Analysis Of Sears Holding Company ( Shld )

854 Words Sep 27th, 2014 4 Pages
Introduction
Sears Holding Company (SHLD) was once a very successful organization. Prior to the 1980’s, SHLD managed to generate revenue and compete among the top retailers in America (Kim, 2014). However, in more recent years, SHLD has become subject to scrutiny among industry’s critics. As of late, SHLD has made several attempts to revive their organization. These attempts involve SHLD implementing corporate, business and functional leveled strategies within their organization.
Corporate Level Strategies
Every organization needs to create corporate level strategies. Corporate level strategies help organizations create plans and methods that will allow them to grow, no matter how the economy changes (Latham, 2014). SHLD used two different corporate level strategies to help them increase revenue and cut costs. The first corporate strategy used by SHLD is horizontal integration mergers. This strategy involved SHLD merging with K-Mart. K-mart decided to merge with Sears in 2004, in hopes that both stores can gain an competitive advantage over rival retail giants. Both SHLD and K-Mart thought that they would be better suited to compete against Lowes and Home Depot; this is due to their potential inventory increase and availability from the merger.
While merging seemed to open doors for both SHLD and K-Mart, there was still a need for retrenchment. Retrenchment was used by SHLD once the merger as complete, this involved store closures and laying off employees at various Sears…
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