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Best Buy Is Asking The Wrong Question

by: TwoPuttTommy

Mon Mar 28, 2011 at 11:08:14 AM CDT

I read the story in the Business Section of Sunday's Strib - "Best Buy may prove naysayers wrong". The story, in a nutshell, is that Best Buy, as a corporation, isn't doing as well financially as the Banksters on Wall Street would like:

Best Buy shareholders may need to be patient. Dunn and his crew bet wrong on consumer appetite for 3-D and Internet-ready televisions, which led to a weak holiday season. That, combined with a hasty retreat from some foreign markets and a gloomy outlook for next year, have helped send Best Buy's stock price to a two-year low on Friday.
In Wall Street's estimation, Best Buy is neither learning from the challenges it faces nor changing fast enough. (Strib.com)

Here's the question Best Buy CEO Brain Dunn asks, in the story:

"The question we're asking is, 'What can we do for our customers that nobody else can?'"

Say, Mr. "My Compensation Has Gone Up The Last Three Years"? Here's the question you SHOULD be asking:

TwoPuttTommy :: Best Buy Is Asking The Wrong Question

"The question we're asking is, 'What are we doing to our customers that nobody else is?'"

And I can answer that question, pal - you used corporate dough to fund a political candidate that - quite frankly - pissed off a whole bunch of your customers - me included.

From ABCNews.com:

Target, Best Buy Angers Gay Customers By Making Contribution to GOP Candidate
Companies Say They Are Supporting Minnesota Candidate's Stance on Jobs, Not His Anti-Gay Views

Say, Mr. Dunn? You want to give your OWN dough to political candidates (and you have - including Ol' Smokescreen, Norm Coleman) - hey, knock yourself out.

But you give CORPORATE dough to groups supporting/opposing candidates, like Best Buy did supporting Tom "Get Over It" Emmer, and you're risking your company's reputation/bottom line.

I haven't stepped foot inside of a Best Buy since last summer; same goes for Target. I did stop a few times at Holiday Gas Stations this winter but I bought as little as possible.

Here's that question Mr. Dunn and the rest o' Best Buy's Brain Trust should be asking: 'What are we doing to our customers that nobody else is?'"

Wall Street should be asking Best Buy that also.

For those upset with what's happening in Wisconsin, it's worth noting that Koch Industries, based in Wichita, Kansas, is a privately held, industrial conglomerate. It is involved in everything from fertilizers, raw materials and refineries to cattle, forests and consumer products. In Minnesota, it owns Flint Hills Resources, which operates the Pine Bend Refinery in Rosemount, Minn.

In 2005, Koch bought Georgia Pacific, the huge forestry and wood products company that produces everything from plywood to cleaning supplies, drywall to towel dispensers, office papers to toilet paper. Among Georgia Pacific's brands:

• Angel Soft, Quilted Northern and Soft 'n Gentle toilet paper

• Brawny, Mardi Gras and Sparkle paper towels

• Dixie plates, bowls, napkins and cups

• Mardi Gras napkins and towels

• Sparkle, Vanity Fair and Zee napkins

Koch also owns Invista, which manufactures more than a dozen widely known fibers and fabrics found in clothing and household goods. Among Invista's brands:

• Coolmax, Cordura, SolarMax, Supplex, and Thermolite fabrics

• Polarguard synthetic insulation

• Antron and Stainmaster carpet fibers

• Comforel, Lycra and Tactel fibers

• Dacron fiberfill

Tags: Scott Walker, Pine Bend Refinery, Holiday Gas Stations, unions, Flint Hills Resources, Georgia Pacific, Dixie plates, Brawny, Norm Coleman, mn forward, Tom Emmer, Koch Industries, Gregg Steinhafel, CEO, Brian Dunn, GLBT, Citizens United, campaign contributions, stock price, options, compensation, Stock, Target Corp, Best Buy, wisconsin, (All Tags)

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Best Buy Is Asking The Wrong Question | 2 comments

First (0.00 / 0)

Actually the first question the CEO should ask is "who gives a fuck what Wall Street bankers think as long as the company is turning a profit?" The stock price is going down, but the company is still turning a profit, right? The CEO's job shouldn't be "do whatever you can to buck up the stock price" or "change your business model to kowtow to the speculators and crooks on Wall St". But that seems to be the way publicly traded companies work these days.

Which also leads to idiot CEOs dropping huge change into right-wing groups & candidate with a radical agenda way outside of what mainstream America is interested in.

There needs to be a major culture change in the boardrooms for public companies. The boards have become weak yes-men for their CEOs, who are in turn making Wall Street gamblers their primary constituency, rather than their customers or their stockholders. We need major corporate reforms to push back on this...and instead we have a GOP-controlled House of Representatives looking to roll back even the modest banking reforms passed by the previous Congress.

by: JML @ Mon Mar 28, 2011 at 16:37:55 PM UTC

Eh (0.00 / 0)

I'm pretty sure in Best Buy's case the question is "Well, shoot, what are we going to do about the fact that people can get better selection, better prices, and better service from Newegg.com?" I know that's where all of my purchases that Best Buy would want in on have been happening.

by: tonyyarusso @ Mon Mar 28, 2011 at 20:26:40 PM UTC