Management Blockbuster Case Study
Chapter Turo Man,agernent
History
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good manager.
ioui own WoirdS;.wriG'UOwn
th'reo
thingi you !ba.r,n€d,in this chapter abo-ut being a
and complete self-knowledge can be a powerful learning tool. Go to mymanagementlab to Turbulent Chanse? How ;;;;ih;;* J'er"assbssmenteNetoise-ut 1,o#Wat no f 'Hespond Welt,no t i.tanOte Rmbiguiti?,and,WlatDo,l Val:ue? Using the resuhs o{ Vour,aseessments, your strengths identifrf perrcnaiitrenfith$land"weaknes*;e' What Will you do to rejnforce ' :: and imprqve,yourwea*no5sg:glr': '-
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Fast-Forwarding Elockbuster What nanre comes to n-rind when you tlrink of renting movies on the weekend? Maybe it's Blockbuster' lf so, in the United States,
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you're not alone. AlihouEh Blockbuster is still {he world's largest video rental company, with nrore than 5,000 stores
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good ones
the past few years have not been for this company. Blockl:irster has posted
sI:,
losses in 9 of the past 11 years, closed hurrdreds of stores.
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and lost many customers to Netflix' The whole business of renting DVDs is changir-rg, and Blockbuster is making changes in order to rernain competitive' One of the most irnportant changes was hiring a new
CEO,
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l: ,i i:, James W. l(eyes' As the forrner CEO of 7-Eleven Stores, Keyes faced a similar situation as tlte convenience store industry went througtl a difficult transition in the 1980s and 1990s. By 1990,7-Eleven was in bankruptcy' tive quarters of revenue growth and a profit of $106 million. How? What Keyes did at 7-Eleven was to rely on numbers. He implernented an approach in which quantitative clata collected by each store dictated the product mix carriecl irr that store. For instance, a store in one
However, by 20A4, his company had achieved 36 consecu-
History
l:rr
good manager.
ioui own WoirdS;.wriG'UOwn
th'reo
thingi you !ba.r,n€d,in this chapter abo-ut being a
and complete self-knowledge can be a powerful learning tool. Go to mymanagementlab to Turbulent Chanse? How ;;;;ih;;* J'er"assbssmenteNetoise-ut 1,o#Wat no f 'Hespond Welt,no t i.tanOte Rmbiguiti?,and,WlatDo,l Val:ue? Using the resuhs o{ Vour,aseessments, your strengths identifrf perrcnaiitrenfith$land"weaknes*;e' What Will you do to rejnforce ' :: and imprqve,yourwea*no5sg:glr': '-
::ni
6":-
l
*^ffi*ffi*ffi&*ffiru
Fast-Forwarding Elockbuster What nanre comes to n-rind when you tlrink of renting movies on the weekend? Maybe it's Blockbuster' lf so, in the United States,
g.
fi: r-::
51 &l
s: s #i b q
#;l
di
.,
F,,
ffi,
Silr
Sl:i;
you're not alone. AlihouEh Blockbuster is still {he world's largest video rental company, with nrore than 5,000 stores
ffiir
S,;.
good ones
the past few years have not been for this company. Blockl:irster has posted
sI:,
losses in 9 of the past 11 years, closed hurrdreds of stores.
irr: i&i,l F.1:.
and lost many customers to Netflix' The whole business of renting DVDs is changir-rg, and Blockbuster is making changes in order to rernain competitive' One of the most irnportant changes was hiring a new
CEO,
?i:.
;::.i
i!l-,
F;I
"tl ti::
*
l: ,i i:, James W. l(eyes' As the forrner CEO of 7-Eleven Stores, Keyes faced a similar situation as tlte convenience store industry went througtl a difficult transition in the 1980s and 1990s. By 1990,7-Eleven was in bankruptcy' tive quarters of revenue growth and a profit of $106 million. How? What Keyes did at 7-Eleven was to rely on numbers. He implernented an approach in which quantitative clata collected by each store dictated the product mix carriecl irr that store. For instance, a store in one
However, by 20A4, his company had achieved 36 consecu-