JB Hi-Fi Company Departmental Analysis
JB Hi-Fi Company was founded in 1974 with a single operating store which was based in Melbourne Suburb in East Keilor. The company has continuously expanded to open stores all over Australia. JB Hi-Fi is also in the stock exchange market and it is ranked as one of Australia’s largest and fastest growing companies in the home entertainment sector (Fitzsimmons, 2010). It has retailers all over the country with statistics indicating that every year the company opens at least 15 stores. The company’s success is pivotal to its six departments which include the Management Department, the Human Resource Department, The Customer Service Department, the Technology Department and the Sales, the Marketing Department and the Accounting Department (Fitzsimmons, 2010).
The management department has played a key role in the company’s success. The management team consists of the Board of Directors, the Chief Executive Office and other stakeholders. The basic role of this department is to ensure that the company maintains a high profile in terms of performance and quality of products (www.coopearateinformation.com). To achieve this, the department performs the role of supervising all other departments. The main challenge faced this department is the management of dynamic capabilities and knowledge among its employees. This is due to the fact that the company is expanding and hence outsourcing some of its tasks (www.coopearateinformation.com). To curb this company has to ensure that its contracting manufacturer is competent enough to uphold the quality of the company’s products through appropriate management of dynamic capabilities and knowledge among its employees.
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The human resource management also plays a pivotal role in seeing that the company maintains its good reputation to its customers. This department advises the managerial department with regards to the type of workforce that is needed to enable the company to spur up its profits (www.abc.net.au). It also forecasts on any emerging losses and advises the managerial team accordingly. This department faces a major challenge in trying to come up with the appropriate strategies to help the company run efficiently. This is due to the fact that the company is now expanding to outsource most of its tasks and as a result the task of ensuring that the good name of the company is maintained shifts to the outsourcing companies which the department is not directly in control of (www.abc.net.au).
The accounting department is the most crucial in the company’s running. This department has the roles of ascertaining the expected profits and expenditures, calculating and forecasting on the share market of the company, accurately calculating the company’s losses to enable the company to come up with appropriate mechanisms to curb these losses. This department helps the company in planning its marketing strategies and improving the quality both products and services to customers by indicating the sort of profit or loss that the company has incurred over time. In 2005, the accounting department statistics in JB Hi-Fi Company showed that the company’s 6 percent profit was attained from the newly opened stores (www.abc.net.au). This helped the company forecast on the performance of this stores and as a result, it continues spreading its products and services all over Australia.
The accounting department’s main challenge is the increased technologies and innovations which the department can not correctly ascertain the loss or profit expected from these technologies (Fitzsimmons, 2010). This is due to the fact that new technologies more often results in overproduction of new products which end up piling in retailer shelves. To curb this, the department ought to encourage the company to minimize the production of new products till their demand market becomes stable enough and increase customer awareness and education on the application of new products through efficient customer services (Fitzsimmons, 2010). The finance department also has the role of calculating the dividends for their employees and shareholders.