. Mission statement
Sears Holdings is one of the oldest retail shops that run in the US economy. It is also the mother store to Kmart stores. 1. Sears serves their customers with the upmost respect and provides products for customers of all demographic groups. 2. Sears provides a variety of goods and services such such as electronics, furniture, grocery and clothing. 3. Sears operates at the North American markets and also the Canadian market. 4. With regards to technology, Sears has strived to meet all aspects of the upcoming aspects by advertising their goods online. 5. Bearing in mind the numerous chain stores that Sears have in both US and Canada, it is worth indicating that each store is guided by its mission statement. 6. Despite the various mission statements, all the Sears retail department stores employees are guided by a joint philosophy:
To provide remain responsible in enhancing their customer's lives through the provision of quality goods, services, and solution that will be a tool in building trust and a firm basis for a lifetime relationship.
7. It is also advantaged due to diversity of its products and geographical location.
8. Other factors constant the Sears employees have given their customers priority with the aim of satisfying their needs and the company's good public image. This is necessary for winning the trust of the client and a stable ground for a long term relationship. 9.The Company also has embrace competition for healthy growth and financial gain and values their employees as an important tool to help with the competition for the company and also providing a good reputation for the company. Employees are able to advance higher in the company.
2. Sears Problem Statement
Sales for sears declined in 2015 by $2 billion dollars from the sales in 2014 of $7.9 billion. A) Sears plans to continue to find new marketing strategies and will condense stores to save on operational costs and liquidate non profitable assets.
3. Internal Strengths
A) Sears has a higher advantage in two strong aspects. First, it has long retail networks and also deals with a variety of goods. Sears Holdings is broad in its operations as it has 3,847 retail shops in the US and Canada. This broadness is a strength as it serves to spread risks and losses. When the company is suffering from loss losses will be shared among the various departments' retail stores to ensure that the one store does not collapse due to massive losses. Also, the broadness of the company is important as the stores can share profits uplifting those that are not performing well regarding profit returns (Pahl, & Richter, 2007). Finally, with such national and international networks the company image and brands are maintained which in turn attracts new and support from already existing customers.
A) The second strength of the enterprise is the fact that it deals with a variety of goods from tools, automotive spare parts, furniture, clothing, electronics, shoes, and even groceries. The diversity of products attracts customers with different needs which in turn increase profit; this is an important strategy that Sears have employed to maintain its high sales over the past. A variety of products also helps Sears in diversifying their risks and building on its already existing reputation (Pahl, & Richter, 2007). Sears can spread their losses to those lines of products that are doing well hence distributing the losses and minimizing the impact of loose in a single line of product.
3. Internal Weaknesses
B) These are the factors within a business that negatively affects its operations (Pahl, & Richter, 2007). In this case of Sears, two significant weaknesses can be attributed to its current poor performance. The two include poor management and the debt requirements. First, the Sears has recorded a decline under the leadership of Eddie Lampert the current CEO. There is a need to make leadership changes so as to improve the current situation of Sears.
B) Secondly, are the principles and rules that govern debts requirement, Sears have carried debts from different financial supports who place demanding requirement such as high interest on loans which in turn drains the company's profits. The current position of the Sears company is at stake due to it has to borrow money to maintain its operations. But the situation is correctable as the company can sell some of its properties to pay off loans and avoid them in future or make agreements with debts with reasonable requirements that meet their financial abilities.
4. External Opportunities
A) These are the market gaps that provide an opportunity for a business organization to expand. Sears has many opportunities, but this paper will focus on two main ones of emerging markets and availability of private brands. Currently, there are new markets that have developed such as China, Japan, and India and most of the organizations have expanded their operations to this new markets (Gibson & Hughes,2011). Sears also can expand its operations in the markets to increase their sales and also spread risks. There are high chances if Sears expands its activities in these countries it will succeed as the economy of these countries has the capability to grow.
Sears has an advantage because it has its brands, and all it needs to do is to reposition its brands so it can benefit from the existing market. There is a market gap in the US market that is providing entrepreneurs ready to manufacture their products a ready market (Gibson & Hughes 2011). Sears has many private brands this where the company has a perfect opportunity to venture into the market. This will help the company to maximize its sales which will in turn reap more cash for the company solving its financial problems efficiently and hence embarking on their financial stability.
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