- Read the Finding the Best Buy case located in the blue cases pages of the textbook.
- 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.
1. Response
Hello Professor and classmates. Corporate governance is a structure where companies are directed and controlled. The board of the company strategically aims to provide leadership, supervise management, and report to shareholders on stewardship. They set the values of the company. One challenge that Best Buy might be faced with as a result of their rapid growth is accountability. This is definitely required for effective corporate governance. One division of the corporation might jeopardize the success of the entire company without accountability. The second challenge Best Buy might be faced with as a result of their rapid growth is oversight issues. Effective corporate governance requires the board of directors to have oversight of the company’s practices and procedures. Without oversight, corporate staff may violate federal laws and face fines. Best Buy’s continued growth, porfitability, and revelance will depend on the ability of its leaders to make effective and concrete decisions to form sustainable competitive advantage and build a stronger organization
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