Article Questions on Sears Holdings Corp. Corporate History of Sears Holdings Company (SHC)

Article Questions on Sears Holdings Corp
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Article Questions on Sears Holdings Corp
Corporate History of Sears Holdings Company (SHC)
Three major events are responsible for SHC’s current condition: culture, change, and customers. According to Peterson (2016), the corporate culture of the firm is to grow and expand with a focus on delivering quality customer service and experience, engage in research and development, and become the top retailer in the world. The problem with this culture is that it was rigid and was not responsive to the changes in the market. In 2009, the company introduced the “Shop Your Own Way” program where clients were to earn loyalty points. Unfortunately, the program was poorly executed leading to frustrations to customers. The company lost clients to its revivals because it failed to research the market and understand the changing needs and preferences of clients. According to the article, the company is in a financial crisis because of Lampert’s poor decisions that have cost the company.
What were the sales, net income and the earnings per share (EPS) on their common stock for each of the past three years? Was any trend discernible?
The table below shows the company’s total sales, net income, and EPS for the past three years. The table is extracted from the MarkerWatch website. According to the data in the table, the company’s total revenue are discernible. They have been going down in the last three years.
201720162015Total Revenue$22,138,000$25,146,000$31,198,000Net income in billions2.21.131.6EPS (diluted)(15.82)(10.59)(20.78)What I think has caused SHC’s Bankruptcy
Several factors may have contributed to SHC’s financial misfortunes. The first is the change in the market. The company may have failed to conduct proper research and development before investing. According to the information on the firm’s website, the company has a history of a giant firm in the past. The records indicate it had huge revenue history. However, poor financial planni...