...While ISO 9001 contains the basics of a good quality system the challenges of implementing across a large organisation with many business units can be many. Some specific issues Sears may have had to face could have included: * The tendency for people to prioritise compliance over quality * Hostility from the frontline workforce * Less than full engagement from management From the case study it is clear that Sears has paid careful attention to implementation of the ISO 9000:2000 Quality management principles due to the nature of the success of the program. Some specific examples in the text include: Principle 5 – Systems approach to management. Leadership of the program structured it so that they would achieve registration of the carry in service centres and then turn to the in home service side. Most likely lessons learned from the implementation in one side of the business were used to avoid the same issues on the other. Principle 4 – Process approach. The increase in output of the Chattanooga facility shows that processes for repair of lawn mowers was standardised and documented. A doubling of output would not be possible without such measures in place to ensure everyone was following the same steps in the same way. Principle 6 – continuous improvement could then be utilised to refine the processes as necessary. Principle 6 – Continuous improvement. The reduction of the frequency of recall rate shows application of continuous improvement in their processes...
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...continue accelerate. Businesses and other entities are aware of this data and its power. In a survey taken by Capgemini and the Economist, over 600 global business leaders identified their companies as data driven and identified data analytics as an integral part of their business. Big Data solutions are considered the answer for handling this data converting it into useful information. According to the O'Reilly Radar Team (Big Data Now), Big Data consists of three variables – size, velocity and variety. Data is considered big if conventional systems cannot handle its size. It is not only that size of Big Data that matters, but also the volume of transactions that come with it. The second issue is how fast the data is generated and how fast if it changes (velocity). New data and updated data is constantly generated, and it must be processed and analyzed quickly to create real value for an organization. The final issue is data structure (variety). Data is typically collected in raw form, unstructured, from a variety of sources. To acquire useful information, data needs to be processed to extract some sort of useful meaning. Enterprises are spending billions of dollars to analyze Big Data in a way that they can handle these three factors: volume, velocity, and variety. They want to take advantage of Big Data to drive their business and gain an edge over competitors. According to Dominic Barton, McKinsey’s global managing...
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...Can Sears Reinvent Itself? | Sears, Roebuck and Co. used to be the largest retailer in the United States, with sales representing 1 to 2 percent of the United States gross national product for almost 40 years after World War II. Its legendary Big Book catalogue was considered the primary (and sometimes the only) source for everything from wrenches to bathtubs to underwear. During the 1980s, Sears moved into other businesses, hoping to provide middle-class consumers with almost every type of banking, investment, and real estate service in addition to selling appliances, hardware, clothes, and other goods. This diversification tore Sears away from its core business, retail sales. Sears has steadily lost ground in retailing, moving from the Number 1 position to Number 3 behind discounters Wal-Mart Stores, Inc. and Kmart Corporation. Sears had been slow to remodel stores, trim costs, and keep pace with current trends in selling and merchandising. Sears could not keep up with the discounters and with specialty retailers such as Toys R Us, Home Depot, Inc., and Circuit City Stores, Inc. that focus on a wide selection of low-price merchandise in a single category. Nor could Sears compete with trend-setting department stores. Yet Sears has been heavily computerized. At one time it spent more on information technology and networking than other noncomputer firms in the United States except the Boeing Corporation. It was noted its extensive customer databases of 60 million past...
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...Running head: MODERN BUSINESS Modern Business, Wal- Mart Michael Maas, Kelli Dolego, Jason Krupa, Nick Carter III University of Phoenix Modern Business As many people in the modern business world are well aware there exist four major functions involved in business management. These functions are planning, organizing, leading, and controlling. There are a host of factors affecting how these functions are carried out especially in a globalized and technology reliant world. Planning itself is difficult enough in a small business setting but when taking into account a business whose assets span a global market the issues involved become compounded. Fortunately advances in technology like video conferencing, satellite phones, and the internet make communication and planning within a large infrastructure not only possible but also fairly common place. Organization across international boundaries can be challenging as well however, the internet quickly allows for emails, and video conferences to be held between executives and lower level management insuring a company’s assets stay focused and well coordinated. Globalization raises particular challenges for leadership as different cultures tend to view lead roles differently and even expect different approaches from their leaders. Some of the most noteworthy leadership differences occur between eastern and western cultures (Dickson, Den Hartog, & Mitchelson, 2003). Controlling a globalized organization...
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...Sears, Roebuck & Co G5 Investment Group Matt Nutsch Renis Kacani Melody Seely Ashley Green Wiley Eagle . G5 Investment Group December 4, 2004 Retail – Broadline Buy Stock Data Price (52 weeks) Symbol/Exchange Beta Fully Diluted Shrs Average Daily Vol Current market cap Book Value / Share Current ratio $31.21 - $55.90 S / NYSE 1.3 230.4 million 5,028,000 shrs 10.82B $28.3 1.32 Valuation (per share) Current Price Comparables DCF Analysis Residual Income DD Analysis Abnormal Earnings $34.78 $36.60 $36.94 $38.38 $27.97 $46.49 Summary Financials (in millions) for 2004 Revenue Earnings $36.6 billion $550 million 1 Executive Summary Sears is following a differentiated approach in a competitive industry. Consequently, Sears has lagged behind other broadline retailers such as K-Mart, Target, and Wal-Mart. Should Sears adjust its marketing approach, it would have great potential for success. Growth prospects for Sears include continuation and growth of sales and expansion. The development of subsidiary brands such as Lands’ End and the acquiring of 61 of-mall stores from K-Mart and Wal-Mart. of new stores abroad will fuel this growth. Financing the acquisitions should not be overly burdensome for Sears, given the company’s large cash. Also, the company’s Z-Score of 5.9 will provide easy access to financing if needed Sears has began to shift to an off-mall emphasis for its stores as it acquired stores...
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...factory produced garments for several well-known retailers, such as Wal-Mart Stores, Inc. and Sears Holding Corporation. According to the article, For Wal-Mart, Sears, Tough Questions in Bangladesh Fire, “Bangladesh has become the world’s second-largest clothing exporter, thanks in part to some of the lowest labor costs anywhere: The government sets the minimum wage for entry-level garment workers there at less than $37 a month” (Bustillo, Wright, & Banjo 2013, pg. 2). Wal-Mart Stores, Inc, faces the dilemma of seeking the lowest prices from suppliers globally to deliver low price products while projecting a corporate image of high ethical standards and corporate social responsibility. Traditionally, the purpose of a firm is profit creation, and sale of goods and services in a legal and moral manner. However, what has not always been a part of that tradition was the welfare of society and/or philanthropic endeavors. Due to numerous tragic events, like the one in Bangladesh, the issues of the role of business in social responsibility more frequently appears to be a topic of discussion. This has forced the corporate world to concern itself with the social impact of its decision-making. Firms are turning to ethical business models such as the Wall Street Journal Model to help them understand business ethics and to make ethical business decisions. The Wall Street Journal Model consists of three components: “(1) Am I in compliance with the law?, (2) What contribution will...
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...Sears Chairman Edward Lambert Edward Lambert is the chairman of Sears Holding Corporation (SHLD). He is known as the Steven Jobs of the investing world. He thinks differently, acts differently, and achieves extraordinary results. Lambert was thought to be crazy when he decided to invest Kmart which was on the verge of chapter 11 bankruptcy. Lambert is a man that sees things as a bigger picture. When he decided to invest in Kmart he knew he wasn’t taking a risk. “Kmart’s bankruptcy is avoidable” he said Edward Lambert is a person who tends to centralize authority and derive power from his position. Those are characteristics of an autocratic leader. Lambert is known for his prickly personality and hands on management style. This shows that Lambert is a directive leader. He likes telling his subordinates what they are supposed to do. Those characteristics are also the same as a leadership called the telling style. Lambert likes to control his subordinates by initiating structure and style. Lambert is also a Micromanager. He has a high concern for tasks and a low concern for people and relationship. This is a part of the reason why sears is in its current crisis. As an independent thinker Lambert has made decisions off his own beliefs. Lambert wants things to go the way he planned it in his mind. If it doesn’t, it’s wrong. He is a person willing to stand a part, state his opinion, and say what he thinks based on his own personal beliefs. This has also contributed to the down...
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...Quality Management at Sears Holding Corporation Felicia J Town Keller Graduate School of Management Managing Quality GM588 Professor Taylor October 10, 2011 Quality Management at Sears Holding Corporation Richard Sears, a Minneapolis railway station agent, sold lumber and coal to the local residents to make extra money. One day he received an unwanted shipment of watches from a neighboring jeweler and the light bulb in his head lit up, he was ready to start his own watch company. In 1886 Richard W. Sears began Sears Watch Company with the watches that he purchased for resale. In 1887 he teamed up with a watchmaker Alvah C. Roebuck, a young Indiana native to later form the firm Sears, Roebuck and Co. in 1893. In 1896 the first general catalog was created. By 1945, Sears had opened a retail store on the west side of Chicago and sales exceeded $1 billion. Sears continued to expand and offer a variety of services. It was until the early 1990s that Sears noticed a significant blow to its sales. 1992 was the start of the retail giant’s culture shift from senior management down to the hourly sales associates (Sears, 2011). A deliveryman, clerk, bookkeeper and teacher- these were all the hats worn by Sebastian S. Kresge. His ambition to succeed and his penny-pinching attitude led him to become a successful businessman. Through five and dime stores to Kmart stores, he became a millionaire. In 1966 sales topped the $1 billion mark. Kresge once said, "I think I was successful...
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...For the Sears Auto Cases, when I first read it, I didn’t think the incident was that serious, since the most doubtable questions were the standard of the Sears Auto is different from what the BAR used, second, the methods of investigation used by BAR sounded not fair, they used high mileage, older vehicle model with severe repair problems and that needs only minor brake repair. Further, the BAR intentionally replaced the failed parts with new parts such that the new parts are being aged to look like it’s an old spare part. Was the method of investigation used by BAR fair enough and justifies the purported findings? Third, the incentive system of Sears auto, I did notice that, but I didn’t think about too much on that part, because this is a very common way which are used in many different industries such as what we discussed in the class, hospital, insurance, mortgage, sells… During the discussion in the class, I realized, although the incentive system itself is a good system for company to increase revenue, encourage employees to sell more, but in another hand, without an effective supervision system, people are easily focus on the quality and ignore the quantity and also because of more commission, some behaviors may cause ethics issues such as overselling, high pricing priority and so on. When it comes to the question that how could Brennan do for such incident, in the discussion, some advised Brennan should try do an out-of-Court agreement with BAR, some said Brennan...
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...Lands’ End Case Study Shawan M. Fisher, MPA Management Information Systems Texas Southern University Fall 2015 September 30, 2015 Discussion of Company In 1963, Gary Comer, an advertising copywriter with Young & Rubicam, decided to pursue his dream of opening his own business. With $30,000 of initial funding, Comer and his partners Robert Halperin, Richard Stearns and 2 of Stearns employees set out to open Lands’ End. The first store was located in Chicago IL. and initially offered sailing equipment. Comer was an avid sailor along with Richard Stearns who was also a sailor. The next year, Comer produced a mail order catalog entitled “The Racing Sailors Equipment Guide”, and began filling orders that came in to the company. In the spring of 1977, Lands End produced its first catalog containing apparel and other goods. That same year, sales reached $3.6 million. In 1978, the company introduced its first button-down Oxford shirt upon which the Lands’ End legacy would be built. Also in 1978, operations were moved from Chicago to Dodgeville, WI. Another significant shift in operations at the time was the introduction of fulfilling customers’ orders by telephone. Lands’ End set up its toll free 800- number ad staffed it with eager operators who were answering customers’ calls in less than 2-rings! With clothing offerings soaring, the company broke ground on an office building and a 33,000 square-foot warehouse in 1979. By 1980, Lands’ End...
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...go. Walton strived to have a retail store that others would seek after for their continuing low prices. Just five years after opening the first Wal-Mart, Walton decided to expand quickly and strategically so that he could edge out his competition. In 1970s, the retail industry became extremely competitive, but in addition, the economy became weak because of inflation. Sears was the leading retailer in the nation during the 1970s, however, the recession of that time and inflation affected Sears negatively. While Sears appealed to the masses, Wal-Mart was able to keep its overhead low and continued to offer even lower prices. Wal-Mart has continued to only grow during their long tenure as a major retailer. Wal-Mart has proven to have a strong business strategy and is still the biggest retailer in the world. It has the highest gross profits of any company and the highest net profits. Wal-Mart has also topped the Fortune 500 4 times. Identification of the major issues surrounding the organization or individuals involved With the organization Wal-Mart has been very successful at establishing a global business in many different countries with over 1,587 stores and 500,000 by 2005. The store is also doing well in countries such as Mexico, Canada and Britain, but for countries such as Japan, Korea and even Germany Wal-Mart had to sell its stores. The first mistake the company made was to...
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...approach to retail that soon became a model all of its stores would follow: "Sell brand merchandise at low prices.” Kmart and Target also started operations the same year. Sam Walton, founder of Wal-Mart, took advantage of the opportunity and established a discount retail company. In its beginning, the stores opened in small towns throughout the south, in areas where other large retailers did not even think to establish operations. Walton’s goal was to have an everyday low price discount store. Five years after opening business, Walton the need to expand before his competitors out ran him. During the 1970s, the retail industry became extremely competitive, and the economy became weak due to inflation. Sears was the leading retailer in the nation during the 1970s, however, the recession of 1974-1975 and inflation affected Sears negatively. While Sears targeted middle class families and expanded its overhead, Wal-Mart competed with its rivals and lowered overhead expenses. Wal-Mart has grown at an alarming rate since their inception and has proven to be a retailer of the future. It is currently the largest retailer in the world. It has the highest gross profits of any company in the world as well as the highest net profits. Wal-Mart has also topped the Fortune 500 4 times. Wal-Mart is using the following Corporate strategies; broadening our appeal to all of our customers, becoming an even better place to work, improving business operations and efficiency, driving...
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...The Target Corporation: Strategic Analysis A Comprehensive Report By: Nick Gysberg Kelsey Lee Richard Cline Table of Contents: Target Analysis 3 Wal-Mart Analysis 18 Sears Holdings Analysis 27 Moderate Growth Strategy 39 International Strategy 42 Financial Data 43 Appendix 46 References 50 Strategic Profile The Target Corporation, founded by George Dayton, is now one of the top general merchandise retailers in the United States. The company’s mix of stylish products and everyday essentials at low prices give it a unique strategy; it is one of the only companies to simultaneously incorporate price leadership and differentiation as its strategic business model. Strong private label brands have allowed Target to capture high profit margins. The company also utilizes its large size to achieve economies of scale so as to better compete with merchandising giants such as Wal-Mart, one of Target’s main competitors. PESTL Analysis Political The ever changing international political situation affects both domestic and international firms. International trade policies, political movements and global events all affect the manner in which firms operate within the market. The general retail industry has greatly benefited from the liberalization of international...
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...sold items for $1 or less. Ten years later, he opened a store in a shopping center in Kansas City, Missouri (Sears Holdings, History). In 1968, Kmart begin to air television commercials to entice shoppers to the stores. Harry B. Cunningham became president in 1959, and developed a new strategy for the organization. While Cunningham was president, Kmart opened their first discount department store in 1962 in Garden City, Michigan; that same year seventeen more stores were opened. In 1976, Kmart made history by opening 271 stores in one year. In 1977, the company changed its name to Kmart Corporation. In order to fully focus on discount merchandising, Kmart sold the remaining Kresge stores (Sears Holdings, History). In 1990, Kmart took on a new logo and a new plan. As part of the plan, Kmart opened the first Kmart Supercenter in Medina, Ohio in 1991. Kmart was totally redesigned in 1996 and became known as Big Kmart. In 1999, Kmart launched a Internet presence, BlueLight.com; it offered free internet services (Sears Holdings, History). In 2002, the company filed Chapter 11 in the US Bankruptcy Court. Julian Day was promoted to CEO in January of 2003. Under his leadership, the company emerged from the Chapter 11 reorganization process (Sears Holdings, History). Strategic Direction Mission Statement The mission statement is a very important element in the business model of an organization. It is established that it should be clearly defined and capture the eight primary elements...
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... International Business Planning & Marketing MNM41 A Business Strategy Review and a Marketing Review of Sears 1st submission Date Due in: April 19, 2012 Number of pages: 23 Word count :3,281 Table of Contents sEARS bUSINESS STRATEGY REVIEW i Executive Summary 2-3 introduction brief history and background of sears 4 mission & obJECTIVES II evaluation of sears existing mission and objectives 5-6 External analysis IIi Competitors 7 PEST 8-9 Five forces Analysis 10-11 Opportunities & Threats 11 InternaL aNALYSIS iV Strenghts & Weaknesses 12 Financial ratios analysis 13-14 Past and current strategies 15 Sears current strategic position v Sears current strategy Balance Scorecard 16-17 Porter’s Generic strategies 17 rEcommendations vi Objectives and strategic actions 19-21 Evaluation 22- 23 Conclusion 24-26 Bibliography Executive Summary Sears, once the leader of the retail industry, is now facing financial troubles and is relegated to the 10th position in the market (Store org, 2011). Even after the merger with K-Mart, the retail conditions have not seemed to improved, but in fact, Sears Holding’s financial reports continued to reflect loss. Investor confidence in Sears Holding and its...
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