Originally Posted by
Midtowner
Circuit City's problem is the same thing which hit RadioShack (a place I worked for many years during high school and undergrad). They at one time had a tenured, knowledgeable, well trained and well compensated sales force. Upper management wanted to make short term profit gains, so they cut back on the sales force in terms of manpower and compensation. This, in turn has hurt their sales.
Also, by cutting back on experienced salespeople, they in turn destroyed the quality of the pool from which management was hired. Management in places like that is chosen from within. Middle management is also for that matter. The result of this policy is that after a few years, management consists of folks who at one time were happy to work for pay just about (or at) minimum wage -- there are a few good candidates in that talent pool, but generally, there's going to be higher theft, turnover and absenteeism.
You get what you pay for and Circuit City is reaping the rewards of their policy. Radioshack is too, for that matter.
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