Organization And Management Kmart

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  • 1. K-mart:The Bleeding Giant Sharese Washington Cedrick Wilkins Organization and Management MGMT 300
  • 2. 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.
  • 3. 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.
  • 4. 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.
  • 5. 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.
  • 6. Analysis continued…..
    • Competition offers a variety of products that Kmart does not.
    • Competition with itself
    • Customers being dissatisfied with the fluctuation in Kmart prices.
  • 7. 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.
  • 8. 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.
  • 9. 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.
  • 10. References
    • (n.d.). K-Mart Corporation-Company History . Retrieved from
    • (n.d.). Target Corporation . Retrieved from histories/Target-Corporation-Company-History.html
    • (n.d.). Walmart History . Retrieved from
    • 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
    • Lewis, K. (2003, October 10). Kmart's Ten Deadly Sins . Retrieved from
    • Matyk, J. (2003, December). What went wrong with Kmart . Retrieved from