...Running head: Sears Holding Business Analysis Sears Holdings Business Analysis Steven G Cole MGT/521 Leo Shelton Sears Holdings is an icon in the retail business since its founding in 1925. It survived the depression and many economic cycles since its founding. With the purchase of Kmart out of bankruptcy in 2005 and the unexpected recession of 2008 Sears has struggled financially. Their strategy of selling niche items of higher quality and brand names has not fared well in this valued based purchasing recession. They have continued to lose large amounts of money and continue sell off assets to raise capital. The CEO has announces new business strategy to implement to change the course of the company. Since the acquisition of Kmart in 2005 sales have declined steadily year after year. Last year alone Sears and Kmart had a total lose of 1.4 billion dollars. This year that amount is down to 421 million through the 3rd quarter. The continued movement of customers to discount stores like WalMart and Target has continued to erode the customer base at Sears and Kmart. Sears reputation of rundown stores and poor customer service is helping lead the way to the slow demise of the once retail giant. Sears is a leader in ecommerce investment, but poor customer experience in the store is translate to apprehension of customers to return to Sears online (Skariachan, 10/17/2011). In February 2012 in a note to shareholders, CEO Edward Lambert issued a lengthy letter to shareholders...
Words: 1482 - Pages: 6
...analysis does not refer to large companies only. In the current market conditions it has become important for every organization. In your business essay you need to identify the needs for company survival and decision-making for successful problem solving. The most widely used parts included in this type of essays are: business plan, financing strategy, organization of the company, business project, competition, strategic planning. The rapidity of business development requires the knowledge of all processes associated with leading companies in Canada and the United States as well as in the rest of the world. This is a free extract from business school essay created by one of our writers. This sample is the property of Essay-Paper.net. If you use this paper, you should cite it properly. [...] The Kmart Holding Corporation informed about its intention to acquire Sears and all business publications all over the country reported on the outcomes on the retailers, the real estate implications and the resolve of this step. It is clear that the acquisition of Sears by Kmart Holding Corporation may change the course of future corporation’s actions and plans. The Kmart is presently number three retailer after Wal-Mart and Target in the country. An academic analysis that was conducted on this event states the positive and negative results of the acquisition. [...] Tom Speh, the Rees Distinguished Professor of Distribution at Miami University, thinks the acquisition is a wrong step...
Words: 633 - Pages: 3
...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...
Words: 15922 - Pages: 64
...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 SBUs has been consistently declining over the past few years, due to Sears’ poor performance. Consequently...
Words: 11357 - Pages: 46
...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...
Words: 3951 - Pages: 16
...the Kresge Company started opening locations that 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...
Words: 7396 - Pages: 30
...Scott C. Kearns MGT6890 6/20/12 Kmart and Sears: Still stuck in the middle? Just two years after filing bankruptcy, Kmart Corporation stunned the retail industry with the acquisition of Sears in November of 2004. The acquisition of Sears for Kmart was a part of a growth strategy to help build and strengthen the once dominant giant discount retailer. Between the 1960’s and through the 1980’s Kmart was the number one leading retailer in the discount department store industry. For 30 years Kmart seemed to be doing everything right but as they were growing they were also slipping into a deep hole. Many factors played into their eventual retrenchment but supply chain management was their biggest fault. During the 1990’s growing competitors like Target, Sears, and Home Depot took a piece of Kmart’s market place pie with Wal-Mart taking the biggest slice. As sales declined over time due to the increased competition, management also was neglecting the company’s supply chain operation. This neglect created a surplus of goods doomed for blue light specials that would have to be stored in semi-trucks beds behind the store because the current products on the shelves weren’t moving. By the start of 2000, Kmart locations looked like they had been foreclosed on with giant cement parking lots filled with maybe a dozen cars on a good day. Eventually retrenchment day came Kmart filed for bankruptcy in January of 2002. Kmart was able to regain control of the company and emerge from...
Words: 1418 - Pages: 6
...Integrated e-Marketing Plan: Developing an e-Marketing Plan for Competing in the Electronic Global Marketplace Prepared for [SEARS] By: [Maria Quinonez] Date: [October 29, 2014] Table of Contents Starting an e-business in the Electronic Global Marketplace: Completing an Integrated e-Marketing Plan 1 Executive Summary 3 Selection of the e-Business for the Project 4 Environmental Analysis of the Marketplace 6 Targeted Market Segmentation 8 Consideration of Placement Decisions 10 Consideration of Product Decisions 13 Considerations of Pricing Decisions 16 Analysis of Innovative Promotional Communication Tools 18 Implementation and Measurement of Strategic Goals 23 Conclusions and Recommendations 25 Appendices 26 Executive Summary Sears was founded in the 1800’s and it was one of America’s largest retailers at one point. However, competition, and evolution took place and left this company struggling to make profits. This forced Sears to come up with a new innovative idea and they created online website/sales. With that idea they needed an e-marketing plan, which is proposed below. Section I: Firm details- This section describes the company and its history. It specifies the success and its struggle, and where the company stands today. It explains the main reason for and e-marketing plan as well as why it would benefit from this plan. Section II: Environmental...
Words: 8026 - Pages: 33
...Sears Canada, Inc. (SCC) - Financial and Strategic Analysis Review Reference Code: GDRT32835FSA 290 Yonge Street, Suite 700 Toronto, ON M5B 2B8 Canada Phone Fax Website Exchange +1 416 3621711 +1 416 9414793 www.sears.ca SCC [Toronto Stock Exchange] Revenue Net Profit Employees Industry Publication Date: AUG 2010 5,201 (million CAD) 290.70 (million CAD) 11,240 Retailing Company Overview Sears Canada Inc. (Sears) is a multi-channel retailer. The company engages in providing a variety of merchandise ranging from apparels to electronics to house wares. Its product line includes apparels, footwear, jewellery, home improvements, furniture, appliances, electronics and several others. The company offers its merchandise through specialty stores, including department stores, outlet stores and other store formats; catalog and website. It offers various private label and national brands. Sears is also engaged in real estate business through joint venture interest in shopping centers. The company principally operates in Canada and is headquartered in Toronto, Canada. Key Executives Name William C. Crowley Dene L. Rogers Deidra D. Cheeks Merriwether R. Raja Khanna Jon Lukomnik Chairman Chief Executive Officer Director Director Director Title SWOT Analysis Sears Canada, Inc., SWOT Analysis Strengths Weaknesses Strong Foothold in Canada Specialized Services Declining Market Share Dependency on Leased Properties Source: Annual Report, Company Website, Primary and Secondary Research...
Words: 9930 - Pages: 40
...Organizational Change Tricia Miller Manage Changing Organization In late fall of 2004 the merger of two struggling companies, Kmart and Sears was announced. At the heart of this merger was the chairman of Kmart, Edward Lampert, a 42- year old investor, who made a name for himself by buying Kmart out of bankruptcy. The cost of this merger would be 11 billion dollars. Due to the strong brand recognition of Sears their name would become the face of this merger. They would become the Sears Holding Corporation (Oneal & Jim, 2004). Many believed that this was not the right course of action for these two organizations. Taking two companies that were once very successful, but now were struggling was not going to be the magic solution that they were hoping for. They both were failing and until that could be corrected, the question that everyone was wondering was would this only delay the inevitable. While it would make them the third largest retailer, the underlying issues that both companies were already facing it what truly needed to be addressed (Chandler, 2004). Even knowing this Lampert had high hopes as he had done well with Kmart, he had taken them from the brink of death and brought them back even without extensive management experience. He believed that he could do it again and make Sears Holding Corporation a strong competitor to Wal-Mart (Oneal & Jim, 2004). Let’s discuss background of each of these organizations. Kmart Kmart was born in Detroit in 1899. It carried...
Words: 2745 - Pages: 11
...History of J.C. Penney Company, Inc. J.C. Penny is the second largest of all the United States department stores. The nearly thousand stores are dispersed around the United States and even in Puerto Rico and Mexico. J.C. Penny has been around for over 100 years. According to International Directory of Company Histories, “James Cash Penney started his first retail store in 1902 in Kemmerer, Wyoming, a small mining town.” (Grant, 1997) The store has since transformed to more of fashion-oriented retail store instead of a wide variety of goods. Since their refocus of the company, JCPenny’s has been able to compete in the very harsh market with a lot of competitors such as Sears, Walmart and Kmart. The internet shopping options provided by JCPenny has been showing great growth for the company. In fact the company is so well known because of its ability to adapt to the new forms of sales such as online. JCPenny SWOT Analysis Strengths: * JCPenny has a long history in the business * Brand Recognition * Locations nationwide that are in nearly every mall * Exclusive popular brand names that are not available other places Weaknesses: * Decline in comparable store sales * Decrease in popularity due to competitors * Changing business strategies a little too often * Lack of coupons Opportunities: * Growing internet sales * Exploring specific markets such as maternity and/or big & tall * Attracting new customers through new business...
Words: 995 - Pages: 4
...sector. However, this model is also less likely to enable stockholders to realize significant gains or losses because it is not singularly focused on one business. Investopedia (2011) states that companies may become diversified by entering into new businesses on its own, by merging with another company or by acquiring a company operating in another field or service sector. One of the challenges facing diversified companies is the need to maintain a strong strategic focus to produce solid financial returns for shareholders instead of diluting corporate value through ill-conceived acquisitions or expansions. Wal-Mart and Kmart; along with Target are the three primary retail giants in the United States. This paper will compare and contrast Wal-Mart and Kmart Corporations. According to Wal-Mart’s website: “Wal-Mart serves customers and members more than 200 million times per week at more than 9759 retail units under 60 different banners in 28 countries. With fiscal year 2010 sales of $405billion, Wal-Mart is the world’s largest private employer; employing...
Words: 1543 - Pages: 7
...MMPBL/510 7-25-2011 Remington Peckinpaw Davis Project Management Plan Project Management Research Worksheet Task A: Problem/Opportunity Statement | Instructions for Task A: In the Response row, write out the problem/opportunity statements for the scenario for each of the team members. | Response to Task A: Remington Peckinpaw Davis will become an industry leader and profitable online trader by aligning project management strategies with organizational goals to provide customers with a highly efficient online trading system. Remington Peckinpaw has several different projects going on simultaneously in addition the internet and real estate investments are proving to have increasing profits. The increasing business has also attracted newer tech-savvy competitors with a host of new tools that has driven RPM management into confusion on how to manage projects to help compete against the new competition. | | Generic Benchmarking—The purpose of generic benchmarking is to identify potential solutions to the problem statements defined in Task A. You will do this by looking at how companies in other industries have dealt with similar issues. | Topic A: Data Reliability | General Electric is a company that operates in many facets. “GE is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs...
Words: 2388 - Pages: 10
...Merchandise Managers to improve customer focus. Lucy Cindric was assigned the role of Senior Vice President, General Merchandise Manager in the area of Seasonal, Toys and Electronics division (Eaton, 2014). Trey Johnson was assigned the role of Senior Vice President, General Merchandise Manager for Food and Consumables. And Martha Withers-Hall as Senior Vice President, General Merchandise Manager for Furniture and Home Décor (Easton, 2014). Lucy, Trey and Martha are holding positons at the same level of management. Their roles are primarily implementing different strategies to accomplish the same goal under the Merchandising category. They will all report to Richard Chene. ------------------------------------------------- The objective behind this strategic planning was to deliver a detailed plan that evaluated all aspects of Big Lots current operations including their leadership hierarchy make it organized by assigning a specific leadership role for each category. Big Lots has already implemented their plan for the next three years “and shared stories of stores past that were driven more by finding cheap deals than assembling a logical assortment of goods”(Eaton,2014). By implementing the three categories they are hopeful to organize and improve each department with consistent product type and availability. ------------------------------------------------- Based on our research, we believe the organizational assignment shall remain...
Words: 698 - Pages: 3
...https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTCU-qEMJMc0lMV6YFk1zl9imAibUHoaPQss0PWB2-FwyJL0FO32g STRATEGIC PLAN: BRAND HISTORY • Company’s industry Dollar Tree Inc. operates within the industry of Dollar and variety Stores, which provides cheap products to consumers in different locations. The Dollar and variety stores industry has been in existence since time immemorial to offer low price products to consumers in order to supplement the big chain stores and supermarkets since they are closer to the consumers. Business analysis in America reveals that the Dollar and variety stores industry has experienced a significant growth over the last five years as at 2014. This industry offer employment to more than 270,449 people in America as depicted by the industry research report (Britt 35). • Company’s competition The Dollar and variety industry contains many companies, which compete among one another in search for consumers and increase in revenue. Dollar Tree Inc. face stiff competition from ALCO Stores, Inc., Big Lots, Inc., Burlington Stores, Inc., Costco Wholesale Corporation, Dillard's, Inc., Dillard's, Inc., Dollar General Corporation, Wal-Mart Stores, Inc, Tuesday Morning Corp., The Bon-Ton Stores, Inc., Target Corporation, Sears Hometown and Outlet Stores, Inc., Sears Holdings Corporation, PriceSmart, Inc. among many other...
Words: 1065 - Pages: 5
