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Strategic Audit on Best Buy Inc.

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Strategic Audit on Best Buy Inc.
Case Study
On
Best Buy Inc.

Strategic Management
MGT 403
Section A
Case Study on Best Buy Inc.

Prepared By:
Group Members:

Name
ID
Aishwarya Roy
12102135
Saeed Shahriar Shaon
12102149
Lucky Akter
12102147
Kawsar Ahmed
12102159

Prepared For:
Tanvir H. Dewan
Coordinator, CBA

IUBAT – International University of Business Agriculture and Technology

1.1 Current Situation
Best Buy Co., Inc. is an American multinational consumer electronics corporation headquartered in Richfield, Minnesota, a Minneapolis suburb. It operates in the United States, Puerto Rico, Mexico, Canada, and China. The company was founded by Richard M. Schulze and Gary Smoliak in 1966 as an audio specialty store; in 1983, it was renamed and rebranded with more emphasis placed on consumer electronics.
Best Buy's subsidiaries include Cinema Now, Geek Squad, and Magnolia Audio Video, Pacific Sales, and Cow boom. Best Buy operates under the Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, and Pacific Sales brands in the US; the Best Buy, Geek Squad, Cell Shop, Connect Pro, and Future Shop brands in Canada; Best Buy Mobile and Five Star in China; and Best Buy, Best Buy Express, and Geek Squad in Mexico. Best Buy sells cellular phones with phones from Verizon Wireless, AT&T Mobility, Sprint PCS, Boost Mobile, and T-Mobile, in regular stores and standalone Best Buy Mobile stores in shopping malls.
Best Buy was named "Company of the Year" by Forbes magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in the Top 10 of "America's Most Generous Corporations" by Forbes in 2005 (based on 2004 giving), and made Fortune magazine's List of Most Admired Companies in 2006.
Hubert Joly serves as Best Buy president and CEO.
In recent years the direct competition in the form of Circuit City has been removed and yet stock prices continue to fall. Why? Bad strategy. Management has looked to restructuring of the big box stores for salvation and the analysts aren’t
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