One of the fortune 500 companies in our society is Best Buy. Best Buy is one of the largest consumer electronics retailer company in the United States and Canada. There are many products Best Buy distributes, such as; computers, computer equipment, video and audio products, refrigerators, coffeemakers, compact discs, video games, DVD and VHS movies and players, CD’s, computer software, cameras, cell phones, and satellite systems and so on. In addition, their customer service is very helpful and has improved throughout the years. The Geek Squad is one of their forms of customer service they provide and they offer various computer-related services and accessories for residential and commercial clients. Best Buy didn’t always have these products and services available. They are an industry that changes with the times. They supply products that are in high demand by the consumers.
Best Buy was started in 1996 by Richard R. Schulze and his business partner James Wheeler. It was originally known as Sound of Music and the first store was located in St. Paul, Minnesota. In 1983, the company’s name was changed to Best Buy and the first store named Best Buy was located in Burnsville, Minnesota. By 1984, there were only 8 Best Buy’s in the Midwest, but by 1987 the number tripled and their sales and earnings were at a high $239 million and $7.7 million respectively. And since they have money to spend, they increased their warehouse size and products. In 1985, Best Buy went public and then two years later they were listed on the New York Stock Exchange. By 1988, sales had doubled to $439 million, but net earning declined 64%.Despite the net earnings declining, revenues were still increasing well into 1989. Also, in 1989, Best Buy launched its Concept II stores with bigger show rooms, fewer sales people and more self help product information. From 1992-1993 Best Buy had the best financial performance in the company’s 27 year history with an increase in revenues and earnings. Following this, 38 new stores were opened up. By 1997, Best Buy became the industry leader. This caused net profits to jump to $94.5 million and revenues to jump to $8.36 billion and for their stock to increase to $36 per share. In 1998, Best Buy created an online music store and in 2000 they expanded it and it offered more then music, it offers DVDs, consumer electronics, computers, software’s and games. Having a website made Best Buy’s income grow even more. By 2001, profits increased 14%, revenues rose to $15.33 billion. Despite the recession in 2001, Best Buy bounced back the following year with $570 million in profits and $19.6 billion in revenue. And by 2004, revenue reached $25 billion and net income rose to $705 million.
Best Buy is a publicly traded corporation. A publicly traded corporation is the style of many companies in the United States, Europe and India. They are liable, taxable, have legal rights that an individual citizen would have, they can sue and be sued and must establish a paperwork identity with state and/or federal governments as required by local laws. When it comes to liability, public corporations have limited liability which means a partner or investor cannot lose more than the amount invested and the investor or partner is not personally responsible for the debts and obligations of the company in the event of bankruptcy. For taxes public corporations are taxed twice; once for revenue for the corporation and once for personal income for the shareholders. Best Buy is the type of company that always stays up to date with the latest technologies which keeps the consumers coming back and interested. They also have every product on the floor when you walk in so the choices of products are endless and you never have to wonder if there is more. In addition, they base their stores on low pricing and efficiency in operation; this explains why Best Buy’s industry has grown so much since 1966.
Mostly every corporation deals with competitors....
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