The Problem Solving Techniques Philosophy Essay

The Problem Solving Techniques Philosophy Essay From the dawn of the age of the Man, solutions to a number of problems were sought after for generations, everywhere under the blue sky and above great heavens. But have we really looked into that one place where we truly can find them; the Human Mind? From the moment you were born, you encountered a number of problems of which, survival was of utmost importance. You may not recall, but there came a moment when you could no longer stay within the safety of your mothers womb. So after being propelled through a birth canal, you encountered the need to fill your lungs with sufficient amounts of air keep the oxygen supply to the streaming blood. By instinct you made your first cry and took your very first breath; the mysterious problem of need to breath was solved. After a number of years, here you are, trying to understand why you need to learn how to solve problems. So whats there to learn about solving problems? What makes it important to learn about solving problems? Is this going to be a waste of time? All these questions will be answered by the end of this paper. But, just so that we know where exactly we are heading, I would like to bring your attention to the following statement. The significant problems we face cannot be solved at the same level of thinking we were at when we created them. -Albert Einstein- (1879 -1955) Therefore we are going to take a journey towards understanding what a problem is, how to understand the details of a problem properly, how to approach in solving a problem and finally how do we proceed beyond that. By the end of this tutorial, you will have gained the following skills. Understanding what a problem is. Approaching a problem with an investigative narrative. Using various techniques to address a problem and come to an agreeable solution. Leading up on a solution to a given problem. What is a problem? In the simplest terms, a problem is a challenge that is posed on an individual or a group of people with the intention of overcoming it. Such a challenge creates a state in the environment that requires resolution. So when you come across a problem, always think in terms that this is a state that needs be resolved. Never ever think of it in terms of being a hazard that needs to be tackled and thrown off of your head as soon as possible. Problems and Confidence: Any problem can be addressed in a number of ways and some of them may fail while others would bring agreeable results. There could be situations where the only way to reach to an agreeable solution is to make some compromises. Never the less, taking a positive attitude towards problems covers the most important factor needed in solving a problem; confidence. But you must also understand that just like under confidence gets in the way of solving a problem successfully, so would over confidence. It is by striking a balance you will reach a state of mind best suited to addressing a problem. When you wish to solve a problem, having faith on yourself itself will not take you anywhere. Instead, you should strengthen yourself with a number of techniques and tools that will help you build that confidence. The purpose of teaching you this particular module is to give you a starting point on such techniques, tricks and tools. Then you may use these tools at your disposal and become a successful problem solver. Problem Investigation Techniques: Just like any complex endeavor, problem solving itself consists of a number of interrelated tasks that must be addressed in a gradual, step-by-step manner. This approach makes understanding, planning and understanding a problem better, allowing you to come to a solution that is agreeable enough. In the simplest terms, we are trying to understand a problem so that we can plan ahead and face it well. This is what we are trying to achieve by analyzing a problem. Given below are a set of steps you may take in getting a better grasp at the root of a problem. State the problem you are about to solve in a well detailed manner: Try to be precise as well as detailed. Even though you already know the problem well enough, by making sure that you actually note it down, you will have the advantage of your visuals sensory system coupled with part of your brain trying to come to a better interpretation of the problem. In preparing a problem statement, you may ask the following questions from yourself. Is it a question you must answer? Is it an obstacle you must overcome? Is it a person you must persuade? Is it a decision you must make? Is it an opponent you must defeat? Is it a goal you must achieve? Is it a goal you must set? Is it a problem you must define? Has the problem being defined for you? State the parts of the problem that can be addressed separately: The great emperor Julies Caesar is attributed to the saying Divide et Impera in Latin which translates to Divide and Conquer in English. We will be taking the same approach in dividing a relatively complex problem into a smaller and comparatively less complex set of problems that can each be addressed individually. During this step, you may ask following questions from yourself. Is the problem really a collection of many problems? Can you divide the problem by defining terms? Are there any implicit terms to define? Can abstract terms be restated in concrete terms? Can the problem be solved in steps? Are half-way solutions possible? Can the problem be substantially solved? Is a partial solution better than none? State the problem in the broadest terms: There is an inherent deficiency in most forms of human communication in delivering sub-textual messages via common communication methods. Same could have happened with the problem you are trying to solve when it was introduced to you. Therefore, instead of looking at the problems face value, you may take an effort to take a look at the big picture. In doing so you may ask following questions from yourself. Is the problem part of a larger one? Is it geographically broader? Is it an effect of a larger problem? Is it only a sign or symptom? Can concrete terms be restated in abstract terms? Is a general solution possible? Is a political solution possible? Is a group solution possible? State your role in solving the problem: Identifying what your role in solving a given problem is very important. Some problems are posed on an individual, and some are on a group. Just like one must know how to play his role in a group so that an agreeable solution can be reached, the same is true with an individual trying to solve a problem. One must understand what type of a role he will be playing (i.e. evasive, neutral, hasty, etc.) to better position himself in the contextual environment of a problem that needs to be solved. You may ask following question from yourself in undertaking this step. Was the problem presented to you? Do you accept the challenge? Should you volunteer yourself to solve the problem? Are your emotions dependency factors in reaching a particular solution? Will you be assuming a certain role in solving a problem? State the names and interests of others who are involved: Knowing what role you will be playing in solving is never complete without knowing what other parties are taking an interest in the same problem, problem solving process, or the outcomes of the final solution. Close attention must be paid to observing their interests and roles they play in any given problem, let it be friendly or hostile. Ask yourself the following questions in completing this task. Has this problem being presented to others? Can you delegate the problem? Can you delegate selected parts of the problem or the problem solving process? Who else is interested in the problem itself or the solution to the problem? Who else is directly affected by the solution? Who else is indirectly affected by the solution? State solutions to a similar problem found in the past: There is a very popular term not only in the academia, but also in various other fields, that one should never reinvent the wheel. It is in fact figurative speech used in order to say that one should never waste resources in perfecting an entity that is already perfect for a given purpose. In the same manner, it would be a waste to solve a problem that has already been solved before in an agreeable manner. You may simply use such solutions as references and either apply them directly or adapt them to the specifics of a given problem. Take some time and ask yourself the following questions. Were you able to identify any problems from the past that are already of the same nature? What similarities were you able to identify? What dissimilarities were you able to identify? Can solutions to such problems be applied to the problem at hand? Has your research provided with any agreeable enough solutions to your problem? State the affects of time factor over the problem and the solution: Even though a number of factors are needed to be managed precisely, none of them precede the importance of managing time in most of the situations. In time-critical problems late solutions are the same as no solutions at all. Therefore in solving a problem, ask yourself the following questions and try to understand how exactly the time factor affects the end solution. How will the problem evolve over time? Is there a deadline for the problem to be solved? What are the possibilities of postponing the solving process for a given problem? State your proposed solution to a given problem: It is not enough that you understand the problem itself and previous solutions; you must also come to the point of proposing a solution that is agreeable enough as well. First step to clarifying the problem is listing down the solution clearly enough that no part of it is misunderstood, leading to further unexpected problems. During this stage, ask yourself the following questions. What actions must be taken? Who must take each and every action? When must each action be taken exactly? What steps must be taken in the case of a failure or setback? State if the proposed solution is feasible enough to be used in the context: Once a problem is properly analyzed, understood and solution provided, the flow is not completed until you take initiation in doing a figurative postmortem of your own solution. Here you will try to understand how feasible a solution actually is compared to the stakes of the problem itself. What are the dependencies the provided solution has? Is the solution resource conserving? Does the solution meet various budgetary constraints? Is the solution legally acceptable? Is the solution morally acceptable? Now that you have completed a tiresome set of tasks that will actually help you understand a problem properly, address various steps in solving a problem, now you are ready to actually solve the problem. Pat yourself in the back and repeat the following words after meà ¢Ã¢â€š ¬Ã‚ ¦ GET SET READY GO!

Durkheims Theory: Summary, Critique and Analysis

Durkheims Theory: Summary, Critique and Analysis This review is The Rules of the Sociological Method by Durkheim. I will try to summarise the concepts of it and indicate some of objections of Durkheims position which I encountered in this article and will highlight as I go along. Durkheim states that the behaviour, phenomena and other societal dogma influence one to think, act, feel and react. Durkheim dedicated few fundamental elements such as the relationship between the individuals and society to the nature and social bond. He identified the two types of the societies into mechanical and organic societies. He distinguished them in terms of their shared beliefs, governing laws, level of individualism and social ills. According to Durkheims main theory of social fact existed even before we were born; and as a result a social fact is every way of acting, fixed or not, capable of exercising based on the individuals external constraint given by the society (p. 13). He added that social structures have a coercive power over the individual, which means that we are coerced into subsequent established rules of our society. According to Durkheim, social facts have main features such as: an external to the individual, coercive of the individual and not attached to any particular individual. The author argues that the basic norms of social facts as things to examine and understand. Durkheim is key thinker of social science and his theory and methods of was positivism (holism/whole), and he considers that social structures exist independently of the individual, and the individual agent does not play a huge role in the social fact. He emphasised that social facts exist outside the individuals, and the manifestation of the individuals is a social fact. He also suggested that society gives people a role to play based on their rationality and choices, therefore, society has made the individuals. Durkheim also suggested that belief existed since birth, and he gave his account on several inherent habits. It has been noticed that people are taught to be abided by certain obligation set by the society which termed as law and custom. The actions of individuals are totally connected with the education that one derives from his family or learnt through religion and customs of the society. Therefore, it is duty served by any individual by being a brother, mother, son or a h usband or as a citizen which are defined as the education and the obligation set by the society. This shows these concepts and expectations did not come from the individuals but from the social community. Although we might hold these normative community behaviours and share its values, we still constrained its existence. So, people have selected the social facts with conscious mind and their rationality. This means that people use their mind and brain to accept and follow the customs. However, in contrary to our modern day people are more rational and use their own autonomy and choice based on their own desires and will. Therefore, they rebel the norms and customs. In this sense, Durkheim sat the social level apart from psychology, and he insists that sociology and psychology are different. Psychology and Sociology goes hand in hand. Since people use their mind, brain to select their desires around them as well as their rationality. Durkheim referred understanding of the social fact belongs to sociology and its different from biology and psychology. In this sense, both discipline affects human growth, their rationality, choices and relationships. If he used consciousness/unconsciousne ss, and the effects of the emotions, how can he spate the sociology and psychology? This is the gap that needs to be considered. Hence, the thoughts and the ideas that are controlling ones behaviour is not developed by any individuals, rather they are enforced by some outside power and are penetrated on the character of the individual. In our modern day, a constant constraint has been developed to make people aware that they are not only dependent upon themselves neither on the societal norms and customs, but law and legislations sat. In the past century, the social norms could not be challenged or denied. People consider the norms are important and those failed to follow can either formally or informally can be sanctioned through the law and legislation, or by the communities as social control. They get excluded and shamed them. However, this is no longer valid. In his century, people considered norms are vital and those failed to follow can either formally or informally can be sanctioned through the law/ legislation, or by the communities. They get ashamed, isolation and excluded. However, this is no longer valid. People resist against religion and norms, and they dont face punishments . For stance, marriage were very crucial: husband and wife and children via verse, and every individual expected to follow. However, today, all those are no longer essential, and whether an individual is one gender or another; or same sex marriage, bisexual or belong to LGB are acceptable now. Conventions, on the other hand, are made by society to make people decide between the right and wrong, even if they are totally baseless. It has been analysed that if one tries to violate the rules set by the society, it acts against him and make him completely helpless to stand on his grounds. Furthermore, the society will ask him to anticipate his action if there is still time existed. In an alternative case, the society tries to nullify the action if it is considered to be reversible or make him pay a penalty if the action cannot be repaired. The restriction set by society causes an infringement in moral laws and ethics, special punishments are enforced to provide a check on the behaviour of the citizens which is seen a form of deterrence, p.2) However, there are some breach that goes against the ordinary convention of the society and treated less violently. Eventually, it has been examined that there are certain individuals who try to successfully break the rules forcing one to fight against them. Even if the forces of the society are overcome, they impose the power of virtue and moral constraints that will drive them to act and feel externally. They exercise control over the individuals and let them function the way they like. The actions represented by the society should not be confused with the organic and the physical phenomenon that does not exist in the human conscious mind. There are certain facts in the society which are termed to be really social as it is used without any clarity and accuracy in the society. The social facts generally cover the entire phenomenon and the occurrence within the society with the presence of little social interest of the people. Societies see each of the functions differently and are judged differently by all. His example on (p. 6), on constrain and convention, as he used an example of the outset of a childs life. I believe the growing process of every child is similar to any given society. Although, he concentrated in France. Children learn through role modelling and imitations. Therefore, one may argue the existence of the external power which Durkheim believes is coercive forces which shapes them, merely is temporary, and its rather can be general influences till child reaches a certain age. If they reach the ages of maturity, they can rebel and resist some of these norms and customs, as we experienced today. In accordance, the term social has gathered a new meaning that is the factor on which individualism depends on. The social fact that existed in the well-defined society has emerged as the new form that contains the same objectivity controlling the behaviour of the individual. Society creates a profound impact on the emotions and feelings of the individual so once the community of the society breaks up, it fails to influence the feelings of the individuals and fails to enforce its power on them. The feelings and the experiences that people faced while being exposed to the harsh system of the society are completely dissimilar to that experience while being alone. In this respect the law of society draws every harmless individual to its wicked and cruel act when they are exposed to the crowd and let people get introduced to the religious, political and the artistic matters that are constantly surrounding them. Form the very beginning of growing stage of the child, he is taught the way to eat, sleep in regular hours and maintain cleanliness, which is later observed as a power or force to mend his ways to become a respectable individual of the society. This gradually gives rise to tendencies and habits that forms the inner and outer characteristics of the indi vidual. The pressure of the society and the environment to which one is subjected to, helps to shape ones personality and behaviour since childhood. Conclusion: Even though, the concept of the individual agent is strictly limited, still there are ways of thinking, acting, feeling which external power of coercion to the individual is. However, this is mental controlling to the individuals and enforcing them to abide by, regardless of their mental capacity and rationality. Therefore, one can say there is no way that one can detach or separate sociology from psychology. He also viewed an individual is tool and contributes little to the sociological knowledge. There are some premises are justified, however society evolved and transformed. Therefore, his argument are not fully compelling, when you look at other theories which makes a lot more sense. His clarification is functional but limited. The author failed to consider other possibility of the future change overtime. Therefore, there are many transformation took place now. Due to lack of integrations and technologies on his century, he failed to reflect on other societies which might happened to be different from France, such Europe and the global in general. Therefore, historical diversity is limited. The gap is not only the weakness of his argument it rather lacks the awareness of other societies outside France, which show the weaknesses of his premises, which not fully convincing. Reference: E. Durkheim, The Rule of Sociological Method, (New York: The Free Press, 1938. Ch.1.

Old Man And The Sea - One Finds In Life Exactly What One Contributes :: essays research papers

Life is a dramatic subject that many writers choose as a topic. Life is not only an ocean of melancholy but also offers real joy. Earnest Hemingway successfully won a Nobel Prize on this theme by writing The Old Man and the Sea. The old man, Santiago, was the main character of the story. During his lonely journey out at sea, he learned that life offered him an undeniable joy, plus frustration. Honor, heroism, and struggle were obstacles Santiago encountered which provided him courage and faith. For instance, Santiago’s life was filled with honor. The past and the present were memories for which the old man was most proud. The old man endured tremendous physical pain and leading him to almost give up. To encourage himself, the old man remembered the time when he was El Campeon, which mean The Champion in Spanish. â€Å"For a long time after that everyone had called him The Champion† (pg. 70). The memory of being a victor revived Santiago’s stamina, encouraging him to seek another goal. His next goal, the Marlin, ultimately challenged him. â€Å"Fish†¦I’ll stay with you until I am dead.† (pg. 52). At the moment when Santiago harpooned the Marlin through the heart, he knew that he was victorious. This act realistically sobered Santiago; he gained more honor and self-confidence. As a result, Santiago’s life was filled with a feeling of nobility. Furthermore, Santiago often talked about his hero. It was Joe DiMaggio, a famous and eminent baseball player. Joe DiMaggio directly and indirectly affected the old man. His actions and his attitudes contributed to the old man’s life. â€Å"But I must have the confidence and I must be worthy of the great DiMaggio.† (Pg. 68). Thinking about DiMaggio showed the old man the way to victory. His worship of DiMaggio woke the courage that was within the old man’s heart. As Santiago thought the ultimate challenge was over, the worse was yet to come. The shark had sensed the Marlin’s blood and moved after it. It approached and ate the Marlin. The old man had to fight back with them. â€Å"Fight them. I’ll fight them until I die.† (Pg. 115). Santiago used all of his supplies to fight with the shark: harpoon, tiller, etc. By the time Santiago came back to Havana, the Marlin now was just a carcass bone. The sharks played an important role in the story.

Effects Of Postmodernism In Relation To Communication And Society Essay

The movement occurred after 1945 is postmodernism which had shown it’s powerful effects in every aspect of life. It’s a movement that can’t be defined with a simple sentence because postmodernism has lots of components and directions. A postmodernist reflects history’s theological interpretations. When we talk about post-modernism we also take the concept modernism in our concept. Postmodernism is defined related to modernism as† the legalization of illegal parts of modernism†. Modernity and postmodernity appear and reappear in philosophical, literary and other texts in what is at first sight a bewildering array of guises. Postmodernism combines simultaneous fragmentation and blurring of boundaries in a universe where no absolute truth governs the definition of reality and morality. This is in contrast to modernism, which emphasizes the coming together of the multifaceted, sometimes conflicting aspects of life into a unified whole that can be realized. Postmodernism accepts the conflicts as the standard mode of existence. Unlike the consensus sought by modernism, postmodernism accepts discensus, and even proclaims that one unified way of seeing things is impossible. Postmodernism undermines the modernist notion of what Jean-Francois Lyotard describes as meta-narratives, or over-arching, absolute stories that explain the nature of the world. One of the difficulties with meta-narratives is that they only present the world from one perspective, even when it may make sense from several different angles. Trying to force everything to be seen only through the eyes of one point of view is referred to as colonization. The term can be used abstractly or figuratively to describe imposing a certain view or interpretation of something, but it is derived from examining the political and social domination that has been exercised over smaller nations and minorities by Imperialism and ethnocentrism. Postmodernism tends to encourage placing value on the unassimilated other- on accepting and respecting differences and not oppressing the other. The postmodern celebration of difference can be seen in the experimental nature of postmodern art, architecture, and writing. These forms usually take liberties with conventional forms, and often involve bricolage, which is combining different forms and styles in a collage-like fashion. Sociology and the society has a big role ... ... always hidden in these works of art or these kinds of communicators. The artist or architect decides his message in his mind and reflects it in his works. The way to communicate with society is the works of the people whom wants to give a message to society. The receiver is the society and they take the message given by the communicators after these processes. The main purpose of all these are to give the message to the society, which is the receiver. After that society takes the message and the message effects every part of society differently. Every receiver takes the message differently and different effects are created on society. As a result, after all the process postmodernism is an eminently contestable concept. As it’s reference points emerge in the philosophers, social theorists, film makers, painters, sculptors, photographers, architects, designers, novelists, poets and even politicians and generals, they create major crises of interpretation. This movement had a big success when it’s observed in communication. The message sent to the receivers very successfully also receivers had a communication between themselves so postmodernism effected all aspects of social life.

Young Goodman Brown :: essays research papers

Young Goodman Brown   Ã‚  Ã‚  Ã‚  Ã‚  Young Goodman Brown by Nathaniel Hawthorne was at first a boring read. However the more I read it and began to break it down by sections it was interesting. The short story was written in 1895 it deals with a man and testing his faith. Ultimately this story displays how betrayal can affect someone’s state of mind and actions.   Ã‚  Ã‚  Ã‚  Ã‚  The story begins with Goodman Brown and his wife Faith. Faith does not want her husband to leave for a midnight walk in the woods. Goodman Brown convinces Faith to let him leave. Little to Faith’s knowledge, her husband has just left to meet with the Devil. Goodman brown goes to this meeting because he knows his faith strong enough to withstand the Devils tricks.   Ã‚  Ã‚  Ã‚  Ã‚  Goodman Brown is the protagonist.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  The most obvious antagonist is the Devil. The Devil wants Goodman Brown to follow him deeper into the woods and Brown is against that. The Devil wants Goodman Brown to take his staff, and he wants no part of that. Brown’s pride is what is keeping him there, after each time the Devil makes an attempt to convert Brown, he stays in the woods waiting for the next trick. When he should have left after the first couple of attempts.   Ã‚  Ã‚  Ã‚  Ã‚  There were several conflicts that contributed to the climax of the story. The first conflict was between Goodman Brown and his wife Faith. Faith did not want Brown to leave. After he was half way into the woods, he thought that Faith might have been trying to protect him by keeping him at home. This is exhibited when Faith says â€Å"Dearest heart she whispered softly and rather sadly, when her lips were close to her ear, put off your journey until sunrise, and sleep in your own bed tonight............Pray, tarry with me this night, dear husband of all nights in the year!† Then Goodman Brown says â€Å"Methought as she spoke there was trouble in her face, as if a dream had warned her what work is to be done tonight!† The second conflict is that between the Devil and Young Goodman Brown. The Devils’ goal is to convert Goodman Brown from worshiping God to worshiping him. The Devil makes several attempts to get Brown on his team. The Devil tries to get Brown to take his staff â€Å"Come Goodman Brown! Cried his fellow traveler, this is a dull pace for the beginning of a journey.

Article “Cradle-to-cradle: the next packaging paradigm?” Essay

In his article â€Å"Cradle-to-cradle: the next packaging paradigm? † David Newcorn suggests three entirely new strategies for packaging items—strategies which may at first instigate eyebrows to rise. On closer look, however, Newcorn’s suggestions may indeed live up to one of its goals: to arrive at a packaging strategy conducive for the environment. Newcorn has three objectives in mind in order to achieve such an end: use more packaging materials, not less; design the best package possible instead of designing with the cheapest materials without worrying about per-package cost, and; ‘littering’ can help the environment. But how are these supposedly ‘environmental threats’ do the exact opposite of further degrading the environment and contribute to the crusade for the strengthening of the environment through strategic and environmentally friendly packaging schemes? In order to arrive at a better understanding of Newcorn’s suggestions, it is equally important to note that what separates Newcorn’s suggestions from the rest is that the suggestions actually target the possibilities of the future. By offering three distinct strategies which may at first seem threatening to the environment, Newcorn turns the table around by citing examples of ‘what if’s’, possible situations which have a high probability of being real sometime in the future. For the moment, however, the efficiency of Newcorn’s suggestions seems to hang in the balance for a few good reasons. First, Newcorn suggests that by using more packaging materials instead of less, we can actually save the environment from being harmed because sometime in the future there will be ice cream wrappers which turn into a ‘biosafe liquid’ or foam food containers which contain essential nutrients which revitalize the earth’s topsoil, for instance. While the prospects for his suggestion are noble, it can hardly be denied that the possibilities remain to be seen. Newcorn even admits that the possibilities are yet to be obtained. If the possible elements in the illustrations he has elaborated in his article remain to be seen, then there is little reason to believe that manufacturers of these products should immediately adopt the strategies he offers. The same goes for the designers who have the same inclinations as Newcorn. In current times, using more packaging materials or ‘littering’ the environment with these materials is only effective in theory. At the least, designers can hardly deny the fact that the current environmental measures being taken all around the world are in startling contrast to Newcorn’s suggestion precisely because the environmental problems which beset the modern societies are the result of piles and piles of garbage produced on a daily basis. What Newcorn’s suggestions give the designers, however, are insights into the future. Although the situations he has given in his article are possibilities, they nevertheless give designers a glimpse of what the future may look like. Given these brief future sketches of packaging strategies, designers cannot simply dismiss the thought that Newcorn’s suggestions are worth the efforts of being studied. Both scholars and designers concerned in the packaging sector may very well agree that there is more than what meets the eye in Newcorn’s assumptions. Technical and biological nutrients may indeed soon take over the packaging materials used in products. Science and technology are constantly evolving and are relentlessly seeking new methods and designs to improve the materials we use daily in the larger effort to preserve the environment. Recycling packages which may soon be eco-effective without the downside of degrading the quality of the packages for commodities is another thought worth pondering (Bendor, Terry and Kenneth, p. 175). Newcorn, however, may be correct in insisting that a large amount of history involving packaging materials should have to be beaten first before anything else of the efforts to resort to recycling and using eco-effective packaging materials can be fully achieved. Much of what companies do in order to sustain their operations is to use whatever is cheaper and more efficient in the market. The fact that bottling companies for soft drinks have relied â€Å"less and less on bottles and more and more on cheap and recyclable aluminum cans as containers (Banks, p. 72)† suggest that money-making ventures may find it difficult to fully adjust and align their packaging strategies according to what Newcorn’s assumptions for the future. Any designer involved in the packaging sector will think that the problems which beset the environment also have consequences on their part and to the rest of the world. Newcorn’s efforts serve as a model not only for the big companies under the packaging sector but also for the average citizen. However, Newcorn’s suggestions face the direct criticism of failing to obtain in the contemporary time which is in deep need of innovations in packaging strategies. It may be high time for designers in the packaging industry to settle down and think of other innovative ideas which will provide ways to counter and prevent environmental problems brought by wastes from packages which are also attainable in the soonest possible time. The future of the environment is indeed filled both with good prospects that are hanging and with contemporary as well as previous problems in terms of garbage from packaging materials which pose problems which cannot be easily set aside for the benefit of acquiring more profit. It is logical enough to presume that the future does not promise anything clear. Yet it would also be absurd to assume that nothing can be done to anticipate and, hopefully, resolve the current environmental problems and the future environmental hazards both at the same time. Newcorn’s suggestions may still lack its applicability in contemporary times. However, the effects and prospects of Newcorn’s suggestions are promising and may prove to be more than useful in the coming years. WORKS CITED Banks, Seymour. â€Å"The Measurement of the Effect of a New Packaging Material Upon Preference and Sales. † The Journal of Business of the University of Chicago 23. 2 (Apr. , 1990): 71-80. Bendor, Jonathan, Terry M. Moe, and Kenneth W. Shotts. â€Å"Recycling the Garbage Can: An Assessment of the Research Program. † The American Political Science Review 95. 1 (2001): 169-90. Newcorn, David. â€Å"Cradle-to-Cradle: The Next Packaging Paradigm? † 2003. Packaging World Magazine. January 13 2008. .

Best Buy Case Study

ESLSCA: GROUP 39D | | | | |Best Buy Co. , Inc. pic] | |Strategic Audit | |August 2012 | | | | | Presented to Dr. Sanya EL Galaly Table of Contents About Best Buy Co. , Inc4 Best Buy’s History4 1. Current Situation5 A. Current Performance5 B. Strategic Posture5 . Mission5 2. Objectives5 3. Strategies5 4. Policies6 II. Strategic Managers6 A. Board Members6 B. Top Management7 III. Market Overview7 IV. External Environment8 2. Natural Environment8 2. Social Environment8 2. 1. Economic8 2. 2. Technological8 2. 3. Political–Legal8 2. 4. Sociocultural8 3. Task Environment9 V. Internal Environment9 1. Corporate Structure9 2. Corporate Culture9 3. Corporate Resources9 3. 1. Marketing9 3. 2. Finance9 3. 3. R&D10 3. 4. Operations10 3. 5. Human Resources10 3. 6. Information Systems10 VI. Analysis of Strategic Factors10 . Situational Analysis (SWOT) (SFAS Matrix; see Exhibit 3)11 1. 1. Situational Analysis11 1. 1. 1. Summary of Internal Factors11 1. 1. 2. Summary of External Fact ors11 1. 1. 3. Review of Mission and Objectives11 VII. Strategic Alternatives and Recommended Strategy12 1. Corporate Strategy12 2. 1. Growth Strategy12 2. 2. Stability Strategy13 2. 3. Retrenchment Strategy13 3. Business Strategy13 3. 1. Cost Leadership Strategy13 3. 2. Differentiation Strategy14 4. Financial Positions14 4. 1. Best Buy Income Statement as of 2009-201214 4. 2.Best Buy Balance Sheet as of 2009-201211 4. 3. Cash Flow Statement for period ended in 2011-201212 B. Recommended Strategy14 VIII. Implementation14 IX. Evaluation and Control14 X. List of Tables15 Exhibit #1 Ratio Analysis Table15 Exhibit #2 IFAS16 Exhibit #3: EFAS17 Exhibit #4: SFAS18 Exhibit #5: TWOS Matrix19 Exhibit #6 IFinancial Position Documents20 About Best Buy Co. , Inc. Best Buy Co. , Inc. (NYSE:BBY) Headquartered IN Richfield, Minnesota, is a leading multi-channel global retailer and developer of technology products and services. 1,100 stores in U.S (21% Market Share), also operated over 2,800 stores global (Canada, Mexico, China and Turkey), 170,000 employees whom are committed to helping deliver the technology solutions that enable easy access to people, knowledge, ideas and fun. The company’s subsidiaries such Geek Squad, Magnolia Audio Video, and Pacific Sales, and operated under both name Best Buy & Future Shop labels In CANADA People at BB are aware of their role and impact on the world, and are committed to developing and implementing business strategies that bring sustainable technology solutions to consumers and communities.For information about Best Buy, visit www. bby. com and to shop at Best Buy, visit www. bestbuy. com. Best Buy’s History: In 1966 Best Buy incorporated with original name as Sound of music, the company started as a retailer of audio components and expanded to retailing video products in the early 1980s with the introduction of the videocassette recorder to its product line. In 1983 Best Buy name has been changed to Best Buy Co. Inc. (Be st Buy). Shortly thereafter, Best Buy began operating its existing stores under a â€Å"superstore† concept by expanding product offerings and using mass marketing techniques to promote those products.Since 1989 the company altered the function of sales staff structure (policy) dramatically to be transformed from commission basis oriented to be educators and customer assist oriented. Simply sales mission was to generate sales but now changed to answer customer’s question to help for decide which product fit for their needs. In 2000 the company step up to Market space by launched: BestBuy. com (online retail store), which is very important for BB’s customers thus expanding among them to access to store easily without physical visit. I.Current Situation: A. Current performance Volatility of financial position, declining in company’s income compared with last fiscal year, increasing debts as well as operating costs ? Facing increased fears competition ? Rais ing in operational costs and increasing in debt & reducing liquidity of cash. ? Adverse economic climate and financial stress (declining in net income) B. Strategic Posture Mission ? To make technology deliver on its promises to customer ? Keeping customers centered in technological changes â€Å"To make life fun and easy†. To improve customer’s awareness of their needs. Objective ? The top objective of company were sustained growth and earnings (growth oriented) ? Differentiation in retail industry by present unique product & service that customer never get before. ? Keeping cost down without sacrificing customer experience given by Best Buy. Strategies ? Developed in 1966 as (a low price strategy) and moved to be service-oriented firm (differentiation strategy) in 1989. ? Global & national growth through acquisition and alliance with Car phone Warehouse Group, UK. Use its economies scale with over 1,000 locations to obtain cost advantage from suppliers due to high qu antity of orders, also increase its Advertising budget for massive campaigns In order to cove over entry market barriers. ? Having multiple brands for different customer lifestyles through M&A merge and Acquisition. ? Providing customers with highly trained sales associates who available to educate customers regarding product features. ? Construct a diversified portfolio of product offerings by building a significant customer data-base (Customer centricity model) Policies Growth oriented by expansion vertically & horizontally. ? Cost reduction is very important (restructure commission sales scheme, shipping the correct inventory to the correct locations). ? Training & educate employees regularly, promotion from within at all levels. ? Rapidly response to external change. II. Strategic Mangers A. Board Of Directors ? Sixteen members –three are outsider. ? Chairman and founder (Richard M. Schulze), his beneficial ownership of 17. 1 % ? Brian Dunn as Previous CEO, Currently (Mik e Mikan) as Interim CEO of Best Buy, who has been Director since 2008. All directors and executive officers as a group, and each person we know who beneficially owns more than 5% of the outstanding shares of Best Buy common stock. [pic] [pic] [pic] [pic] [pic] Richard Shultze Mike Mikan Shari Ballard Jim Muehlbauer Carol Surface Founder, Chairman Interim CEO President International CFO VP, Chief HR & Enterprise EVP B. Top Management The two former CEO’s was Richar Shultze and Brad Anderson, but recently Brad stepping down, Brian Dunn replaced, and now replaced with Interim CEO. ? June 7, 2012  Ã¢â‚¬â€ The board of directors of Best Buy Co. , Inc. (NYSE:BBY) today announced the appointment of Hatim A. Tyabji as chairman of the Company, effective immediately. Mr. Tyabji, currently Chairman of the Audit Committee, has served as a director since 1998. ? Top managers are recently promoted internally and externally hired ? Top Mangers whom : Richard Shultze: Founder & Chairman. G. Mike Mikan : Interim CEOShari Ballard : President, International and Enterprise EVP. Jim Muehlbauer: Executive VP. And CFO. ? Top management members are very experienced in Industry III. Market Overview The Best Buy family of brands and partnerships collectively generates more than $49 billion in annual revenue and includes brands such as †¢ Best Buy; †¢ Best Buy Mobile; †¢ Audio visions; †¢ The Carphone Warehouse; †¢ Future Shop; †¢ Geek Squad; †¢ Jiangsu Five Star; †¢ Magnolia Audio Video; †¢ Napster; †¢ Pacific Sales; and The Phone House. Community partnership is central to the way Best Buy does business.In fiscal 2010, the company donated a combined $25. 2 million to improve the vitality of the communities where best Buy employees and customers live and work. Strategic priorities focus on growth opportunities, operations, and improved international returns. IV. External Environment (EFAS TABLE; see Exhibit 1) Natural Environme nt 1. Global warming that increasing by emissions of technology usage. (T) 2. Energy availability a growing problem. (T) Societal Environment 1. Economic a. Unstable economy (stumble) along with eliminate of consumer expends. (T) b.Individual economies becoming interconnected into a world economy. (O) c. Financial crisis that hit EU, might be essential reason to eliminate the Investment in Euro zone. (T) 2. Technological a. IT & communication revolution. (O) b. Entering computerization at all fields such â€Å"Manufacturing, business, Agriculture,†¦etc. † (O) c. Trend of social media online & digital marketing. (O) 3. Political-Legal a. NAFTA, EFTA, and other agreements between countries to free trading cycle are opening doors to penetrate markets in Latin America and other emerging markets. (O) b.Regulations of Federal Reserve Bank that effect on retail sector's credit systems. (T) c. Environmentalism being reflected in Laws on pollution and energy usage. (T) 4. Socio C ultural a. Decreasing of unemployment rate which is indicator of increasing of families income then Expands rate. (O) b. Transforming in purchasing behavior from market place to market space. (T) c. Trend of using digital devises rather than paper & blocks for daily functions such â€Å"news, reading books, schedule organizer,†¦etc†. (O) d. Trend to value for money as a concept of consumers behavior. (T) Task Environment 1.North American market mature and extremely competitive—vigilant consumers demand high quality with low price in safe, environmentally sound products. (T) 2. Industry going global as North American and European firms expands internationally. (T) 3. Rivalry High. GameStop Corp, Amazon. com, Wal-Mart expanding into consumer electronics and stepping price competition†¦ (T) 4. Buyers’ Power Law. Technology and materials can be sourced worldwide. (O) 5. Power of Other Stakeholders Medium. Quality, safety, environmental regulations increasi ng. (T) 6. Entry Barriers High. New entrants unlikely except for large international firms. T) V. Internal Environment (IFAS Table; See Exhibit 2) (IFAS Table; See Exhibit 2) A. Corporate Structure 1. Good Domestic Management through separating the Market into Eight territories each is Divided into Districts (S) 2. Best Buy had an international operation Segment (S) B. Corporate Culture 1. Every employee must have the company’s vision embedded in their service and attitude (S) 2. Best Buy had a reputation for retaining talent and was widely recognized for its superior service (S) C. Corporate Resources 1. Marketing a. Using Customer Centricity Model to market various products (S) b.Supply products that address the needs of Customer (S) c. Meet Customer Needs through End to end Solutions (S) d. More training to BestBuy Employees help it supply customer with Knowledge service which is A Value added Service (S) 2. Finance (See Exhibits 4 and 5 â€Å"Ratios & cash flows† ) a. Increase in Long Term Debt from fiscal 2008 to 2009 (W) b. After the Acquisition of Napster and BestBuy Europe Decrease in Available Cash in 2009 (W) c. Increase in Company Total Assets and Revenues due to Successful Acquisitions (S) d.Declining in the Net Income and operating Margin (W) e. The Risk of Having Bad Debts Due to increase in inventory and increase of Revenues However it’s not matching the Big increase in Account receivable (W) 3. R a. Best Buy is Willing to participate in tests of New products (with limited cost to company) (W) 4. Operations a. Increasing Revenues By growing its Customer Base and Increasing its market share Internationally (S) b. Good Domestic Management through separating the Market into Eight territories each is Divided into Districts (S) c.Best Buy had an international operation Segment (S) 5. Human Resources a. Main Objective is supplying the customer with the right knowledge of products and services (S) b. Changing the compensation struc ture into non-commissioned-based (S) c. Claims that Best Buy employees misrepresented the Manufacture warranty in order to sell its own product service and replacement plan (W) d. Best Buy had undisclosed â€Å"Anti-price matching policy† (W) 6. Information Systems a. Consolidate Data from Retialers , Act as a clearing house for info and results.Communicate the common needs and encourage innovation (S) VI. Analysis of Strategic Factors Situational Analysis (SWOT) (SFAS Matrix; see Exhibit 3) 1. Strengths. †¢ Company Image and Profile †¢ Sales Stuff Policy †¢ Strong financial Position †¢ Customer Centricity Model †¢ Diversified portfolio in Global Markets †¢ Good Horizontal Integration †¢ Talent management †¢ Good Domestic management †¢ Successful Acquisitions †¢ Credit payment policy †¢ Value Added Services 2. Weaknesses †¢ Market Space Sales †¢ Pricing Policy †¢ Assets Management †¢ Operational Cost à ¢â‚¬ ¢ Increase in LTD and Debt Management Fluctuating Leadership 3. Opportunities †¢ Potential market of Medical Portable Devices †¢ Gaming Segment growth and Smart Phones †¢ Technology Revolution †¢ Bankruptcy of Circuit City †¢ Expansion of Global Market place 4. Threats †¢ Regulations of Federal Reserve Bank †¢ Economic Down turn †¢ Decreasing the entry barrier †¢ Online Competitor †¢ Price War with Wal-Mart †¢ Wal-Mart Deal with Nintendo and Apple †¢ Strong penetration Of Competitor Review of Current Mission and Objectives 1. Bad financial position according to last 2 years. 2. Facing a fierce competition and new challenge expected. VI.Strategic Alternatives and Recommended Strategy: Strategic Alternatives. Corporate Strategy 1. Growth Strategy †¢ Growth vertically through open new stores across U. S to fill gap in fierce competition. Pros: come over competitors expansion’s strategy Cons: Cash Liquidity Iss ues. †¢ Continuing of global expansions, and focus on emerged & untapped markets. Pros: supporting of Best Buy’s overseas position to be Leader in this Marekts. Cons: domestic regulations in foreign countries and security. †¢ Horizontal integration by joint venture with new suppliers. Pros: more control on operational costCons: Management issue, and conflictions. 2. Stability Strategy †¢ Hold acquisitions in Euro zone according to economic crisis, and in Canada as well. Pros: saving more capital & cost to be invested in North America and other virgin markets. Cons: allow to competitors to raising their market share in such left market. 3. Retrenchment Strategy †¢ Develop downsizing policy in costly labor markets such (Europe). Pros: Divesting BBY improves bottom line and focus ME & Asia Markets. Cons: loosing Europe’s market share. †¢ Decreasing some of discretionary expenses in such (Advertising ) in one or two of states that saturated.Pros: s aving a lot of regular cost to be invested in domestic expansion. Cons: risk of loose customer’s positioning by time. Business Strategy 1. Differentiation Strategy †¢ Develop trade-off strategy that allow Best Buy’s customers to replace their own devices by new technology devices in justified prices. Pros: another source of money that generate liquidity for company Cons: adding operational cost line 2. Alliance strategy Build a solid strategic Alliance with a reliable brand in market space that has urgently need to access to retail market. (Win/Win) Pros: Access to know-how of online market.Cons: reveal of operations and management techniques. RECOMMENDED STRATGIES 1. Growth Strategy †¢ Growth vertically through open new stores across U. S to fill gap in fierce competition. Pros: come over competitors expansion’s strategy Cons: Cash Liquidity Issues. †¢ Continuing of global expansions, and focus on emerged & untapped markets. Pros: supporting of B est Buy’s overseas position to be Leader in this Marekts. Cons: domestic regulations in foreign countries and security. †¢ Horizontal integration by joint venture with new suppliers. Pros: more control on operational cost Cons: Management issue, and conflictions. . Differentiation Strategy †¢ Develop trade-off strategy that allow Best Buy’s customers to replace their own devices by new technology devices in justified prices. Pros: another source of money that generate liquidity for company Cons: adding operational cost line. VII. Implementation: †¢ As the recommended strategies is growth strategy so business development dept. should select strategic locations across U. S that include high traffic . †¢ The operations and mainly the supply chain department must do their best for getting best prices and cutting operations cost. Maintain the current global expansion plan and build solid studies for emerging markets and developing countries customer†™s culture there. †¢ Developing more powerful CRM application and POS systems to recognize customers data. XI. Evaluation and Control: †¢ involving the top managers, key persons and employees in operations efficiency programs †¢ Monitoring the performance regularly especially after new application applied. †¢ Follow up the plan of domestic operations that related to supplier. Exhibit 1 E F A S Exhibit 2 I F A S Exhibit 3 S F A S Exhibit 4 | |BEST BUY CO. , INC. | |CONDENSED CONSOLIDATED BALANCE SHEET | |($ in millions, except per share amounts) | | | | | | | | | | | |  |February  28, |  |  | | | |2009 | | | |  | Assets |  |   |   |  |  | |Current Assets |  |   |   |  |  | |   |C|   |$|4| | |a| | |9| | |s| | |8| | |h| | | | | |a| | | | | |n| | | | | |d| | | | | |c| | | | | |a| | | | | |s| | | | | |h| | | | | |e| | | | | |q| | | | | |u| | | | | |i| | | | | |v| | | | | |a| | | | | |l| | | | | |e| | | | | n| | | | | |t| | | | | |s| | | | |   |  |To|   |  |8| | | |ta| | |,| | | |l | | |1| | | |cu| | |9| | | |rr| | |2| | | |en| | | | | | |t | | | | | | |as| | | | | | |se| | | | | | |ts| | | | |   |L|   |  |7| | |a| | |5| | |n| | |5| | |d| | | | | |a| | | | | |n| | | | | |d| | | | | |b| | | | | |u| | | | | |i| | | | | |l| | | | | |d| | | | | i| | | | | |n| | | | | |g| | | | | |s| | | | | |  |   |6,940 |  |  | |   |L|   |  |2| | |e| | |,| | |s| | |7| | |s| | |6| | |a| | |6| | |c| | | | | |c| | | | | |u| | | | | |m| | | | | |u| | | | | |l| | | | | |a| | | | | |t| | | | | |e| | | | | |d| | | | | |d| | | | | |e| | | | | |p| | | | | |r| | | | | e| | | | | |c| | | | | |i| | | | | |a| | | | | |t| | | | | |i| | | | | |o| | | | | |n| | | | |   |  |Ne|   |  |4| | | |t | | |,| | | |pr| | |1| | | |op| | |7| | | |er| | |4| | | |ty| | | | | | |an| | | | | | |d | | | | | | |eq| | | | | | |ui| | | | | | |pm| | | | | | |en| | | | | | |t | | | | |Tradenames |  |   |173 |  |  | |Customer Relationships |  |   |322 |  |  | |Equity and Other Investments |  |   |395 |  |  | |Other Assets   |   |367 |  |  | |   |  |   |  |  | |Total Assets |  |$ |15,826 |  |  | |   |  |   |  |  | |Liabilities and Shareholders' Equity |  |   |   |  |  | |Current Liabilities |  |   |   |  |  | |   |A|   |$|4| | |c| | |,| | |c| | |9| | |o| | |9| | |u| | |7| | |n| | | | | |t| | | | | |s| | | | | |p| | | | | |a| | | | | |y| | | | | |a| | | | | |b| | | | | |l| | | | | |e| | | | |   |  |To|   |  |8| | | |ta| | |,| | | |l | | |4| | | |cu| |3| | | |rr| | |5| | | |en| | | | | | |t | | | | | | |li| | | | | | |ab| | | | | | |il| | | | | | |it| | | | | | |ie| | | | | | |s | | | | |Long-Term Debt |  |   |1,126 |  |  | |Minority Interests |  |   |513 |  |  | |Shareholders' Equity |  |   |   |  |  | |   |P |   |  |—| | |r| | | | | |e| | | | | |f| | | | | |e| | | | | |r| | | | | |r| | | | | |e| | | | | |d| | | | | |s| | | | | |t| | | | | |o| | | | | |c| | | | | |k| | | | | |,| | | | | |$| | | | | |1| | | | | |. | | | | |0| | | | | |0| | | | | |p| | | | | |a| | | | | |r| | | | | |v| | | | | |a| | | | | |l| | | | | |u| | | | | |e| | | | | |:| | | | | |A| | | | | |u| | | | | |t| | | | | |h| | | | | |o| | | | | |r| | | | | |i| | | | | |z| | | | |e| | | | | |d| | | | | |  | | | | | |—| | | | | |4| | | | | |0| | | | | |0| | | | | |,| | | | | |0| | | | | |0| | | | | |0| | | | | |s| | | | | |h| | | | | |a| | | | | |r| | | | | |e| | | | | |s| | | | | |;| | | | | |I| | | | | |s| | | | | |s| | | | | |u| | | | | |e| | | | | |d| | | | | a| | | | | |n| | | | | |d| | | | | |o| | | | | |u| | | | | |t| | | | | |s| | | | | |t| | | | | |a| | | | | |n| | | | | |d| | | | | |i| | | | | |n| | | | | |g| | | | | |  | | | | | |—| | | | | |n| | | | | |o| | | | | |n| | | | | |e| | | | |   |  |Total shareholders' |  |  | | | |equity | | | |Total Liabilities and Shareholders' Equity |  |$ |15,826 |  |  | |   |  |   |  |  | BEST BUY CO. ,  INC. CONDENSED CONSOLIDATED BALANCE SHEETS ($  in millions) (Unaudited and subject to reclassification)    | |CONDENSED CONSOLIDATED BALANCE SHEETS | |($ in millions) | |(Unaudited and subject to reclassification) | | | | | | | | | | |Mar. 3, 2012 | |Feb. 6, 2011 | |ASSETS | | | | |Current assets | | | | |Cash and cash equivalents |  $            1,199 | |  $            1,103 | |Short-term investments |                           -| |                          22 | | |   | | | |Receivables |                 2,359 | |                 2,348 | |Merchandise inventories |                 5,731 | |                 5,897 | |Other current assets |                  1,079 | |                 1,103 | |Total current assets |              10,368 | |              10,473 | |Net property & equipment |                 3,471 | |                 3,823 | |Goodwill |                 1,335 | |                 2,454 | |Tradenames |                       130 | |                       133 | |Customer relationships | 29 | |                       203 | |Equity and other investments |                       140 | |                       328 | |Other assets |                       403 | |                       435 | |TOTAL ASSETS |  $         16,076 | |  $         17,849 | | | | | | |LIABILITIES & EQUITY | | | | |Current liabilities | | | | |Accounts payable |  $            5,435 | |  $            4,894 | |Accr ued liabilities |                 2,968 | |                 2,771 | |Short-term debt |                       480 | |                       557 | |Current portion of long-term debt |                          43| |                       441 | |Total current liabilities |                 8,926 | |                 8,663 | |Long-term liabilities |                 1,099 | |                 1,183 | |Long-term debt |                 1,685 | |                       711 | |Equity |                 4,366 | |                 7,292 | |TOTAL LIABILITIES & EQUITY |  $         16,076 | |  $         17,849 | | | |BEST BUY CO. , INC. | |CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |($ in millions, except per share amounts) | |   |  | | | | | |Feb. 8, | | | | | |2009 | | |Revenue | | |$ |4 5,015 | | |Cost of goods sold | | |34,017 | | |Gross profit | | |10,998 | | |Gross profit % | | |24. 4% | | |Selling, general and administrative expenses | | |8,984 | | |SG % | | |20. 0% | | |Restructuring charges | | |78 | | |Goodwill and tradename impairment | | |66 | | |Operating income | | |1,870 | | |Operating income % | | |4. % | | |Other income (expense) | | | | | |Investment income and other | | |35 | | |Investment impairment | | |(111 |)| |Interest expense | |)|(94 |)| |Earnings before income tax expense and minority interests | | |1,700 | | |Income tax expense | | |674 | | |Effective tax rate | | |39. % | | |Minority interests | | |(30 |)| |Equity in earnings (loss) of affiliates | | |7 | | |Net earnings | | |$ |1,003 | | | | | | | | | | | | | | |Earnings per share | | | | | |Basic | | |$ |2. 43 | | |Diluted(1) | | |$ |2. 39 | | | | | | | | |Dividends declared per common share | | |$ |0. 4 | | | | | | | | |Weighted average common shares outstanding (in millions) | | | | | |   | | | | | |Basic | | |412. 5 | | |Diluted(1) | | |422. 9 | | |BEST BUY CO. , INC. | |CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |($ in millions, except per share amounts) | | | | | | | |Feb. 7, | | | | |2010 | |Revenue | | |$ |49,694 | | |Cost of goods sold: | | | | |Cost of goods sold | | |37,534 | | |Restructuring charges – cost of goods sold | | |— | | |Total cost of goods sold | | |37,534 | | |Gross profit | | |12,160 | | |Gross profit % | | | 24. 5 |% | |Selling, general and administrative expenses | | |9,873 | | |SG&A % | | |19. 9 |% | |Restructuring charges | | |52 | | |Operating income | | |2,235 | | |Operating income % | | |4. |% | |Other income (expense) | | | | |Investment income and other | | |54 | | |Interest expense | | |(94 |) | |Earnings before income taxes and equity in earnings of affiliates | | |2,195 | | |Income tax expense | | |802 | | |Effective tax rate | | |36. 5 |% | |Equity in earnings of affiliates | | |1 | | |Net earnings including noncontrolling interests | | |1,394 | | |Net earnings attributable to noncontrolling interests | | |(77 |) | |Net earnings attributable to Best Buy Co. , Inc. | |$ |1,317 | | | | | | | | | | | | |Earnings per share attributable to Best Buy Co. , Inc. | | | | |Basic | | |$ |3. 16 | | |Diluted(1) | | |$ |3. 10 | | | | | | | |BEST BUY CO. , INC. | |CONSOLIDATED STATEMENTS OF EARNINGS |($ in millions, except per share amounts) | |(Unaudited and subject to reclassification) | | | | | | | | | | | | |Twelve Months Ended | | | | |Mar. 3, | |Feb. 26, | | | | |2012 | |2011 | | |Revenue | |  $ 50,705 | |$49,747 | | |Cost of goods sold | |38,113 | |37,197 | | |Restructuring charges – cost of goods sold | |                 19 | |                 9 | | |Gross profit (24. 8%, 25. 25. %) | |     12,573 | |  12,541 | | |Selling, G&A expenses | |  Ã‚  10,242 | |10,029 | | |Goodwill impairment | |1,207 | |  Ã¢â‚¬â€ | | |Restruc turing charges | |                 39 | |           138 | | |Operating income | |        1,085 | |      2,374 | | |Other income (expense): | | | | | | |Gain on sale of investments | |                 55 | |  Ã¢â‚¬â€ | | |Investment income and other | |                 37 | |              43 | | |Interest expense | |         (134) | |           (86) | | |Earnings from continuing operations before income tax    | |        1,043 | |      2,331 | | |expense and equity in (loss) earnings of affiliates | | | | | | |Income tax expense | |            709 | |           779 | | |Effective tax rate | |68. 0% | |33. 4% | | |Equity in (loss) earnings of affiliates | |               (4) |                 2 | | |Net (loss) earnings from continuing operations | |            330 | |      1,554 | | |Loss from discontinued operations, net of tax | |         (308) | |        (188) | | |Net (loss) earnings including noncontrolling interest | |               22 | |      1,366 | | |Net earnings from continuing operations attributable to | |     (1,387) | |        (127) | | |noncontrolling interests | | | | | | |Net loss from discontinued operations attributable to | |            134 | |              38 | | |noncontrolling interests | | | | | | |Net (loss) earnings attributable to Best Buy Co. , Inc. | |  $(1,231) | |  $ 1,277 | | | | | | | | | | | | | | |Continuing operations | |  $   (2. 89) | |  $    3. 51 | | |Discontinued operations | |  $   (0. 47) | |  $ (0. 37) | | |Basic (loss) earnings per share | |  $   (3. 36) | |  $    3. 4 | | | | | | | | | | | | | | |Continuing operations | |  $   (2. 89) | |  $    3. 44 | | |Discontinued operations | |  $   (0. 47) | |  $ (0. 36) | | |Diluted (loss) earnings per share | |  $   (3. 36) | |  $    3. 08 | | | | | | | | | |Dividends declared per Best Buy Co. , Inc. common share | |  $       0. 2 | |  $    0. 58 | | | | | | | | | | | | | | | | | | | |Basic | |        366. 3 | |      406. 1 | | |Diluted | |        366. 3 | |      416. 5 | | |F|   | |e| | |b| | |r| | |u| | |Febru |   | |BEST BUY CO. INC | |CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |($ in millions) | |(Unaudited and subject to reclassification) | | | | | | | | | |Twelve Months Ended | | | |Mar. 3,   | |Feb. 6,   | | | |2012 | |2011 | |OPERATING ACTIVITIES | | | | | |Net earnings including noncontrolling interests | |  $                  22 | |  $             1,366 | |Adjustments to reconcile net earnings to total cash provided by| | | | | |operating activities: | | | | | |Depreciation and amortization of definite-lived intangible | | 45 | |                     978 | |assets    | | | | | |Goodwill impairment | |               1,207 | |  Ã¢â‚¬â€ | |Realized gain on sale of investments | |                    (55) | |  Ã¢â‚¬â€ | |Other, net    | |                    462 | |                     209 | |Changes in operating assets and liabilities, net of acquired | | | | | |assets and liabilities: | | | | | |Receivables | |                    (28) | |                    (371) | |Merchandise inventories | |                    120 | |                    (400) | |Accounts payable | |                    643 | |                    (443) | |Other assets and liabilities    | |                    (23) | |                    (149) | |Total cash provided by operating activities | |               3,293 | |                  1,190 | | | | | | | |INVESTING ACTIVITIES | | | | | |Additions to property and equipment | |                  (766) | |                    (744) | |Other, net    | |                     42 | |                     175 | |Total cash used in investing activities | |                  (724) | |                    (569) | | | | | | |FINANCING ACTIVITIES | | | | | |Repurchase of common stock | |              (1,500) | |                 (1,193) | |Borrowings (repayments) of debt, net    | |