This case focuses on CarMax, the nation’s largest retailer of used cars. CarMax, originally a unit of Circuit City Stores, was spun off as an independent business in October 2002. CarMax survives but Circuit City has gone bankrupt and has been liquated as a business. The case describes the founding of CarMax and its subsequent development as a successful business, then turns to exploring the impact of the 2008-2009 recession on CarMax.

From the perspective of organizational change, the case material can divided into two segments for analysis. The first segment addresses the founding of CarMax and its operation until the onset of the 2008-2009 economic recession. The second segment addresses CarMax’s operations in the context of the 2008-2009 recession. Relative to these two segments, both external forces for change and internal forces for change can be identified. 

The case also provides the opportunity for conducting a force field analysis that links external and internal forces for change with the forces for maintaining the status quo. Finally, the case can be connected to the concepts of incremental change, strategic change, and transformational change.

Questions

1.    Describe the external forces for change that seem to be affecting CarMax.
2.    Describe the internal forces for change that seem to be affecting CarMax.
3.    Using force field analysis, explain CarMax’s development as a business enterprise.
4.    Explain the development of CarMax from the perspectives of incremental change, strategic change, and transformational change.