D4: This course

Running Head: REAL WORLD MARKET 1

REAL WORLD MARKET 5

REAL WORLD MARKET

Tia McSwain

Louisiana State University

1. Analysis and Discussion

Organizations and businesses re-invent or re-mold themselves by formulating strategies which covert or change their formats to greatly enhance competition in the international and local markets in the environment. There are several examples of companies that have utilized the above strategies to reform and compose its industrial outlook. The Sears Company has at a recent point announced that it will be closing down over a hundred and forty stores as a result of bankruptcy. The stores had a lot of struggles in the economic and financial outlook which has negatively affected its performance.

Though Sears are not the only organization to be forced to close down operations as Jc Penney and Macy stores have also been forced to liquidize and close down operations. Sears' departmental stores have been regularly battling in the business sectors particularly following expanded utilization of online stores and requesting frameworks by other contender bunches which has diminished the aggregate sum of foot or physical guests into the Sears stores (John A. Parnell, 2014). As traffic declined, Sears neglected to meet its operational costs in this manner battling to meet its activity and arrangement of administrations. The deals and benefits of Sears has disabled broadly for quite a long time and requires prompt activities to manage the circumstances are required.

Sears’ departmental stores have been frequently struggling in the markets especially following increased use of online stores and ordering systems by other competitor groups which has decreased the total amount of foot or physical visitors into the Sears stores. As traffic declined, Sears failed to meet its operational costs thus struggling to meet its operation and provision of services. The sales and profits of Sears has crippled extensively for years and requires immediate actions to deal with the situations are required.

Eddie, the chief executive officer to the Sears stores stated that the organization had throughout tried to deal with transformation in the businesses to unfold their assets effortlessly but the efforts have failed continuously. They had a good desire and vision to grow and deliver extensive results regardless of the failure efforts but had come to an extent whereby they needed to reform and liquidize its properties. It is through these efforts and liquidity functions that has ensured stabilization and transformation of the organization to become a profit bearing and compete efficiently with the other stores or retailers. Its stores have been much of the time battling in the business sectors particularly following expanded utilization of online stores and requesting frameworks by other contender bunches which has diminished the aggregate sum of foot or physical guests into the Sears stores (John A. Parnell, 2014). As traffic declined, Sears neglected to meet its operational costs along these lines battling to meet its activity and arrangement of administrations. The deals and benefits of Sears has disabled broadly for quite a long time and requires prompt activities to manage the circumstances are required.

Sears are not the only organization to be forced to close down operations as Jc Penney and Macy stores have also been forced to liquidize and close down operations. In 2018, they were also forced to close down a few of their stores which were struggling greatly. In addition, Lord and Taylor stores also closed down about ten stores which were struggling to compete. Lord and Taylor also closed its famous leading flagship in 5th Avenue in New York. Concentrating on reinventing has enabled the stores to remain competitive all through in the production environment.

2. Recommendations

Sears need to reinvent its structure and operations in order to ensure profitable and fruitful competition with other stores similar to it. Jc Penney and Macy stores also need to reinvent its structure and operations in order to ensure profitable and fruitful competition with other stores similar to it. Kmart also need to solve the issues and problems by implementing restructuring recommendations. Creating an online e-commerce which will serve customers globally is one of the recommendations that the three stores above should venture in to compete efficiently and effectively (Hart.et.al, 2018). Online platforms will increase the total number of customers served as well as sales made per day since the customers will just order from wherever they are. Increased use of online stores and ordering systems will decrease the total amount of foot or physical visitors into the stores but will mean more customers are served at a time.

Secondly, the stores can create off-price retail shops which are smaller in size but are selling the ‘main’ brand of commodities from JCP, Kmart or Sears stores (Pearson, C. M., & Clair, 2018). This will effectively influence sales and in turn will increase sales.

Thirdly, the stores should create a mechanism to fight with the crisis at each of them by installing corrective measures in management and strategic control. Good management in each of them will ensure that profits grow and increase day by day (Martinez, 2017). For example, Sears should appoint a good leader who will be responsible in the strategic control and progress of the activities. Corrective measures and actions are taken by good management/ leadership to achieve the performance of the stores in terms of competition and sustainability.

References

Hart, P., Heyse, L., & Boin, A. (2018). New trends in crisis management practice and crisis management research: Setting the agenda. Journal of Contingencies and Crisis Management, 9(4), 181-188.

https://www.businessinsider.com/why-department-stores-sears-jcpenney-are-struggling-2018-10?IR=T

John A. Parnell (2014) "Strategy Execution Strategic Change, Culture, and Leadership"

John A. Parnell (2014) Strategic Management: Theory and Practice. Chapter 12 "Strategic Control and Crisis Management"

Martinez, A. C. (2017). Transforming the legacy of sears. Strategy & Leadership, 25(4), 30-34.

Pearson, C. M., & Clair, J. A. (2018). Reframing crisis management. Academy of management review, 23(1), 59-76.