Political Correctness Destroys Great Retail Chain, Best Buy

[jbg]

Political correctness, and a misplaced emphasis on "the work environment" threaten to destroy one of America's great retailers, Best Buy. The company was founded by Richard M. Schulze in 1966. His CEO, Brian Dunne had a "close personal relationship" with a "female employee".

One must understand that the company's position is already fragile. The company is beset by internet and other lower cost competition. Still, up till now it has held its own as Circuit City and Comp USA and others collapsed. While the " close personal relationship with a female employee... negatively impacted the work environment" there is no question that thousand of people work and have jobs there. Query, is it a good idea to destroy the jobs to preserve the "work environment"? Article, excerpts below (link).

Best Buy Founder Makes Bid for a Takeover

By MICHAEL J. DE LA MERCED and STEPHANIE CLIFFORD

“They both did a strong job while at the company, but we would be a bit skeptical that they would be able to come in and drive this turnaround,” David Strasser, an analyst with Janney Capital Markets, wrote in a note to clients. “So much has changed in the few years since they left the business, that the learning curve could prove to be steep.”

*******************

Known as a hands-on manager, Mr. Schulze stepped down as chief executive in 2002 and remained on the company’s board until June. He stepped down after Best Buy disclosed in May that Brian J. Dunn, who had resigned as chief executive just a month before, had “violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment.”

Mr. Schulze had found out about the relationship last December and confronted Mr. Dunn, though did not inform the board, which learned about it only in mid-March. At the time of the board’s report, Mr. Schulze said that he planned to resign as chairman, but remain a director until next year.

Edited August 20, 2012 by jbg

[msj]

I recently went into a Best Buy to get a projector for work.

It was a new model just released by Epson and I had researched it well so I knew the model number and all that it did.

I even knew, according to the Best Buy website, that the location I was in had one available for sale.

Do you think I could just walk in, find it, grab it off the shelf, and buy it?

Nope, had to find someone who knew dick all who then found someone who knew dick all who found someone who knew dick.

After 45 minutes managed to find it and buy it.

That's why this "great retail chain" is being destroyed - crappy management, crappy policies.

[jbg]

That's why this "great retail chain" is being destroyed - crappy management, crappy policies.

But management turmoil over a close personal relationship, which can dry up access to credit, threaten the company's very survival. For political correctness this is downright stupid.

[msj]

But management turmoil over a close personal relationship, which can dry up access to credit, threaten the company's very survival. For political correctness this is downright stupid.

I doubt Best Buy is being destroyed merely because of this silly little "scandal."

It's been moving this way for years due to poor service which is due to poor management.

[jbg]

It's been moving this way for years due to poor service which is due to poor management.

Our Best Buy outlets here in Greenburgh, New York and Ridgewood (I think), New Jersey are actually pretty good. I think, though, that internal politics can knock the stuffing out of credit, banking and investor relationships.

[kimmy]

If one executive resigning can destroy a great retail chain, how great could they really be?

It sounds to me like you're trying to scapegoat them uppity women for problems that are actually much more serious.

-k

[Michael Hardner]

And a harassment scandal isn't the same as 'political correctness' but why waste a chance to blame PC for something it could be remotely associated with ?

Also socialism.

[jbg]

And a harassment scandal isn't the same as 'political correctness' but why waste a chance to blame PC for something it could be remotely associated with ?

Before there can be a great work environment there has to be work.

[Peter F]

I don't see where the work environment had/has anything to do with Best-Buys decline or how by ignoring the ethic of no-extremely-close-relations-with-staff will improve Best-Buys position in any way whatsoever.

In fact, I can't understand why you even bring up political correctness as the reason Best-Buy is in the state its in....other than ex CEO got tossed for contravenening company rules and is now trying to take the place over.

Edited August 20, 2012 by Peter F

[jbg]

I don't see where the work environment had/has anything to do with Best-Buys decline or how by ignoring the ethic of no-extremely-close-relations-with-staff will improve Best-Buys position in any way whatsoever.

In fact, I can't understand why you even bring up political correctness as the reason Best-Buy is in the state its in....other than ex CEO got tossed for contravenening company rules and is now trying to take the place over.

I bring it up since the last thing Best Buy needs now is a barroom brawl on the deck of the Titanic.

[waldo]

And a harassment scandal isn't the same as 'political correctness' but why waste a chance to blame PC for something it could be remotely associated with ?

Also socialism.

agreed - where does so-called 'political correctness' enter anywhere into this. Clearly, a most unfortunate choice of OP title wording. I'd certainly echo the earlier sentiments about the difficulty in finding product knowledgeable personnel in Best Buy outlets.

[The_Squid]

1 - I like Best Buy.

2- how is it politically correct to oust someone who sexually harrassed a subordianate and broke company policy? Are you attempting to claim that consequences for sexual harassment are "PC"? How very 18th century of you.....

[dre]

Thread = Epic Fail.

[jbg]

agreed - where does so-called 'political correctness' enter anywhere into this. Clearly, a most unfortunate choice of OP title wording. I'd certainly echo the earlier sentiments about the difficulty in finding product knowledgeable personnel in Best Buy outlets.

My point is blindingly simple; is the objective to have the best people at a company or to have an antiseptic atmosphere?

[Michael Hardner]

Before there can be a great work environment there has to be work.

Declarations of the obvious aside, what does this have to do with PC ? It's about scandalous behavior.

[Wild Bill]

And a harassment scandal isn't the same as 'political correctness' but why waste a chance to blame PC for something it could be remotely associated with ?

Also socialism.

Personally, I think it is all Mike Harris' fault. Or perhaps the white man!

Edited August 20, 2012 by Wild Bill

[Black Dog]

My point is blindingly simple; is the objective to have the best people at a company or to have an antiseptic atmosphere?

How about the best people who don't schtupp their subordinates?

[jbg]

Declarations of the obvious aside, what does this have to do with PC ? It's about scandalous behavior.

There should be a balance between behavior control, i.e. boys will be boys, and getting work done. I'd rather have over 1000 people employed than have perfect behavior on the part of executives and no company because the entrepreneurial people are turfed.

[Black Dog]

I replied here before I read the article, which I really should have in teh first place. This business about the guy boning one of his employees seems to have absolutely no bearing on the company's fortunes.

Best Buy has been troubled by declining sales and growing competition from the likes of Wal-Mart Stores and Amazon.com.

...

Yet investors and analysts were immediately skeptical about his ability to cobble together the huge sums of money that would be needed to take the chain private.

And they questioned how anyone could turn around a company that has steadily declined over the last several years amid a newer generation of retailers competing both online and in brick-and-mortar outlets. Best Buy reported a loss of $1.2 billion for its last fiscal year.

if anything, it's a footnote. As usual, stupid jbg thread is stupid.

[Michael Hardner]

There should be a balance between behavior control, i.e. boys will be boys, and getting work done. I'd rather have over 1000 people employed than have perfect behavior on the part of executives and no company because the entrepreneurial people are turfed.

I think that the justice system is well equipped to handle this. If not, then - you're a lawyer - suggest something.

Secondly, 1000 people won't be fired because of an executive's bad behavior. A smarter executive will be put in his place.

[jacee]

Query, is it a good idea to destroy the jobs to preserve the "work environment"?

Um let's see ... Would I rather have shoes with nails sticking up or no shoes?

Sounds like Best Buy has bigger problems than work environment.

[AngusThermopyle]

Gotta agree, stupid thread title. Best Buy isn't in trouble because of some exec doing the bone dance with an employee, Best Buy is in trouble because of a number of far more significant reasons. As mentioned they can't compete with on line retailers, they also happen to have very uninformed employee's who know next to nothing about the products they sell. They stock a completely unremarkable line of average products, have a record of poor customer service and treat their employees like dirt. These are just some of the reasons they are in trouble.

Want some more, just google Best Buy Sucks. You may be surprised at the amount of sites this brings up. I remember doing it around 2000 and being surprised, this company hasn't improved since then. Small wonder they're going tits up.

[Guest American Woman]

This Is What Destroyed Best Buy

The company has been getting creamed on all fronts, especially in the world of media, where the rise of digital media has totally gutted a key part of the compan's business.

Read more: http://www.businessinsider.com/best-buy-ceo-resigns-2012-4#ixzz247mpuVGi

And

....where the business got destroyed is the entertainment business (games, DVDs).

It's getting crushed. After falling 14% YOY last Q4, it then fell another 20% this Q4.

You can almost certainly thank the rise of digital distribution (Apple, Netflix, Amazon, etc.) for that brutal outcome.

It doesn't sound as if "political correctness" enters into it at all.

[jbg]

I replied here before I read the article, which I really should have in teh first place. This business about the guy boning one of his employees seems to have absolutely no bearing on the company's fortunes.

************************

if anything, it's a footnote.

Actually it's not. Best Buy is, along with the much small P.C. Richard chain, the "last man standing" in this business. There is always a need for a customer to be able to view merchandise "in the flesh". However, any chance for recovery can be damaged or eliminated by tangential matters.

My only point is that the careers of thousands of low to middle income workers should not be held hostage to the CEO's personal foibles.

Likewise, in the U.S. Government, much of 1997-9 was wasted on Bill Clinton's personal weaknesses rather than getting the country's business done.

[CANADIEN]

My only point is that the careers of thousands of low to middle income workers should not be held hostage to the CEO's personal foibles.

Exactly. The guy violated company policy, he should have be shown the door the moment this was done. HE is the one who harmed the company (further).

Edited August 21, 2012 by CANADIEN