Created a business strategy for my capstone class. Placed in top 3 out of 40 teams

1. F.T. Consulting Firm
RadioShack Corporation Analysis

2. Agenda
Who is F.T. Consulting 2nd Strategic Orientation
 
Firm Comparison

Industry SWOT Recommendation
 
Analysis
Summary

Industry Benchmarks

Q&A

RadioShack

1st Strategic

Orientation
Marketing Plan

Market Segments

New Store Layout

Costumer Experience


3. F.T. Consulting Firm
Established in 2008

your future transitions
“Making
possible…”
Assisted following companies:

Caron Furniture

F.T.
A.H. Belo Corporation
 Future Transitions Consulting Firm
Business Analysis & Consulting

4. Industry SWOT Analysis
Strengths Opportunities
 
Ability to keep being
 Hispanic population

innovative (Spanish speaking)
Growth potential
 Digital TVs &gaming

Investors
 Need for innovation

Increased efficiency

Threats

Weaknesses

Globalization

Innovation

Competition

Recession


5. Industry Benchmarks
Benchmarks
FirmPerformance
Measures
(computed from
Theoretical Construct and Dimensions
External
Chosen?
Internal
data in case)
(Industry
(Goals)
Norms)
Financial
Current Ratio 2.8 1.82 2.5
Position
Financial
Performance
Operating
4.9% profit
3.8% (Yahoo
4.9% (thestreet.com
Performance Profitability Profit Margin
margin
Finance)
)
10% in 5
Market Performance Market Share 6.96% 100% yrs
Organizational Health Employee Growth -3.85% .98% .5%

6. Survey Results
Potential Buyers Consumer Wants
13% 13% 13% Atmosphere
Would buy from
Knowledgable Staff
17%
RadioShack
Will not buy from 57% Convenience
RadioShack
Quality Products
87%
Slogan Recall
Competitors
3% 18%
18% 17%
Recall Slogan
Fry
Best Buy
Don't know
83%
Wal-Mart
61% slogan
RadioShack

7. Strategy 1
RadioShack
Consistency Contract Customer
 Store layout  Product mix  Service
 Slogan  Company size  Product demands
 Training  Product Demos
 Marketing Plan  Spanish Website

8. Strategy 1 Marketing Plan
Message: Identity of RadioShack

High-quality products

Superior customer service

Convenient locations

RadioShack. Connecting consumers with technology.

Ad #1: Transition of RadioShack

Ad #2: Going Green

Customer Experience


9. Advertising Budget

10. New Store Layout

11. Market Segments
Younger Generation Baby Boomers
 
(Pre-teens and teens) (50’s and above)
Customer Service
Interesting website 

Convenience

Going Green

Demos

Newest products

Store layout

Middle Generation

(20’s-40’s)
Focus on value

Convenience

Demos


12. Customer Experience
What type of experience does RadioShack

want to give its customers?
Simplicity

Superior customer service

“Try before you buy”

Inviting atmosphere

Information


13. RadioShack.com
Before After

14. Strategy 2
RadioShack
Maintain Maximize
Keep product mix Increase store format
 Improve Kiosks  Increase services
 More employee training

15. Strategy #1 vs. Strategy #2
Strategy 1

Strategy 2

 Pros:
 Pros:
Transitions RadioShack

Familiarity

Capitalizes on Industry

Managerial and employee

forecasts
training improved
Positions RadioShack in

More services offered
mind of consumers 
 Cons:
Reduce affects of recession

on business
Not feasible

 Cons: Large financial risks

Employees need training Competition
 
Financial risks Ignores industry analysis


Calls for expansion

Minimal transitions


16. Recommendations
Strategy 1 Recommended

Industry analysis supports strategy

Feasible

Easy to implement

Likelihood of success

Action Plan


17. NPV
NPV
(In Millions, USD)
2009 2010 2011 2012 2013
Initial Investment
Cash Flow -305.1 170.68 175.36 180.17 185.09 190.13
(1.1285) (1.1285)^2 (1.1285)^3 (1.1285)^4 (1.1285)^5
$289.95
NPV =
(in millions)
Risk free rate (rf) 0.14% Total Debt $ 590.60
Beta (β) 1.64 Total Equity $ 1,760.00
Expected market return (rm) 11% Total Firm Value $ 2,350.60
Discount rate (k) 12.85%
Share Price $ 11.94
Cost of Equity 17.95% Volume 1,987,300
Cost of Debt 5.06%
WACC 12.85% 20.12%
ROI
Corporate Tax Rate 35.75%
 Positive NPV supports proposed strategy # 1

18. Summary
F.T. Consulting Firm best choice

Industry remains promising

The answer to Who is RadioShack?

Strategic Orientations

Recommendation

Call to action


19. Q&A
Alisha Thomas, Sr. Consultant
Lareal Hudson, Sr. Consultant
Trevor Hussey, Sr. Consultant
Jennifer Carey, Sr. Consultant
Kenneth Connally, Sr. Consultant
Whitney Fitzgerald, Sr. Consultant
Jamal Abdul-Rahman, Sr. Consultant

20. Organization
Julian C. Day
Chairman and CEO
Peter J. Whisett Bryan Bevin
Martin O. Moad John G. Ripperton Lee Applbaum James Gooch
Chief Merchandising Executive Vice
Chief Marketing Chief Financial
Vice President and Senior Vice President
Officer President of Store
Officer
Controller of Supply Chain Officer
Operations
We recommend making no changes to the organizational structure.


21. Product Liquidation
Sell back
Sell to
Heavily for New
smaller Recycle
product
Discount
stores
credit