Presentation about Kmart. case was taken from the management book written by Gareth johns

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K-mart:The Bleeding
Giant
Sharese Washington
Cedrick Wilkins
WAQAS ANJUM AWANWAQAS ANJUM AWAN
Organization and Management

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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.

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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.

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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.

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Analysis
• Main issue was bankruptcy, In 1995.
• Customers increasingly switched to its
main competitiors, Wal-Mart and Target.
• Kmart was under attack from these two
competitors who had taken the initiative
and were providing customers with more
percieved value.

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

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Efforts done by Kmart
• In 2000, new CEO Charles C.Conaway
took control and began to focus on how
Kmart coud better manage the forces in its
task enviroment
• Invested $2 Billion in new purchasing and
inventory control IT that would
substantially reduce cost.

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Efforts continued......
• introduction of
Martha stewart
lines.

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Efforts continued.....
• Introduction of "Blue
Light Special"

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Results
• Conway's attempts to fight back against
Wal-Mart FAILED!
• In january 2002 Kmart declared chapter 11
bankruptcy just a Wal-Mart announced
record sales.

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Conclusions
• Not only for profit organizations but also
for not-for-profit organizations have
customers, suppliers and competitors that
infuence and pressure the managers
because of the opportunities and threats
they create.

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