RadioShack

Discussion

Five years ago, RadioShack hired a rock star CEO Mr. Julian Day to improve the processes of the company. The word management is irrelevant for Mr. Day. After five years, there was a great mess in RadioShack as the company has posted sales drop of 30% during the first quarter's income. Despite the drop in sales of RadioShack, its partnership with T-mobiles ended up with disputes due to uncompetitive product they offered (Forbes, 2013).

Strategic planning

Strategic thinking of for a company is very important for the long run and future success of the company. Therefore, the role of strategic planning and strategic management poses an important factor for company's success (Daft and Lane, 2009). When Mr. Julian joined RadioShack as CEO, his strategy was to reduce cost of operation. He mostly designed strategies in reducing cost of RadioShack and the strategy he developed is to reduce employees at staff levels. Also, strategic planning involves communication with other departments for effective communication and better development of strategies. But, Mr. Julian Day also abandoned the communication practices of quarterly sales meeting and analyst meeting. The purpose behind this was also cost reduction of operations which probably is part of Mr. Day's strategy.

Management and leadership

Management and leadership are related with each other as management is all about standards while leadership is giving directions by utilizing. Leadership also involves with setting up directions, managing relationships, and achieving the tasks (Armstrong & Stephens, 2004). Management of Mr. Day was not good as management is a process of controlling, managing and monitoring the environment in which employee works and by effective working they achieve the company's aims. Management is needed for all type of organization, but by analyzing RadioShack we can say that it was the mistake of management. As Mr. Day was not of management background and does not have effective management and leadership skills which results in downwards trend of organization. Also, leadership skills were not effectively present in Mr. Day as he was in relationship management, not achieving its task and setting directions. He believed that costs are reduced only by downsizing and less spending on meetings. Therefore, it can be said that the role of management and leadership in RadioShack was not effective during Mr. Julian Day's period.

Employee motivation

In every business, the long run success of the organization depends on employee performance and satisfaction with work and work environment. If the employee ...