Challenges Faced by JB Hi-Fi: Direct Competition, Online Stores, and Employee Well-being

JB HIFI
Think of 3 Challenge scenarios
 Direct Competition with Harvey Norman
 Competition from online stores such as eBay, Amazon, TaoBao
 Employee’s emotional well-being and on-going job training
About us
JB Hi-Fi faced two main challenges in the past year in terms of operations management, firstly
the entry of Amazon into the market and, secondly the incorporation of The Good Guys worth
$70 million. JB Hi-Fi tried to protect the sales and market shares by letting go on the gross
marginal benefits in the short run, but the question is whether, this plan would sustain in future
as well. Amazon is fairly new to the market and initially started with a low stand but, it will still
be a strong competitor, especially with electronic goods, if it upgrades offers and products.
Though JB Hi-Fi has been successful in implementing retail strategies quite well in the past, still
it needs to be cautious with Amazon, being a giant in retail business. JB-HI Fi is taking a low
stride in implementing the business model to The Good Guys and has reshuffled a new team with
store managers, executive staff and adapted novel remuneration policies. However, if it the
above plan is not successful will have to face some loss. Low price and brand loyalty business
model of JB Hi- Fi can easily be comparable to other companies like Harvey Norman.
Decision making tools and techniques.
Decision making is a very much essential and necessary aspects as well as it refer to the complex
process. It totally depends upon the decision makers by which they can select their own criteria
with effective quantitative techniques which are mainly used to improve and correct overall
decision making quality within the organization. To run a business it requires the ability to create
a good decision making skill. If a wrong decision is taken towards a decision it can affect
wrongly on the business. It is very important on the side of the business owners to take decision
as it constitute certain weigh and continually improve the style of decision making skills. There
are few steps that are followed for an effective communication:
 The choice of alternative
 Weight evidence
 Identify the decision making facility
 Taking corrective actions
 Review the decision and importance
With the help of basic principles the sales manager takes the essential decision for the
business head to take corrective action against any task. The different tools and technique are

used to make general options. The representation are many in many procedure like graph,
carts and models or a combination of these can be uses. Whereas a decision making matrix is
used to evaluate the choices of a decision. With the help of the matrix it is easy to evaluate all
the options to take a decision. While using the matrix or creating a graph or table, all the
options in the first column and all the factors affecting are affected in the first row. In order
to make the decision more effective the challenges faced by JBHIFI in comparison from
other online stores is the absence of their online identity verification (Poveda, 2017).
On the view of the operational manager the decision making tool that is preferred is the
cost benefit analysis. In this decision making tool it consist of the access of cost and the
potential benefits association with different course of action and selecting the action which
results in greater net benefit.
On the prospect of HR manager the analysis of SWOT analysis is important. The
decision is taken on the strategic planning on assessing the strength and weakness of the
business environment and threats and opportunities that are too implemented to reduce the
weakness into strength. It allows the manager to plan and think in the presence of new
competitors and create impact for new generation regulation.
The marketing manager used the market research tool to gather information about
certain task. Such as the preference of potential customers, the current size of the market,
presence of competitors and the state which it is catering its services.
Retrospective decision model can be a suggestion for the business to focus on how the
decision can be made to the makes of the strategies. The attempt of rationalization is the
choice that is made after the business head that they have been made and attempts are made
to justify the decision. This particular model has been developed by Per Solberg. The
inventor of this model made it an observation regarding the job choices with the processes of
graduating the organization and noted that in many cases the candidate identified implicit the
favor. Later the students continued to search for additional alternatives and quickly selected
the best alternatives (Kushal, Ravishankar & , 2010).
The total process is justified through the excuse of scientific rigor that is the decision
which had already been made. The individual candidate becomes convinced that he the
employee is acting rationally and taking a reasonable decision on the important task of the
business organization. The decision making facility as a sales manager in regards to the
working environment of the online store leads to increased employee morale, commitment
towards the organization and engagement with work.
The decision towards the improvement of the production process is taken by designing
and segregating the work among the different level of employees according to the working

ability and skills. The ability to work under the qualified staff during the working hours will
help the employee to learn the best. The innovative technique and procedure directs the
employee to get trained and perform the given task appropriately (Wirth, 2007).
Recommendations
It is a recommendation on part being a business to use the SWOT analysis because it
brings forth the market decision based on the strength, weakness, opportunities and threat. to
use the above model as it helps in a part of the integral organization, different activities can
be undertaken such as outdoor games, team sports, gym membership and exercise groups.
These minute efforts of the company can guarantee the permanent work role of the
employee. The decision towards the employee working hours is made more flexible and the
opportunity of more experiments are permitted and are given scope of multi-tasking.
Similarly other online stores sell the same product but at a lower price which creates a
competition from one online store to another. As a point of a sales manager the decision of
emphasizing a strategy that would enable to shine brighter than the competitors. It is
important to analyze the products which are in demand and to remove the outdated products.
There are few techniques and tools of decision making, those are mentioned below:
Decision Trees: It mainly refers to the tree-shaped diagrams which is generally used to
identifying the proper action in order to show the statistical probability (Methlie, 1995.).
Playback Analysis: Generally it needed lot of time for the investing fund in order to grab break-
even point into the particular project.
According to my opinion decision making tree is the best approach for analyzing the effective
and possible decisions within the company.