In this research, the team has selected some different market sectors, which are entertainment, brokerage firms, electronics companies, consumer goods, and retailers to compare, contrast, and use the key course concepts with Riordon Manufacturing. The team presents the eight synopsizes of the various companies for the benchmarking analysis.
Circuit City Synopsis-George Glenn
The company selected is Circuit City and the issues facing this organization are a significant decline in profits because sales have been falling because of the competition for quite some time. The solution is very common in the business world because Circuit City is replacing a great deal of their more seasoned employees and with employees they can hire at lower wages.
“I think it’s not unusual for companies to replace workers with lower priced ones – it happens whenever companies outsourced jobs. Layoff and buyouts have been common as companies respond to Wall Street and global competitors” (Cohan, 2007, ¶ 2).
The company has been struck so hard that has found itself laying-off a great deal of employees. The part that is different is they are being upfront about it publicly and the level of employees they decided to layoff is interesting. Circuit City seems to believe this is its best solution along with the type of employees they will be hiring to replace these individuals.
“However, it is very unusual for companies to be so upfront about what they are planning to do and why. Circuit City’s decision to fire 3,400 of its highest-paid sales staff and replace them with lower-paid workers is a risky strategy to cut costs that go beyond the traditional layoff, buyouts and hiring freezes used by struggling companies” (Cohan, 2007, ¶ 4).
When looking at this from a customer’s point of view, this might not be the best decision Circuit City could have made. When one establishes a client base, clients expect when they walk into an establishment with... [continues]
Cite This Essay
(2009, 11). Riordan Manufacturing Benchmarking. StudyMode.com. Retrieved 11, 2009, from http://www.studymode.com/essays/Riordan-Manufacturing-Benchmarking-260185.html
"Riordan Manufacturing Benchmarking" StudyMode.com. 11 2009. 11 2009 <http://www.studymode.com/essays/Riordan-Manufacturing-Benchmarking-260185.html>.
"Riordan Manufacturing Benchmarking." StudyMode.com. 11, 2009. Accessed 11, 2009. http://www.studymode.com/essays/Riordan-Manufacturing-Benchmarking-260185.html.