprehensive and wise market entry effort into Vietnam.

3.3. Global Integration versus local responsiveness

Activities BestBuy should standardize globally

Best Buy engages in a number of procedures that ought to be standardized internationally in order to
handle potentially dangerous substances in its operations and product lines. The company's Chemicals
Management Statement, which is available at Corporate.BestBuy.com/Sustainability, reflects its
commitment to safeguarding customers and staff by offering safer alternatives and minimizing the use
of hazardous chemicals. In its corporate, retail, service, and distribution activities, Best Buy aggressively
looks for ways to reduce the use of chemicals, preferring to switch to EPA Safer Choice chemicals
whenever practical. The company's strategy is applied to its direct import and private-label products,
where the supplier's obligations for chemical usage in both finished goods and production processes
are stated. This strategy involves keeping an extensive Restricted Substance List (RSL) that lists
prohibited compounds in accordance with laws and dangers. Regular audits of supplier compliance with
the RSL and the Supplier Code of Conduct, which covers safe chemical practices, are conducted, and
when non-compliance is found, adjustments are required (BestBuyreport, 2019)

Through training activities, Best Buy makes sure that factories are aware of the dangers and safeguards
associated with chemical management. This training is designed to achieve consistent results and is
intended to improve chemical management systems. Additionally, Best Buy evaluates vendors'
compliance with the IECQ 080000 standard, which measures the presence of hazardous materials in
electronics. The company promotes industry-wide knowledge and alignment on voluntary chemical
management initiatives by providing its vendor partners with simple access to chemical management
information via the partner portal, Partners.BestBuy.com (BestBuyreport, 2019).

Best Buy works with certified recyclers of electronics and appliances as part of its commitment to
responsible recycling. These partners follow the strictest industry guidelines to guarantee correct
product disposal at the end of its useful life and efficient chemical risk management. Best Buy
emphasizes its commitment to environmentally responsible activities by making its recycling criteria
available to the public on its company website (BestBuy, 2019).

It is widely acknowledged that cooperation is essential to solving the difficult problem of managing
chemicals in the electronics industry. Best Buy keeps participating in work groups for chemical
management with groups like the Responsible Business Alliance and the Green Chemistry and
Commerce Council, standardizing its involvement to advance awareness of and progress in the
industry's overall effort toward responsible chemicals management (BestBuy, 2019).

Activities BestBuy should adapt to the Vietnam market

To correspond with the distinctive features of the local market, Best Buy's debut into the Vietnam
market entails a strategic adaption of operations and processes. The business wants to effectively cater
to Vietnamese customers by tailoring its strategy. This comprises modifying product offerings to reflect
regional preferences and technological advancements as well as pricing policies to reflect regional
economic conditions. Vietnamese buying habits will be taken into account in store layouts and designs,
and marketing strategies will be tailored to the audience's cultural quirks and purchasing habits. Best
Buy will concentrate on adapting customer service procedures to Vietnamese laws and standards while
taking into account communication preferences and styles. Collaborations with regional vendors and
community involvement programs will increase Best Buy's market share. The business's dedication to
sustainability will be customized to take into account regional environmental issues. Best Buy intends
to successfully negotiate the distinct difficulties and market infrastructure of the Vietnamese market
by adjusting logistics and distribution techniques. Together, these modifications create a strategy that
acknowledges and respects local market circumstances while adhering to Best Buy's commitment to
providing Vietnamese customers with value.
 4. Conclusion
Collaborations with regional vendors and community involvement programs will increase Best Buy's
market share. The business's dedication to sustainability will be customized to take into account
regional environmental issues. Best Buy intends to successfully negotiate the distinct difficulties and
market infrastructure of the Vietnamese market by adjusting logistics and distribution techniques.
Together, these modifications create a strategy that acknowledges and respects local market
circumstances while adhering to Best Buy's commitment to providing Vietnamese customers with
value.

While making judgments about vertical and horizontal structures as Best Buy expands internationally,
competent leadership and improved corporate governance assure ethical operations. In emerging
markets like Vietnam, the Hofstede model reveals cultural hurdles that call for cultural knowledge and
adaptation.

As Best Buy navigates its global operations, addresses social challenges, and upholds ethical practices,
ensuring social sustainability is crucial. Market success is ensured while taking into account regional
variations by selecting the appropriate retail and market entry tactics and balancing global integration
and local response.

In spite of the opportunities and challenges presented by globalization, Best Buy's skillful
implementation of these strategies and frameworks puts it as a major participant on the world stage,
addressing customer requirements, promoting innovation, and creating positive societal effect.
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