case analysis-Case: K-Mart and Sears: Decision to Merge

Feb 3rd, 2012
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Executive Summary The U.S. discount department store industry had reached maturity by the end of the 20th century, but neither Kmart nor Sears possessed clearly-defined positions within that industry. Their primary competitors were Wal-Mart, Target, Kohl’s, and J.C. Penney with secondary competitors in certain categories. Emerging from bankruptcy in May 2003, Kmart still lacked a business strategy to succeed in an extremely competitive marketplace. Its low cost position in discount retailing had been usurped by Wal-Mart. Target now dominated the quality discount position. Sears had a strong position in hard goods, such as home appliances and tools. Nevertheless, Sears was struggling with slumping sales as customers turned from Sears’ mall stores to stand-alone, big-box retailers, such as Lowe’s and Home Depot, to buy their hard goods. Edward Lampert........................................................

Word Count: 1599
Showing Page: 1/8
FORMAT FOR WRITTEN CASE ANALYSIS Required SectionsGuidelinesI. Executive SummaryOne to two paragraphs in lengthOn cover page of the reportBriefly identify the major problems facing the manager/key personSummarize the recommended plan of action and include a brief justification of the recommended planII. Statement of the ProblemState the problems facing the manager/key personIdentify and link the symptoms and root causes of the problemsDifferentiate short term from long term problemsConclude with the decision facing the manager/key personIII. Causes of the ProblemProvide a detailed analysis of the problems Identify in the Statement of the ProblemIn the analysis, apply theories and models from the text and/or readingsSupport conclusions and /or assumptions with specific references to the case and/or the readingsIV. Decision Criteria and Alternative SolutionsIdentify criteria against which you evaluate alternative solutions (i.e. time for implementation, tangible costs, acceptability to management)Include two or three possible alternative solutionsEvaluate the pros and cons of each alternative against the criteria listedSuggest additional pros/cons if appropriateV. Recommended Solution, Implementation and JustificationIdentify who, what, when, and how in your recommended plan of actionSolution and implementation should address the problems and causes Identify in the previous sectionThe recommended plan should include a contingency plan(s) to back up

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