SEARS, ROEBUCK & CO.

Presented By-
SANIDHYA MISHRA
PRAGNYA MANDAL
PRERANA PATRA
PIYALI PALIT
SANJANA SINGH
SHRIOM TRIPATHY
SOBHRA KOMAL SATAPATHY
RAAJ DAS
BHAGYASHREE DAS
MAHASHWETA MISHRA
INTRODUCTION Fostering a strong competition is
extraordinary. In any case, it's more
difficult than one might expect
you'd most likely say.As a web
based business supervisor you
know it's a steady fight to stay in
front of your opposition.
Sears deals developed amazingly however at that point in 1980's it ran into different issues.
Its business developed to 4.3% where as Walmart's business detonated to 34% . Around the
same time it lost its main situation in retailing to Kmart .Its concern incorporated a swelled
construction that made extraordinarily high working costs , an unweidly framework that
made a lackluster display of planning and controlling operations,a late history of conflicting
marketing and valuing procedures and a hierarchical culture that unyieldingly opposed
change.
Chaos and challenges

Sears selling and authoritative costs addressed 30% of its deals versus 24% at J. C. Penney and Kmart
and 17 percent at Wal-Mart. Burns' conveyance costs-around 8% of deals versus around 2% at Wal-
Mart and Kmart-were the hīghest in retailing. These hīgh costs made it difficult for Sears to offer
cutthroat costs. Somewhere in the range of 1978 and 1988, Sears' portion of general product deals in
the U.S. tumbled from 18 to 13 percent. That addressed $8.4 billion lost to contenders. The
coordination and control issues of regulating 825 outlets and 526,000 individuals seem to have
overpowered Sears' manągement. Decision-making had become too centralized.
 STRATEGIES UNDERTAKEN BY SEARS

STRATEGY : It can be defined as the common long term goal and accusatives of an
enterprise.

Business Level Strategy : This strategies examine how firms compete in a given industry.

Corporate Level Strategy : This strategy is a multi - tiered company plan that leaders use
to define , outline and achieve specific business goals.
Strategic Dimensions

Innovation - To what degree does any organization introduce a new product or

service.

Marketing differentiation - creates customer loyalty in order to particular needs of

the customer.

Breadth - Refers to the scope of market to which the company extends business
catering.

Cost control - An extent to which organisation tightens the cost, refrains from
incurring unnecessary innovation or expenses.
PORTER’S 3
1. COST LEADERSHIP
GENERIC 2. DIFFERENTIATION
STRATEGIES 3. FOCUS
Questions & its Solution
 ● In relation to strategy :

Sears original strategy was

1) Describe how sears defender.
original strategy influenced
its structure. ● In relation to structure :

This strategy enforce high

Centralized decision making

 ● Arrogance among employees
2. Do you think its exchange
in strategy in 1989 should (less flexibility)
have lead to change in
● Resistance to chance
structure?
● Low formalization

● High complexity
 ● Increase Complexity
3. How has size influenced
sears structure?
● No formalisation

● High centralization
4. Kmart is almost the same
size as Sears but is more ● Maintain Low Cost
effective. What structural
factors do you think might ● Focus Strategy
contribute to K-mart being
more effective than Sears? ● Values & Rewards
 ● Heading towards declining
5. Is sears a mature or a
declining firm? ● Loss of market share

● Atrophy

● Social fabric of firm eroded


6. What problems does sears
face that Wal -Mart and
Kmart don’t?
- Bloated structure that created
incredibly high operating expenses.
-Unwieldy system that did a poor job of
coordinating.
-Selling and administrative expenses
made it hard for Sears to offer
competitive prices.
 Finally Sears has a long settled culture that
has bred self-importance between its
workers and Management. Subsequent to
Conclusion ruling the retailing business for however
many years as Sears did ,individuals saw
themselves as working for an American
foundation anything new or various was
viewed as compromising and consequently
should have been enlisted as moderate in
inhale directors were extremely delayed to
answer any adjustment of the organization's
.