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The Fundamental of Organization Design

Discuss whether BEST BUY Business program current organizational design is effective or ineffective. What are some of the challenges based on Kates' and Galbraith's five design challenges?
Finally, ensure you effectively use the Star Model to assist you in developing and producing your scholarly discussion.

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In today's business environment, organizations are increasing competing in a rapidly changing environment and need to dynamically design their organizations in such a way that they remain relevant and profitable in a highly competitive marketplace. Organizational design is defined as the deliberate process of configuring processes, structures, people practice and reward systems to create an effective organization that is able to achieve its business strategy (Kates & Galbraith, 2007). The organizational design of a company is in most instances the main determinant of the success of that company. This paper analyses Best Buy business program's current organizational design using Kates' and Galbraith's Star Model to determine whether it is effective or not. It also analyses some of the challenges that Best Buy is facing based on Kates' and Galbraith's five design challenges.

Best Buy's Company Profile:

Best Buy is a multinational retailer of entertainment and technology products and services. The company founded in 1966 as Sound of music, Inc and changed it name to Best Buy Co., Inc. in 1983 is headquartered in Richfield Minnesota and sells its products in primarily in the U.S., Canada, Europe and China. The through its brand products and various partnerships generates annual revenue accruing to more than $50 billion. Some of their products include video products, navigation products, DVD and Blue-ray players, e-readers, digital camcorders and cameras and accessories, home theater audio systems, musical instruments, MP3 players and mobile electronics. It also sells home office products such as desktop and notebook computers, mobile phones, monitors tablets, gaming devices among others. The company also offers service contracts, computer related services, warranties, among others. It operates various online stores, call centers and retail stores under brand names such as Best Buy, Five Star, Geek Squad, Napster, The phone House, Pacific sales, Magnolia Audio video, Future Shop, the Carphone Warehouse and Best Buy Mobile (Yahoo Finance: Best Buy Co. Inc., 2011; Lithium, 2011).

Best Buy's Organizational Design using the Star Model:

The Star Model developed by Kate and Galbraith can be used to identify and resolve critical issues that often inflict the process of organizational design. The key design elements that the model addresses include strategy, people, rewards, structure and processes. The strategy often determines the direction and the company's formula for winning, structure often shows the location of the decision making power or the place of authority in the organization, people which shows the employees skills and mind sets, while rewards usually determine the motivation approach used on employees to meet organizational goals. Processes on the other hand often determine the flow of information and how a company responds to changing information technologies (Kates & Galbraith, 2007).


Best buy's slogan is "Pleased to meet you" showing its how dedicated it is to serving its customers needs. Its vision and mission statement is customer focused and employee executed with the company striving to solve the unmet needs of their customers using their employees' skills and expertise (Best Buy, 2011a). Best Buys organizational strategy is focused on people and how technologies can be used to improve people's life. It long term goal is to successfully continue growing and keep their shareholders in a market competitive and profitable position at all time. It also wants to be the lead retailer and number one choice across the world with a work environment for its employees that are focused on excellence in both services to shareholders and to the working conditions. Its goal is also to have a strong mutually beneficial partnership with their suppliers and maintaining the highest level of integrity in their business dealings (Best Buy, ...

Solution Summary

The solution discusses the fundamental of organization design.