RadioShack Corporation is a popular electronic store within the United States of America. Within this report an assessment of RadioShack Corporation performance in the years 2004 to 2006 will be provided. This assessment looks on: * Changes in Chief Executive Officer (CEO)
* The results of the changes in the CEO
* The financial performance of RadioShack in the specified period * Managerial problems facing RadioShack in the specified period. From this report we hope to give a concise representation of what happened in RadioShack in the years2004-2006. As a group of consultants we aim to identify problems facing the company. Along with this we will provide solutions and recommendations to these problems based on our assessment.
Radio Shack is a consumer electronics goods and services retailer that operates about 4400 stores across the United States, Puerto Rico and the U.S. Virgin Islands. Additionally, the company also operates about 800 non-branded kiosks (small booths) from which wireless handsets and accessories are sold. The firm’s headquarters is located in Fort Worth, Texas and as of 2006, there were approximately 40000 workers employed to the company. The case presented to the group highlights the problems faced by Radio Shack which started in the year 2004. The instability in the position of CEO and executive management of the firm, financial troubles, disgruntled employees and poor communication skills have been identified as the main problems which sought to wreak havoc throughout the firm. As consultants hired by the Radio Shack Company, our main objective would be to state, with clear reasoning, the core problems affecting the company, as well their appropriate solutions. In addition we would aim to devise suitable plans which would aid the company in moving forward. Along with this we will present recommendations which would foster better development and growth within the firm for the future.
Within the years 2004-2006, RadioShack had undergone instability in upper management and poor financial performance. One reason for such instability is caused by the frequent changes in CEO’s. Over the period, three persons had the role as CEO. The first, Leonard Roberts left the position to join the board of members at RadioShack. The second, David Edmondson left due to his fake qualifications. The third was, Julian Day, who was employed by the Board of Members and the Executives to turn the company around (University of Nortedame, 2007). It is not beneficial to a company to have a critical position such as the CEO changed so frequently. Each person set different goals and have different ways of achieving them. Therefore, whenever there is a change in CEO the goals of the business change too. Hence, the company is affected as it has to stop and change its path whenever a new CEO takes over. This ultimately affects the immediate performance of the business. With the frequent change in CEO’s employees may become lazy in completing the task they were given. They may also become confused in regards to what to do. Others may even stop doing the task once they are informed that the CEO will be changed. Thus, this reduces the overall productivity of workers. Consumers too will be affected as their needs and wants are not being satisfied efficiently due to changes in the company. As a result, the company is now seen as inefficient as they fail to satisfy customer needs. The company is further affected as employees will have to be paid although the company is not earning. Poor communication skill is another issue which is a result from instability in upper management. Workers were unaware of the decisions to cut staff until after a press release. It was the managers at RadioShack that informed their team of the reduction and the medium that will be used (Joyce, 2006). As a result, employees questioned the company policies and began losing...