Organization And Management Kmart

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Organization And Management Kmart

  1. 1. K-mart:The Bleeding Giant Sharese Washington Cedrick Wilkins Organization and Management MGMT 300
  2. 2. Executive Summary <ul><li>K-Mart is one of the top retailers in the United States and the number three discount-retailing store behind Wal-Mart and Target. </li></ul><ul><li>Kmart operated a total of 1,416 Kmart stores across 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands. </li></ul><ul><li>K-Mart had problems competing with other major retailers and managing its supply chain. </li></ul>
  3. 3. Company Overview <ul><li>Established in 1912 </li></ul><ul><li>Delaware </li></ul><ul><li>Started off with the name S.H. Kresge that was founded by Sebastian Spering Kresge and John McCrory. </li></ul><ul><li>Grew from a Detroit five-and-dime store opened in 1899. </li></ul><ul><li>K-Mart has went from only 85 stores to 2,114 stores. </li></ul>
  4. 4. Problem Statement / Key Issues <ul><li>Competition </li></ul><ul><ul><li>Wal-Mart </li></ul></ul><ul><ul><li>Target </li></ul></ul><ul><li>Replacement of CEO and BOD </li></ul><ul><li>Bankruptcy </li></ul><ul><ul><li>Competition and replacement of CEO and BOD all led to the downfall of Kmart. </li></ul></ul>
  5. 5. Analysis <ul><li>Main issue was Chapter 11 bankruptcy </li></ul><ul><li>The problem of competition facing Kmart is Wal-Mart being the number one discount retail store in the U.S. and Target being second </li></ul><ul><li>Wal-Mart had $401.2 billion in revenue in 2008, with a $13.4 billion in net income and 5.6% in operating margin. </li></ul><ul><li>Target had $64.9 billion in revenue in 2008, with a $2.2 net income and 5.4% in operating margin. </li></ul><ul><li>K-mart had a $16.2 billion in revenue in 2008, with a $172 million in net income and 1.1% in operating margin. </li></ul>
  6. 6. Analysis continued….. <ul><li>Competition offers a variety of products that Kmart does not. </li></ul><ul><li>Competition with itself </li></ul><ul><li>Customers being dissatisfied with the fluctuation in Kmart prices. </li></ul>
  7. 7. Recommendations <ul><li>Change company’s name </li></ul><ul><li>Embed in local communities </li></ul><ul><li>Focus more on minorities </li></ul><ul><li>Franchise smaller retail stores </li></ul><ul><li>Establish sinking funds for retailing technological advancements </li></ul><ul><li>Create a trickle-down- effect for different systems and teams that are being hired in the corporate and managerial levels. </li></ul>
  8. 8. Rationale <ul><li>In order to stay on the chart, then Kmart should resemble Sears brand image. </li></ul><ul><li>Go beyond their competitors so they won’t file for Chapter 11 Bankruptcy again. </li></ul><ul><li>Lower cost of products. </li></ul>
  9. 9. Results and Conclusion <ul><li>The mergence of Sears could make Kmart the number one discount retailing store. </li></ul><ul><li>Introduce more Super K’s around the world would increase revenue. </li></ul><ul><li>Sears and Kmart both produce ideas that would be beneficial to both of them. </li></ul>
  10. 10. References <ul><li>(n.d.). K-Mart Corporation-Company History . Retrieved from http://www.fundinguniverse.com/company-histories/Kmart-Corporation-Company-History.html </li></ul><ul><li>(n.d.). Target Corporation . Retrieved from http://www.fundinguniverse.com/company- histories/Target-Corporation-Company-History.html </li></ul><ul><li>(n.d.). Walmart History . Retrieved from http://walmartstores.com/AboutUs/297.aspx </li></ul><ul><li>Bhandari, Narendra C. “K-Mart: The Bleeding Giant.” 1999. </li></ul><ul><li>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/ </li></ul><ul><li>Lewis, K. (2003, October 10). Kmart's Ten Deadly Sins . Retrieved from http://www.forbes.com/2003/10/10/1010kmartreview.html </li></ul><ul><li>Matyk, J. (2003, December). What went wrong with Kmart . Retrieved from </li></ul><ul><li>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 </li></ul>

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