JB Hi-Fi was established in 1974 by a simple philosopher Mr. John Barbuto (JB) who was trading from single store in Victoria a place called East Keilor. He was delivering variety of Hi-Fi equipments as well as recorded music at lowest prices in Australia. In 1983, the business was sold and later in 1999, nine stores were opened. With the aim of taking the business to be a successful model all over the nation, private equity bankers and senior management purchased the business in July 2000. JB Hi-Fi was floated in October 2003 on the Australian stock Exchange. JB Hi-Fi is the largest retailer as well as fastest growing home entertainment Retailer Company in Australia. The Queensland Clive Anthonys stores were bought by JB in July 2004. The Queensland Clive Anthony was selling the consumer goods like the cooking appliances, consumer electronics and air conditioning equipments before it was bought.
It has been revealed that the executive or the CEO of a Melbourne based JB who led to the companys success in year 2009 Richard Uechtritz will retire from the position in August after being in that position for 10 years. He will be succeeded by Terry Smart who joined the company in year 2000 together with Uechtritz. Uechtritz led the company towards making a half year net profit of $76 million in Australian currency which is approximately $66 million from $59 million Australian equivalent of $51 million in corresponding period. He also scaled up the group sales from $1. 09 billion one year before to $1.35 billion by end of 2009. The 124 JBs stores in Australia registered 10. 2percent comparative growth across the Australia while in its 10 stores in New Zealand a 5. 8 percent growth was achieved. JB Company was resilient throughout the economic crisis; this led to gained consumer confidence by the company. This is a clear indication of a strong retail model and how strong the management team is strong. JB is also well known for being a leader in CD album sales. It is said that for every 10 albums sold, 4 of them are rung up in JB. This is widely seen as a major factor that is behind the Australias largest popularity in the CD albums market (JB Hi-Fi, 2010).
The JB Hi-Fi Company has a charter that provides the summary of board of directors roles in the structure of the business and the companys operations. To ensure that the company thrives and overcomes the crisis that may come on the way, the company has various strategies and ways to overcome that and to keep the company on the track which includes constitution and board of directors which has various roles and responsibilities. The company has got a constitution and also corporations act. The companies values are the trust, integrity and honesty. The board carries out the duties in regard to the interest of the companies shareholders, staff, customers and the community in which it operates. The board has responsibility for the companys corporate governance which includes establishment and empowerment of board to assist in its work.
The board is also responsible for overseeing the affairs and the business of the company by establishing the financial objectives and strategies for management to implement; reviewing and approving the financial objectives of the company and corporate plans as well as actions; approval of the capital expenditure in excess of limits that have been delegated to the management; approval of the capital management initiatives; another vital role is to ensure that they are adequate procedures are put in place so as to identify the principal risks in the business as well as implementing systems that are appropriate in managing the risks. The board is also responsible for communicating with the shareholders of the company as well as community at the right times towards getting right results and developing the business operations of the company.
The board is also responsible for appointing or selecting and evaluating regularly the chief executive officers performance and also determining the remuneration and succession of the chief executive officer. The board is also responsible of approving the major human resource major policies as well as overseeing the strategy development for high performing and senior executives. The board should also ensure that the appropriate procedures are put in place so as to make sure that business is conducted in honest, ethical and in an open manner. The board is also supposed to institute the internal procedures for performance evaluation of the board, the individual directors and the board committees.