BETTER BUY INC : DECISION SHEET

 BACKGROUND

Better Buy Electronics is a consumer electronics and appliance retailer. Due to

rising competition from internet merchants and big-box stores, the company has
been experiencing falling sales and profitability. The management team is
evaluating numerous ways to improve the financial performance of the
organisation.

 PROBLEM

To identify an appropriate method of revenue recognition.

 SOLUTION

Better Buy Electronics could enhance its financial performance by taking

the following steps:

Cost reduction is the first step in improving financial performance. Better

Buy Electronics may analyse its cost structure and identify cost-cutting
opportunities. The corporation, for example, can renegotiate leases, save
inventory carrying costs, and optimise its supply chain.

Pricing Strategy: Better Buy Electronics' pricing strategy can be reviewed to

ensure that its prices are competitive. The company can undertake a market
analysis to determine pricing points that are appealing to customers while yet
allowing the company to profit. The corporation can also use promotional
pricing techniques to promote sales and foot traffic in its stores.

Better Buy Electronics can optimise its retail footprint by shutting

underperforming locations and creating new locations in high-growth areas.
In order to improve the consumer experience and boost sales, the company
can also optimise the layout and design of its stores.

E-commerce Strategy: In order to compete with online merchants, Better

Buy Electronics can invest in its e-commerce platform. Customers can order
 online and pick up in-store, allowing the company to provide a greater
choice of products. This technique might assist the organisation in reaching
out to new customers and increasing sales.

Better Buy Electronics' finance strategy can be reviewed in order to optimise

its capital structure. The corporation may explore refinancing its debt to
lower its interest expense, as well as raising capital.

 DECISION

Better Buy Electronics can improve its financial performance and position
itself for long-term success by applying these tactics. It is crucial to
emphasise, however, that there is no one-size-fits-all method for improving
financial performance. Each strategy should be carefully evaluated by the
management team to identify which ones are best suited to the company's
particular condition.