IIPM Ranked No. 1 B-School In Global Exposre - Zee...
Life in a short circuited city
Schoonover also took certain drastic steps during his tenure, which totally shook the stakeholders’ confidence in his capabilities. In the spring of 2007, Schoonover gave pink slips to as many as 3,400 experienced and skilled employees in a cost-cutting move. Little did he realise that throwing out experienced and trusted employees could work negatively for the company, and it actually did.
Recently, Circuit City released its second quarter results and the company reported a net loss of $164.8 million as opposed to a net loss of $54.8 million during the same period last year. In FY 2007-08, Circuit City made a net loss of a devastating $319.9 million as opposed to a loss of $8.3 million in 2007– a decrease of 3754.21%! Over the last 12 months, the stock of Circuit City has plummeted by over 82.6% and stood at $1.37 on September 26, 2008 as against $7.70 on September 27, 2007. Circuit City has also been suffering on the sales front as the sales growth has fallen by 5.52% over the last one year. So now we know why The Wall Street Journal has named Schoonover as the worst CEO of 2008.
James A. Marcum, who was elected to Circuit City''s Board of Directors in June, 2008 has replaced Schoonover at the helm. Marcum has announced plans to roll out strategies to remodel their stores as well as relocation. However, Raymond James’ analyst Dan Wewer states in his report, “Execution risk associated with Circuit City''s aggressive store remodel and relocation strategy could negatively impact sales and profits.” In order to regain investors’ confidence, a strong business strategy is required; more importanly, there needs to be action on the ground. Or else? Well, like we said, failure at the top isn''t so bad, eh? But surely, Circuit City may be running out of chances to get back to winning ways.
Savreen Gadhoke
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
Life in a short circuited city
Schoonover also took certain drastic steps during his tenure, which totally shook the stakeholders’ confidence in his capabilities. In the spring of 2007, Schoonover gave pink slips to as many as 3,400 experienced and skilled employees in a cost-cutting move. Little did he realise that throwing out experienced and trusted employees could work negatively for the company, and it actually did.
Recently, Circuit City released its second quarter results and the company reported a net loss of $164.8 million as opposed to a net loss of $54.8 million during the same period last year. In FY 2007-08, Circuit City made a net loss of a devastating $319.9 million as opposed to a loss of $8.3 million in 2007– a decrease of 3754.21%! Over the last 12 months, the stock of Circuit City has plummeted by over 82.6% and stood at $1.37 on September 26, 2008 as against $7.70 on September 27, 2007. Circuit City has also been suffering on the sales front as the sales growth has fallen by 5.52% over the last one year. So now we know why The Wall Street Journal has named Schoonover as the worst CEO of 2008.
James A. Marcum, who was elected to Circuit City''s Board of Directors in June, 2008 has replaced Schoonover at the helm. Marcum has announced plans to roll out strategies to remodel their stores as well as relocation. However, Raymond James’ analyst Dan Wewer states in his report, “Execution risk associated with Circuit City''s aggressive store remodel and relocation strategy could negatively impact sales and profits.” In order to regain investors’ confidence, a strong business strategy is required; more importanly, there needs to be action on the ground. Or else? Well, like we said, failure at the top isn''t so bad, eh? But surely, Circuit City may be running out of chances to get back to winning ways.
Savreen Gadhoke
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).
Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
