Business Analytics Case Study: Addressing Challenges Faced by JB Hi-Fi

This case study analyzes the challenges facing JB Hi-Fi, an Australian home entertainment retailer, focusing on three key areas: direct competition from Harvey Norman, competition from online stores like Amazon and eBay, and employee emotional wellbeing and job training. The analysis uses v...Read More

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Title: Business Analytics
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Contents
Introduction................................................................................................................................2
Decision-Making Models & Tools that will be used.................................................................2
Challenge 1 – Direct Competition Imposed by Harvey Norman...........................................2
Challenge 2 – Competition from Online Stores.....................................................................4
Challenge 3 – Employee’s Emotional Wellbeing & On-going Job Training........................5
Recommendations......................................................................................................................7
References..................................................................................................................................9

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Introduction
The organization JB Hi-Fi is an Australian Home Entertainment retailer firm that
offers consumer goods to the people. The organization offers its customers with a wide
variety of products that includes almost every gadget that can make an individual’s life smart,
healthy, fit, and comfortable. The organization’s main functioning locations are Australia and
New Zealand. Currently, the organization is undergoing certain problems, which has stirred
the working environment of the organization. The three main problems in the organization
are the direct competition imposed by the organization Harvey Norman, the intense
competition that is imposed by online firms like Amazon, eBay, and TaoBao. Also, the third
problem is arising in the employee’s wellbeing and the currently happening job training (JB
Hi-Fi, 2019).
Decision-Making Models & Tools that will be used
Challenge 1 – Direct Competition Imposed by Harvey Norman
The first challenge which the organization JB Hi-Fi is the direct competition from the
organization Harvey Norman. The organization specializes in a wide variety of gadgets,
home products like beddings, furniture, electrical products, and communication products. The
organization has developed various competitive advantages that have imposed a humongous
pressure on JB Hi-Fi. For managing this challenge, the rational decision-making model has
been utilized. But, firstly, quantitative analysis tool will be used to examine the competition
between the two organizations in Australia.
Quantitative Analysis
According to Okechukwu, Uzoma & Wilfred, quantitative analysis include various
numerical factors that help in making an effective decision. The main factors needed for this
process are the different monetary information, the sales, the number of locations in which an

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organization is operating, and many more (Okechukwu, Uzoma & Wilfred, 2012). Thus,
according to the quantitative analysis, the JB Hi-Fi started in the year 1974 and now operates
in 303 locations. On the other hand, Harvey Norman started almost a decade later in 1982 and
now operates in 280 locations in Australia. This highlights that Harvey Norman is expanding
at a high speed. According to the revenue information of both the organization, in the year
2016, JB Hi-Fi earned $4 billion, whereas Harvey Norman earned $5.3 billion. Thus, with the
quantitative analysis, this can be stated that JB Hi-Fi is lagging behind and needs to take an
effective decision.
Rational Model
The rational model involves a decision-making process which is opposing. For this
model, analysis and facts are used, in a systematic process to formulate an effective message.
This model provides with a fact-based decision (Uzonwanne, 2016). Thus, the information
attained from the quantitative analysis, along with different facts will help in making a strong
decision. The operating income of JB Hi-Fi and Harvey Norman is 221 million and 523
million respectively. Thus, with all this information, it can be stated that JB Hi-Fi revenues
have to be increased along with the operating income. Thus, such a situation the weight of the
problem has to be divided amongst different managers to formulate the best alternatives to
solve this problem.
Role of Managers
Human Resource Manager – The role of the HR manager is to find the best alternative for
building a strong team. Thus, the HR manager has to employ highly skilled professionals that
help in increasing the operating income.

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Operational Manager – The operational manager has to ensure that all the activities and
processes are being conducted efficiently. Also, it is his responsibility to identify different
risk drivers, which are affecting the revenues.
Sales – The sales manager has a very crucial role to play, as it is paramount that the
organization increases its sales massively. The manager has to ensure that better discounts
offers and high customer service is delivered so as to increase sales.
Marketing - The marketing manager has a huge role to play and should work in
collaboration with the sales manager to identify the best alternatives. The marketing manager
has to plan different alternatives that help in attaining various competitive advantages,
through the marketing approaches as it will help in shifting the customers of Harvey Norman.
Challenge 2 – Competition from Online Stores.
SWOT Analysis
The SWOT analysis of the organization –
Strengths – A strong credible brand image in the market.
Weaknesses – The organization has discount offers that are not enticing enough in
comparison to the online stores.
Opportunity – The organization can expand to different new locations.in Australia.
Threats – Further reduction in revenues due to the increasing trend of online shopping
(Yüksel, 2012).
The Dual Processing Model
The dual processing model of decision making can be defined as a utility model,
which formulates risky decisions. In this model, there is a huge gamble that has two main

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elements or system, which are the deliberative system and affective system (Djulbegovic,
Hozo, Beckstead, Tsalatsanis & Pauker, 2012). Both these systems help in evaluating the
overall outcome of the decision. Thus, the different senior managers at JB Hi-Fi can utilize
this model to formulate decisions, which can be implemented according to the attained
outcome (Trueblood, 2017).
Role of Managers
HR Manager – For this challenge, the main role of the HR manager is to hire professionals
that can help in formulating strategies, which will help in making the shopping experience of
the customer more convenient than the online shopping sites.
Operational Manager – The role of the operational manager is to ensure that the shopping
experience of the customers at the stores should deliver a high standard of customer
experience forcing them to revisit the store again, along with giving up the online stores like
Amazon, eBay, and many others.
Sales - The sales manager has a huge role to play. Firstly, the sales manager has to develop
better discount offers, which will also require the sales manager to analyze and examine the
approaches of different online stores. Secondly, the sales manager also have to ensure that all
the different decisions that are finalized should facilitate the organization with a strong
competitive advantage.
Marketing – The role of the marketing manager is to ensure that the customers are attracted
towards the JB Hi-Fi traditional and online store. For this, the manager has to develop an
effective marketing strategy that helps in facilitating customer shift.
Challenge 3 – Employee’s Emotional Wellbeing & On-going Job Training
Decision Matrix Analysis

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The tool of decision matrix analysis will be used, for examining this problem. In this
graphical representation, the information is written in the form of a table, along with different
factors to consider (Yang, Du, Wang & Liang, 2017). Then the different aspects are scored
accordingly.
Problem Factors Score
Low skilled labor Inefficient organizational
process
8
Reduction in productivity Less job satisfaction 9
Pressure on the employees Low work-life balance 9
The Recognition-Primed Decision Model
The organizations working environment can be chaotic at times, which would require
managers to make a quick decision. The decision that is formulated in a short span of time
and with the information that is available to us, then the recognition-primed decision model
will come into practice. There are three stages in this model which are –
 Experiencing the situation.
 Analyzing the situation.
 Implementing the decision (Boyes & Potter, 2015).
The managers will utilize the model along with the tool to formulate better decisions.
Role of the Managers
HR Manager – He will ensure that the under-skilled employees are being offered with good
training, and the main focus of the employees is only on the training.
Operational Manager – to ensure that all the employees have a high work-life balance.
Sales – The sales manager has no role to play.

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Marketing – The marketing manager should develop strategies that inform the potential
employees that the organization gives the highest priority to its employees.
Recommendations
CHALLENEGS HR
MANGER
OPERATIONA
L
MANGER
MARKETIN
G
MANGER
SALES
MANGER
Direct Competition
with Harvey Norman
Employee
professionals
that help in
gaining
competitive
advantages.
Examine and
identify different
risk drivers.
Utilize
aggressive
marketing
approaches.
Formulate
better
discount
offers than
the
competitors.
 Competition
from online
stores such as
eBay, Amazon,
TaoBao
Hire
employees
that help in
enhancing
customer
experience
The shopping
experience at JB
Hi-Fi website
should be better
for the customers
in comparison to
other online
stores.
Comparative
marketing
approaches.
The
organization
should offer
best prices
that are
cheapest in
context to
the other
online
stores.
 Employee’s Offer Social activities Attract new No role to

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emotional well-
being and on-
going job
training
training to
under-skilled
employees
and also, hire
professionals
with
knowledge
about the
latest trends.
for offering a
good work-life
balance.
employees by
informing
about the
corporate
responsibility
approaches of
the
organization.
play.

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References
Boyes, M., & Potter, T. (2015). The application of recognition-primed decision theory to
decisions made in an outdoor education context. Journal of Outdoor and Environmental
Education, 18(1), 2-15.
Djulbegovic, B., Hozo, I., Beckstead, J., Tsalatsanis, A., & Pauker, S. (2012). Dual
processing model of medical decision-making. BMC Medical Informatics and Decision
Making, 12(1), 1-13.
JB Hi-Fi. (2019). JB Hi-Fi | JB Hi-Fi - Australia's Largest Home Entertainment Retailer.
Retrieved 27 July 2019, from https://www.jbhifi.com.au/
Okechukwu, I., Uzoma, J., & Wilfred, I. (2012). Evaluation of decision making criteria with
special reference to quantitative and qualitative paradigms. African Journal of Business
Management, 6(44), 11110-11117.
Trueblood, J. (2017). A Dynamic Dual-Process Model of Decision-making under
Uncertainty. Retrieved 29 July 2019, from
https://pdfs.semanticscholar.org/4ae9/611bbb66d2e5f4609fdf50b867c11a3d2884.pdf
Uzonwanne, F. (2016). Rational Model of Decision Making. Global Encyclopedia of Public
Administration, Public Policy, and Governance, 1(1), 1-5.
Yang, Q., Du, P., Wang, Y., & Liang, B. (2017). A rough set approach for determining
weights of decision-makers in group decision making. PLOS ONE, 12(2), e0172679.

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Yüksel, İ. (2012). An Integrated Approach with Group Decision-Making for Strategy
Selection in SWOT Analysis. International Journal of Academic Research in Business
and Social Sciences, 2(11), 134-138.