Strategic Management Plan for Sear's Holding Company Term Paper

Strategic Management Plan for Sears Holding Company - Term Paper slipSears Roebuck & Company was planned to enter into a merger with Kmart by Edward Lampert who worked as a hedge-fund manager. The merger was initiated with the subscribe to intensify the existence of Sears and create Sears Holding Corporation. However, the financial position of Sears Holding Corporation seemed to be turn post merger along with a drop in their share prices. The federation was learnt to be everyplace burdened with debt. A drop was also experienced in the volume of sales of the political party. Owing to either these reasons, the high society was facing a huge dip in its share prices. To add more, the adjusted dough of the company were predicted to drop considerably along with a cash crisis. The company had also failed to make payments for its various(prenominal) credit lines (Laing, 2011).The waning sales, over expending on restructuring the stores, poor merchandising and unwise micromanaging was suffered by the company due to which the share price of the company was estimated to witness a decline by around 50%. As per the Fitch ratings, the company was ranked in the junk territory in terms of its debt. Furthermore, the liquid of the company was expected to remain insufficient in the year 2012, in case the company fails to performance the markets for fresh cash. On the other hand, the company was stated to hold a grand share of stock-taking along with a significant portfolio of the possessed real estate which ranged from $8 billion to $10 billion. However, the deserving of the real estate which was chiefly situated at the Borders was required to be ascertained. Therefore, with the aim to avoid much(prenominal) insufficiency of funds, the company is required to set an appropriate strategic management plan which would assist the company to a significant extent to overcome its serious financial crunch by bringing in fresh funds (Laing, 2011). The fresh strategic manag ement plan for the company should entail few considerable alterations in its stores by getting rid of the entire soft-line inventories for the reason of enhancing the sales. The soft-line inventories would entail the poorly performing shoes, jewellery and apparel which have been believed and observed to lack the ability of appealing to the customers in the arena of soft-lines. Hence, it is required for the company to amalgamate few of the outstanding part of the inventory with the offerings of Kmart (Albrecht, Brainard, Fadgen, Jackson & Sengbusch, 2009). The company should also focus on expanding few of its product lines such as the kitchen appliances and dining furnitures. The company should also undertake necessary locomote to intensify the advertising activities related to the electronic products that are offered. The mentioned alterations along with the additions would prove to be sufficient to interchange the soft-lines products to a significant extent. The company should al so try and shift its concentration on catalogue & cyberspace retail, automotive repair, consumer appliances as well as electronics retail and supply of building material in order to diversify and attain competitive advantage. In order to strengthen the defensive walls of the company, it needs to consider the options of enter into a few selected partnerships with certain companies, particularly in the field of automotive care (Albrecht, Brainard, Fadgen, Jackson & Sengbusch, 2009). To cast up the demand of the amended platform or array of products as well as services, the company requires unfirm its degree of emphasis to the adults of the middle class varying from 25 years to 64 years as this particular age group is considered to hold the