Introduction The case of RadioShack Corporation appears to be a paradox in a certain sense. On the one side, the company is accused of selling outdated and unwanted products while on the other, its financial performance is quite satisfactory. Pricing is also not an advantage for the company. The Annual Report of the company for 2007 shows that sales declined from 4.7 billion USD in 2006 to 4.2 billion USD in 2007. But its operating income rose from 157 million USD in 2006 to 382 million USD in 2007. The first quarter of 2008 compared poorly with the same period in 2007, but the second quarter showed an improved performance in comparison with the previous year (sales increased 6.9% and operating income increased 10%). (Moad, 2007). It would be worthwhile to use the feedback loops emphasized in systems theories to see how this current scenario would affect the organization in the future. Feedback loops Feedback loops are essentially diagrammatic representations of the working of dynamic systems. A cause and effect relationship is will be analyzed in such a loop. “It is circular with a sequence of influences producing a feedback loop. Loops are closed structures that represent a sequence of system interactions without a beginning or an end.” (A systems view of business analytics, Part 1- introduction to systems thinking, 2008). Loops can be positive or negative. If the cause results in a negative or stabilizing effect it is called a negative or balancing loop. If the cause results in a positive or increased effect, it is called a positive or a reinforcing loop. An example of the reinforcing loop could be the increased productivity due to incentives. The more incentives the more will be produced. This is only a simple example since there is a limit after which productivity will not increase with incentives. An example of a balancing loop would be to decrease the gap between productivity and demand. An option would be increasing the workforce till the gap is narrowed and eliminated. (Moad, 2007). The figure on the left shows the reinforcing loop while the one on the right shows the balancing loop. RadioShack Corporation As mentioned earlier the paradox of RadioShack is that it is viewed as selling outdated products on one hand and satisfactory financial performance on the other. It is proposed that the balancing loop be taken concerning the style of stores it operates. The advantage that the company offers to its consumers is the proximity to its store locations in the United States. The company has over 4000 stores and 900 kiosks that are mainly located inside popular shopping malls. The annual report tells potential customers that they can save tax and cut down fuel bills if they purchase from RadioShack. This is because customers have to travel at the most a few kilometers either to buy or service their products. This could be one of the reasons why the company was successful in the past as well as why the company is showing a satisfactory financial position at present. Once the strategy was finalized for this sort of expansion the reinforcement would work like this. RadioShack begins its expansion by opening small outlets at as many centers as possible across the country. As the centers come up the number of customers als