BLOCKBUSTER’S FIRED-UP MR FIX Accounting Help

When it comes to doing his homework; John F. Antibiotic is something of a fanatic. Take hist~b Interview for the top post at Blockbuster Entertainment Group last spring. Viacom Chairman Sumner M. Red stone  was quickly convinced that Antibiotic was “the guy who will turn Blockbuster around.”When Blockbuster is fixed, Viacom will fly again,” insists Red stone.

And Antibiotic, as the third CEO’in techs than two years, has been doing some crucial repair work since he signed on last July The crux of the comeback plan is a back-to-basics focus on the core operations of the $3.2 billion video rental business, with tighter Inventory and cost controls.

Antibiotic is also overseeing a new marketing ‘plan, including a new ad campaign vowing that customers will “Go Home Happy.

Current and former associates describe

[Antibiotic] as a charismatic, no-nonsense manager. “It’s all about customer service with John,” says Karl Ellen, who preceded Antibiotic as CEO’of the Circle K Corp. convenience chain. “Figure out what the customer wants and find a .way to get It to him.”

Can Antibiotic

work his magic on Blockbuster? The new chief is keeping the focus tight on operations and customer satisfaction.In recent years, companies have focused on identifying opportunities for improved business practices across their value chain. The opening story demonstrates some important criteria for successful business process management.

First, as John Antibiotic

the CEO at Blockbuster, recognizes, it is necessary to “focus on the core operations” of the business. Second, the goal is to drive costs out of these operations using engineering and science-based analysis. Finally, careful considerations customer needs to create customer satisfaction is critical.

Management must constantly monitor

and transform the business while successfully balancing’ these three criteria-focus on core operations, drive out cost, and create customer satisfaction-to be successful in the marketplace.

Posted on November 23, 2015 in Costing and- the Value Chain

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