...Critical Analysis # 3 The Plan to Rescue Sears The article “The Plan to Rescue Sears” by Miguel Bustillo, analyzed the business recovery strategies that the company plans to implement under CEO Lou D’Ambrosio. D’Ambrosio plans to counteract Sears’ business downturn through a blend of technology and loyalty-reward program. Although this plan might have positive effects, it will only put Sears on the same level with its competitors not ahead of them. Stores such as Macy’s and Target already offer this loyalty-program. In order to reassert its dominance in retail industry, Sears should develop three new strategies including: maintaining capital investments, hiring more experience leaders, and lowering product prices. In order to reassert itself in this industry, Sears needs to maintain its capital investments. Currently, Edward Lampert, the Chairman of Sears Holding, a company created by Lampert through K-Mart-Sears merger, is selling struggling Sears stores. Majority of Sears decision came from Lampert. This action is a bad strategy because in retail business, one of the keys to succeed is expansion. As an article from Forbes describes, “Upon taking ownership, Lampert merged Kmart and Sears into Sears Holding as a new entity. Since then, Lampert has sold some of the Sears properties. Today both Kmart and Sears lack direction and have become irrelevant on the retail scene.” Furthermore, Sears needs a CEO and Chairman who understands the retail industry. As Mark Cohen a professor...
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...Sears Canada is a retailer based in Toronto, ON, with its parent company Sears Roebuck situated in Chicago, IL. The two companies operate independent of each other; however more or less carry the same product lines. Sears Canada primarily has two major merchandising categories, with Home & Hardlines accounting for 60% of the sales while apparel & accessories represent 40% of the sales. Sears has been in the retail industry in Canada for over 60 years, and has built a significant brand name for itself, although many consider it an outdated brand name now in terms of apparel. As such, in light of drastic changes recently in the apparel industry given the influx of American and international apparel companies and the constant improvement of existing rivals, the competitive landscape of the retail apparel industry has become a fight in which Sears Canada cannot win. Sears must make a move out of the apparel industry and focus its resources on its successful home and hardware line. Sears has 3 great brands in this industry it can build around, Kenmore, Craftsman and Diehard. The opportunity for Sears to become a niche player in this segment is there for the taking, and represents a far brighter future for the company as opposed to keeping the status quo and allocating half its resources to a floundering apparel offering. Sears Canada is at a pinnacle point in its existence, as profits and sales have slide since 2006, and its market share in the apparel sector is decreasing...
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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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...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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...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...
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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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...Sold by Sears Width: Medium | Color: Black | Size: 10.5 Shipping edit $24.99 Qty. 1 Apostrophe Women's Hipster Style Panties Sold by Sears Special Sizes: Women's | Size: 7 | Color: White Ship: Standard Joe Boxer Women's Printed Boyshorts Panties Sold by Sears Special Sizes: Women's | Color: Blue | Size: 7 Qty. 1 Your item(s) will arrive between Apr 11 and Apr 13 $3.40 1 $3.40 Joe Boxer Women's Lace-Trim Hipster Sold by Sears Standard Ship: Apostrophe Women's Hipster Style Sizes: Women's | Size: 7 | Color: White Special Your item(s) will arrive between Apr 11 Panties Qty. 1 and Apr 13 Sold by Sears Special Sizes: Women's | Size: 7 | Color: White $3.40 1 $3.40 NordicTrack Men's Mesh Athletic Shorts Ship: Joe Boxer Women's Lace-Trim by Sears Standard Sold Your item(s) will arrive between Apr 11 Hipster Extended and Apr 13| Size: M | Color: Black Onyx Sizes: Men's Sold by Sears Qty. 1 Special Sizes: Women's | Size: 7 | Color: White 1 $8.09 $3.40 Ship: Standard NordicTrack Men's Mesh Athletic NordicTrackitem(s) will arrive between Apr 11 Your Men's Mesh Athletic Shorts Shorts Sold by Sears Apr 13 and Sold by Sears Extended Sizes: Men's | Size: M | Color: Beyond Navy Extended Sizes: Men's | Size: M | Color: Black Onyx 1 $8.09 $8.09 Qty. 1 Ship: Standard Merchandise Subtotal: Your item(s) will arrive between Apr 11 NordicTrack Men's Mesh Athletic Shipping: and Apr 13 Shorts Associate Discount Sold by Sears More Extended...
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...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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...I. Problem For Sears Holding Company (SHC) to come up with a business strategy that will address competition, culture, and synergy and create a distinct brand image and identity for the company, which will help them succeed in the long run. II. Subproblem For the two companies, Kmart Holding Corporation (“Kmart”) and Sears, Roebuck & Co. (“Sears”) to be able to act as one company and create value. III. Objectives 1. To create a brand image identity 2. To create a culture of success 3. To generate consumer loyalty 4. To appropriately position the company in the retailing business industry 5. To be able to address competition 6. To make SHC a profitable company in the long term 7. To build a broader customer base IV. Case Facts and Analysis The merger of Kmart and Sears in late 2004 occurred to gain competitive advantage over its competitors by combining strengths of Sears and Kmart for the long-term value for SHC. This merger will benefit both companies in an ever changing and competitive retail industry. SHC will be able to enter into new markets with its combined expertise of Kmart in discounter stores and Sears in department stores. This merger benefits both companies in different ways separately and to the new merged entity – SHC. Kmart will benefit from the planned cost sharing of several of Sears leading proprietary brands as well as present opportunities to capture significant revenue and cost synergies including merchandise and non-merchandise...
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...SEARS Targeting College Students Prepared For: MKT 360 – Marketing Analytics April 25, 2012 Table of Contents Section title Page Executive Summary 3 Introduction 5 Purpose of the Study 5 Sears: Trends in Sales 5 Competitors 7 Sears Consumer Segments 8 Purchasing Trends 11 Legal Issues 11 Social & Cultural Issues 12 Economic Trends 14 Technological Innovations 15 Research Objectives 17 Methodology 18 Data Analysis & Results 21 Profile of the Sample 21 Descriptive Results 23 Difference & Associative Analysis 33 Limitations 37 Conclusions & Recommendations 40 References 46 Appendix 49 List of Illustrations Figures Page Figure 1.0: Sears Brands 5 Figure 2.0: Respondent’s Gender 21 Figure 3.0: Past Six Months Mall Visits 22 Figure 4.0: Clothing Stores 23 Figure 5.0: Percent of Respondents that Purchased Fitness Equipment in the Past Two Years 24 Figure 6.0: Fitness Equipment Purchase Location 24 Figure 7.0: Most Popular Sears Brands 28 Figure 8.0: Incentives to Increase the Probability of Entering a Store 30 Figure 9.0: Social Media 31 Figure 10.0: Facebook Presence 32 Figure 11.0: Gender vs. Mall Visits 35 Tables Page Table 1.0: Respondent’s Age 22 Table 2.0: The Appeal of the Kardashian Kollection to Females 23 Table 3.0: Perception of Sears 25 Table 4.0: Cause Marketing Practices 29 Table...
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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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...shopping platform that offers rewards). • Leading retailer in home appliances & tools, lawn & garden, fitness equipment, automotive repair & maintenance. • Nation’s largest provider of home services, with more than 13M service & installation calls made annually. Strengths &Opportunities: • Having Super Centers operate 24 hours a day that have a full-service grocery along with a merchandise selection of a discount store. • Sears Auto Centers operating in association with full-line stores • Offering its Sears collection through the use of sears.com website • Option of buying through a mobile app or online & picking up merchandise in one of the Full-line or Kmart stores. • Purchase leased operating facilities, as well as offers to sell owned, or assign leased, operating & non-operating properties. • Transforming into an integrated retail strategy. Strengths &Threats: • Selling Sears merchandise, parts & services to commercial customers through the business to business Sears Commercial Sales & Appliance Builder/Distributor businesses. • Sears Commercial sales providing appliances...
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...1912. 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...
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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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...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 in this situation: "I do not think these companies...
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