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Bed Bath & Beyond

George Irungu,
Jobin Kadapapurath,
Peter Kozelka,
Vignesh Krishnan &
Abena P. Kuttin-Saulka

Columbia University
TMGTK4115: Accounting and Finance for Technology

Abstract
Objective: To analyze the effects of Bed Bath & Beyond’s (BBBY) rapid expansion strategy on the company and to determine if such a strategy is sustainable. Methods: We used data extracted from financial statements and applied sustainability ratios such as the DuPont ratio. Results: Bed Bath & Beyond will greatly benefit from pursuing its expansion policy in both the short and long term.
Key Words: Sustained long-term growth, excellent customer service, promote-from-within policy.

Table of Contents Executive Summary 3 Business, Operating and Expansion Strategies 3 Consistency in Strategy and Potential Changes 5 Current Performance and Keys to its Current Success 6 Competitors 7 Strouds 7 Lechters 8 JC Penney 8 Linens ‘n Things 8 Competitive Analysis 9 The Bargaining Power of Suppliers 9 Bargaining Power of Buyers 9 The Threat of New Entrants 9 Threat of Substitutes 9 Industry Rivalry 10 ROE and DuPont ratio analysis 10 3-Point DuPont Ratio 10 5-Point DuPont Ratio 10 ROE and growth rate 11 Strategic Considerations and Recommendation 12 References 13 Appendix A 14 Appendix B 14 Appendix C 14 Appendix D 15 Appendix E 15 Appendix F 15 Appendix G 16

Executive Summary Team United is an external independent consulting group hired by the board of directors of Bed Bath & Beyond (BBBY) to review and analyze the company’s business, operating, and expansion strategies. We are analyzing BBBY’s current financial and strategic situations, and its ability to expand. This is the finalized report that includes recommendations to the board.
Bed Bath & Beyond is in a position to show strong growth numbers in the next

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