Final Project Two Milestone One: Profile of a Struggling Company

Principles of management
6-2 Final Project Two Milestone One: Profile Of A Struggling Company: Sears
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Decentralization and integrating business units that have few synergies with the core business of retailing has been counterproductive to the firm’s growth (Kimes, 2013). There is little cooperation among various units, and as the management restructured its operations, the units have been overseen by people without knowledge of the retail sector. The management should control activities, but failure to adapt the retailing model with the changes in the retail sector has meant that Sears has lost its competitive advantage. Wahba (2016), points out that current CEO Eddie Lambert has failed to turnaround the company from years of uninspired merchandising and underinvested stores.
There is growing pressure among employees to improve sales, but the level of micromanagement makes this target unattainable, with little inter- division collaboration (Kimes, 2013). There is low optimism about the company’s ability to overturn its financial performance, and this is particularly with failure to invest in stores. Perceptions about employee satisfaction affect their commitment and loyalty to the company, while indirectly affecting customer satisfaction through improved service qualities. Improving customer service, satisfaction and catering to the employees’ needs will be crucial to improving operations, but this should be accompanied with a definitive differentiation strategies. The retailer’s organizational culture, dissatisfied employees and failure to use adaptive an...