Organization And Management Kmart

K-mart:The Bleeding Giant Sharese Washington Cedrick Wilkins Organization and Management MGMT 300

Executive Summary
K-Mart is one of the top retailers in the United States and the number three discount-retailing store behind Wal-Mart and Target.
Kmart operated a total of 1,416 Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands.
K-Mart had problems competing with other major retailers and managing its supply chain.

Company Overview
Established in 1912
Delaware
Started off with the name S.H. Kresge that was founded by Sebastian Spering Kresge and John McCrory.
Grew from a Detroit five-and-dime store opened in 1899.
K-Mart has went from only 85 stores to 2,114 stores.

Problem Statement / Key Issues
Competition
Wal-Mart
Target
Replacement of CEO and BOD
Bankruptcy
Competition and replacement of CEO and BOD all led to the downfall of Kmart.

Analysis
Main issue was Chapter 11 bankruptcy
The problem of competition facing Kmart is Wal-Mart being the number one discount retail store in the U.S. and Target being second
Wal-Mart had $401.2 billion in revenue in 2008, with a $13.4 billion in net income and 5.6% in operating margin.
Target had $64.9 billion in revenue in 2008, with a $2.2 net income and 5.4% in operating margin.
K-mart had a $16.2 billion in revenue in 2008, with a $172 million in net income and 1.1% in operating margin.

Analysis continued…..
Competition offers a variety of products that Kmart does not.
Competition with itself
Customers being dissatisfied with the fluctuation in Kmart prices.

Recommendations
Change company’s name
Embed in local communities
Focus more on minorities
Franchise smaller retail stores
Establish sinking funds for retailing technological advancements
Create a trickle-down- effect for different systems and teams that are being hired in the corporate and managerial levels.

Rationale
In order to stay on the chart, then Kmart should resemble Sears brand image.
Go beyond their competitors so they won’t file for Chapter 11 Bankruptcy again.
Lower cost of products.

Results and Conclusion
The mergence of Sears could make Kmart the number one discount retailing store.
Introduce more Super K’s around the world would increase revenue.
Sears and Kmart both produce ideas that would be beneficial to both of them.

References
(n.d.). K-Mart Corporation-Company History . Retrieved from http://www.fundinguniverse.com/company-histories/Kmart-Corporation-Company-History.html
(n.d.). Target Corporation . Retrieved from http://www.fundinguniverse.com/company- histories/Target-Corporation-Company-History.html
(n.d.). Walmart History . Retrieved from http://walmartstores.com/AboutUs/297.aspx
Bhandari, Narendra C. “K-Mart: The Bleeding Giant.” 1999.
Frederick, J. (1992, November 9). Kmart unveils biggest Super Center: food taking major role at discounter . Retrieved from http://findarticles.com/p/articles/mi_m3374/is_n20_v14/ai_12773478/
Lewis, K. (2003, October 10). Kmart's Ten Deadly Sins . Retrieved from http://www.forbes.com/2003/10/10/1010kmartreview.html
Matyk, J. (2003, December). What went wrong with Kmart . Retrieved from
http://74.125.113.132/search?q=cache:CaZs8tUMd7AJ:www.bsu.edu/libraries/virtualpress/studEnt/honorstheses/pdfs/M39_2003MatykJacquelineM.pdf+kmarts+internal+problems&cd=10&hl=en&ct=clnk&gl=us

Organization And Management Kmart

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Organization And Management Kmart — Presentation Transcript