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Malik Awan

K-Mart was once one of the top retailers in the United States, but faced declining performance due to increased competition from Walmart and Target. K-Mart struggled to compete on price and variety of products. This led to bankruptcy in 1995. Efforts by a new CEO to invest in IT systems and introduce new product lines like Martha Stewart failed to turn the company around. By 2002, K-Mart declared bankruptcy again as Walmart announced record sales, showing the failure of K-Mart to adapt to competitive pressures.

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12/03/15 1 K-mart:The Bleeding Giant Sharese Washington Cedrick Wilkins WAQAS ANJUM AWANWAQAS ANJUM AWAN Organization and Management
12/03/15 2 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.
12/03/15 3 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.
12/03/15 4 Problem Statement/Key Issues ? Competition ¨C Wal-Mart ¨C Target ? Replacement of CEO and BOD ? Bankruptcy ¨C Competition and replacement of CEO and BOD all led to the downfall of Kmart.
12/03/15 5 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.
12/03/15 6 Analysis continued¡­.. ? Competitiors offered a variety of products that Kmart does not. ? Competition with itself ? Customers being dissatisfied with the fluctuation in Kmart prices.
12/03/15 7 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.
12/03/15 8 Efforts continued...... ? introduction of Martha stewart lines.
12/03/15 9 Efforts continued..... ? Introduction of "Blue Light Special"
12/03/15 10 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.
12/03/15 11 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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Presentation3

  • 1. 12/03/15 1 K-mart:The Bleeding Giant Sharese Washington Cedrick Wilkins WAQAS ANJUM AWANWAQAS ANJUM AWAN Organization and Management
  • 2. 12/03/15 2 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.
  • 3. 12/03/15 3 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.
  • 4. 12/03/15 4 Problem Statement/Key Issues ? Competition ¨C Wal-Mart ¨C Target ? Replacement of CEO and BOD ? Bankruptcy ¨C Competition and replacement of CEO and BOD all led to the downfall of Kmart.
  • 5. 12/03/15 5 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.
  • 6. 12/03/15 6 Analysis continued¡­.. ? Competitiors offered a variety of products that Kmart does not. ? Competition with itself ? Customers being dissatisfied with the fluctuation in Kmart prices.
  • 7. 12/03/15 7 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.
  • 8. 12/03/15 8 Efforts continued...... ? introduction of Martha stewart lines.
  • 9. 12/03/15 9 Efforts continued..... ? Introduction of "Blue Light Special"
  • 10. 12/03/15 10 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.
  • 11. 12/03/15 11 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.