Circuit City Failure

Failure Analysis/Change Strategy
LDR 531
July 22, 2013
James Pepitone

Failure Analysis/Change Strategy Part One
Circuit City
The success of any company starts with its organizational structure and how the people in high position make positive decisions to improve the company. Circuit city is one of those companies that came up short in 2008. Developed 1959, the Wards Company only operated a few small television and home appliance stores in the Richmond, Virginia. With technology growing and the demand for electronics increase, the Wards Company believe that there was a vast need for mega electronic stores that consumers can explore the world of electronics. It was not until early 1980s the Wards Company decided to change the name
One of the biggest decisions for CFO Michael Foss to make was the cutting of operating cost, which meant many people lost their jobs. From a behavior point of view you can describe Foss’s actions as an initiating structure. This means that Foss’s structure his role and the role of others to obtain goals (Robbins & Judge, 2013). Even though he had to make cuts, his main goal was to make Circuit City more profitable. Foss’s behavior still stood in terms of Circuit City values. His attempts to organize work, relationships, and goals made it are hard for company such as Circuit City to lose
Creating a coalition group that will consist of managers, team leaders, suppliers, customers, shareholders, and other stakeholder’s representatives. 3. Create a new vision that will be “satisfying all our customer needs through employee efforts.” This shows employee involvement in the process. They will go through training and cross-training thereby enhancing their skills to better serve the customers. 4. Communicate the vision. This is done by constantly and consistently informing people about the vision. I will have all management staff leading by example, projecting slogans like “fastest in satisfying customer needs.” 5. Removal of barriers. Making incentives and performance appraisals reflect the new vision. This will act as an incentive to achieve the new vision. Also make sure that there is an effective communication system to provide information feedback to enable efficiency ("The 8-Step Process for Leading Change,” 2012). 6. Create and reward short-term wins which will serve to recognize the parties working toward achieving the vision. It will also serve as a feedback for the viability of the