Operation Management of Best Buy Essay Example | Topics and Well Written Essays - 500 words

Operation Management of Best Buy - Essay Example However, in a global restructuring program, the company closed its Shanghai headquarters in 2011 plus other nine stores (Zhihao, 2012). Despite being seen as a saviour, after other electronics retail companies that had failed, Best Buy was forced to shut down operations because of several reasons. According to Baijia (2013), the company operated on small scale. As such, it could not take advantage of economies of scale aimed at lowering costs. Additionally, the company failed to strike a balance between lowering prices while at the same time providing high quality services. This meant that despite offering low prices on its products, these products did not satisfy customer needs. As such, many customers were dissatisfied with the product quality hence many preferred those produced by rivals. With fewer customers using its products compared to competitors, there were reduced profits. Furthermore, there was an unsuccessful strategic adjustment in the United States hence forcing the company to shut down its branded stores in 2010. After the shutdown, only outlets branded Five Stars were still in operation. The Five Sta r brand was the one that people in China recognized more than Best Buy branded stores, hence the need to leave it in operation. Additionally, the Five Star brand had been in operation for longer compared to Best Buy stores in China (Zhihao, 2012). The numerous challenges forced the Company to shut down its China stores in order to focus on an expansion plan in areas that were deemed more profitable. Focus was on areas like the United States of America which were viewed as being profitable with more growth opportunities (Bloomberg News, 2011). The failure of Company to do well in China can be attributed to its inability to fully understand the Chinese market. Whereas its target market was the middle class, it was unable to judge what these shoppers were interested in buying.

How significant are maritime issues in the Indian Ocean in terms of Essay

How significant are maritime issues in the Indian Ocean in terms of overall global security and stability - Essay Example The Ocean is bounded by three landmasses and ranks as the world third largest ocean or water body. The Indian Ocean is a discrete geographical entity and surrounded by long-standing disagreements (Institute for Security Studies 2012). The Indian Ocean region comprises of the following nations in Africa: South Africa, Mozambique, Tanzania, Kenya, Somalia, Djibouti, Eritrea, Sudan, and Egypt (Institute for Security Studies 2012). The Middle East countries include Saudi Arabia, Yemen, Oman, and the United Arabs Emirates, Qatar, Bahrain, Kuwait, and Iran. The South Asian nations include Pakistan, India, Bangladesh, and Sri Lanka (Institute for Security Studies 2012). Additionally, the South East Asia countries include Malaysia, Singapore, Indonesia, Burma, and Thailand (Institute for Security Studies 2012). Lastly, the Island states include Madagascar, Mauritius, Seychelles, Reunion (France), Mayotte (France), Comoros, Maldives, and British Indian Ocean Territory (Institute for Security Studies 2012). The economic viability of Indian Ocean stems from its choke points. They serve as major trade routes for global oil transportation, and their disruption can cause delays in delivery of goods and services all over the world. Some of the importance choke points are discussed in subsequent paragraphs. Strait of Hormuz: This choke point is located between Oman and Iran and connects the Persian Gulf to Gulf of Oman and the Arabian Sea (Kopp 2012). It is considered as the global choke point because of the daily flow of oil to about 17 million barrels as at 2011 (Kopp 2012). The flow through this choke point stood at 35% of all seaborne trade, which was equivalent to 20% of worldwide oil purchased in 2011. Most of the crude oil exports went to Asian markets such as Japan, India, South Korea, and China. The chokepoint is also important to Qatar because it exports approximately two trillion cubic feet of liquefied natural gas each year, accounting for about