Examining a Business Failure

Examining a Business Failure LDR/531 September 29, 2010 Barbara Schifano Examining a Business Failure Managers, leaders, and organizational structure are the links or components that build a strong bowed stringed instrument or in this case, organization. Because a chain or organization is only as strong as its weakest link or component, weakness in any of these areas abide cause the quick demise of a club. In this paper, I will examine the failure of Circuit metropolis, a company once identified as one of the leaders in appliance and electronic gross sales. Circuit city was the nations second largest retailer of consumer electronics, personal computers, and software, with more than 600 stores located though out the United Sates. InterTran Inc., Circuit City operated 1,000 retail stores and dealers outlets in Canada under the Radio Shack, Rogers Plus, and Battery Plus names (Funding Universe, n.d). So how does a company go from the second leader of consumer electronics sales to filing bankruptcy? Some believe Circuit Citys demise began when it decided to exit the appliance headache in 2000, others believe the demise began with Circuit Citys decision to terminated 3,400 of its experienced retail sales employees, refilling them with unskilled, lower-paid employees.

Another thought is that the demise began with Circuit City decision to maintain its showroom style layout, this decision depicts that Circuit City failed to recognize the changing trends of society. In todays fast-paced society, customers prefer to walk into a store that is customer friendly, to the skilful stocked, and layout that is structured for self-service. Based on the information, Circuit City failed to conserve the front-back organizational theory. According to the reading the front-back organizational form is nonionized around customers in the front, with all company functions placed at the back to serve the front. The key to a successful commerce involves providing the customer with services that are... If you want to get a full essay, order it on our website: Ordercustompaper.com

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