response needed

Review Case 4: Finding the Best Buy.

“Finding the Best Buy” Please respond to the following:

  • Corporate governance has become a hot issue in the U.S. over the past two decades. From your analysis of the case study, determine two possible corporate governance challenges that might be faced by Best Buy as a result of its rapid growth and why they could become corporate governance issues.
  • Make recommendations for how Best Buy can overcome these challenges. Provide specific examples to support your response.

After reading the Best Buy Case study, two corporate governance challenges that might be faced by them would be the following:

    1. Lack of diversity in leadership
    2. Uncapped diversification

Leadership diversity would appear to be an interesting situation. According to the case study, Best Buy’s top tier of leadership has been promoted from within and has essentially been stable since 1966. It’s unclear if in the succession planning in Best Buy contain the necessary skills and experience needed to thrust Best Buy into more innovative strategies. While their current momentum seems stable and producing positive sales growth, are they doing enough? Are they leaving money on the table? How “diverse” are their ideas when everyone is “home grown”? Groupthink?