Competency 2

1 Competency 2: Bed Bath & Beyond INC Student's Name Institutional Affiliation Professor's Name Course Date
2 Competency 2: Bed Bath & Beyond INC Bed Bath & Beyond is a home products retail business specializing in bedding, furniture, décor, and kitchenware. Leonard Feinstein and Warren Eisenberg launched the firm in 1971, opening their first store in Springfield, New Jersey. Bed Bath & Beyond began by selling mostly bed linens and bath towels, but as the firm evolved, its product offers extended to include a broader range of home items. The corporation had approximately 500 outlets in the United States, Canada, and Puerto Rico by the early 2000s. Throughout its history, Bed Bath & Beyond has earned a reputation for selling high-quality items at moderate costs (Bed Bath & Beyond INC. (2019). The firm is also noted for its excellent customer service, which includes a liberal return policy and a readiness to match rivals' pricing. However, in recent years, the retail industry has encountered several obstacles. The firm has struggled to stay up with the advent of e-commerce and growing competition from other home goods shops. As a result, the company's sales and profitability have declined, prompting changes in leadership and a restructuring plan to try to turn the company's financial performance around. Bed Bath & Beyond is experiencing financial difficulties; its revenue and earnings have decreased. This paper will examine the company's financial plan. The research will utilize financial data from the firm to assess its performance and develop ideas for creating long-term competitive advantage and enhancing financial performance. The study will give a thorough strategy for executing these tactics after analyzing the techniques for attaining sustained competitive advantage in the marketplace and boosting financial performance.
3 Company's Current Financial Plan According to Purnomo (2018), the current ratio measures the company's ability to settle all short-term obligations. The company's annual reports within the last five years show that Bed Bath & Beyond's current ratio is steadily declining. In 2018, the company's current ratio was 1.8; it decreased to 0.001 in 2022. With the steady decrease in the current ratio for the past five years, Bed Bath & Beyond Company is experiencing challenges when settling its short-term obligations. Below is a figure showing Bed Bath & Beyond Company's current ratio decline for the past five years. Secondly, Bath & Beyond Company experienced a decrease in its net profit margin and return on equity since 2018. The net profit margin and return on equity go hand in hand when evaluating a company's financial position. According to Julizar & Febriyanto (2021), the net profit margin is the earned per dollar of sales after deducting all expenses. On the other hand, the return on equity is used to measure the rate of return on the shareholders' investments. Both the net profit margin and return on equity of Bath & Beyond Company have reduced for the past five
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