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Managerial Economics Term Paper

Managerial economics, there are variety of structures and philosophies that companies will use to maximize their profit margins. This is accomplished through taking these concepts and continually adapting them in order to achieve these objectives. To fully understand how this applies requires examining an employer. This will be achieved by providing a description of the company, describing any problems they are facing, analyzing the dimensions of the job and studying the executive / employee compensation packages. Together, these different elements will highlight the underlying strengths and weaknesses of the organization. It is at this point, when specific insights can be provided that will help the firm adapt with the challenges they are facing inside the marketplace. Provide a description of the company that you work for. As part of your description include a discussion of the type of organizational structure.

The company that we work for is a large electronics retailer called Radio Shack. They are focused on marketing a wide variety of electronics to consumers. The most notable include: tablets, laptops, e-readers, wireless technology, electronics parts / toys / accessories, digital music players, residential telephones, global positioning systems, cameras digital televisions and cell phones. ("Radio Shack," 2012) The basic management structure that is utilized is product organizational design. (Subtle, 2012)

Under this approach all of the various stores are organized into a number of regions. Each area has a Vice President who is responsible for addressing the problems and improving the profit margins of the stores located inside them. They will report to President and CEO. These individuals have the responsibility for running the company and ensuring that all major challenges are addressed. (Subtle, 2012)

Describe an agency problem within...

This is because they can offer similar products to cliental at lower prices. At the same time, the consumer electronics markets have hit the top of the S curve. This when is there is rapid growth and innovation from changes inside the technology sector. Once a firm reaches the top, is the point they will have trouble growing at a similar pace. This is because everyone has made their purchases and there is no need to continue to upgrade. (Nunes, 2011) ("Radio Shack Reports Financial Results," 2013)
In the last 20 years, Radio Shack was able to take advantage of this with improvements in: TVs, telephones, cell phone and other electronics. This helped to increase demand for their services and a variety of products. However, recently they are having trouble thinking of ways to help themselves standout against competitors. Furthermore, it is difficult for the company to create strategies that will encourage consumers to shop inside their stores. ("Radio Shack Reports Financial Results," 2013)

The primary causes of these problems, is Radio Shack does not have anyone who is excellent at marketing. The best way the firm can make these adjustments is to locate top managers who understand how to succeed in companies that have reached similar plateaus. This will help them to continue to innovate and offer new reasons for people to continue shopping at their locations. ("Radio Shack Reports Financial Results," 2013)

Describe the job dimensions of the firm and discuss whether or not you believe the current design is appropriate for the firm. Discuss any suggestions you might have for improving the job design. Grouped by function or by…

Sources used in this document:
References

Radio Shack. (2012). Yahoo Finance. Retrieved from: http://finance.yahoo.com/q/pr?s=RSH+Profile

Radio Shack Corp. (2012). Salary.com. Retrieved from: http://www1.salary.com/RADIOSHACK-CORP-Executive-Salaries.html

Radio Shack Reports Financial Results. (2013). Market Watch. Retrieved from: http://www.marketwatch.com/story/radioshack-reports-financial-results-for-fourth-quarter-and-full-year-2012-2013-02-26

Margo, M. (2008). 6 Confessions of a Former Radio Shack Employee. Consumerist. Retrieved from: http://consumerist.com/2008/01/11/6-confessions-of-a-former-radioshack-employee/
Nunes, P. (2011). Reinvent Your Business. HBR. Retrieved from: http://hbr.org/2011/01/reinvent-your-business-before-its-too-late
Subtle, R. (2012). Types of Organizational Structure. Chron. Retrieved from: http://smallbusiness.chron.com/types-organizational-structure-management-2790.html
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