Circuit City Case Study

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Questions and Answers

What was the primary reason for Circuit City's ultimate closure, based on the information provided?

A single catastrophic event that led to a rapid collapse.
Increased competition from other brick and mortar retailers.
A sudden and unexpected economic downturn, affecting all similar businesses.
A series of strategic missteps and failures to adapt. (correct)

Which of these decisions significantly contributed to Circuit City's decline by 2004?

Focusing on selling smaller ticket items with higher margins.
Choosing less prominent store locations to save on rent. (correct)
Closing stores in urban areas to focus on establishing stores in rural areas.
Investing heavily in online sales platforms but failed to manage them correctly.

How did Circuit City's decision to stop selling large appliances in 2000 impact the company?

It allowed them to focus on other product categories with higher potential.
It had no significant impact due to other retail practices.
It drastically reduced storage and delivery costs, improving profitability.
It resulted in them missing out on the housing boom's appliance sales. (correct)

What strategic advantage did Best Buy have over Circuit City in terms of physical store locations?

Located stores in high traffic locations accessible to more customers. (D) Signup and view all the answers

What was the primary negative consequence of Circuit City choosing to lay off the highest paid employees?

Those people moved to competitors with their skills, expertise and loyalty. (D) Signup and view all the answers

What critical aspect of web commerce did Circuit City fail to capitalize on, while Best Buy did not?

They did not establish an online sales platform for customers to use. (A) Signup and view all the answers

According to the information, what action could Circuit City have taken to prevent the logical errors in their cost cutting exercises?

Performed a return on investment analysis on their changes. (C) Signup and view all the answers

How might data analytics have helped Circuit City avoid its down fall?

By predicting future trends in the industry and competitor technology. (A) Signup and view all the answers

What is the primary purpose of the 'Intent' phase in a hypothesis-driven process?

To establish the context and direction of the initiative. (A) Signup and view all the answers

In the hypotheses-driven approach, what is the role of the question, 'What could drive it?' or 'Why is it happening?'?

To identify potential causes and key drivers. (C) Signup and view all the answers

What is the significance of testing insights for early learning in the hypothesis-driven analytics process?

To determine the viability of a product and its potential sales. (D) Signup and view all the answers

According to the content, what is a key factor that distinguishes the success of an organization, as opposed to its challenges?

The organization's response to challenges. (A) Signup and view all the answers

What does the content suggest is the primary role of analytics within a business?

To create smarter decisions based on internal business data. (B) Signup and view all the answers

Based on the provided text, what is a crucial aspect of actionable insights?

They should be precisely defined for clear implementation. (B) Signup and view all the answers

What does the content imply about the impact of market conditions on an organization?

External market conditions can create obstacles and affect profitability. (D) Signup and view all the answers

What is the primary purpose of the 'analysis' phase in a hypotheses-driven process?

To prove or disprove the hypotheses. (D) Signup and view all the answers

According to the content, what should be done after the 'Analysis' phase in order to reinforce the actionability of the insights?

Test the insights for early learning and before final execution. (C) Signup and view all the answers

What is the central idea behind a hypothesis-driven analytics strategy?

Narrowing down the area of search with an initial hypothesis before data analysis. (C) Signup and view all the answers

What is the initial question that should drive all actions according to the content?

What are we trying to do, or what is happening that is not supposed to? (A) Signup and view all the answers

What is the main idea behind the statement, 'Analytics is not just about data, but about decisions'?

Data analytics should help with making the right decisions. (B) Signup and view all the answers

Why did Circuit City fail despite having access to data?

They closed their appliance business and moved to suburban locations without proper testing. (D) Signup and view all the answers

As suggested in the content, what effect can poor internal decisions have on an organization facing market challenges?

They can weaken the company to the point of collapse. (C) Signup and view all the answers

Which of the following is NOT a mentioned component of a good analytics approach?

Gut feeling. (C) Signup and view all the answers

What is the potential use of analytics by a daily manager?

To run their business with maximum efficiency and effectiveness. (A) Signup and view all the answers

What does the 'What' question aim to identify in P&G's analytics strategy?

Key metrics for the business operation. (D) Signup and view all the answers

What does the content suggest about the accessibility of analytics?

Analytics is for everyone. (D) Signup and view all the answers

What was the result of P&G's investment in analytics expertise?

Improved decision-making and predictions about market share despite cost cuts. (B) Signup and view all the answers

How much return can businesses expect for investing one dollar on analytics?

$10.66 (C) Signup and view all the answers

According to the content provided, what is a crucial benefit of a hypothesis-driven analytics strategy?

Faster time to information and subsequent actions. (D) Signup and view all the answers

What does the 'Why' question aim to identify in P&G's analytics approach?

The reasons behind any exceptions or deviations in performance. (A) Signup and view all the answers

Which of the following is the best way to summarize the core idea of analytics, as described in the content?

Applying structured methods to solve problems using data and analysis. (C) Signup and view all the answers

Which of the following best describes the 'action levers' mentioned by the text, in P&G’s strategy?

The specific actions, such as pricing and advertising, that P&G can use to influence outcomes. (D) Signup and view all the answers

What do the questions 'What is happening?' and 'Why is it happening?' help companies to do?

Determine actions that can be taken to address a situation. (B) Signup and view all the answers

How did P&G use analytics to its advantage in the 2010s?

By using data analytics to reduce costs and increase gross revenue simultaneously. (C) Signup and view all the answers

What was one of the key initiatives undertaken by P&G CEO Bob McDonald in 2010?

To digitize the company's processes end-to-end using analytics. (B) Signup and view all the answers

Which of the following is mentioned as an industry leader that has used analytics effectively?

Capital One. (A) Signup and view all the answers

What does the text mean by 'actionable insights'?

Insights that promote new thought processes and drive decision making. (C) Signup and view all the answers

What is a key characteristic of the data hypotheses according to the provided information?

They are born from human intuition and experience from stake holders, then validated by Data (C) Signup and view all the answers

Flashcards

Circuit City

A former dominant electronic retailer in the US, closed in 2009.

Best Buy

Circuit City's biggest rival that thrived after Circuit City closed.