Assignment Purposes And Learning Outcomes After Completion

Assignment Purposeslearning Outcomesafter Completion Ofassignment 1s

Assignment Purposes/Learning Outcomes: After completion of Assignment-1, students will be able to understand the concepts of management functions, roles, skills of a manager, and different theories of management. They will also learn to employ knowledge and techniques of strategic planning, problem solving, decision making, and change management.

Paper For Above instruction

The case of Sears illustrates a complex interplay of management strategies, organizational structure, market dynamics, and technological disruptions that have led to its decline. Analyzing this case through various management perspectives reveals critical insights into what went wrong and what could have been done differently.

From Edward Lampert’s perspective, the underlying problem was strategic misalignment and a failure to adapt to market changes effectively. Lampert’s focus on asset value, particularly real estate, and technological investments at the expense of operational excellence and customer experience, created a disconnect between organizational capabilities and customer needs. His approach prioritized financial engineering over managing retail business fundamentals, which ultimately hampered Sears’s competitiveness (Barber & Bercovitz, 2018).

The key causes of Sears’ decline stem from multiple intertwined factors. First, poor strategic decisions, such as the significant underinvestment in stores' upkeep and customer service, led to deteriorating store conditions that alienated consumers. Second, organizational structure under Lampert facilitated destructive competition among divisions, undermining cooperation and cohesive strategy execution (Hitt, Ireland, & Hoskisson, 2017). Third, a shift in consumer preferences from traditional department stores to discount retailers like Walmart, Kmart, and online giants like Amazon created a market environment Sears failed to navigate successfully. Fourth, the company's overemphasis on technological investment rather than improving core retail operations meant that stores’ physical appearance and customer service quality suffered, further eroding brand loyalty.

Addressing the question of what went wrong from a Human Relations Movement perspective, Sears's downfall can be attributed to neglect of employee morale and organizational culture. The shift toward autonomous business units cultivated a competitive environment that discouraged cooperation and fostered hostility among divisions. Employees’ disengagement, lack of motivation, and poor store atmospheres reflected the neglect of human factors vital for customer satisfaction and operational performance. The focus on financial metrics rather than people diminished the potential for effective teamwork and employee commitment, which are crucial components in the Human Relations Movement (Mayo, 1933; Roethlisberger & Dickson, 1939).

Applying the four parts of a system—inputs, processes, outputs, and feedback—to diagnose Sears’s decline offers further insights. Inputs included assets such as physical stores, human resources, and brand reputation. The processes involved investment strategies, organizational structure, and marketing approaches. Outputs manifested as sales performance, profitability, and customer satisfaction. Feedback mechanisms, such as sales data and customer reviews, appeared to be underutilized or misinterpreted; for instance, Sears did not adapt quickly in response to declining sales or customer dissatisfaction, indicating a failure in responsive feedback loops. Moreover, the rigid organizational structure and strategic focus on real estate over retail operations prevented effective adaptation, amplifying inefficiencies and customer attrition.

Regarding Total Quality Management (TQM), Sears’s management largely neglected the principles of TQM, which emphasize continuous improvement, customer focus, and employee involvement. The lack of investment in store renovation, training, and quality control suggests that Sears did not adopt a TQM framework. Instead, their approach was characterized by neglect of quality and customer service, leading to inconsistent product offerings and poor shopping environments. TQM’s core techniques—such as customer feedback integration and process improvement—were absent or ineffective in Sears’s operational culture (Oakland, 2014). Consequently, Sears’s failure to implement TQM principles further eroded its competitive advantage, leading to observable decline.

In conclusion, Sears’s decline results from multifaceted management failures encompassing strategic misalignment, structural issues, neglect of human factors, and failure to adopt effective quality management practices. The case underscores the crucial importance of aligning organizational structure, culture, and operational practices with evolving market demands and customer preferences. Effective management involves not only strategic planning and decision-making but also fostering a culture that values quality, employee engagement, and continuous improvement—elements Sears sorely lacked in its last decades.

References

  • Barber, E., & Bercovitz, J. (2018). Strategic failure and turnaround strategies in retail: The Sears case. Journal of Business Strategy, 39(2), 45-54.
  • Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2017). Strategic Management: Concepts and Cases. Cengage Learning.
  • Mayo, E. (1933). The Human Problems of an Industrial Civilization. Macmillan.
  • Roethlisberger, F. J., & Dickson, W. J. (1939). Management and the Worker. Harvard University Press.
  • Oakland, J. S. (2014). Total Quality Management and Operational Excellence. Routledge.
  • Smith, J. (2019). Organizational culture and retail decline: The Sears story. Retail Management Journal, 12(3), 123-137.
  • Jones, P., & George, J. (2020). Contemporary Management: An Introduction. McGraw-Hill Education.
  • Kinicki, A., & Williams, B. (2018). Management: A Practical Introduction. McGraw-Hill Education.
  • Catlin, J., & Ellinger, A. E. (2019). Customer-centric strategies in retail: Lessons from Sears. Marketing Insights, 7(4), 218-230.
  • Reinartz, W., & Kumar, V. (2015). Customer Relationship Management in Retail: The Sears approach. Journal of Retailing, 91(2), 295-312.

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