Diagnosing Change: Sears and Kmart
Angela DuBois
Keller Graduate School of Management
HRM 587 Managing Organizational Change
Dr. Frann Kelley-Rodriguez
March 29, 2015
Diagnosing Change: Six-Box Organizational Model The Six-box Organizational Model is one of the oldest models developed, by Marvin Weisbord. Weisbord examined two key elements of organizational life; task and process. There are six variables; purpose, structure, relationship, rewards, helping mechanism, and leadership (Palmer, 2008). To clearly understand each variable there will be a brief overview of each variable. (See Figure 1) First, the purpose variable, this is to determine what type of business the organization is in; retail, industrial,
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These are things that Kmart and Sears had to address. With wanting to change some of the Kmart stores into Sears due to location, this would fall under structure.
Relationship: this is a huge part of the merger. The relationship of the two leadership’s merger together is very important because if the two companies did not agree they there would be dysfunction within the company. With defining the leadership right off, differently helped the relationship of the two companies coming together. It allowed for clear communication with the employees on who would be in charge and an idea of the direction they were heading for the future.
Rewards: I didn’t find much on a rewards or incentives for the merger only that it would rank them third in retail companies. This may be an area in which the company lacked, and may have pushed them to the verge of closing now.
Helpful mechanism: I feel that they had a strong direction on with this area for the six-box model, because they are were much defined on how things were going to be. They had transition for the headquarters to be in Chicago but also leaving the Kmart headquarters in Troy, MI. It showed that there would be a support system still in place for the Kmart employees and customers.
Leadership: I really like what Kmart and Sears did with their leadership. I think that they were very fair on how they placed people. Lampert not becoming the chairmen of Sears Holdings was a
The printed documentation provided David with the knowledge that he needs to assist himself with coping with the merging of the business. According to the Renee Evenson (2017), your role as a leader is to understand the stages of the change process and help others who are struggling. The stages of change are: denial, sadness, resistance, and acceptance (Evenson, 2017). David did just that exactly what he was expected to do. David utilized his new coping skills to assist his employees with coping with the news of the merging of the organization. David did a great job by briefing all his employee at the same time. Furthermore, David offered additional time for everyone to meet with him to discuss any questions they may have had about how things will be operating once the merge is complete. The increasingly competitive business environment is driving organizations to be aware of the leadership capabilities that they need and the attitudes and behaviors that align with them (Hejna, 2009). Overall, I believe that in the second portion of the case David really pulled it together to be the leader that his employees deserved. References Valentino, C. L. (2004,
According to Rusli, the merger would create more in-store traffic for CVS and increase both companies’ consumer base. This merger gave CVS the opportunity to expand both its own small pharmacy benefits manager business and mail order business. CVS’s opportunity to take advantage of Caremark’s pharmacy benefits manager business allowed it to take advantage of the mail order business as well that had begun cutting into drug stores’ revenue (Rusli, 2013). By providing its customers with a unique set of services and gaining the market power to control costs, CVS Caremark gained a competitive advantage. Unless competitors like Walgreens and Rite Aid find a way to respond to CVS Caremark’s strategy, it will be difficult to remain competitive with this firm for long. Overall, the merger was a great strategic move on behalf of both organizations, which helped ensure the current success of CVS Caremark.
There has been an overall loss in Market Share throughout departments stores. JCPenney is one department store in particular that has a very hard time dealing with this issue and has struggled to retain its market value. JCPenney CEO’s of the past and present have taken very different approaches to solving this problem and that will be discussed throughout this paper. We will start off by introducing you to former CEO, Mike Ullman who managed JCPenney before and after the recession as well as his presence after next CEO Ron Johnson was fired. We will walk through the problems that occurred after Johnson enforced his new turnaround strategies for JCPenney and how it cause disastrous results in sales and in the further decrease of market share. We will then focus on the current CEO, Marvin Ellison, and his plans for JC Penney and if his strategies can fix the overall problem JCPenney is facing.
Then the report will look at the different formation charts, aims, and objectives and stakeholders. To see how they influence the success of this business. All of these helping to achieve their aims and objectives.
Sears is similar to any other organization, and that they are also seeing challenges at the corporate level of their business. A challenge that they have to face is ensuring quality and variety of the products that are being sold in their stores. This is an issue that could lead to great declines in sales if not properly handled. Many individuals do not take into consideration all the different aspects that happen
The article “Is Kmart closing? Sears says no” by Paul Monica is about the recent rumors of the Kmart stores closing down. With Sears stock down 35% many would’ve thought they’d cut the Kmart franchise. However, Eddie Lambert, the Sears CEO, states, “there are no plans and there have never been any plans to close the Kmart format” (Monica 1). This came as a surprise as most have noticed the disappearance of Sears and Kmart’s due to poor sales. Monica believes keeping the Kmart’s open may be a bad idea since we’re surrounded by Amazon and Walmart sales.
Changing some Kmart stores to Sears stores and bringing home appliances to Kmart, would offer customers shopping for those products with more locations to choose from. As a customer, this merger brings a wider array of products to more locations, making it easier to get everything you might need in one place. The merger of these two corporations would create more jobs.
In the modern era, health is an essential topic that deserves all people to notice. Relatively, health insurance fee is getting higher and higher as time goes by because of the increasing number of the sick and costs of medicine, which is difficult for those in poverty or live with a passable standard of work to pay such an expensive expense. But health insurance is crucial when people get sick. Take a simple example to illustrate. Eli Saslow (2011) in the book Ten Letters shows Natoma Canfield’s story about health care insurance. Though Natoma Canfield’s pre-existing condition makes her rejected by nearly all insurance companies and make her live in a miserable life, she still wants to have a health insurance. As time goes by, the rate of health insurance fee keeps inflating until she can’t pay
The Sears Situation Sears announced it was liquidating and closing all retail locations shortly after a country-wide rebranding effort. The retailer had long been in trouble, and the effort was meant to revitalize the company’s brand and make it more
In the abstract the authors Daniel. J. Simmons and Daniel. T. Levin, document that the aim of the study was to determine the detection of change blindness for objects in still images and motion pictures, but their focus was to use people in the real world. In the abstract it is pointed out that the research was divided into two similar experiments only changing specific details in which the surrounding objects, such as; clothing, accessories and their general approach to the randomly selected subjects were changed or modified slightly. They would then continue by asking the participants whether or not they noticed the swap. If yes, they would follow up with asking about what tipped them off to the change and if no, they would retort to explaining what had just occurred by explaining the experiment.
When companies combine/merge the whole objective is to gain new opportunities, gain market share, grow the business, to become more innovative and to improve product offerings, utilizing/sharing the existing resources and data. From the case
KMART/ Sears would then see their financial status decline and many people say the merger was the reason for this but I believe it was because of the overall products being sold for the company were just not where Walmart was. Sears departments were and have always been very known such as Craftsman and when comparing them to other departments like them their overall numbers were not that bad. Kmart was just un able to compete with Walmart and which led to the idea of the merger.
I am a huge fan of Allan Mulally leadership style. What his team accomplished at Ford is nothing short of legendary. There is something about a corporate turnaround I like, the transformational Journey of these companies close to bankruptcy and back to profitability is very, very fascinating.
They wanted to guarantee that the merger would create a profit for the stockholders, as well as creating a better multiple from the synergy.
One of the models that address organizational change and diagnosis is Weisbord's Six Box Model, which identifies six factors that need to be considered when diagnosing an organization. These six factors include the purpose, structure, relations, leadership in the organization, auxiliary and rewards to maintain a balance between the elements of the organization, both formal and informal. Purpose deals with the business that the organization deals with, structure deals with the division of labor, relations deals with how conflicts are managed in the workplace, auxiliary deals with the technologies available in the organization and how they are coordinated and lastly rewards deal with how the organization compensates those who complete their tasks. In this way, people and processes are in sync and a narrow scope isn't just taken into account. (Janicijevic, 2010)