Best Buy 2008 Annual Report Download - page 25

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activities. We rely heavily on our management information potential growth opportunity involves extensive due
systems for inventory management, distribution and other diligence. However, the amount of information we can
functions. We also rely heavily on human resources obtain about a potential growth opportunity may be
support to attract, develop and retain a sufficient number limited, and we can give no assurance that new business
of qualified employees. We also use Accenture to provide ventures, strategic alliances and acquisitions will positively
procurement support to research and purchase certain affect our financial performance or will perform as
non-merchandise products and services. Any disruption in planned. Integrating new stores and concepts can be a
our relationship with Accenture could result in decreased difficult task. Cultural differences in some markets into
revenue and increased overhead costs, causing our which we expand or into which we introduce new retail
business and results of operations to suffer materially. concepts may result in customers in those markets being
less receptive than originally anticipated. These types of
Failure to protect the integrity and security of our transactions may divert our capital and our management’s
customers’ information could expose us to litigation attention from other business issues and opportunities. We
and materially damage our standing with our may not be able to successfully assimilate or integrate
customers. companies that we acquire, including their personnel,
financial systems, distribution, operations and general
The use of individually identifiable data by our business operating procedures. We may also encounter challenges
and our business associates is regulated at the state, in achieving appropriate internal control over financial
federal and international levels. Increasing costs associated reporting in connection with the integration of an acquired
with information security — such as increased investment company. If we fail to assimilate or integrate acquired
in technology, the costs of compliance with consumer companies successfully, our business and operating results
protection laws and costs resulting from consumer could suffer materially.
fraud — could cause our business and results of
operations to suffer materially. Additionally, the success of We are highly dependent on the cash flows and
our online operations depends upon the secure net earnings we generate during our fourth fiscal
transmission of confidential information over public quarter, which includes the majority of the holiday
networks, including the use of cashless payments. While selling season.
we are taking significant steps to protect customer and
confidential information, there can be no assurance that Approximately one-third of our revenue and more than
advances in computer capabilities, new discoveries in the one-half of our net earnings are generated in our fourth
field of cryptography or other developments will prevent fiscal quarter, which includes the majority of the holiday
the compromise of our customer transaction processing shopping season in the U.S. and Canada. Unexpected
capabilities and personal data. If any such compromise of events or developments such as natural or man-made
our security were to occur, it could have a material disasters, product sourcing issues or adverse economic
adverse effect on our reputation, operating results and conditions in our fourth quarter could have a material
financial condition. Any such compromise may materially adverse effect on our revenue and earnings.
increase the costs we incur to protect against such The foregoing should not be construed as an exhaustive
information security breaches and could subject us to list of all factors that could cause actual results to differ
additional legal risk. materially from those expressed in forward-looking
statements made by us or on our behalf.
Failure in our pursuit or execution of new business
ventures, strategic alliances and acquisitions could Item 1B. Unresolved Staff Comments.
have a material adverse impact on our business.
Not applicable.
Our growth strategy includes expansion via new business
ventures, strategic alliances and acquisitions. Assessing a
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