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RadioShack CEO Resigns
xzvf writes to tell us Forbes is reporting that RadioShack CEO David J. Edmondson has resigned. Reeling from a 62% drop in fourth quarter net income the company has announced a sweeping restructuring plan. From the article: "Edmondson said in a separate statement Monday that new leadership was needed so the company's turnaround plan would have the best possible chance to succeed. The revamp announced Friday prompted mixed responses from analysts, who indicated the plan might be successful but, at that time, they doubted Edmondson's ability to pull it off after it became clear he had lied about his education."
"You have questions...we have cellphone plans."
SO YOU'RE GOING TO DIE: The Comic for Dealing with Death
Example: In this month's Make Magazine...there's an article on how to receive free (not illegal) satellite channels by using inexpensive materials. Radio Shack should be the source for this material for those who don't want to scrounge!
I know this has been a huge plug for Make Magazine...but for goodness sake, when I used to need some obscure part, I knew it could be had cheaply at the Shack...now you have to order a lot of parts.
For years now I've associated Radio Shaq with overpriced items... I only go there if they have something I can't get somewhere else and by that I mean something I need right this minute. That's like 3 times in six years for me.
Plus, what few things they have are all across the board. I always wondered what they held in common, now I see that it was profit margin. A slim range of digital cameras, handheld radios (do people still use these?), stereo wire and connectors and radio control cars (like its a place you bring your kids to?). For each of these if that's what I'm looking for there are other places that come to mind first. Even audio connectors I'll go to some local contractor electronics supplier who can make a custom cable if I need it...
"Waste not one watt!" - CZ
Big box consumer electronics retailers have usurped the role of the neighborhood consumer electronics store. Remember that not long ago, this was Tandy Leather Company. Although the company has changed over the years, each of their markets has big competition:
- Cell phones and 2-way phones are in the big box retailers
- Fry's and others have edged the electronic components and tech tool offerings
- TVs, computers, stereos, and others are the domain of Best Buy, Circuit City, etc...
- Tech toys have also been gnawed on by a slew of retailers
So it's no fun to be Radio Snack, as my uncle calls them. Closing 700 stores is only the first step on a long journey back to health for these guys, as they try to find identity and appeal in the major and tiny markets they once did well in.
Getting smeared because of their ex-CEO's dubious credentials is just another nail in the coffin if they're not careful.
---- Teach Peace. It's Cheaper Than War.
I personally find little reason to go to RadioShack much anyways, they no longer have as much as the stuff I really wanted. Things like Audio and Video Adapters and cables are getting more and more slim, There IC selection is becoming non-existance. I can't find things like a basic Cable Tuner, Null Modem adapters and other adapters. When you walk in there are TVs Surround sound systems, Cell Phones, as their primary which I could get a better choices at a Circuit City, Best Buy, Rex, etc... stuff heck I had to hunt around until I could find a basic calculator. People go to radio shack for hand made electronics and custom configuration of their technology. I should be able to go in there and easily find a Stereo Splitter. So my old 5 speaker Surround sound system for my computer will work on my normal Stereo TV with all the speaker for 4 speaker Stereo. Or If I need a Cable Tuner to get an Old TiVo working like new again they should have some in stock. That use to be Radioshack value add. People may stop in once in a while to get Computers, Cellphones, or TVs for the bulk to their profit but the small stuff keeps many of the more technical people coming back and get the low end stuff and perhaps they will get an other High Margin product in the future.
Also customer service has went to crap. While they are friendly and everything, when it comes to ask about stuff in the far corner like Is there any RJ45 Connectors aka Cat 5 connectors, I will get a Blank Stare. In the old days the people were far more knowable about all the products then just the top sellers.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
Are you nuts? People are too busy being at the mall or watching TV to do anything by themselves. Tinkering has become the pastime of penny pinchers and weirdos who can't or don't want to do what a good citizen does: CONSUME!
Let's face it. Making stuff yourself gets out of fashion. Remember, kids, only commies make stuff themselves, a good consumer buys it!
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
The reason why they probably never checked his education is because It was not not the most important part of his Resume. In real life Education is only a minor factor, especially when you get more experience. When you are staring out Education is a major factor because you don't have much to go on. But when you go further it becomes less important, unless you plan to switch paths, like say you have a BS and you want to get into management so you get an MBA. That way you can show the hirers that you are not just a Tech Egg Head and you have some business knowledge as well. But If you were able to work your way up in a company with a GED and proved yourself valuable (Bill Gates never graduated from college) then you could be work more then a person with degrees up to the kazoo. Sometimes I see people who may Flash their PHD in Engineering at me to show how smart they are, except they call me to fix the problem with their primary program when windows is putting up a little bubble on the screen saying you have loss network connection. So I tell them the program doesn't work without a network connection, then they just flash their degrees at me.
In Business degrees and education usually says the person was able to stick it out for at least 2,4,6,8 years and get a degree and they have the building blocks to learn to do the job. But when you start getting experience then that counts for so much more.
As for Lying about your education what that does is makes it easy to fire you for lying on your Resume if they don't want you. But they are not going to take the effort and check it unless they need a good reason.
If something is so important that you feel the need to post it on the internet... It probably isn't that important.
I guess it's more understandable at lower levels, but you'd think that at the CEO level they might want to make sure they're getting what they paid for.
The thing is that he'd been with Radio Shack for 11 years, and become the top sales associate before being offered the job as CEO. Whatever checks might have happened, probably didn't happen 11 years ago. Since then, no one had any reason to question his education. He was a full time employee with an excellent record. What else was necessary?
After he crashed and burned the company, people started paying attention to who he was and where he came from.
Javascript + Nintendo DSi = DSiCade
If you want to turn around profits, then stop selling the house-brand crappy electronics that are made in China that you can buy at a Dollar Store for a buck (but RadioShack sells for $20). People recognize quality when they see it, and RadioShack doesn't represent quality.
Even the name brands they sell tend to be the low end economy models that Sony, Panasonic, etc will sell at Walmart or grocery stores, of course for a far cheaper price then RadioShack.
There may have been a time when you can pass off a cheap Chinese boom box for $100, and that is when RadioShack raked in the money, but these days people are a little more discriminating in the quality of electronics they buy, and RadioShack hasn't offered those better quality products. They still insist on selling that cheap Chinese boom boxes for $100.
RadioShack should simply refocus on selling batteries and remote control cars, its about all they do well. Stop trying to sell cheap home theater and stereo equipment and televisions, drop computers period, and focus on smaller electronic gadgets that you can't find elsewhere. Either that, our start offering high end stuff you can't find anywhere else, open up a niche market that walmart, Best Buy and Target can't touch.
Just, don't go on as business as usual. It obviously isn't working, and those no-name brands you keep carrying and selling for the same price as name brands are not making you money.
I haven't thought of anything clever to put here, but then again most of you haven't either.
If you have an aggressive streak, the ability to lie with a straight face, can communicate effectively, and the ability to remember a few facts and figures, you too can be a top salesman. No education beyond high school necessary.
The qualifications necessary for a sales position and CEO aren't even close to being the same, and they should have checked his qualifications again before ever giving him the top spot. If you're a salesperson and you screw up big time, they can fire you and give your accounts to someone else, but even then you're not likely to hurt the company a great deal. If you're a CEO and you screw up, everyone in the company, and especially the shareholders, feel it.
Two things to consider: educational background has little relevance to one's capabiltiy of doing many corporate jobs. He's proven that with an 11 year successful internal record. I've seen it personally time and time again. The best development manager I ever worked for was a philosophy major in university. I personally have fired an MIT grad and opted to retain the community college grad, based on actual peformance, work ethic, and team mindedness.
The other is the peter principle...one rises to the level of one's own inability. Unfortunately, the role of CEO requires very diffierent skills from top sales associate, or even head of marketing. His lack of success as CEO can just as easily be explained by a) inheriting a mess, b) lack of board support, and c) not the right man for the job. The educational question is probably just a hatchet job done to justify his removal after the fact -- "We've got a problem with Bob...find a reason to fire him!"
John Maynard Keynes: "When the facts change, I change my mind. What do you do?"
...Radio Shack had parts and adaptors and other things that you just couldn't get anywhere. There were zillions of times I went to Radio Shack to get some bizarre audio adaptor - and not only would they have what I needed, they'd have three different types that would do the job.
Ever wired a commercial audio job at some remote site in East Belt Buckle [insert state here]? In the middle of the job, there was always some part needed, or something that would not work right - and even East Belt Buckle would have a Radio Shack - problem solved...
Spin the time machine to the present... the CEO isn't quite what was sold to the company... The product line is thin, cheap, and out of step with the times. The sales clerks demand your life's personal information if you want to buy a $.25 resistor or some wire, or if your wife just went there to buy an odd-size battery. They are not in the consciousness of the public (along the lines of CompUSA, Best Buy, Circuit City, et. al.). Their prices are not anything to write home about. Their hours are generally not as flexible as the Huge Mart stores against which they compete. And to top it all off, the cool little DIY parts are getting so thin that you can't go to RS and dream up a little cool electronic thing any more.
Earth to Radio Shack: Do more than get rid of one or two brass... Figure out what America is after and then adapt to that. I don't like to nay-say the health of a company, but even I can see that Radio Shack has become the Kodak(TM) Instant Film and the 8-Track superstore that no-one needs it to be.
A Passionate Independent Musician
I had a professor who was fond of describing the importance of putting your degree on your resume as "important only for landing that first job". After that, it's performance and experience based.
If this CEO fudged his education, it speaks more to his character, judgement, and ethics than his ability sell batteries and solder.