Tuesday, April 10, 2007

Another thought on Circuit City

I usually don't keep anonymous comments, but one I received on an earlier post illustrates quite well why Circuit City ought to be evaluating the contracts of their executives:

"lets be brief....inspire to do well.negotiate contracts with unions(we are fighting for your future),climb the work ladder and progress within the company?who's idea is it to do these things?.wonder how much bonus the ceo is getting this year?.I am involved in such a class action myself. This is telling the workforce of America.it don't pay to be a team player and be rewarded for your service in the workforce. It don't pay to climb the ladder.or to improve the company your working for....your reward???...you've improved us tooooo much.now you are overpaid???.over paid??.what is that these days in middle class America where most still are just above poverty level"

Now, as tempting as it might be to dismiss this as uninformed economic paranoia, I think capitalists ignore it at their peril. The ugly fact here is that Circuit City executives have stolen a page from Sunbeam's "Chainsaw Al" Dunlap in open, merciless cost-cutting, apparently without taking into account the offense that would be taken.

In other words, they don't understand their customers, and this goes a long way to explain why Circuit City is getting their clocks cleaned (the VCR ones that blink because we don't know how to program them) by Best Buy and Walmart.

4 comments:

Shawn said...

I'm sorry; I ignore that comment because I can't follow it. The sentences that make the most sense to me are the most incorrect. Unions? Bad, mmmkay? "most still are just above poverty level"? Incorrect to the point of foolish.


So...as Boortz rightly pointed out in his "argument" with Clark Howard (it was civil; they obviously respect each other) about the minimum wage, you're capitulating or pandering to the economic ignorance of Americans. Howard said it was bad economic policy to raise the minimum wage, but he wanted to do it anyway, because people were so distrustful of corporations at this point, and they needed essentially to be thrown a bone.

You're saying that CC should reconsider firing these people because economic ignorance and fear makes someone post a comment that sounds like the evil corporations are out to get us all? How is that helping Circuit City in their lack of profitability or this guy in his confusion?

Bike Bubba said...

You're missing the point; I'm simply arguing that whether the actual decision was wise or not, the way it was handled demonstrates that the company's real problems are in management, which has largely lost touch with the customer base.

Shawn said...

lost touch with the customer base that would say that sort of comment? Is that the point?


ya know...i'm not even sure what I'm arguing about anymore. I'm going to shut up for a while about this.

Bike Bubba said...

Exactly. My argument is simple; that when one needlessly ticks off a lot of potential customers with a public relations debacle, they're not just conceding a lack of tact. They're saying that they don't understand their business.

(or possibly they're trying to get any publicity they can, but that is ordinarily the mark of desperation)

Now certainly some cost-cutting will be a PR debacle no matter what you do. I just don't think this falls into that category.