Monday, February 18, 2013

In repsonse to William Redding's question "Do you think this is a good market strategy for Best Buy? Do you think this policy will help with Best Buy's poor stock performance?"

I think this market strategy will be effective for Best Buy. If Best Buy has compition that is offering cheaper prices for goods they sell, then no one will go to Best Buy to buy their products. If they match anyone else, then this garuantees that you can always get the cheapest deal at Best Buy. Best Buy will take in more sales, which will turn inventory faster, and generate more profit. Enough profit for them to get back in the stock market and make a difference in their performance.
The board of directors at Dell Inc recently announced that there company is going private after being public for so long. The company was bought and merged with Michael Dell and Silver Lake. The stockholders are recieving $13.65 per share since their stocks will be useless when the merger happens. The company can now do a lot fo different things since they are their own private company. When Dell was a public company, they had to listen to stockholders, and their critisism since stockholders own part of Dell Inc. The company was falling under stockholder's pressure. The company wanted to turn one way, and the stockholders wanted to turn another. Dell says it is the best move for everyone since they paid over 25% of what the actual shares are worth in the stock market now. Even though Dell had to overpirce their shares to pay the stockholders off, do you think it would be worth it?