05 Jul Develop a strategic plan for the company you have used throughout this course and share it with stakeholders. Create a 10- to 15-slide presentation for key stakeholders to solicit the

8

Miguel Solis

WK 5: Strategic Analysis

STR/581

07/03/2023

Strategic analysis

Bed Bath & Beyond

The retail sector was particularly hard damaged in the years and months following the previous worldwide epidemic. Vaccines have been readily available for much of 2018, but retail has had a difficult time picking up the necessary momentum to survive. Bed Bath & Beyond is one of several retailers that has been adversely impacted by the recent economic downturn. Sales dropped by double digits in the fiscal year's last quarter, according to reports (Esty, et al. 2021). Multiple shop closures and divestitures scuttled preparations for a more dramatic about-face. Investors' fears were justified when the stock price of the corporation plummeted. Investors want things to improve rapidly so they can see tangible results, but the current market environment does not support such rapid change.

Bed Bath & Beyond is an American retail chain that was founded in 1971 and now has locations all across the United States as well as in Australia, Canada, and Mexico. It's one of the 500 largest corporations in the world. Linen 'n Things, Pacific Lines, Luxury Lines, and more recently Walmart, JCPenney, and Target were all formidable rivals to the corporation in the past. The present pandemic has been the greatest danger to the firm in recent months, resulting in the closure of several outlets. Bed Bath & Beyond is a business that specializes in a wide variety of items and services for the home and other social gatherings. It offers a wide variety of things for the house, such as bedding, kitchenware, bathroom accessories, food, and more. Harmon, buy BABY, and Decorist are just a few of the various names under which it does business. E-commerce platforms including apps and websites power its online operations.

Financial troubles

Bed Bath & Beyond just hired Mark Tritton as its new chief executive officer. However, the company's finances continue to be unstable. The company's stock reached a three-year high in the first quarter, but investors are cautioned to proceed with caution since the recovery is not as strong as it appears. In the most recent quarter, the firm lost $29 million due to a decline in sales of 8.3 per cent. The new CEO deemed that to be a major disappointment and pledged immediate action (Knowles, et al. 2023). The Covid-19 epidemic has had a significant effect on the stock price. Even yet, it is hoped that after the vaccinations have been disseminated in the following months, the market will be restored to its former glory, with people returning to work and money flowing into the market once more.

gross margin bride- Q1, 20 to Q, 21

Q1, 21

Gross margin

33.8%

Channel mix

Cost savings/

Leverage

Product mix

Q1, 20

Gross margin

31.6%

The CEO realized he needed to shake things up by hiring fresh faces who could lead the firm to greater success. Six of the company's C-suite executives who had been there for many years have left in the wake of the upheaval. The company's CMO, CMO, and CDO were all let go in favour of younger, more innovative employees with better ideas for competing with traditional retail giants like Target and Walmart as well as online stores like Wayfair and Amazon (Knowles, et al. 2023). A good turn in the first fiscal year's results may be attributed to the company-wide Christmas sale and the closure of locations, which the CEO says stopped the haemorrhaging. The company's financial woes are far from ending, and a strategic study is necessary to steer it through these dangerous seas.

Daily bar chart of BBBY in August

SWOT analysis

Bed Bath & Beyond's SWOT analysis evaluates the retailer based on four categories: strengths, weaknesses, opportunities, and threats. Its value comes in the fact that it is one of the most well-known retail names in the United States and internationally, providing customers with necessities they can't live without (Misra, 2020). Its stated purpose, "to be the trusted expert for the home and heartfelt life events," is both sincere and indicative of the company's future success.

Strengths

· Bed Bath & Beyond is a popular Omni channel retailer in the United States and throughout the world because of the excellent quality of the items and services it provides for the home and other occasions. Its extensive product line is well-received by its clientele, allowing it to keep its relationships with them strong. Products are either delivered to retailers and wholesalers or made available for in-store pickup by customers.

· The organization has an advanced e-commerce infrastructure that includes websites and mobile apps. The company's many labels are supported by either a website or a dedicated app that facilitates online transactions. To reach today's consumers, who prefer to purchase online, participation in the digital market is crucial.

· The new board members bring a wide range of experiences and perspectives that will spark innovation and propel the firm forward.

Weaknesses

· Poor financial results can be attributed to the company's insistence on maintaining the status quo. The previous CEO was also accused of harmful business practices and nepotism for buying firms founded by the offspring of the company's founders.

· The company has continued to use outdated business strategies that have not helped it gain an edge over its competition (Misra, 2020).

· The corporation focuses solely on the North American and Australian markets, leaving the rest of the world untapped. It would be beneficial to expand its source of demand.

Opportunities

· To boost its worth and lessen the threat of competition, the corporation may buy out other brands in the market.

· Taking the market global will allow you to take advantage of untapped markets all over the world.

· expanding one's internet profile in the United States and beyond.

Threats

· Many American companies are worried about the impact of wage increases on their bottom line.

· Bed Bath & Beyond has taken major financial damage as a result of the Covid-19 epidemic.

· The retail industry's cutthroat level of competition is one of the biggest obstacles to the business's success.

Strategic Plan

Despite being hit hard by the epidemic, CEO Mark Tritton said the firm has made significant strides in the past year. He is certain that the company's money problems will go away over time. Strategic planning can be used to accomplish this. The following is a business strategy I think will be successful;

· Enhancing consumer loyalty by delivering on the brand promise to “Unlock the Magic in Every Room.”

· To boost your relevance with consumers and drive productivity and cost savings, you should offer a clear and appealing price-value offering.

· Introducing new items into established markets (Lawrence, 2022).

· By making both online and in-store purchases a pleasurable experience, businesses may encourage customers to return and tell their friends about the business.

· Taking advantage of the many unexplored markets overseas to expand their market share.

Conclusion

Bed Bath & Beyond is only one of several businesses suffering from the current epidemic, but the retailer has shown poor financial performance over the past few years even before the outbreak began. With more individuals obtaining vaccinations, the market has opened up again, and the firm has the chance to refocus and implement new strategic plans to take it through to higher success, even if the epidemic is not yet ended. Store closures have been a problem for the firm so far, but online sales are soaring and that's where the real money lies. If the company's plan is sound, it will succeed.

References

Esty, B., & Fisher, D. (2021). Bed Bath & Beyond: The New Strategy to Drive Shareholder Value.  HBS Case, (722-408).

Knowles, J., Baris, R., Hunsaker, B. T., & Ettenson, R. (2023). Bed Bath & Bankruptcy: Lessons for Senior Leaders.  MIT Sloan Management Review,  64(3), 1-7.

Lawrence, K. (2022).  Bed Bath & Beyond: Down the Drain? SAGE Publications: SAGE Business Cases Originals.

Misra, M. (2020).  Experiencing tentacle difficulties? I SWOT it out! A SWOT Analysis on the Giant Pacific Octopus Marine Conservation Tourism Programs at the Seattle Aquarium. The University of Washington.