I choose a company called “Big 5 Sporting Goods Corporation”. In the upload files “instruction”, please finish the a. Describe the organization, its mission, its strategic goals, and major initiatives.
For the purpose of this group project, use related course chapters and other articles in addition to any available references such as books, journals, newspapers, internet information, or a direct interview as resources for your research.
Instructions file is attached
The course chapter is also attached
Group Report Guidelines
For the purpose of this group project, use related course chapters and other articles in addition to any available references such as books, journals, newspaper, internet information, or a direct interview as resources for your research (in case of an interview, including your interview questions as an appendix in your report).
Students are required to use the library software packages and web search in order to search and select the appropriate material for this group project.
Write an 8 page (typed double-spaced) report (only one report needed for each group) and do a 20-minute class presentation. Your response must follow the following format:
a. Describe the organization, its mission, its strategic goals, and major initiatives.
b. Discuss the organization’s culture and the organization’s environment.
c. Describe the types of teams and groups that exist in this organization.
d. Describe how the organization manages its workforce diversity.
e. Describe the leadership of this organization and evaluate its effectiveness in leading this organization.
f. Evaluate the Organization’s Overall Effectiveness and Make Recommendations Based on Theory Learned.
Big 5 Sporting Goods Corporation: Description of the Organization, Its Mission, It’s Strategic Goals, and Major Initiative
The Big 5 Sporting Goods is a retailer that stocks footwear, apparel, fitness equipment, hunting gear, fishing equipment, golf items, and toys. It has its headquarters in El Segundo in California from where it manages its four hundred and twenty-nine stores spread across Idaho, Colorado, Arizona, Oregon, Texas, Washington, and Nevada. Among the brands, it presents in its stores are Golden Bear, Maui, and Sons, Go Fit, Triple Nickel, Pacifica, Morrow, The Realm and Avet. The Corporation is under the leadership of Steven G. Miller who is the Chairman, President, and Chief Executive Officer.
The company’s sporting goods are put under two major categories: soft goods and hard goods. Soft goods generated 45.6% of the total revenue for items like athletic and sporting apparel while hard goods generated 54.6% of their revenue through goods such as fishing rods and exercise equipment (Big 5 Sporting Goods, 2016). In 2013, Big 5 recorded an increase in total liabilities totaling up to $ 176 million, marking an increase from the previous year. The current ratio was 1.9 compared to that of its fiercest competitors: Foot Locker and Cabela’s Incorporated (Big 5 Sporting Goods, 2016). These liabilities have and may continue to affect the company’s credibility and position in the market.
Big 5 aims to exploit emerging trends on increased consumer spending, new outlets that drive growth, expanding retail growth and increasing demand for private labels. One of the company’s strategic goals is to maximize and ride on the growing consumer spending. Personal income increased by 2.8% with the disposable personal income increasing by 1.9% and personal consumption expenditure growing by 3.1% (Big 5 Sporting Goods, 2016). An increase in these indexes means that consumer spending power has increased to a level that maximizes profits for most businesses. With this information at hand, Big 5 has an opportunity to stabilize sales and expand its store brands.
Moreover, Big 5 has directed a lot of attention and resources for growth and expansion. The company is focusing on strengthening and dominating existing markets while making entries into new markets by opening a total of 45 stores in the past five years alone. It is also taking steps to optimize the national growth of the retail market and new ways of sale operation such as online stores. Retailing allows for more variety while online stores facilitate wider distribution while acting as a form of advertisement. This factor, coupled with the rising demand for private labels, means that retailers are taking up more brands into their store and are actually able to reach more buyers who are searching for quality products at affordable prices. In addition, the company also carries a few luxury brands, therefore, appealing to a high-end market as well.
Big 5 Sporting Goods Corporation faces several challenges in accomplishing its goals, and the main ones include high competition, organized retail crime and rising manpower costs (Green, 2016). The high cost of manpower in the United States has been caused and fueled by cheaper labor alternatives, government enforcement on wage increase, the already struggling global economy, and the rising proportion of full-time employees.
At the same time, the company is experiencing high competition from other retailers such as Academy Sports, Foot Locker, Cabela’s Inc, Target and Walmart. These competitors have a strong market presence, efficient marketing systems, and financial support which give them a competitive edge over Big 5. Finally, the rise of organized crime in the retail industry has forced retailers to cut down on goods, while driving customers into finding other alternative ways of shopping such as auction and bidding sales. Incidentally, the company has taken decisive steps to expand and achieve a wider market reach such as partnering with Yowza, a mobile couponing application, stabilizing its debt-to-equity ratio and achieving a higher turnover ratio.
Big 5 Sporting Goods. (2016). Big 5 Sporting Goods Corporation. Web.
Green, T. (2016). Why shares of Big 5 Sporting goods Corperaion slumped. Web.