This page has been archived and commenting is disabled.

Another Misbehaved CEO at Best Buy?

EconMatters's picture





 

By EconMatters

I'm not sure what's up with some of these big corporate CEOs keep making the news headline for having "inappropriate relationship" with a female employee.  The latest episode of high-profile executive resignation (read: fired) came from Best Buy (BBY), the electronic retail giant. 

 

Best Buy announced in the morning of Tuesday, April 10 that CEO Brian Dunn's resignation was the result of a "mutual agreement that it was time for new leadership to address the challenges that face the company."  The real story behind Dunn's abrupt departure was only revealed two days later by Best Buy’s hometown newspaper, the Minneapolis Star Tribune--Best Buy's board of directors is investigating allegations that Dunn's misused company resources in the course of an inappropriate relationship with a female employee.

 

If this sounds familiar, it is because Mark Hurd, the former CEO of Hewlett Packard (HPQ), was ousted under somewhat similar circumstances just last August.  Mark Hurd was dubbed as one of the best CEOs in the country that had turned HP around into one of the world's biggest technology companies.  However, Hurd's drastic cost cutting measures, including 15,200 job cuts, also had alienated many employees as well as board members, which is likely one of the contributing factors to his eventual dismissal.

 

Brian Dunn, on the other hand, is supposedly well-liked within the company.  Never graduated from college, he has worked his way up from the sales floor to the C-Suite during his 28 years with Best Buy.  However, the company stocks have declined almost 43% since Dunn took over as the Director and CEO in June of 2009, and has been struggling with losing sales to online rivals like Amazon and NewEgg.  Dunn and Best Buy's board have been criticized for not doing enough to cut costs, and increase its online presence.  Not even Dunn's plan to close 50 of its 1,100 large U.S. stores and to expand its smaller Best Buy Mobile has managed to inspire investors.

 

So it looks like Dunn's days of CEO were already numbered, and this incident was just the last straw for the company board to move up the CEO replacement timeline.

 

Some believe Best Buy's outdated big box store model is the culprit of the company's inability to compete with online retailers like Amazon.  However, big box stores do serve a different target audience from online shopping sites.  Big stores like Walmart (WMT) may still compete effectively with the likes of Amazon with proper store location, space utilization, good supply chain management and customer service.  Ultimately, as noted in our previous analysis, Best Buy fails miserably compared even to big box peers including Home Depot (HD), and the main problem has to do with its poor corporate and store management, terrible customer service and lack of a focused leadership and strategy.

 

Chart Source: Yahoo Finance, April 14, 2012

The difference between HP and Best Buy is that Hurd was a successful CEO leaving HP at a much stronger position to deal with an executive turnover than Dunn had with Best Buy.  But even so, HP stocks have not regained the lost ground after Hurd's exit eight months ago (see chart above).  

Right now, Wall Street analysts are focusing on the search for Dunn's replacement. Needless to say, it will be a monumental uphill battle to even halt the current downward spiral of Best buy no matter who takes the helm.      

 

Further Reading:

Amazon vs. Walmart: Let The Battle Being

How Home Depot Delivers Where Competitors Fail

 

©EconMattersAll Rights Reserved |Facebook|Twitter|Post Alert|Kindle

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sat, 04/14/2012 - 22:24 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

another CEO is "Hard at work"

Sat, 04/14/2012 - 18:17 | Link to Comment Dingleberry
Dingleberry's picture

Anyone see a photo of the ho? I hope it's not like another Lewinski scandal. If Clinton balled a hot Hawaiian Tropic babe, I would have at least understood it.

BTW, maybe this guy could do an epsiode of "Undercover Boss"??? 

Sat, 04/14/2012 - 21:54 | Link to Comment AldousHuxley
AldousHuxley's picture

here is pic of Dunn's mistress....

 

let's just say he had some fetishes....

http://24.media.tumblr.com/9loo5gbqc9bfy3dmh5epY6VX_400.jpg

Sat, 04/14/2012 - 22:47 | Link to Comment BeetleBailey
BeetleBailey's picture

LOL!

Sat, 04/14/2012 - 21:52 | Link to Comment AldousHuxley
AldousHuxley's picture

They have hot wives, but they always cheat with ugly hos....

it is not about looks, it is about the hunt.

 

Dunn is done....

 

one's family is not a corporation where you can just hire hos to work for you. Big Egos forget that and end up losing half.

 

 

 

Sat, 04/14/2012 - 17:58 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

The basic problem is that American boards of directors are for shit.  So the guy spends some extra bucks on his girlfriend who also works at the company most likely on meals, accomodations, first-class air-fare and such, maybe some clothes.  Let's all get puritanical and fire him.  Just the kind of non-emotional, evidence based pragmatism I would expect from a well reasoned board of directors.  If I ever go soft in the head please remind me never to invest in that company except on the short side.   

Sat, 04/14/2012 - 17:55 | Link to Comment TheCanimal
TheCanimal's picture

What is important to note here are two things: 

1.  he's not gay 

2.  he has not been accused of racism.

Sat, 04/14/2012 - 18:14 | Link to Comment TheCanimal
TheCanimal's picture

Best Buy mystery woman identified as Dayna Cline.

Sat, 04/14/2012 - 16:15 | Link to Comment ebworthen
ebworthen's picture

Four years ago Best Buy should have adopted aggresive online pricing and positioning.

Mr. Dunn was probably too "married" to the brick and mortar floor sales model; and all those nubile young impressionable employees obviously distracted him.

Companies like NewEgg.com are crushing brick and mortar in pricing and positioning.  I can buy at a lower price and get free shipping and save 20% or more (not to mention "tax" benefits).

A dual model of online/retail would work if executed correctly, but my impression is that the mindset is one or the other and Best Buy doesn't have the chutzpah to get aggresive with the online model.

I see Circuit City when I go to Best Buy; just a 20 year later version.

Mon, 04/16/2012 - 09:09 | Link to Comment RKDS
RKDS's picture

No, companies like NewEgg are crushing BestBuy on selection and availability.  Aside from various cables, BestBuy isn't hideously overpriced.  It's just when you go there for pretty much anything, you have a choice of two, maybe three brands (that everybody else carries), or, if it's at the lower end of the price spectrum (say an AV switch or a radio or surge protector), they don't bother to have the whole one model they stock available for purchase.  Gee, who would've thought that a store that doesn't have products to sell could ever have trouble meeting the sales figures it needs to survive.  There was a time when I'd go out of my way to hit a CC or BB for anything that wasn't ridiculously esoteric.  Now, since they probably won't have it anyway, stopping there is an afterthought at best.

Sat, 04/14/2012 - 15:56 | Link to Comment Moe Howard
Moe Howard's picture

Fuck worst buy and that caddyshack ceo with the buck teeth.

worst buy, the only place in town to buy a $1 cable for $34.65.

Sat, 04/14/2012 - 14:04 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

.

Sat, 04/14/2012 - 13:51 | Link to Comment Paul451
Paul451's picture

Here are my Five Rules to follow as a CEO:

 

[1] If the company is diversified, then consolidate

[2] If the company is consolidated, then diversify.

[3] Meet your bonus goals even if it means you have fire everyone in the company.

[4] Meeting your bonus goals means you will have to fire almost everyone in the company.

[5] If you're going to screw around with a female subordinate, then:

[A] Dont get caught, and

[B] If you do get caught, then make damn sure you didnt buy her so much as a pack of gum with company money.

It aint Rocket Science.

Sat, 04/14/2012 - 14:01 | Link to Comment flattrader
flattrader's picture

Words to live by.

You are a wise man indeed.

And finally, someone who got the point of the article!!!

Sat, 04/14/2012 - 12:25 | Link to Comment JW n FL
JW n FL's picture

 

 

who cares.. who is fucking who? as long as it is out of the office on the persons personal time.. it is no one’s business!

but there is an OLD SAYING!!

HATERZ GONNA HATE!!

on TV?? sex.. is not ok.. but if you want to kill 1,000 people and show blood and gore.. that’s alright! Oops and don’t show a Nipple! LOL!! or say SHIT! That is COMPLETELY!! Unreasonable!

Blood and guts! is A OK!!

but Boobies?? NOPE! you are in league with the DEVIL!!

you ever notice the fat hairy menopausal bitches pushing that agenda.. all dried up and useless.. and bitching about the pretty girls getting laid! LOL!!

God does not want people miserable! Old Fat Hairy Pissed Off Dried Up Menopausal Cunts WANT! People to be Miserable!

Misery LOVES! Company!!

 

Sat, 04/14/2012 - 22:50 | Link to Comment BeetleBailey
BeetleBailey's picture

...you forgot "rabid" as an  important of note adverb in the sentence rant above....

Sat, 04/14/2012 - 12:47 | Link to Comment flattrader
flattrader's picture

JW,

I think you might have missed the key point in the article--

>>>...Best Buy's board of directors is investigating allegations that Dunn's misused company resources in the course of an inappropriate relationship with a female employee...<<<

I think the BOD wouldn't care who he was banging if he did it with his own money and he/she weren't an employee.

So, he was cheap and stupid...Not the best qualities in a CEO.

>>>God does not want people miserable! Old Fat Hairy Pissed Off Dried Up Menopausal Cunts WANT! People to be Miserable!<<<

So glad you know what God wants.

But in spite of his best wishes, you ain't getting much are you?

I can't imagine why.

Sat, 04/14/2012 - 13:12 | Link to Comment Non Passaran
Non Passaran's picture

By banging an employee he was cutting entertainment costs.
I hope not OT charges were passed on to the shareholders!

Sat, 04/14/2012 - 12:40 | Link to Comment flattrader
flattrader's picture

JW,

I think you might have missed the key point in the article--

>>>...Best Buy's board of directors is investigating allegations that Dunn's misused company resources in the course of an inappropriate relationship with a female employee...<<<

I think the BOD wouldn't care who he was banging if he did it with his own money and he/she weren't an employee.

So, he was cheap and stupid...Not the best qualities in a CEO.

>>>God does not want people miserable! Old Fat Hairy Pissed Off Dried Up Menopausal Cunts WANT! People to be Miserable!<<<

So glad you know what God wants.

But in spite of his best wishes, you ain't getting much are you?

I can't imagine why.

Sat, 04/14/2012 - 12:24 | Link to Comment Are you kidding
Are you kidding's picture

Maybe the Muslims have it right? Cover them up, shut them up, and keep them home so they can't stir up shit.

Sat, 04/14/2012 - 22:53 | Link to Comment BeetleBailey
BeetleBailey's picture

...if you being "right" the persecution of women by Muslim men over the centuries as "superior", I have Gloria Steinhem on line 1 holding for you....for openers....in fact, all lines are blinking....

 

 

Sat, 04/14/2012 - 12:29 | Link to Comment flattrader
flattrader's picture

Don't date much, do you?...or not for very long...

Sat, 04/14/2012 - 12:54 | Link to Comment WAMO556
WAMO556's picture

Spoken like a true american. How many countries has been invaded and bombed??? Iraq, Afghanistan,(We are going to FREE the shit out of you, even if we have to kill you to do it), and Libya and now the fucks are going after only 1 of 3 countries left that don't have a central bank where they can enslave their people. Maybe you should take a really good, long and hard look at your culture before you flippantly respond. In case you haven't figured out, the days of USA spreading its morals around the world are coming to an end.

Sat, 04/14/2012 - 13:19 | Link to Comment flattrader
flattrader's picture

>>>How many countries has been invaded and bombed???...(rant continued)...countries left that don't have a central bank where they can enslave their people.<<<

I can only assume that you somehow believe American forgeing policy makes it somehow wrong for anyone to criticize the degrading treatment of many Muslim women.

Also, I can only assume you ain't dating much either...or at least few ,if any American women, and not for very long.

My flippant comment was a retort to his flippant solution to the problem of a CEO misusing company funds to bang an employee...

Try to focus.  I know it's hard.

Sat, 04/14/2012 - 13:50 | Link to Comment Are you kidding
Are you kidding's picture

American women are entitlement bitches...nothing more. They think that pussy entitles them to whatever they want.

I've been out of "dating" for a long time. Spent a lot of money on uninteresting conversation and a handshake at the door. No more. They're easy enough to "bed" and forget if you don't give a damn about them. There are a lot of single moms looking for a guy like me, a "provider", I let them come to me now, it's so much better on this side of the fence! Now I've got what they want.

Sat, 04/14/2012 - 23:03 | Link to Comment BeetleBailey
BeetleBailey's picture

Hunter of the Gatherer pair, eh?

Got some past cunts in your rear view evidently....

........ever have a black woman say to you;

"Provide fa me sucka"...or

"Provide DIS bitch"

...I digress....

"Pussy is pussy" ;

Pay in  cash, emotion, time commitment, and the consumerism of diamonds, houses, cars, and silly shit you'd never think you'd pay money for.

Dollar eating monsters - stripped away......some......ravenous. Bernanke-esqe.

That said, your James Lipton catching and Jack Nicklaus nice try shake is disconcerting.

One wonders your appearance/looks/grooming/social skills.

This side of the fence means.....?

Sat, 04/14/2012 - 14:00 | Link to Comment flattrader
flattrader's picture

>>>...There are a lot of single moms looking for a guy like me, a "provider", I let them come to me now,...<<<

I am certain they are beating a path to your door...and on weekends have to hire private security to hold back the crowds of babes obstructing traffic.

Sat, 04/14/2012 - 12:15 | Link to Comment Yellowhoard
Yellowhoard's picture

I started calling them "Best Try" after they failed to properly install a car alarm in my daughter's car after three attempts.

When it's all said and done, they will end up being a large appliance warehouse store for stuff that is too large to deliver via UPS.

Amazon is the future.

Sat, 04/14/2012 - 12:13 | Link to Comment flattrader
flattrader's picture

Newly built Walmart Big Box in may area cannot pull in the customers.  General complaint...it's too damn big to get through

People have realized they spend too much money on cheap Chinese crap if they try, so the are now just avoiding it.

The real kicker?  The city government TIF-ed the project for the increases sales taxes...which may or may not appear.

Sun, 04/15/2012 - 01:05 | Link to Comment Cman5000
Cman5000's picture

More bad news 

Best Buy deals tied to insiders draw scrutiny

 http://www.startribune.com/business/147460035.html

Sat, 04/14/2012 - 21:04 | Link to Comment Dingleberry
Dingleberry's picture

She looks pretty cute. about an "8".  I need to see a bikini shot before making final judgements. Probably had good oral skills. She's not hot enough to lose your job over, but I am sure he has a golden parachute.  He should get a golden shower instead. Can't wait to read about the divorce proceedings.

Sat, 04/14/2012 - 13:00 | Link to Comment Cman5000
Cman5000's picture

And Earl of Chiswick i can confirm that is true i work at the Best Buy HQ ... 

Sat, 04/14/2012 - 13:03 | Link to Comment Earl of Chiswick
Earl of Chiswick's picture

As Earl of Chiswick you have my permission to share any additional facts that might assist the investigation.

Sun, 04/15/2012 - 00:49 | Link to Comment prole
prole's picture

You could also  investigate that Hurd thing at HP. I never even figured out what he was supposed to have done. He took some associate to dinner once and left her off the report? That HP thing was weird then they tossed him under a bus

Sat, 04/14/2012 - 12:58 | Link to Comment Pure Evil
Pure Evil's picture

I guess money and power just doesn't buy the eye candy honey whores that it we've been accustomed to seeing.

Sat, 04/14/2012 - 11:57 | Link to Comment Seasmoke
Seasmoke's picture

since i know i like to slap females in the face with my penis, i am smart enough not to become a CEO

Sat, 04/14/2012 - 11:40 | Link to Comment max2205
max2205's picture

Bby will be chapter 7 in one year

Sat, 04/14/2012 - 11:32 | Link to Comment WTF2
WTF2's picture

Dunn will make a fortune on this!

Sat, 04/14/2012 - 11:15 | Link to Comment dwdollar
dwdollar's picture

The fact this store is selling anything is amazing. Basically, Best Buy caters to the person who wants a computer but isn't capable enough to use one (to buy a computer online at a much better price). A dwindling breed indeed.

Sun, 04/15/2012 - 00:42 | Link to Comment prole
prole's picture

Hey Bub-- I bought this computer at BB!

Sat, 04/14/2012 - 11:10 | Link to Comment DarthVaderMentor
DarthVaderMentor's picture

Power corrupts. Absolute corporate or government power corrupts absolutely. I have personally known several Fortune 500 CEOs and few, if any have not developed some flaw due to corruptiveness of power and the lure of greed for more and more money.

Sat, 04/14/2012 - 13:06 | Link to Comment WAMO556
WAMO556's picture

You ain't met a 18 year old Marine infantrymen. There are only three things on his mind: Drinking beer, getting laid and taking down corrupt tinpot dictators/corporate ceo's who over-extended their stay on this earth. Call them un-corruptables, because they know what is best in life.

Sat, 04/14/2012 - 22:23 | Link to Comment GFKjunior
GFKjunior's picture

Un-corruptable? HA.

 

More like the dumbest type of people on earth. They are so brainwashed by uncle sam they have no morals left to corrupt.

Sat, 04/14/2012 - 11:51 | Link to Comment Rainman
Rainman's picture

The only truly absolute power over men is estrogen....on a long enough timeline pussy takes it all.

Sat, 04/14/2012 - 11:57 | Link to Comment Seasmoke
Seasmoke's picture

i have found on a long enough timeline, it loses its power

Sat, 04/14/2012 - 14:15 | Link to Comment Revert_Back_to_...
Revert_Back_to_1792_Act's picture

 

I'm gonna miss her.

http://www.youtube.com/watch?v=4CddnsHSlMw

 

Sat, 04/14/2012 - 12:15 | Link to Comment Bananamerican
Bananamerican's picture

so, "hang in there baby"

Sat, 04/14/2012 - 23:35 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Dude, this is like every frat boys dream. Make it to top of the corporate ladder and fuck whatever chick you want.

Do NOT follow this link or you will be banned from the site!