Case Study Radio Shack

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RADIO SHACK CORPORATION Date: 2/22/12 To: Julian Day From: Melissa Richtel, Garrett Brandes, Kyle Mulcahy, Sara Davis Radio Shack Corporate Communications Subject: Communication Strategy It is the goal of the communication department of Radio Shack to ensure communication between upper level management to all employees is efficient and effective in the proper way. BACKGROUND: Radio Shack is a consumer and electronics goods and services retailer that is third in the US market. Radio Shack is headquartered in Fort Worth, Texas with nearly 40,000 employees. Operating in more than 400,460 stores inside the United States, Puerto Rico, and the Virgin Islands; Radio Shack also operated 800 non- branded wireless handsets and accessory kiosks. SUMMARY: Throughout the last several years Radio Shack has undergone a series of executive management changes which has created some instability on all levels of employment. Management has realized its recent obligations to increase the firm’s financial performance and has created a turnaround plan including the obligation to increase the average number of unit sales volume, rationalizing the firm’s cost structure, and to grow the profitable square footage of retail space. In order to meet these goals management has decided to consolidate distribution centers, reallocate the resources among all Radio Shack stores to reflect profitability, updating the inventory and product line offerings, and reducing overhead costs. RECCOMENDATIONS: It is managements upmost priority to unsure the smooth implementation of the turnaround plan and to regain confidence in many of the company’s public claims. Through doing so Radio Shack Corporation should regain some of its stock holder equity and bring us out of financial dismay. Because stock price was underperforming and lagging behind major competitors in revenue and

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