...1. Will you buy a house and lot today or pay in installment of simply rent? Use time value of money. Should I Buy a Home or Just Keep Renting? Kristin Wong Should I Buy a Home or Just Keep Renting? Dear Two Cents, I’m out of debt, and I’m now saving for a down payment on a home. It’s always been my dream to be a homeowner. But lately, I read a lot of arguments against it in favor of renting. How do I know if it’s a good idea for me? Should I buy or keep renting? Sincerely, Hopeful Homeowner Dear HH, For a long time, conventional wisdom seemed to be that you grow up and buy a home because that’s just what you do. But lately, people are realizing that it isn’t always the smartest financial move. Obviously, the housing crisis has a lot to do with that—it’s made people question the standard assumption that homeownership equals financial stability. Five Things I Wish I Had Known Before I Bought a House Homeownership isn’t a good or bad idea on its own. It has everything to do with your own situation. Sometimes, buying a home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Here’s what you should keep in mind. Don’t Think of a Home as Your Main Investment Should I Buy a Home or Just Keep Renting? The biggest argument for owning a home is that it’s an “investment.” But a lot of people overestimate the return on this investment. People tend to believe that homes are appreciating assets,...
Words: 7739 - Pages: 31
...12 BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL? 12 BEST BUY CO. INC.: SUSTAINABLE CUSTOMER CENTRICITY MODEL? CASE # 3 Best Buy Co. Inc.: Sustainable Customer Centricity Model? MGT403 Strategic Management Prepared for Tanvir H DeWan Coordinator of College of Business IUBAT Prepared by Serial Number | Name | ID | 01 | Shahriar Rawshon (Group Leader) | 09102095 | 02 | Md. Zakiruzzaman | 09102151 | 03 | Suchona Akter Swarna | 09102163 | 04 | Shahara Akter Eva | 09102156 | 05 | Kanij Fatama | 09102165 | 06 | Ruksana Aktar | 09102130 | 07 | Md. Al Amin | 09302012 | Section: B International University of Business Agriculture and Technology Date of Submission: 29th May, 2012 Current Situation: Best Buy was a specialty retailer of consumer electronics. It operated over 1,100 stores in the United States, accounting for 19% of the market. With approximately 155,000 employees, it also operated over 2,800 stores in Canada, Mexico, China, and Turkey. The company’s subsidiaries included Geek Squad, Magnolia Audio Video, and Pacific Sales. In Canada, Best Buy operated under both the Best Buy and Future Shop labels. From a strategic standpoint, Best Buy moved from being a discount retailer (a low price strategy) to a service-oriented firm that relied on a differentiation strategy. In 1989, Best Buy changed the compensation structure for sales associates from commission-based to non- commissioned-based, which resulted in consumers...
Words: 3311 - Pages: 14
...Key Issues 1. Distribution When best buy enters the Australian Market, the location and size of their stores will be critical to their success. This is how they will access their target market. It is also critical that Best Buy implements a strong supply chain and inventory control system. The Distribution is just as important from the manufacturer to the retail location, as is the retail location to the consumer distribution channel. 2. Implementing an online store as a substitute to their retail locations 3. Store Design The design and layout of the store will be a description of the Best Buy Brand. As this brand is new to the Australian market, the design of the store will be the most effective marketing tool that Best Buy has at their disposal. 4. Creating strategic alliances As it is a new business to Australia, the choice of whom, the business aligns themselves with, will determine how the Australian consumer perceives them. Target Market The target market strategy that is being recommended for Best Buy to use when entering the Australian market place is a broad-spectrum target market. The target market can be described as singles and families aged between 20 and 55 years old. They are the middle-class, living primarily in urban areas. This group is moderately technologically savvy and they want specialized electrical product knowledge and service at a competitive price. They also want a wide range of products all in one location. This group’s path...
Words: 3877 - Pages: 16
...6 Assignment 2 Capella University 3/28/2013 Nasir Khan Best Buy Company Analysis | Best Buy Co., Inc. is a multinational retailer, which provides consumer electronics, home office products, entertainment products, appliances and related services. The company operates through two business segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., operating under various brand names, including but not limited to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, and Pacific Sales. The International segment is comprised of all operations outside the U.S. and its territories, which includes Canada, Europe, China, Mexico and Turkey. The company also markets its products under the brand names: Best Buy, Audio visions, Best Buy Mobile, The Carphone Warehouse, Five Star, Future Shop, Geek Squad, Magnolia Audio Video, Napster, Pacific Sales and The Phone House. The company changed its name from Sound of Music, Inc. to Best Buy Co., Inc. in 1983. Best Buy was founded by Richard M. Schulze in 1966 and is headquartered in Richfield, MN (BestBuy.com). Through its different brands, Best Buy has offerings in 6 different revenue categories: consumer electronics, home office, entertainment software, appliances, services, and other. Best Buy is considered a Oligopoly. A market where a very few large sellers dominate an industry and they each know how the other will react to changes in prices...
Words: 2938 - Pages: 12
...Gaddist Procurement 5830: Pricing Term Paper: Best Buy Professor Douglas Mowczko December 7th, 2011 Introduction Best buy is a highly successful, consumer electronics retailer, with revenue of 8.4 billion dollars in 2010. The company has been around for decades, and is very customer centric. Back in 1966, Richard Shulze opened a small business in St. Paul, Minnesota called Sound of Music. Over the years Shulze's small store grew rapidly into a multi-million dollar megastore. In 1983, Sound of Music changed its name to Best Buy Co., Inc and opened the first superstore in Burnsville, Minnesota. With the new name, came more change, the store began carrying more name brands, appliances, VCRs and offering its own central service and warehouse distribution. During the nineties Best Buy pioneered the industry with the newest technology such as DVDs and high definition TVs. The company is one of nation’s top electronics retailers. The company has a great customer relationship marketing system and has even developed 5 segments to describe their customers. The five segments: The small business customer (Best buy for business), Buzz (young entertainment enthusiast), Barry (the affluent professional), Jill (the busy suburban mom) and Ray (the tech savvy family man). Store associates are trained to recognize customer segments and stores are stocked with products that appeal to the segments that frequent each individual store. Best buy even established reward zone, a customer reward/appreciation...
Words: 1841 - Pages: 8
...BestBuy Case Study TROYFONTAINE MACON: M6marketing [2011] [Best Buy is considering reducing their current store sizes, and changing their operational infrastructure. This is a good idea, and a typical retrenchment strategy, but I believe there to be better alternatives. Executive Summary According to multiple media sources, Best Buy is considering reducing their current store sizes by 10%, and changing their operational infrastructure. This is a good idea, and a typical retrenchment strategy, but I believe there to be better alternatives. Implementing Subway restaurants inside of Best Buy‟s instead of reducing the size of Best Buy stores by 10% may have the same financial underlining but not the same market impact. Subway is a restaurant chain that has (1) Brand Recognition (2) Good Public Image “healthy”, “fresh”, “Inexpensive” (3) Strong Independent Advertising Campaigns (4) Profitability within a Growing Industry. Subway restaurants promote and advertise timely events such as movies, athletic events, months, holidays, etc. to go along with Subway‟s existing promotional deals such as the “$5 Footlong” sandwich deals. Subway creates daily incentives for customers and provides a multitude of product offerings that allow Subway not to get stagnant or predictable to consumers. “Take your pick; eat a sandwich on a budget and lay out $5 for a 12‟inch submarine, or eat a fresh, healthy one to train like Michael Phelps, lose tons of weight like Jared Fogle (Subway spokesman)...
Words: 6499 - Pages: 26
...1.0 Executive Summary 1 1.1 Section I. 2 1.2 A) Company History 2 1.3 Strategies and Tactics used by Best Buy 3 1.4 B) Mission Statement (implied).……….……………………...……………………………………...4 1.5 Analysis of the Mission 4 1.6 C) Objectives 5 1.7 Analysis of the Objectives 5 2.0 Section II …………………...……………………..…………………………………….……………6 2.1 Financial Analysis...………………………………………………………………….…..…………...6 2.2 A) Ratio Analysis………..…………………………………………………………………………...6 2.3 B) Evaluation of the Income and Balance Sheet…………………………………..........................…6 3.0 Section III …………………….………………………………………………………………………7 3.1 A) Strenghts.………………………………………………………………………………….……….7 3.2 B) Weaknesses…..……………………………………………………………………….……………7 4.0 Section IV…………………………………………………………………………………………......8 4.1 C) Opportunities………………………………………………………………………………………8 4.2 D) Threats 8 5.0 Section V 9 5.1 A)Strategic concern 9 6.0 SectionVI…………………………………………………………………………………………….10 6.1 Salient Strategic Concern…………………………………………………………………………….10 7.0 SectionVII……………………………………………………………………………………………11 7.1 Strategic Alternatives…………………..……………………………………………………….……11 8.0 Section VIII……………….………………………………………………………….………………12 8.1 Recommendation 12 9.0 Section IX 13 9.1 A)Implementation Plan 13 9.2 B)Time lines 13 9.3 C)Budget 13 9.4 Evaluation and Control 14 10.0 Section X……………………………………………………………………………………………15 10.1 Bibliography…………………...…………………………………………………………………...15 10.2 Appendices…………………….……………………………………………………………………16 Table: Balance...
Words: 9866 - Pages: 40
...com/news/walmart-stock-good-buy-sell-or-hold-2013 Jump to navigation FacebookTwitterGoogle+ * Log In * Create a New Account * Forgot your password? ------------------------------------------------- Top of Form Search form Search for Articles Search Bottom of Form MarketConsensus Smart Insights - Reviews & Analysis Main menu * Home * Market and Business News * Reviews (Banks & Online Brokers) * Personal Finance * Entrepreneurs * Contact Us * About Us Is Walmart Stock a Good Buy, Sell or Hold in 2013? Share on facebookShare on Facebook Share on twitterShare on Twitter Share on printPrint Created by Stock Analysis Desk (New York) on 6/02/2013 6:54 PM Walmart Stock Analysis - Is WMT a Good Stock to Buy, Sell or Hold? Wal-Mart (Stock: WMT) recently reported a 1.4% decline in its U.S. comparable (or comp) same-store-sales in Q1 2013. This is the first such decline in 6 quarters of Walmart reporting comp increases. Based on a recent report published by Bloomberg, it appears Wal-Mart is struggling to keep its stores stocked with items that consumers are seeking. As seen in the below chart, Walmart’s tock, WMT, has been lagging behind its main competitors, Costco (COST) and Target (TGT). Given the weakness in global economies, and cautious consumer spending in the U.S. (WMT's biggest market), investors might be wondering whether Walmart stock is a good buy, sell or hold. Does WMT stock still make sense as a good investment...
Words: 1450 - Pages: 6
...I. Background Best Buy (“BBY”) sells consumer electronics such as computers, computer software, video games, music, DVDs, Blu-ray discs, mobile phones, digital camera, car stereos and video cameras, as well as home appliances (washing machines, dryers, and refrigerators). Salespersons are hired on a non-commissioned basis. Each store also includes a department for audio/visual equipment for automobiles, offering on-site installation services, as well as the Geek Squad "precinct" for computer repair and warranty service and accidental service plans. As of February 27, 2011, there are 1,069 BBY stores, 74 BBY Mobile stand-alone stores, 35 Pacific Sales showrooms, eight Magnolia Audio Video stores and six Geek Squad stand-alone stores in the U.S. BBY also operated 887 Carphone Warehouse and 1,566 The Phone House Stores in Europe, 64 Canada BBY stores, 144 Future Shop stores in Canada, 158 Five Star stores in China, six BBY China stores, five BBY Mexico stores and one BBY Turkey store. (Best Buy). BBY stores in the US average approximately 39,000 retail square feet, and offer products in six revenue categories: consumer electronics (39% of FY 10 (Feb.) revenues), home office (34%), entertainment soft- ware (16%), appliances (4%), services (6%), and other (1%). BBY's largest category, consumer electronics, includes products such as televisions, digital cameras and accessories, digital camcorders and accessories, e-readers, DVD players, MP3 players and accessories, musical...
Words: 8799 - Pages: 36
...BEST BUY [pic] [pic] Making Life Fun & Easy! [pic] Tiago Alves Andrew Bornstein Mae Brana Grace Tan Meredith Walters Table of Contents Business Summary 2 Vision Statement & Corporate Values 2 Rankings 2 Market Share 3 Stock Chart – 5 Year Performance 3 Financial Highlights 4 History 5 Key Executives 6 Strategy 7 Customer Centricity 7 Value-added Services Business 9 Supply Chain and IT Systems 9 New Store Openings 10 Mergers & Acquisitions 10 Employees 11 Key Competitors 12 5-Year Performance vs Key Competitors 13 Appendix 14 Business Summary Best Buy is a specialty retailer of consumer electronics, home-office products, entertainment software, appliances and related services in a superstore format. It operates retail stores and commercial Web sites in the U.S., Canada and China, under the brand names Best Buy (BestBuy.com and BestBuyCanada.ca), Future Shop (FutureShop.ca), Magnolia Audio Video (MagnoliaAV.com) and Geek Squad (GeekSquad.com and GeekSquad.ca). As of Feb 25 2006, Best Buy operated 742 Best Buy stores, 20 Magnolia Audio Video stores and 12 Geek Squad stores in the U.S.; and 118 Future Shop stores, 44 Best Buy stores and five Geek Squad stores in Canada. Best Buy operates two reportable segments: Domestic and International. The Domestic segment is comprised of all U.S. store and online operations, including Best Buy, Magnolia Audio Video and Geek Squad....
Words: 23684 - Pages: 95
...Best Buy Case Write-up | | Best Buy Case Write-up | | I. Company Problems Best Buy is experiencing several difficulties that have arisen due to problems within the internal and external environment that Best Buy is operating in. The largest problem, as we see it, is that Best Buy has failed to adapt to the current age of retail. Currently consumers have seem to have a preference to buying electronics online (Amazon), directly from the manufacturer (as in Apples case), or from a more convenient location where other products can be purchased (Walmart). Although Best Buy does have an online store it simply cannot compete with the powerhouse of Amazon. Amazon has a firm grip on online retail that Best Buy is not likely to make a dent in. Best Buy simply cannot undercut Amazon. Aside from not adapting to the current market place, Best Buy has problems elsewhere. Best Buy has made crucial mistakes in its overseas ventures that have turned some of their international stores into business disasters. In order to compete in an international market Best Buy needs to do better research regarding the demands of consumers in EACH international market they enter to avoid more embarrassing situations such as what happened in Turkey and China. II. General Environment Threats/ Opportunities Some opportunities in the general environment that Best Buy has is the opportunity to successfully integrate into the Asian and European markets...
Words: 392 - Pages: 2
...Executive Summary Currently Best Buy maintains the distinction of being the largest big box electronic retailer in the United States. The company has a top-ranked internet retail website and the number one customer loyalty program of its kind. Best Buy has more than 1 billion visitors to their websites and 600 million visits to their stores each year. Although this would seem to carry a significant market advantage, consumer purchasing practices has evolved from a direct contact, feel and touch experience to a remote, internet based method of research and shopping. The Consumer Electronics market has seen a steady decrease in revenue over the last three years. It has only been maintained in the margins by Smartphone and Tablet sales. The shrinking market and loss of market share to online retailers such as Amazon has taken its toll on Best Buy’s bottom line. Best Buy hopes to change this by making their sales associates and Geek Squad agents the authority on consumer electronics, delivering unbiased, knowledgeable advice hundreds of millions of times a year and offering unmatched support for the lifetime of the products they sell. These are all portions of Best Buy’s efforts to Renew Blue. This marketing plan also recommends two additional opportunities to increase market share. Developing an All in One system that allows Best Buy customers to receive system integration similar to Apple products for any product purchased from Best Buy, regardless of manufacturer. Additionally...
Words: 3176 - Pages: 13
...Birulin The Empire Investment Group was a top-tier buy-out firm within the private equity community. Tad O’Malley, a second-year student at the Harvard Business School, accepted a position at Empire Investment Group. Ted received a call from his boss, Townsend “Sandy” Beech, the head of his four-person deal team and founding member of the firm. Sandy requested Tad, on a Friday afternoon, to review three presentations for possible buyout targets. Tad was to make a presentation at the partners’ meeting on Monday morning, recommending only one (1) investment and detailing the strengths and weaknesses of all three. The Empire Investment Group had a strong “brand name” and historically sponsored very successful business partnerships. The company was strong in “structuring deals” and had just recently added an advisory services operation as a way to expand its services internationally and provide deal flow. By 2005, Empire’s buyout unit consisted of 25 seasoned partners with a range of backgrounds that encompassed financial, consulting, and operations experience. The objective of a “leveraged buy-out” is to find companies, either domestically or internationally (or both), where Empire can utilize borrowed funds or debt to finance its acquisition. Often times a leveraged buy-out does not involve much committed capital (maybe a 70% debt to 30% equity) that will achieve high returns for Empire. Basically, Empire buys a company with debt, fixes the company, and sells it...
Words: 3011 - Pages: 13
...http://danielsethics.mgt.unm.edu Best Buy Fights Against Electronic Waste INTRODUCTION Although Best Buy has not been in business as long as other established brands, the company is a well-known name both within and outside of the United States. As the largest consumer electronics retailer in the world, it ranks number 72 on the Fortune 500. To maintain its competitive advantage against rivals in specialty electronics, Best Buy is engaging in competitive pricing strategies, international expansion, and the targeting of a younger demographic. In addition to discounted and high-quality products, Best Buy became known for its customer-centered approach and sustainable outreach. After realizing the importance of sustainability to its customers, Best Buy implemented an extensive recycling program. In the process, Best Buy earned itself a name as a socially responsible company. The company also adopted programs and systems to provide flexibility and aid to its employees. This case provides a brief history of Best Buy, including details on its expansion and the models it implemented to become a success. Next, we discuss Best Buy’s vision, along with the actions the company is taking to turn its vision into a reality. We briefly analyze Best Buy’s community outreach programs and look at its large-scale environmental initiatives, particularly those regarding energy savings and recycling. Finally, we examine some of the challenges Best Buy is encountering as it struggles to...
Words: 5373 - Pages: 22
...Preliminary Audit Plan for Best Buy Co., Inc. OBJECTIVES OF THE ENGAGEMENT Audit of the financial statements of Best Buy Co., Inc. for the year ended March 3rd, 2012. BUSINESS AND INDUSTRY CONDITIONS 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. During the 2012 fiscal year the domestic segment opened 135 new stores and closed five. The international segment 219 stores and closed 119 stores. Best Buy expects to see a reduction in the number of large-format stores and the square footage for those stores, and an increase in the growth of small-format Best Buy Mobile stores (Bestbuy.com, 5). The Best Buy's success is contingent on the market's demand for electronics. new products 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 fuel prices, to name a few. The company's strategy...
Words: 2084 - Pages: 9
