Best Buy is the largest dealer of consumer electronics in North America. It is expanding its reach with future stores in Canada and Mexico as well as continued growth in US based Best Buy stores. It has come a long way from its first home in Minnesota where its original name was Sound of Music, which opened in 1966. Richard M. Schulze was one of the founders of Sound of Music with two other partners. Some reasons for Schulze's success were his understanding of the market place and how consumers during the time wanted to buy. He arranged his store with the display and boxes of the displayed item underneath the display. This made it easier for the customer to pick up the item they wanted to buy and purchase it in a swift manner. What was common during that time was commissioned sales representatives selling items to customers. Sound of Music would buy in bulk and have noncommissioned sales representatives. In 1983 Schulze changed the name of Sound of Music, and started Best Buy, Inc.which brings us to our present day yellow tag and big blue box store ("History of Best Buy," 2012, p.1). Presently, Best Buy, Inc. has 1,103 Best Buy stores, 305 US Best Buy Mobile Standalone stores, and 39 Pacific and Magnolia Sale stores. In total, they have 1447 stores (Best Buy Form 10-K, 2012, p.22).
This paper is going to be an analysis of Best Buy, Inc.'s 2012 annual financial report. The Europe, Canada, Mexico, and China markets will also be included in this analysis. This paper does not recognize Richard M Schulze plan to buy out the company and take it off the stock market. This news was announced after the creation of the 2012 annual report and will have no bias in the decision of this analysis (Lee, 2012, p.1). .
The beginning of this paper will reflect the views of the auditors of Deloitte & Touche, LLP accounting firm. Their opinion on the financial statements of the company will be discussed.
