Fail of circuit city infographics

Fail of circuit city infographics

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  The Fall ofCircuit City Stores Sumit singh Why did all three CEO failed? Why did circuit city collapse so badly? McCollough action of stopping the selling of major appliances which resulted in closing of 6 distribution centers and eliminated 1000 jobs Circuit City failed to secure prime real estate — its out-of-the-way locations were often just inconvenient for customers The "real culprit" behind Circuit City's collapse is bad management The expensive Store remodeling program Replacement of 3400 store employees with lower paid workers Oct 2008 announcement to liquidate 155 US stores let to black listing of the company The closing of small stores and elimination of many jobs Circuit city have to choose better locations for their stores in order to engage more customers There should be proper HR practices and the miss match between management and lower employees should always be avoided We can conclude that the decision of best buy and remolding acted in the destruction of the company They should focus on more web presence so that customer could be more known with the products The company has already been in a great depth, so they can now focus only to sell of all the major stores to repay back Exhibit 2a Operating profit of $123 MN increase to $507 MN in fiscal 1989 Circuit city operating profits which were highest in fiscal 2000 began to decrease and dropped to - $6mn Sweeping actions by the CEO McCollough like restore remodeling program , exit of smaller stores ,relocation of 24 major stores The 2004 expansion in International market by acquiring entertain a chain of 174 outlets help to increase in operating profit from 143% to $211MN (Exhibit 2) The continuous decline even after Games Amarcum became the CEO circuit city reported a net loss of $249MN Super stores were between 30000 and 40000 sq. feet in size, rapidly reaching 96 super stores and 23 regular stores by 1989 Replacing full time workers with 2100 new associates on an hourly wage scale which created conflicting objectives among workforce Circuit city weakening financial results and low stock price made the business attractive for potential take over ( Exhibit 1) As Best Buy took off, Circuit City became merely reactive and not innovative The awarding of bonuses to top executives EMID declining sales and profits The late October 2008 decision to liquidate 155 US stores created a Depth of $ 2.3 BN and sales fell 43 to 50% ( Exhibit 2g) Recommendation Problems Situation analysis