Circuit City Enviroment
In current market conditions companies need to gain and then maintain a competitive edge over their competitors. They do this by employing a compelling and dynamic strategic management process to create a strategy that helps them achieve their goals before one of their competitors does. What factors make up this process? How important is it to change, and what criteria determine the changes in a strategic management plan?
The factors that must be analyzed are the organization’s internal and external environment. This will help an organization know what it is truly capable of and what the organizations core competencies are or what they are good at. Analyzing the environment means realizing an organizations resource (Hitt, Ireland, & Hoskisson, 2010). The by the book definition of The Strategic management process is “the full set of commitments and decisions and actions required for a firm to achieve strategic competitiveness. This is where continual improvement or the move to total quality or the kaizen thought process or continual improvement. Without the elimination of waste and in improvements in the area of quality can cost an organization their competitive edge.
In the case of Circuit City According to Hitt, Ireland, & Hoskisson (2010) they implement a poor strategy and could not manage its inventory. No kidding I remember going to circuit city and they always have just about any movie in stock on the floor and many copies. As I have been taught in most of my business classes that inventory is one of the most expensive assets you can have. Circuit City let go of all the high paid employee in other words the leadership that has kept them profitable up until recently when Best Buy became the competitor. According to Hitt, Ireland, & Hoskisson (2010) it is believed that Circuit City did not take Best Buy as a real threat. They under estimated the competition. Many companies go to outside companies to create benchmarks. This is to see how they stack up to the
The factors that must be analyzed are the organization’s internal and external environment. This will help an organization know what it is truly capable of and what the organizations core competencies are or what they are good at. Analyzing the environment means realizing an organizations resource (Hitt, Ireland, & Hoskisson, 2010). The by the book definition of The Strategic management process is “the full set of commitments and decisions and actions required for a firm to achieve strategic competitiveness. This is where continual improvement or the move to total quality or the kaizen thought process or continual improvement. Without the elimination of waste and in improvements in the area of quality can cost an organization their competitive edge.
In the case of Circuit City According to Hitt, Ireland, & Hoskisson (2010) they implement a poor strategy and could not manage its inventory. No kidding I remember going to circuit city and they always have just about any movie in stock on the floor and many copies. As I have been taught in most of my business classes that inventory is one of the most expensive assets you can have. Circuit City let go of all the high paid employee in other words the leadership that has kept them profitable up until recently when Best Buy became the competitor. According to Hitt, Ireland, & Hoskisson (2010) it is believed that Circuit City did not take Best Buy as a real threat. They under estimated the competition. Many companies go to outside companies to create benchmarks. This is to see how they stack up to the
References: South University (2012). Strategic management and strategic competitiveness. Online Lecture. Retrieved from http://myeclassonline.com Hitt, M., Ireland, D. & Hoskisson, R. (2010). Strategic Management: Competitiveness & Globalization, 9th edition: Concepts and Cases: Mason, OH: South Western Educational Publishing.