Kellee Coates

1
by Kellee Coates David Finney Jessica
Graham Michelle Reece Daniel Tea
2
History of Kmart

• Kresges five and dime discount store
• History
• Ownership
• Financial information
• Decreasing performance
• Ratios
• Industry type
• Retail industry

3
Organization and Structure

• Diversification
• Business ventures
• Centralization
• Centralized merchandising system
• Geographical structure

4
Macroenvironment

• Economy
• Slowing down
• Demographics
• Urban area locations
• Legal
• Bankruptcies regulation

5
The Five Forces

• Threat of new entrants
• Degree of rivalry
• Wal-Mart Target
• Bargaining power of buyers
• Price wars
• Bargaining power of suppliers
• Flemming
• Threat of substitute products

6
Condition of the Firm

• Mission Statement
• Resources
• Name brand merchandise
• Urban locations
• Capabilities
• Promoting strategies using Martha
• Distinctive Competencies
• Organizational Culture isolated territorial

7
Strengths

• Merchandise
• Martha
• Disney
• JOE BOXER
• Urban locations
• Low cost
• No competition

8

• Weaknesses
• Operating systems
• Inventory
• Management
• Poor planning
• Culture

9
Current Strategies

• Generic
• cost leadership
• differentiation
• Functional
• superior quality
• customer responsiveness
• Business level
• Market concentration turnaround

10
Recommendations

• Inventory systems
• Focus on the most important customers
• Focus on the external environment
• Improve image
• Plan before action is taken
• Long-term approach