Changes in income statement items over the past year

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Changes in income statement items over the past year reveal that gross profits grew 3.9% on revenue gains of only 1.2 percent. From 2010 to 2011, SG&A increased $452 million, or 4.4 percent, and followed its 2009 to 2010 increase of over 10 percent. Operation Best Buy’s operations are divided into two main segments. The domestic segment accounts for the bulk of best Buy’s revenues ($37.1 billion of $50.3 billion in 2011), and
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is made up of Best Buy branded big box stores, a number of Best Buy Mobile, Geek Squad, Pacific Sales, and Magnolia Audio Video stores, as well as the Napster brand. The international segment is made up of relatively fewer Best Buy stores and an eclectic mix of appliance, electronic, and cell phone store brands Best Buy has acquired in its forays into international markets. This division accounts for $13.1 billion of 2011 revenue. Recommendation: In 1966, Best Buy was a single location car and home stereo store, but several years later, it has grown into a massive firm. Best Buy has 1,400 stores in North America and over 2,600 stores in Europe and China, and due to the variety of products Best Buy offers, the firm maintains relationships with hundreds of suppliers. However, Best Buy purchased almost 65 percent of its products form just 20 suppliers, and 5 of those suppliers such as Apple, HP, Samsung, Sony, and Toshiba provide almost 40 percent for its merchandise. As a customer, when I come to the Best Buy store, I realize that Best Buy sell the merchandises just from a few companies like Apple, Sony, and Samsung. I think this is not a good thing for Best Buy because customers do not have a lot of choices to buy products in Best Buy, and if the firm does not purchase products from more suppliers, they will lose customers. To have more suppliers and maintain relationships with these suppliers, in my opinion, Best Buy can do several things: Try best to find more suppliers and cooperate with these suppliers to sell diverse products; make
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