The company faced stiff competition in the 1990s and being surpassed by Walmart as the nation leading retail store and extensive competition from other big- box stores offering even lower prices. In 2004 the Big-box retailer Kmart bought the company establishing the Sears Holding Corporation (Stowell & Stowell, 2017). The company has over the last decade continued to lose much of its revenue laying off most of its workers as it battles to keep up with the advance of online retailers. In 2017 the company closed more 350 Sears and Kmart Stores nationwide. In March 2017 the company sold its Iconic Craftsman and also announced a deal to sell Kenmore appliances through the online retailer Amazon.
Analysts are ranking the company as one of the probable to file for bankruptcy. Diagnosis Sears Company is on the verge of downfall and the company is facing both internal and external challenges that are causing its major challenges losing a lot of revenues. The closing of many stores of the company is an indicator that the company is operating under losses from most of its enterprises. The company is unable to put up with several challenges and this significance trigger for change to see the company regain its earlier competence. Financial management in the company has become a major task for the company and there is a high level of change in the retail environment as many shoppers focus now online (Engler, Kutter, & Moretti, 2016). The high competition from Walmart and other online sellers such as Amazon is a major external environment concern that the company would have to address the process for change.
With the new set of cultural beliefs and mission statement, the company has not demonstrated significance capacity. With the big Kmart and the company performance being low, could it be that the two companies were not efficiently integrated? With the many numbers of employees laid down on the company, the workers level of motivation is low establishing a high level of job insecurity among all the levels in the employment. All this come along with many efforts by the management to assess its internal strength.
In 2014 the company had conducted a traditional performance management which included managers generated performance