June 3, 2008Presented by University of California, of Riverside: Team 6

WELCOME BOARD OF DIRECTORS

What What

HAPPENED? HAPPENED?

Circuit City Circuit City SlogansSlogans

………………………………..19901990: “: “Where service is state of the artWhere service is state of the art”…….”……. ……………… ………………19911991: “: “Unbeatable low priceUnbeatable low price”………………..”………………..……………… ……………… 20012001: “: “Imagine ThatImagine That”………………………...”………………………...………………………………..20022002:“:“We’re with youWe’re with you”………………………”……………………………………… ……………… 20032003: “: “Where low prices are guaranteedWhere low prices are guaranteed” …..” …..

…………………………Today’s Today’s sloganslogan

……““SimpliSimplicitycity guaranteedguaranteed””……….……….

2008 Current Market situation

In Millions of (except for per share items)

  12 months Ending

2008-02-29

  12 months Ending

2007-02-28

  12 months Ending

2006-02-28

  12 months Ending

2005-02-28

  12 months Ending

2004-02-29

  12 months Ending

2003-02-28

 Revenue   11,743.69   12,429.75   11,514.15   10,413.52   9,857.06   10,054.86 

 Operating Income 

 -353.58   20.33   233.44   96.97   -1.24   -5.49 

 Total Liabilities & Shareholders' Equity 

3,745.93   4,999.61   4,037.51   3,827.91   4,007.28 

Decrease in Sales

Negative Operating

Income

5 YEAR

Decrease in Shareholder’s

Equity

FINANCIAL STATEMENTS

DecreaseDecrease in in Stock PriceStock PriceCC: $4.91

Burning IssuesBurning Issues

Bad training

Lack of mission statement

Hostile take over

NegativeBrand Image

Poor customer service

FUTUREFUTUREthe

STRATEGIC STRATEGIC ALTERNATIVESALTERNATIVES

Growth Stability

Retrenchment

Recommended Recommended StrategiesStrategies Create new Mission and Vision Statement

Improve Employee Training

Change the Organizational Structure

Provide Innovative Programs

Outcome forOutcome for Recommended Recommended Strategies:Strategies:

CREATESCREATES Positive Brand Image

…and long term sustainability

MoreMore customers

Acknowledgements Acknowledgements

Thank you