Real-world strategy
Still tops in its niche, Best Buy is struggling to stay ahead of discount and online rivals. Who better to come up with creative business solutions than Skidmore students?
Can Skidmore save Best Buy?
鈥淭hat鈥檚 your company,鈥� business professor Caroline D鈥橝bate 鈥�93 told this spring鈥檚 teams and coaches in the MB 107 course. 鈥淭ake a look at that stock value,鈥� she said, pointing to a down-sloping line. 鈥淵ikes!鈥� Then she asked, 鈥淎nyone want to guess what company that is?鈥�
Turns out it鈥檚 Best Buy, the world鈥檚 largest consumer electronics chain, which had better-than-expected holiday-season sales but still faces an uphill battle to fend off discount and online rivals. Certainly, Best Buy isn鈥檛 sitting still. Maybe you saw its Super Bowl ad, starring actress Amy Poehler as a retail employee鈥檚 nightmare. Or heard that the company will match online prices beginning in March.
鈥淵our job,鈥� she informed the 120 students, 鈥渋s to add 10% to Best Buy鈥檚 operating profits by year-end 2016. Coordinator of the introductory, case-study-based business course, now in its 31st year, D鈥橝bate said, 鈥淲e鈥檒l have a dry run in mid-March. Then on April 26 at the Courtyard Marriott, you鈥檒l be presenting your business plans to executives.鈥�
At these presentations, the mostly first-year students get immediate feedback, including a grade, from real-life business execs like Christopher Graves, global CEO of Ogilvy PR; Deborah Monosson, president and CEO of Boston Financial & Equity; and David Marks, chief investment officer of Cuna Mutual Group. It鈥檚 intimidating and invigorating, and it鈥檚 a great introduction to the business world. 鈥淭he relevance of this experience for our students is huge,鈥� says D鈥橝bate. 鈥淲hether from current students or alumni, I often get the same response: 鈥業鈥檓 so glad I took that course.鈥欌��
Watch this video for an in-depth look at MB 107.
D鈥橝bate鈥檚 faculty colleague Catherine Hamilton recommended that students use the 鈥渟trategy diamond鈥� of markets, customers, and geography. 鈥淏ased on these three variables,鈥� she said, 鈥渉ow do you differentiate a Sony TV at Best Buy from one on Amazon or at Walmart? That鈥檚 your challenge, and it鈥檚 a big one. Best Buy reminds me of Borders, and as you know it鈥檚 not in town anymore.鈥�
鈥淲hat鈥檚 the fundamental goal of every business and organization?鈥� asked professor Mark Youndt. 鈥淭o create value in the market place鈥攖he difference between willingness to pay and cost. One way or another, your team has to figure out how to increase the willingness to pay or create value.鈥�
Rebecca McCourt 鈥�14, one of the two student coordinators, along with Tyler Orfao 鈥�13, had some more basic advice. 鈥淧ut in the hard work now so you can get the most out of your dry run,鈥� said the business major and computer science minor. 鈥淚t鈥檚 easy to put off the work because the executive presentations seem so far away. But if you treat the dry run as the real thing, you鈥檒l just have some minor tweaks, and you鈥檒l have a great presentation.鈥�
