Stratfield Car Audio

Background

Strathfield was once one of the most popular chain store in Australia which retailing mobile phone and car audio, it was started in 1980 selling the car radio, in 1987, it started its mobile phone retailing business and later on also involving in the computer and others electronics retailing business

there was at most over 75 store in Australia in 2000s, this presentation will go over of how a retailing giant which was once a best known car audio brand failed to maintain in good form and slides into voluntary administration in the economics downturn and the company instability

Issues happening to the company

The car audio retailing business was the main business area of Strathfield Ltd, in 1980, the private car is sold without the FM radio, thus, the radio selling business together with the service to install and fitting the radio to the car was in great success as the only service provider in market, and they also doing very well in seizing the market of installing others electronics parts of the car like the radar detectors and the security products . It is obvious that the success of the company is thanks to the imperfect of the car production.

However, improvement was shown in the car production industry. As what George Diab, who had worked in Strathfield Ltd for over 20 years mentioned, the advent of hi-tech cars meant the market for electronic installation was shrinking, the business environment is totally different from almost 30years ago, when the business start. Nowadays, when we buy a brand-new car, we expect everything is included, radio, stereo, navigation, security alarm and the like

The second issue of the case is the frequent revolve of the management board, as we know, the chairman of the company is functioning like a brain of us, and they would give the whole company direction to operating, plan to implement and the goals to achieve in order to protect the interest of the shareholders, a short term plan often involves...