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Pro-Forma Financial Statement Analysis Paper

Decent Essays
Pro-Forma Financial Statements
The various pro-forma financial statements are highlighted in the appendix below.
Net Present Value
The Net Present Value (NPV) for the difference between the proposed new strategies versus the current strategy of Best Buy is calculated as $3,595,128,932. This calculation is based on the estimated cash flows between 2015 through 2017, utilizing the difference between initial liabilities and new strategy liabilities as the initial investment. These values were calculated in the aforementioned section. In this case, the federal funds rate was utilized as the rate of return (the interest rate in the calculation). The new strategy produced a cost savings in terms of liabilities and additionally lower cash flows. Although
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By enticing customer interaction in house, consumers will build brand loyalty and would even potentially be swayed to purchase particular items. By hosting workshops, informationals, hackathons, etc. consumers can learn new skills or knowledge about a product and have a better understanding of the purpose and application of new technology. This can also be used as a method to promote certain applications. Best Buy has a college target market as one source, by promoting applications to help in studying mechanisms, college students will be able to truly see Best Buy as a one-stop shop.
As marketing for varying brands within an overarching brand can be difficult, enhancing the Best Buy brand itself will invigorate market support and consumer loyalty. Although Best Buy is the repository for various brands, it should also serve as the comparable as well. This mechanism is implemented in grocery stores often, by the way of a ‘store brand’. However, due to the nature of technology, the timeliness and the efforts that go into product development, this approach should be a long term though rather than a short term
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