MBA520_LT2_Chu_Lopez__Shaw_

MBA520_LT2_Chu_Lopez__Shaw_ - General Benchmarking 1 Gene...

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General Benchmarking 1 Gene One Benchmarking Vasco Chu, Jose Lopez, Nathan Shaw University of Phoenix MBA/520 Transformational Leadership EMBA0307TA Dr. James Miller May 15, 2007 Workshop 2 Gene One Benchmarking
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General Benchmarking 2 Gene One Benchmarking Intro Best Buy In 2004, Best Buy was named by Forbes magazine as “Company of the Year” (Stopper, p.2). The company was recognized as a turnaround situation, from posting losses in 1995 on revenue of $3 billion to “net earnings of $705 million on revenue of $24.5 billion” (Stopper, p.2) in 2004. Best Buy believed, to continue growth its philosophy would need to focus on innovation and meeting customer needs. In 2006, Best Buy reported “net earnings of $1,140 million on revenue of $30.9 billion” (Stopper, p.2). Walden, EVP of Customer Business Group, attributed these gains to a change in company vision and philosophy. In order to meet customer needs, changing market conditions, and unique requirements of local markets, Best Buy changed from a centralized and institutional model of retailing to a decentralized model. Over a two-year time frame, the company evolved its culture to empower store managers with decision-making authority on how to best meet customer needs in local markets. In addition, Best Buy’s philosophy embraced employee and customer input to closely evaluate customer preferences. Best Buy initiated the culture change with five pilot stores, which remain in existence. New concepts demonstrating positive results are quickly communicated throughout the company. Walden contends that implementation of employee ideas motivates employees to give further input. In addition, observing financial success assists the company to embrace the culture change (Stopper, p.3). Walden, (as cited by Stopper, 2006) states, “We really believe that employees and customers deserve to know that their ideas are considered and where possible, acted on first, at the local level and then perhaps throughout Best Buy” (p. 5).
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General Benchmarking 3 Best Buy’s leadership style follows the description of transformational leadership as cited by McShane and Glinow (2005, pp. 53-71). When describing how to build commitment to the vision , McShane and Glinow (2005) contend, employee involvement “…in the process of shaping the organization’s vision” (p. 69) is a key component. In addition, when evaluating the transformational leadership perspective , McShane and Glinow (2005) note that employees have higher job satisfaction, perform better, “…engage in more organizational citizenship behaviors, and make better or more creative decisions” (p. 70). Wells Fargo In 2000, Fortune magazine recognized Wells Fargo as, “…most admired U.S. commercial bank and second-most admired bank globally” (Holiday, 2001, p. 2). After merging
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MBA520_LT2_Chu_Lopez__Shaw_ - General Benchmarking 1 Gene...

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