What Happened to Circuit City
Summer Trimester Project This paper demonstrates Hodges University’s learning outcome of Initiative. James E Boardman – Wheel (Third) Hodges University
MAN 6410 Managing International Cultural Differences MAN 6430 Developing and Managing Strategy in a Global Environment Dr. Nancey Wyant / Professor John Meyer Due: July 28, 2010 Submitted: August 8, 2010
Graded by MSM Instructor: __________________________ Grade Awarded: __________________________________ Writing Rubric Completed: _________________________ Abstract
Circuit City officially closed its doors on March 31, 2009 and over 40,000 employees lost their jobs. Through thorough research and having experience working at the organization for 5 years, it is in the opinion of this researcher that Circuit City went out of business because of poor management decisions made by the CEO (Phillip Schoonover). Schoonover in 2007 decided it was in the best interest of the organization to release 3,400 higher paid employees and replace them with new employees at minimum wage. This hurt the organization as its customer service decreased dramatically following the layoffs.
Introduction The purpose of this paper is to review research conducted on the topic of strategic management and then apply that research to a recent situation that occurred within an organization. This researcher will provide research and insights as to what happened at Circuit City Inc. and discuss how the organization may have made better decisions that would have kept its doors open. Poor strategic management by the organization’s upper management staff represented a key role in why Circuit City closed its doors in 2009 (Kardos, 2008). The electronics retailer giant known as Circuit City recently closed all of its stores due to poor management decisions made in its last years. Circuit City was once the leading consumer electronics retailer for many years prior to Best Buy Inc. opening more
MAN 6410 Managing International Cultural Differences MAN 6430 Developing and Managing Strategy in a Global Environment Dr. Nancey Wyant / Professor John Meyer Due: July 28, 2010 Submitted: August 8, 2010
Graded by MSM Instructor: __________________________ Grade Awarded: __________________________________ Writing Rubric Completed: _________________________ Abstract
Circuit City officially closed its doors on March 31, 2009 and over 40,000 employees lost their jobs. Through thorough research and having experience working at the organization for 5 years, it is in the opinion of this researcher that Circuit City went out of business because of poor management decisions made by the CEO (Phillip Schoonover). Schoonover in 2007 decided it was in the best interest of the organization to release 3,400 higher paid employees and replace them with new employees at minimum wage. This hurt the organization as its customer service decreased dramatically following the layoffs.
Introduction The purpose of this paper is to review research conducted on the topic of strategic management and then apply that research to a recent situation that occurred within an organization. This researcher will provide research and insights as to what happened at Circuit City Inc. and discuss how the organization may have made better decisions that would have kept its doors open. Poor strategic management by the organization’s upper management staff represented a key role in why Circuit City closed its doors in 2009 (Kardos, 2008). The electronics retailer giant known as Circuit City recently closed all of its stores due to poor management decisions made in its last years. Circuit City was once the leading consumer electronics retailer for many years prior to Best Buy Inc. opening more
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