Best Buy hired a new CEO in hopes that he can turn the company around and bring it back to the top of the electronic retail market. Lynn Watson /

Best Buy profit plummets, hires new CEO

Once the leader in electronic retailers, Best Buy has fallen on hard times, with a 90 percent drop in net income during the second quarter, according to the Los Angeles Times.

Best Buy founder Richard Schulze has expressed interest in buying out the struggling company for as much as $26 per share, which would equal a total of close to $8.84 billion. However, Best Buy remains cautious and has yet to come to an agreement with Schulze and his desire to take the company private.

Earlier this week Best Buy announced that it earned $12 million, or 4 cents per share, in the quarter that ended on August 4. In addition, revenue dropped to $10.55 billion and adjusted earnings were 20 cents per share. According to the news source, analysts had expected 31 cents per share on revenue of $10.65 billion.

However, in an attempt to turn the business around, Best Buy named Hubert Joly, the former head of Carlson – the hospitality and restaurant giant behind T.G.I. Friday's and Radisson – its new leader.

"Hubert was an outstanding candidate for this position and I am confident he will be a great fit for Best Buy," Hatim Tyabji, chairman of Best Buy's board, said in a statement. "Hubert’s range and depth of experience in transforming companies is exactly what the company needs at the moment, as is his energetic, imaginative and experienced leadership in executing strategies."

Some analysts, though, say that changes are coming too late for the company. Consumer needs have shifted and the need for big-box retail stores has decreased with a greater desire for smaller items such as tablets and mobile phones and the ability to shop online.

As customers will have evolving tastes through time, companies need to be able to change along with them. Working with a business continuity consultant can ensure that different scenarios are thought out and planned for so an organization can continue to thrive.