The Are Many Factors That Contribute to the Success or Failure of an Organization

There are many factors that contribute to the success or failure of any organization. Intense pressures from external market conditions can impede profitability. The rise and fall of consumer confidence, investments, and economic turmoil can create overwhelming obstacles. Competition and the evolution of technology can wreak havoc in the best laid plans. Nonetheless, these are factors that are faced by all companies to virtually the same degree. It is not the challenge that distinguishes the success of an organization, but rather the response to the challenge. Companies that slay the economic and competitive dragons survive and eventually thrive. Occasionally the internal response to external challenges can weaken and organization infrastructure to the point of collapse. Let us reflect on this with the example of Circuit City.

Through the 1980's and 1990's Circuit City succeeded in expanding a network of stores from coast to coast. This network of stores was supported by a framework of logistics centers to minimize freight and inventory. This gave Circuit City an advantage for securing and protecting margins on products by reducing overhead and freight. The stores were connected by a carefully constructed nerve center of technology that enabled the consumer electronics retail giant to track loyal customers, identify purchasing trends, and provide world class customer service. As market conditions changed, Circuit City management carefully adapted strategies to accommodate service needs, relying on a network of best-in-class service provider partners to provide professional and courteous customer support. The collaboration and carefully connected network was consistent with a culture that allowed the retail kingdom to remain flexible, profitable, and prosperous for two decades

As with any great tragedy, there is typically one pivotal decision that defines the collapse of an empire. In the case of Circuit City, this is most often attributed to the decision to...