...Byanca Christopher Business 4/20/2015 Sears Holdings Corporation There have been many large chain retailers to grace the United States, but Sears (or Sears, Roebuck and Co.) has been a staple for as long as many people can remember. Sears was once the largest retailer in the United States and is still one of the largest today. In recent years the retail giant has seen a major decline in revenue and stores have been closing across the country. However, Sears is not completely out of options or business and has a formula to continue its longevity. Sears, Roebuck and Co. is still one of the most recognized names in retail and has shown to be adaptable to the changing business environment. The Sears, Roebuck and Co. was founded in 1886 by Alvah Curtis Roebuck and Richard Warren Sears. Sears started his career as a railway agent. He began selling watches after a shipment of watches were unwanted by the receiver (Weil 20). After selling watches for a while Sears moved to Chicago and hired Roebuck who was working as a watchmaker at the time. The company became known as Sears, Roebuck and Co. In 1888 the first catalog was produced offering watches and jewelry (A Brief Chronology of Sears ln.1) There catalog enabled the duo to offer fixed prices to farmers for a larger variety of items rather than base the prices on the creditworthiness of the customer. The business’ growth was stratospheric and they quickly became a household name (Weil 22). This was not the end; the catalogs began...
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...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...
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...We are proposing that Sears Holding Corporation (SHC) divest its subsidiary Kmart Corp. Sears was once a retail giant that offered home appliances, clothing, and hardware. Kmart Corporation acquired Sears, Roebuck and Co in 2005 in the optic of accelerating their process of expansion as Sears targeted several Kmart locations. The merger of those corporations was also made to facilitate the access of branded products to their respective customers. They kept their own specific brands to continue focusing on their customers. By sharing their intelligence data they wanted to improve their revenues and minimize their overall annual costs. However now because of the recession, Sears is becoming less viable as time goes on and it stays alive by shutting down over a hundred storefronts across the nation. Kmart wanted to compete with large discount retailers like Wal-Mart and Target so they acquired Sears which now seems to be their downfall. Kmart sales have gone down tremendously because it has not successfully anticipated consumers’ needs. The immediate response of the merger was a decline of 84% in income and later on a net of $170 million loss during the first quarter of 2011. Even if the company’s profit has been positive this year, it seems that it is not at its fullest capacity. Sears’s problem is that it needs to focus more on their own identity and help its own brand image. By dropping Kmart, they can revamp their old fashioned image and give consumers what they want. By...
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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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...Sears Holdings Corporation is a company that came from two very well known organizations, Sears and Kmart. Both companies go back even farther than the 1900s and unfortunately both companies experienced financial difficulty at one point. With the merger Sears Holdings Corporation has the experience of both organizations as well as their different style of operating. Along with an improved customer base and a new outlook Sears Holdings Corporation is experiencing financial growth. Richard W. Sears was an agent at a railway station. This job provided him with loads of free time, so he would sell lumber and coal to local residents for extra money. During his employment with the railway station he came across some discarded watches and decided to repair and sell them. He made a good profit and decided to try it again. In 1886 Sears began the R.W. Sears Watch Company in Minneapolis. After moving his business to Chicago, IL Sears advertised for a watchmaker and came across Alvah C. Roebuck who claimed to do excellent work. In 1893 Sears Roebuck and Co. was formed. Adapting the motto, “Shop at Sears and Save” Sears quickly became the place where farmers shopped to save money and cut out the middleman. Sears’s prices were much cheaper than rural stores. By 1895 Sears was producing a 532-page catalog with many other items, such as stoves, women’s clothing, wagons, furniture, china, firearms, glassware and baby carriages etc. “Sales in 1893 topped $400,000 and two years later...
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...Strengths * Sears is one of the top three merchandise retail companies in the United States. They currently are behind Wal-Mart and Target. * Sears has a very strong managerial capability that manages its wide range of retail outlets in USA and Canadian markets. (Sohail, 2011, para. 5) * Sears is currently the only company of the top three competitors that have stores located inside of malls. This allows them to seclude themselves from the competition. * Sears has its own brand name products such as Craftsman, Kenmore, and Diehard. * Sears will always have loyal customers who will forever buy their products based off of good past history. * Sears provides many ways for its customer to shop. Customers can shop via traditional stores, online, or by mobile devices. * Sears provides commerce services such as sell on Sears, supply with Sears, and advertise with Sears. * Sears has a reward points system for customers who possess their credit card. * Sears offers stock options to its employees at a discounted price. * Sears gives assistance in locating resources such as childcare providers, adoption services, colleges and elder care resources, as well as counseling in times of need to it employees. | Weaknesses * Co-location of other competitors such as Wal-Mart, and Target within shopping market plazas can deter shoppers from entering malls. * Sears is set in many of its ways like store layout, marketing, and overall appearance. They have yet to update...
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...By 1927, 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...
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...Kmart და Sears: ისევ პრობლემები??? 2002 წლის 2 იანვარს კორპორაცია Kmart გახდა უდიდესი საცალო მოვაჭრე ამერიკის ისტორიაში, რომელსაც დასჭირდა გაკოტრების საქმის წარმოება. Kmart-მა მოითხოვა რეორგანიზაციის საქმის დაწყება აშშ–ის გაკოტრების კოდექსის მე-11 თავის მიხედვით და განაცხადა, რომ დაფარავს კრედიტორულ დავალიანებას და გააკეთებს ბიზნესის რესტრუქტურიზაციას ისე, რომ შეძლოს სასამართლოს დახმარების შემდეგ დარჩეს კონკურენტუნარიან მოთამაშედ საცალო ბაზარზე. Kmart-მა თავი დააღწია გაკოტრება 2003 წლის მაისში, თუმცა, ამ დროისთვის ჯერ კიდევ არ ჰქონდა ჩამოყალიბებული ძალზედ კონკურენტულ ბაზარზე წარმატების სტრატეგია. ამერიკულმა დაბალი ფასების საცალო ბიზნესმა 2004 წელს განვითარების მწევრვალს მიაღწია და ამ დროისთვის Kmart-ს უკვე აღარ ჰქონდა მკაფიოდ გამოხატული პოზიცია ამ ინდუსტრიაში. მისი ძირითადი კონკურენტები იყვნენ Wal-Mart, Sears, Target, Kohl’s, J.C. Penney, გარდა ამისა, იყვნენ მეორადი კონკურენტები კონკრეტული კატეგორიების მიხედვით. ამ ბაზარზე ლიდერი იყო Wal-Mart, რომელსაც ჰქონდა ყველაზე დიდი გაყიდვები და მცირე დანახარჯები (შესაბამისად, დაბალი ფასები). Wal-Mart-მა მოქმედება დაიწყო ამერიკის არაურბანულ ნაწილში და აქტიურად იზრდებოდა საერთაშორისო მასშტაბით. წლიური გაყიდვების მხრივ მეორე ადგილზე იყო Sears, რომელიც ბაზარზე პოზიციონირებული იყო მყარი საქონლით, როგორიცაა საოჯახო ტექნიკა, ასეთი საქონლის გაყიდვების 40% კონტროლდებოდა Sears-ის მიერ. თუმცა Sears-ის გაყიდვები მაინც შემცირდა, რადგან მომხმარებლები უფრო და უფრო ამჯობინებდნენ Sears-ის მოლის ტიპის მაღაზიებს ავტონომიური ბიგ ბოქს ტიპის ჰიპერმარკეტებს...
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...Diversification Strategies Arissra Stamps Strayer University Diversification Strategies Types of Diversification Strategies Diversification is a business strategy that allow a company to establish additional lines of commerce that maybe different from the current products or services. Depending on company’s directions, the different types of diversification that company utilize are: Horizontal, Vertical, Concentric, Heterogeneous (Conglomerate) and Corporate Diversifications (Small Enterprise Strategic Development Training, 2009). Horizontal Diversification is used when the company wants to develop new product or offer new service that could appeal to current customers. For example, a dairy who produces cheese wants to expand its products with new types of cheese. A construction company may choose Vertical Diversification; it may venture into new selling product such as paint and construction materials while the core business remains in providing construction services. Concentric Diversification is the method a company uses to enlarge the production portfolio by adding new products and aiming to utilize the potential of existing technologies and market system. The best example of this strategy would be a bakery who sales bread, pastries and cake who begins to sale dough products. Heterogeneous or Conglomerate Diversification is opposite from Concentric because it focus on new products or services that do not use existing technologies and does not have any commercial...
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...November 21, 2011 Organizing Paper Sears Holdings Corporation is one of the largest retail stores with four-thousand retails stores. Sears is also a leading retailer for home appliances, and in other areas from tools to automotive maintenance. Also, the corporation receives over eleven million service calls each year; it is the largest home services provider. The company has many brands; a few are Kenmore, Craftsman, and Diehard. They also have various clothing brands two of the best known are Lands’ End, and Joe Boxer. Sears and Kmart also offer the Country Living Collection. Among the companies’ many other attributes they were named the Energy Star Retail partner of the year for 2011. The corporation has several subsidiaries through which it operates; these are Sears, Roebuck and Company and Kmart Corporation. Sears merged with Kmart in 2005 after the shareholders of both companies voted to do so (Sears Holdings Corporation, 2011). Kmart and Sears felt that by merging they could be more demographically accessible. Both companies shared a “customer-focused” culture and this would help them to improve revenue. Maintaining the two brands allowed the corporation to focus on different demographics without making anyone feel left out. Now the company is ran by a board of directors which includes members from both companies. Shareholders from the Kmart Corporation were given stock in the new company. Shares of Sears Corporation were separated into a percentage...
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...1. (35 points) The United States Post Office provides an array of services which according to recent reports to Congress has resulted in billions in annual losses. A special committee has identified potential services that could be reduced or eliminated as follows: a. Reduce days of delivery from six to five days i.e. eliminate Saturday delivery for residential and commercial customers b. Eliminate special delivery services such as express mail and certified mail c. Change the pricing structure for bulk (aka junk mail) to discourage use and encourage digital distribution to save costs on transportation, storage and labor d. Consider eliminating other services such as passport and Post Office Box (POB) and any other non mail processing and delivery services Use the above information to develop a framework for a recommendation for the USPS to continue or discontinue two of the services above. Your discussion should consider a make or buy decision or product line discontinuation decision or outsourcing decision or any combination with identification of the relevant costs to be considered. Your response should outline the quantitative factors such as relevant/avoidable/differential costs as well as the qualitative factors that should be considered in your decision. Provide an opinion assuming you had the appropriate information on what the USPS should do regarding future services. We examine points “a” and “d.” Both these are product elimination decisions. In making the decision...
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...CASE STUDY III FAIRHOLME Ignore the crowd. Fairholme Ignore the crowd. This presentation uses Sears Holdings Corporation (“Sears” or the “Company”) as a case study to illustrate Fairholme Capital Management’s investment strategy for the Fairholme Fund. In the pages that follow, we show Fairholme Fund shareholders why we “Ignore the crowd” with regard to our portfolio positions that are currently out of favor in the market. However, nothing in this presentation should be taken as a recommendation to anyone to buy, hold, or sell certain securities or any other investment mentioned herein. Our opinion of a company’s prospects should not be considered a guarantee of future events. Investors are reminded that there can be no assurance that past performance will continue, and that a mutual fund’s current and future portfolio holdings always are subject to risk. As with all mutual funds, investing in the Fairholme Fund involves risk including potential loss of principal. Opinions expressed are those of the author and/or Fairholme Capital Management, L.L.C. and should not be considered a forecast of future events, a guarantee of future results, nor investment advice. The Fairholme Fund’s holdings and sector weightings are subject to change. As of May 31, 2012, Sears securities comprised 10% of the Fairholme Fund’s total net assets. The Fairholme Fund’s portfolio holdings are generally disclosed as required by law or regulation on a quarterly basis through reports to shareholders...
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...not always good, some of newly created companies go bankrupt and in some cases, mergers companies disband in a sort of corporate divorce. There are no guaranties in corporate mergers, it is inherently risky and without proper strategy, intuition, and knowledge mergers can easily fail. For instance I will examine the merger of Sears and Kmart and evaluate the merger circumstances and the result of the merger. The merger of the two corporates came as a result of the failing of the legend store Sears in the end of the twentieth century. Sears found itself slowly failing as its competitor’s success of low-end big stores likes Target and Walmart, and high- end department stores like Saks Fifth Avenue. On the other hand Kmart itself was struggling and field chapter 11 bankruptcy protection in 2002 that was leading to closing of 600 stores and termination of 57,000 employees and cancelation of company’s stocks. The merger for the Kmart was a remarkable comeback deal. In 2005 Edward Lampert who’s Greenwich, Conn. based investment firm controls Kmart and Sears largest individual shareholder with a 15. 8 percent stake, purchased both failing corporates Sears and Kmart,...
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...not always good, some of newly created companies go bankrupt and in some cases, mergers companies disband in a sort of corporate divorce. There are no guaranties in corporate mergers, it is inherently risky and without proper strategy, intuition, and knowledge mergers can easily fail. For instance I will examine the merger of Sears and Kmart and evaluate the merger circumstances and the result of the merger. The merger of the two corporates came as a result of the failing of the legend store Sears in the end of the twentieth century. Sears found itself slowly failing as its competitor’s success of low-end big stores likes Target and Walmart, and high- end department stores like Saks Fifth Avenue. On the other hand Kmart itself was struggling and field chapter 11 bankruptcy protection in 2002 that was leading to closing of 600 stores and termination of 57,000 employees and cancelation of company’s stocks. The merger for the Kmart was a remarkable comeback deal. In 2005 Edward Lampert who’s Greenwich, Conn. based investment firm controls Kmart and Sears largest individual shareholder with a 15. 8 percent stake, purchased both failing corporates Sears and Kmart,...
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...SEARS Marketing Plan Executive Summary Sears Holding Corporation is the fourth largest retailer in the United States and Canada. Its subsidiaries include Sears, Roebuck and Co. as well as K-Mart. The closing of the merger between Sears and K-Mart took place on March 24, 2005. Sears has more than 4,000 retail stores across the United States, Canada, Puerto Rico, and Guam. Sears offers products and services through over 2,700 branded and affiliated stores. Sears operates 894 broad-line stores and 1,354 specialty stores. Sears’ broad-line stores are mall-based locations. The specialty stores include Sears Hometown Stores that are mostly independently owned, Sears Home Appliance Showrooms, Sears Hardware Stores, Sears Auto Centers, and The Great Indoor Stores (Community, n.d.). Sears is the leading retailer in home appliance, tools, lawn and garden, electronics, and automotive repair and maintenance. They are also the largest home service provider and answers over 11 million service calls a year (About, n.d.). Sears’ values are built upon customer service and the company is committed to quality service and products. Sears aims to build lifetime relationships and trust with its customers. The Company prides itself on having a diverse customer base and values the customer’s individualities. As stated on the corporate website “Everything we do starts and ends with the customer.” (Diversity, paragraph 3). Sears also holds expectations from their employees. The Company values...
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