Background And History : Best Buy Co.

Best Buy is a company that has 40 years of history with a very accomplished sense of success. In 1966 Best Buy was a small electronics store in that originated in St. Paul Minnesota by Richard Schulze and an acquainted business partner. Considering that technology changes so rapidly, Best Buy has had to transform from just being the little electronics store down the way into a competitive, customer-driven, talent-powered company that emphasizes on pleasing the customers as it pertains to the life of technology. In 1993 Best Buy was recognized as the nation’s second largest electronics retailer and was recognized by

Best Buy is a multinational retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services. The company operates retail stores and call centers and conducts online retail operations under a variety of brand names such as Best Buy, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Pacific Sales, and The Phone House (Bestbuy.com, 4). The domestic segment consists of all operations within the United States, while the international segment includes all operations in Canada, Europe, Mexico, and China. The Best Buy 's success is contingent on the market 's demand for electronics. The company 's strategy is to provide good customer service combined with lower prices (news.cnet.com). Best Buy 's success is directly related to economic conditions, the cost of goods, and other things like fuel prices. The company 's strategy depends upon the ability to offer customers a broad selection of name-brand products; therefore, leading its success to depend upon satisfactory supplier relationships (Bestbuy.com, 8). Best Buy, as it is included in the retail segment, is a seasonal store. Their stronger quarter is the fourth quarter, which they can contribute to the holiday season for their success.

Best Buy Co., Inc. is organized as a Richfield, Minnesota, based US Corporation and operates a multi-business unit structure. Company’s Board of directors consists of nine members with a Chairman and CEO and eight directors. Best Buy Co., Inc.’s operations consists of seven departments whose heads are directly responsible to the Chairman / CEO. The current organizational chart of the Best Buy Co., Inc. is as

This report analyzes the concerns that Best Buy will face, and addresses them from a behavioural and legal perspective. In order to maximize the benefits and limit the risk, our analysis indicates that Best Buy should wind down Future Shop operations and maintain it as an inactive company.

Best Buy Co., Inc. is a multinational company in the United States and it deals, with consumer electronics, and accounts 19% of the business. The company also operates in Mexico, Puerto Rico, China, and Canada. Some of the subsidiaries of the company include CinemaNow, Geek Squad, Pacific Sales, and Magnolia Audio Video and operates in both Future Shop label, and Best Buy in Canada. Best Buy Co. Inc and its subsidiaries operate more than 1,150 stores internationally and domestically. The company also operates more than 100 “ZoomShops” or Buy Express Automated retail Stores, operated by the Zoom Systems, in both malls and airports in the entire country of the U.S. The company is headquartered in Richfield, Minnesota, U.S (Scott,

Originating as a single Hi-Fi Stereo retail store, financed by personal saving and a second mortgage on a family home, in Midwest America, Mega Buy found early success. By 1967, only one year after opening its doors, Mega Buy began the acquisition of local competitors as it sought to increase its share of a growing industry. That year the company exceeded $1 million in total sales and over $58,000 in profits. By 1969 the operation consisted of three separate stores. That same year the company became publically held on the NASDAQ exchange. Originally named, The Music Place, the company adopted the new name, when in 1981, with a total of nine stores, a tornado ripped the roof off of the largest and most profitable store. Incredibly the vast majority

The Headquarters of Best Buys is found in Richfield Minnesota. It is a large company with approximately 155,000 employees and 1,100 stores in the United States alone. It also has about 2,800 stores in other countries outside the Unite States. These countries include: Canada, Mexico, China and Turkey. To add on to this, it has a number of subsidiaries namely the Geek Squad, Pacific Sales, Future Shop and Magnolia Audio Videos. Its mission is making life fun and easy by making technology solve customer needs and helping the same customers to appreciate the benefits of technology. It also aims attaining sustainable growth and earnings through constantly changing its business model to suit the needs of the customers (Lal, 2006). It also strives to sell quality products along with maintaining a high level of employee training program in order for them to have extensive product knowledge.

A man named Richard M. Schulze and his partner started Best Buy in 1966. The original store was called “Sound of Music” which was an electronics store that specialized in stereo systems. In 1967, Sound of Music purchased Bergo Company and Kencraft Hi-Fi and pulled in about $1 million in revenue. In 1969, Schulze took his partners half and decided to become a public company on the NASDAQ exchange. What started as a single store in Saint Paul, Minnesota became a chain of nine stores by 1978. In the 1980’s, Sound of Music was left with seven stores because of unfortunate accidents caused by a tornado. In 1983, Sound of Music was renamed to Best Buy Company. Along side changing the name of the company they also decided to expand on business by selling other at home appliances such as VCRs.

Best Buy infrastructure has to be its primary strength starting with its operations, merchandise and services, distribution, and suppliers both in the domestic and international segment. Best Buy store operations are divided into districts and are under management of a retail field officer who oversees store performance through district managers. District managers monitor U.S. Best Buy store operations and meet regularly with store managers to discuss merchandising, new product introductions, sales promotions, customer loyalty programs, employee satisfaction surveys and store operating performance.

- 60% of Best Buy customer begin their research and shopping on the Best Buy website.

Best Buy’s History & Main Characters: Best Buy is Minneapolis-based and is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Throughout Best Buy's 37-year history, the company has maintained the tradition of making life fun and easy for customers and employees, while providing a significant return to partners and investors. It has 80,000 employees and over 550 stores in the U.S., in addition to the brands Best Buy Canada, Future Shop and Magnolia Hi-Fi. Their leadership is led by Dick Schulze, Founder and Chairman, Brad Anderson, Vice Chairman and CEO, Al Lenzmeier, President and COO, and Darren Jackson, Executive Vice

The consumer electronics giant, Best Buy, was first established in 1966 with a single location and a staff of three in St. Paul, Minnesota, selling audio equipment targeted at 18-25 year old males. Initially Sound of Music/Best Buy grew through acquisition, expanding to nine locations in the Twin Cities area by 1978. The name, Best Buy, and expanded product line, ranging from audio and video equipment to large appliances, were a result of a “best buy” sale of damaged inventory at bargain prices in 1981. In the mid-1980s, Best Buy launched superstores similar to those of their main competitor, Circuit City and expanded by 15 stores between 1985-86. In 1989, Best Buy launched itself as a

Paul, MN. The original founders were business partners Richard M. Schulze and Gary Smoliak. Schulze bought out Smoliak, and began building it into a superstore. He then expanded to include VCRs and other home appliances, and in 1985, Best Buy went public. By 1987 it gained a listing on the New York Stock Exchange and revenues reached $239 million from 24 stores. Growth was incessant. At the time, the market was fresh for such a unique store. Its current logo, a yellow sales tag, and its “pick-up and go” style setup was introduced around 1990. (Company History)

Best Buy was founded in 1966 by the current CEO Richard M. "Dick" Schulze. Based out of Eden Prairie, Minnesota the corporation currently has 446 stores and earned over 83 million in total revenue last year. Best Buy carries a wide variety of products consisting of Major Appliances, video and audio equipment, computers, software, music, and wireless technology. When analyzing this corporation it is important to pay close attention to its current and future services and products, any problems with the corporation, the future direction Best Buy is headed, what can be done for the corporation, and what it can do for you as a consumer or employee.

In 1966, Richard Shulze opened a small business in St. Paul, Minnesota called Sound of Music. In the next 17 years Shulze's small store rapidly grew into a multi-million dollar outfit. In 1983, Sound of Music changed its name to Best Buy Co., Inc and the first superstore was opened in Burnsville, Minnesota. With the new name the store also began carrying more name brands, appliances, VCRs and offering central service and warehouse distribution. Throughout the nineties Best Buy became pioneers in offering the newest technology such as DVDs and high definition TVs. In 1999, Best Buy and Microsoft combined to cross promote each other and also offered a two for one stock split. Now in 2005, almost 40 years after the first store