Assessment Details Step 1: Choose a Company In the first Competency Assessment, you completed a SWOT analysis on a successful company that demonstrated a sustainable competitive advantage in the marke

Factors contributing to its financial struggles include stiff competition from online retailers like Amazon, changing consumer preferences, and a lack of strategic direction. Amazon has a strong online presence and a well-established e-commerce platform, which allows customers to shop conveniently from anywhere at any time. In contrast, Sears has struggled to keep up with the shift to online shopping. There is a desperate need for more strategic planning strategies for achieving sustainable competitive advantage to prevent further financial decline within the company. 3 Data Analysis Financial data over the past few years indicates a concerning trend for Sears Holdings, with expenses outweighing income. Over the last few years, the company revenue has been constantly decreasing, which is mostly the result of the reduced number of shoppers visiting the stores and the shift in consumer behavior toward online purchasing. According to the Securities and Exchange Commission, Sears suffered a debt burden, which, in turn, limited its financial availability to realize opportunities for growth as it struggles to survive amid the challenges it faces (Securities and Exchange Commission, 2019). Sears Holdings Corporation demonstrated a negative three-year change in revenue and net income as well as pitiful shareholders return, measures of financial performance that should worry the management tea 4 On the other hand, the company spent much effort to do the necessary pivoting in response to the new market conditions; however, it fell behind the rest of the industry in terms of competitiveness. When compared to benchmark indexes, Sears' performance stock chart shows poor results, which are a sign of investor discontent and serious financial difficulties. Sears' loss consolidation continues to sift through revenue, operating expenses, and valuation deductions, resulting in significant net losses. Consider 2017's case, Sears' total revenue was $16.7 million, as compared to 2016's $22.1 million and 2015's $25.1 million. For 2017, however, the company's net loss to shareholders amounted to $383 million, while the loss in 2016 was $2.2 billion and in 2015 $1.1 billion (Securities and Exchange Commission, 2019). The above statistics call for strategic intervention, which is geared toward a turnaround of the organization from its declining position. Furthermore, looking at Sears' cash position and its liquidity helps understand the company's financial health. By February 3, 2018, the status was a negative overdraft of $74 million, which may imply cash-flow issues and heightened exposure to liquidity risks. This demonstrates the need for better cash management, like optimum working capital, to support the company's daily needs while at the same time financing the strategies of the business. Besides, the uncertain tax position liability, which is $130 million and gross interest payable of $51 million highlight the need for thoughtful finance planning and risk management to minimize financial liabilities and risks, all of which pay attention to outstanding financial positions. Additionally, this imbalance may be attributed to numerous factors, including declining sales, inefficient operations, and a failure to adapt to changing market dynamics. To reverse this trend and prevent further financial decline, Sears Holdings must undertake strategic planning initiatives to achieve sustainable competitive advantage. 5 As the firm’s new CEO, the questions I must ask are, what can I propose to not only turn the firm around, but to create a sustainable competitive advantage? How does Sears Holdings Company differentiate itself and drive profitability in the retail industry? As Sears owns various subsidiaries, how effectively are they adding value to those companies, and what strategies can be implemented to enhance their performance? On a business level, how should Sears compete in a market with local furniture retailers and major competitors like Target and Walmart offering similar or comparable products? To assess these factors, it is essential to gather data on Sears and its competitors, analyze market trends, and draw insights from successful strategies employed by other companies in the retail sector. It is important to recognize that while business and corporate strategies share the common goal of achieving success, they operate on distinct levels and target distinct audiences to advance the overall objectives of the organization. Strategic Objective The strategic objective for Sears Holdings is to revitalize the company by addressing its weaknesses and leveraging its strengths to regain market competitiveness and financial stability.

This objective aligns with the SWOT analysis by targeting internal weaknesses and external opportunities, aiming to overcome challenges and capitalize on potential growth areas. By implementing a comprehensive turnaround plan focused on increasing operational efficiency, reducing expenses, and generating additional revenue streams, Sears Holdings aims to improve its financial performance and secure its position in the retail industry. 6 Short-Term Goals 1. Implement digital marketing strategies to drive traffic to the website and increase online visibility (Fundid, 2023). 2. Expand product offerings to meet the evolving needs and preferences of consumers, particularly in the home goods and electronics categories (Fundid, 2023). 3. Improve the customer experience both in-store and online to drive customer loyalty and satisfaction. 4. Explore cost-saving measures and operational efficiencies to enhance profitability and reduce financial strain. For example, it makes sense to close businesses that are unprofitable and unable 7 to cover expenses while directing resources toward the online and retail locations that are operating the best. 5. Conduct market research to understand customer needs and preferences in new markets and tailor offers accordingly. 6. Introduce loyalty programs and incentives to reward repeat customers and encourage retention (Fundid, 2023). Customers who are part of a loyalty program are more likely to repeat purchases and spend more over time. Long-Term Goals 1. Invest in renovating and modernizing existing shopping store locations to provide a better shopping experience for customers. 2. Increase revenue by expanding market reach and driving sales growth in key product categories. 3. Form strategic partnerships with other retailers or brands to enhance the product portfolio and attract new customers. 4. Forge partnerships with local influencers or home décor bloggers in target regions to increase brand awareness (Indeed Editorial Team, 2023). By implementing these strategic initiatives, Sears Holding Company can revitalize its brand, improve its financial performance, and position itself for sustainable growth in the competitive retail industry. Measurement and Tracking Long-term goals will be measured through regular performance reviews, analyzing key financial metrics, customer feedback, and market trends. Key performance indicators such as 8 sales growth, profit margins, and customer retention rates will be tracked to monitor progress towards achieving the strategic objective. Continuation and Evaluation The effectiveness of the strategy will be continually evaluated through ongoing monitoring of performance metrics and market dynamics. Adjustments will be made as needed to ensure sustained success and alignment with the overarching objective. Regular reviews and updates to short-term goals will be conducted to adapt to changing consumer behaviors and industry trends. Conclusion Sears Holdings Corporation faces significant financial challenges as it navigates a rapidly changing retail landscape. By implementing a strategic turnaround plan focused on operational efficiency, revenue generation, and customer engagement, Sears Holdings aims to revitalize its business and regain market competitiveness. Through a combination of short-term goals aimed at immediate impact and long-term objectives focused on sustainable growth, Sears Holdings can work towards achieving financial stability and securing its position in the retail industry. Success will be measured through regular performance reviews and monitoring of key performance indicators to track progress towards the strategic objective. Continuous evaluation and adoption of the strategy based on market trends and customer feedback will be crucial in ensuring sustained success and driving the company towards a brighter future. With a clear focus on addressing weaknesses, leveraging strengths, and capitalizing on opportunities, Sears Holdings can strive to overcome its financial struggles and emerge as a stronger, more competitive player in the retail sector. The effectiveness of the plan will be monitored regularly, and changes will be made as necessary to guarantee continued advancement. 9 References Fundid. (2023, April 27). 7 Strategic Ways to Increase Revenue. https://www.getfundid.com/sales-marketing/7-strategic-ways-to-increase-revenue Indeed Editorial Team. (2023, March 10). 10 Marketing Strategies to Attract and Retain Customers. https://www.indeed.com/career-advice/career-development/marketing-strategies- attract-retain-customers Securities and Exchange Commission. (2019). SEARS HOLDINGS CORPORATION Financial Data Analysis Report. Retrieved from hftps://www.sec.gov/Archives/edgar/data/1310067/000131006718000006/shld201710 k.htm