RadioShack Unable to Keep Up with the Times - The 94-Year-Old Company Files for Bankruptcy

RadioShack's downfall and how a company's inability to move forward can cause uncertain consequences.

An annual, tradition, on February 2 of this year, the U.S. celebrated its yearly Groundhog Day tradition, where famed groundhog, Punxsutawney Phil, retreated back into hibernation after having seen his shadow, thus predicting another six weeks of winter.

The 128-year tradition, although criticized for its inaccuracy, has spawned an eponymously named condition called the “Groundhog Day Effect,” inspired by the 1993 movie of the same name.  The popular term is used to describe the state of when a person or business is stuck in a rut and is consequently unable to move forward.

A shock to many, among the phenomenon’s latest victims is iconic electronics retailer, RadioShack, a company criticized for its inability to keep up with the trends, therefore rendering the 94-year old company obsolete. On February 5, the company filed for Chapter 11 bankruptcy with plans to sell up to 2400 of its stores.

According to a Forbes’ report, the outdated company filed for bankruptcy with $1.2 billion in assets and $1.38 billion in liabilities.

In a previous attempt to revive its image, the retailer aired a 30-second Superbowl spot in 2014 that featured ‘80’s music and popular ‘80’s icons. Although considered a hit, the endearing ad once again served as a reminder of the company’s looming extinction, calling attention to the fact that RadioShack is out of touch with both the consumer, and current industry trends.

Due to the yearly phenomenon of Groundhog Day, many businesses consider this to be an opportune time to look at back at the previous year to determine what worked and what didn’t work in order to successfully move forward.

In regards to this phenomenon, BloombergBusiness writer Marshall Goldsmith states, “Organizations spend hundreds of millions of dollars on trying to change their people with expensive training, coaching, and change programs. Relatively few of these programs succeed in creating enduring change because we are creatures of habit, and … instinctively struggle with change.“

According to Ana Hawk, founder and CEO of Instant Barter, LLC, the world’s fastest growing barter company, “Setting goals and objectives for an organization needs to be done with the management team, not just by the owner or President. The reason that this is important is because the second step after creating these goals is to set a game plan in place to achieve these goals. Everyone needs to have buy-in here to increase the odds of success. This also is the only way to get accountability.”

“This is an ideal time for businesses to look back on 2014 to evaluate what worked well for the company and what didn’t and to set business goals for 2015 to improve upon 2014’s results,” Hawk continues. “Once the goals are set, they can be broken down by unit and communicated to the individuals on the various teams (e.g. sales, production, HR, etc.). For an organization to achieve long-term objectives, setting annual Business Goals and a documented game plan is a must, especially in this challenging economy, however, setting those goals is only the first step.”

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Ana Hawk is the founder/CEO of Instant Barter, LLC. Instant Barter is the fastest growing barter company in the world, dedicated to educating people on how to use what they already have to get what they need right now, and to growing their lives and businesses in a challenging economy, thereby enabling them to proposer and live an abundant lifestyle. The IRS views trade and barter dollars just like it views cash, checks or credit card transactions.

Contact Info:
Name: Ana Hawk, CEO
Email: Send Email
Organization: Instant Barter
Phone: 480-648-4296
Website: http://instantbarter.com/

Release ID: 74655