Bed Bath & Beyond Inc: Careless Leadership Leads to Troubles - Case Study

Introduction

Bed Bath & Beyond Inc. has been in operation and making good profits from the business it does for a long time. However, the leadership of the company has not been careful with making decisions to acquire new shareholders and vendors into their business. The CEO Temares and the other leaders had initiated continuous acquisition of shareholders and vendors of all merchandise into the business hoping that the outcome would be the placing of Bed Bath & Beyond at another level when it comes to the meeting of the customer needs and making of profits (Bed Bath & Beyond Inc., 2019). However, with all the new vendors that it acquired, the performance went down, and these are the main threats that have faced the business; reduced market share, a lot of fatigue in the promotion and too many stores which are unprofitable.

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Discussion

Now as a new hired chief executive officer of Bed Bath & Beyond Inc, there are certain strategies that would be important to use in the management in order to make sure that everything is kept in order, and the problems created in the business operations by the former CEO before stepping down are eradicated in an effective manner. In the first place as the new CEO, the most important thing would be to make sure that all the unprofitable shareholders connected to the business are done away with so that the ones who remain are the ones who are doing a great job towards realization of high profits for Bed Bath & Beyond Inc (Huang, Dyerson, Wu & Harindranath, 2015). By so doing, at least the market share of the business will become stronger and in the process impact positively in the goals of the business.

There have been so many stores in place which have been acquired with huge amounts of cash yet they prove not to be of any profit to the Bed Bath & Beyond Inc. and so the other strategy that would help would ensure that the stores are reduced to a good number of stores that will enable the company to preserve their merchandise well without problems (Bed Bath & Beyond Inc., 2019). However, this strategy should not do away with nearly all the stores that have been used. The stores acquired through the former CEO that should be reduced should be the ones whose existence in the company makes no sense in terms of generating cash for the company.

Another effective strategy that would be important in such a situation for Bed Bath & Beyond would be the hiring of new board of stakeholders and do away with the older ones because of the fact that the old board of stakeholders is the one that had discussed and passed decisions for acquisition of different shareholders in the business which in turn led to the failure of Bed Bath and Beyond's business (Ferdinand, 2013). Therefore it would just be a good thing to make sure that the people who occupy positions in the management are the people who will come up with helpful and well-considered decisions that will lead to high profitability by the firm and not just lead to the downfall of the business.

Conclusion

In conclusion, as for the case of Bed Bath & Beyond Inc, it is important for good considerations before too many shareholders are permitted to join a business. This is because the probability is very high that most of them will want to benefit themselves at the expense of the business, and thus, it will be the beginning of failure for the firm.

References

Bed Bath & Beyond Inc. (2019). Corporate Philanthropy Report, 34(5), pp.4-5.

Ferdinand, A. (2013). Company Specific Advantage and Sustainable Competitive Advantage. SSRN Electronic Journal. Doi: 10.2139/ssrn.2340249

Huang, K., Dyerson, R., Wu, L., & Harindranath, G. (2015). From Temporary Competitive Advantage to Sustainable Competitive Advantage. British Journal of Management, 26(4), 617-636. Doi: 10.1111/1467-8551.12104