{"id":113396,"date":"2023-01-24T02:57:07","date_gmt":"2023-01-24T02:57:07","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/principles-of-management-assignment-principles-of-management\/"},"modified":"2023-01-24T02:57:07","modified_gmt":"2023-01-24T02:57:07","slug":"principles-of-management-assignment-principles-of-management","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/principles-of-management-assignment-principles-of-management\/","title":{"rendered":"Principles of management assignment | Principles of Management"},"content":{"rendered":"
\n

Assignment Purposes\/Learning Outcomes: <\/span><\/i><\/b><\/p>\n

After completion of Assignment-1<\/b> students will able to
\nunderstand the<\/span><\/p>\n

LO 1.1: State the concept of management functions,
\nroles, skills of a manager and the different theories of management.<\/span><\/b><\/p>\n

LO
\n2.2: Employ knowledge and techniques of strategic planning, problem solving,
\ndecision making and change management<\/span><\/b>.<\/span><\/p>\n

Assignment-1<\/span><\/u><\/i><\/b><\/p>\n

Please read the case <\/span>\u201cThe Decline of Sears\u201d <\/span><\/b>This case is derived from the textbook\/e-textbook \u201cManagement:
\nA Practical Introduction\u201d<\/b> by Angelo <\/span>Kinicki.<\/span> Answer the following
\nquestions:<\/span><\/i><\/p>\n

The Decline of Sears<\/span><\/b><\/b><\/p>\n

Sears, Roebuck and Company, commonly called Sears, was founded in
\n1892 to sell one product\u2014watches. By 1989 the company had grown into the
\nlargest retailer in the United States. Sears initially focused on selling its
\nproducts via a mail-order business that relied on a catalogue.<\/span> <\/span>\u00a0<\/span>\u201cWhen the catalogue first appeared on doorsteps in the 1890s, it
\nfundamentally changed how Americans shopped. Back then, much of the population
\nlived in rural areas, and they bought almost everything from little shops at
\nrural junctions. These general stores had limited selection and charged
\nexorbitant prices. They were the only game in town.\u201d <\/span>Sears\u2019 mail-order business was a
\ndisruptor. <\/span><\/p>\n

Over the years Sears evolved along with changing consumer tastes.
\nWhen people moved from rural areas to cities, for example, the company opened
\nhundreds of standalone urban stores to meet consumers\u2019 desire to shop in
\nattractive department stores rather than via cata- log. Sears was also one of
\nthe first retailers to offer a credit card in the 1980s\u2014the Discover card\u2014that
\nearned cash rewards for customers based on their purchases. This innovation
\nbrought in a consistent source of revenue for many years. The next change was
\nto accommodate consumer preferences for shopping at malls. Sears responded by anchoring
\nits stores in malls across the country. <\/span><\/p>\n

The retail environment started to change in the 1990s, and Sears
\nbegan to fall behind as discount shopping at Walmart and Kmart took off. These
\ncompanies were nimbler, changing prices and inventory to meet customer
\npreferences. Sears was more bureaucratic and was stuck with higher overhead
\ncosts and catalogue prices that had been set months earlier. Not surprisingly,
\nWalmart\u2019s revenue grew while Sears\u2019 did not. Enter online shopping. <\/span><\/p>\n

The combination of convenience, selection, speed, and low prices
\navailable through online shopping has been a disruptive force for all
\nretailers. Like its competitors, Sears has struggled against online sellers
\nsuch as Amazon.<\/span> <\/span>\u00a0<\/span>According to a
\nwriter from USA Today, <\/i>however, the venerable retailer faces even deeper
\nchallenges: Sears \u201chas also suffered in the wake of its management\u2019s decisions,
\nincluding the sale of its more than $30 billion credit card portfolio to
\nCitibank in 2003, and a merger with Kmart.\u201d<\/span><\/p>\n

THE MERGER OF SEARS AND KMART <\/span><\/p>\n

In 2004, Sears was acquired by Kmart, a company that was then
\ncoming out of bankruptcy. The new firm was christened Sears Holdings and led by
\nEdward Lampert. He had a background in investments but no retail experience at
\nthat time.<\/span><\/p>\n

Some business writers suggest Lambert purchased Sears for the land
\non which hundreds of its stores stood. According to one writer, \u201cLampert saw
\nreal estate value as the key, and he has managed the two chains as a value play
\never since, ignoring the fundamentals of running a retail business. Under
\nLampert, the company chronically underinvested in store maintenance, spending
\nas little as one-fifth of what its rivals spent to keep stores clean and up to
\ndate. The result has been a customer exodus, as no one likes shopping in
\ndilapidated stores.\u201d<\/span><\/p>\n

Another writer described Sears Holdings as having \u201call the charm of
\na dollar store without the prices, nor even the service, and with even more
\ndisengaged employees. Bright fluorescent lights highlight the drab floors,
\npeeling paint and sad displays of merchandising that are reminiscent of
\ndepartment stores in the communist Soviet Union. Some employees carry iPads,
\nothers do not: Lampert\u2019s affections for technology led to a policy of employees
\nrequired to use tablets on the shop floor, even though most clerks said they
\nwere unnecessary.\u201d<\/span><\/p>\n

WHAT LED TO SEARS\u2019 DECLINE? <\/span><\/p>\n

Forbes <\/span><\/i>reported that
\n\u201cthe popular opinion is that poor management has led to the demise of both
\ncompanies\u201d (Sears and Kmart). The magazine suggested that Lampert pursued the
\nwrong strategies, assuming the goal was to improve Sears\u2019 profitability and
\nlong-term survival. <\/span>Consider the organizational structure Lampert installed at Sears
\nHoldings. <\/span><\/p>\n

Following a structural model used in the finance industry in which
\ndifferent teams compete for scarce company resources, Lampert segmented the
\ncompany into 30 autonomous business units such as men\u2019s wear, shoes, and home
\nfurnishings. Each had its own executive staff and board of directors. Rather
\nthan fostering collaboration, this structural arrangement led to \u201ccutthroat
\ncompetition and sabotage. Incentives were tied to the success of the individual
\nbusiness divisions, which often came at the expense of other parts of the
\ncompany.\u201d <\/span><\/span>\u00a0<\/span>A former executive told the New York Times <\/i>that \u201cmanagers
\nwould tell their sales staff not to help customers in adjacent sections, even
\nif someone asked for help. Mr. Lampert would praise polices like these, said
\nthe executive.\u201d<\/span><\/p>\n

Another aspect of Lampert\u2019s strategy was to spend on technology
\nrather than on stores. Lampert thought Sears was competing against Amazon. He
\nthus \u201cploughed investment, new talent, and marketing into Sears\u2019 website and a
\ncustomer loyalty program called Shop Your Way. The program allows customers to
\nearn points, for purchases not only at Sears but at partnering businesses
\nincluding Burger King, Under Armour, and Uber, that can be redeemed for Sears
\nmerchandise.\u201d<\/span> <\/span>\u00a0<\/span>Store
\nappearance languished under this strategy. <\/span><\/p>\n

WHAT\u2019S THE LATEST? <\/span><\/p>\n

Sears closed more than 350 stores in 2017 and plans to sell an
\nadditional 100 in spring 2018. The company generated much-needed cash by
\nselling off some of its key brands such as Craftsman for about $900 million.<\/span> <\/span>\u00a0<\/span>It also established new sources of revenue by making a deal to sell
\n\u201cits Diehard-branded products\u2014such as car batteries, jump starters, and
\ntires\u2014on Amazon\u2019s web- site. The retailer also started selling its Kenmore-
\nbranded appliances on Amazon\u201d in 2017.<\/span><\/p>\n

Despite these efforts, Sears is \u201chaemorrhaging money\u201d according to Business
\nInsider. <\/i>\u201cSales are down 45% since early 2013, its debt load has spiked to
\n$4 billion, and the company is losing well over $1 billion annually.\u201d <\/span><\/span><\/p>\n

Making matters worse, \u201cSears said in a filing with the Securities
\nand Exchange Commission [in 2017] that it had \u2018substantial doubt\u2019 about its
\nability to stay in business unless it can borrow more and tap cash from
\nassets.\u201d<\/span> <\/span>\u00a0<\/span>The company is
\ndefinitely pursuing this strategy according to CNNMoney. <\/i>This source
\nreported in 2018 that the company announced it will \u201ccut another $200 million a
\nyear (beyond the stores it already planned to close). And it\u2019s looking to
\nincrease the amount of money it is able to borrow.\u201d <\/span><\/span><\/p>\n

According to the New York Times, <\/i>Lampert believes the
\ncompany can turn things around. He told a reporter that \u201cwhile there is still
\nwork to do, we are determined to do what is necessary to remain a competitive
\nretailer in a challenging environment.\u201d <\/span>Others doubt this conclusion because
\nLampert is too disengaged from the running of Sears\u2019 operations. Former
\nexecutives say he managed the company from his home in Miami, setting foot in
\nthe company headquarters only for its annual meeting. <\/span><\/p>\n

QUESTIONS<\/span><\/u><\/b><\/p>\n

Part 1- <\/span>Problem Solving Perspective<\/span><\/p>\n

1. <\/span>What is the underlying problem in this case from Edward Lampert\u2019s
\nperspective? (1.5 marks)<\/span><\/p>\n

2. What are the key causes of Sears\u2019 decline? (1.5 marks)<\/span><\/p>\n

Part 2- <\/span>Application of Chapter Content<\/span>s<\/span><\/p>\n

3<\/span>.
\nWhat does the Human Relations Movement suggest went wrong at Sears? (4 marks)<\/span><\/p>\n

4<\/span>.
\nUse the four parts of a system to diagnose the company\u2019s decline. Provide
\nsupport for your conclusions. (4 marks)<\/span><\/p>\n

5<\/span>. To what extent did Sears use a
\ntotal quality management (TQM) perspective in running its business? Explain. (4
\nmarks)<\/span><\/u><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Assignment Purposes\/Learning Outcomes: After completion of Assignment-1 students will able to understand the LO 1.1: State the concept of management functions, roles, skills of a manager and the different theories of management. LO 2.2: Employ knowledge and techniques of strategic planning, problem solving, decision making and change management. Assignment-1 Please read the case \u201cThe Decline […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-113396","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/113396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=113396"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/113396\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=113396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=113396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=113396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}