Talk about the downsizing/closing of major chain stores (ex. Sears, JC Penney, B

Question

Talk about the downsizing/closing of major chain stores (ex. Sears, JC Penney, Best Buy, Gander Mountain, etc.) and provide support as to why you think this is occurring. Discuss the emerging online piece of strategy for all of these firms as well as for WalMart and Target (ex. Walmart just purchased JET--why did they do that?). Take this discussion any direction you wish but do bring out the what is happening from a strategic point of view.

An age-old question is "Does structure follow a strategy or does strategy follow structure?" The new, successful firms appear to be on-line driven. They never really developed or wanted to develop a brick and mortar strategy. Is this truly the future, the destiny of retail and many other industries?

Explanation / Answer

The cause for downsizing and closing of major chain stores has been due to various factors other than a slowdown in the economy. Most of the retail Giants seem to have been unable to adapt to the massive shift in preferences of consumers whether it is related to product type, design or the mode of shopping. Deceived to be fixated on following is old Business models and strategy rather than displaying dynamism and adapting to change as well as adopting latest technology to sustain and grow. Many of these retailers refused to adapt to pricing strategies also by offering discounts during the great recession resulting in significant loss of customer base. Internet and mobile shopping is becoming the preferred mode for the young generation hard pressed for time and in love with the facilities Technology can offer, and also the working class who look to save every possible minute as time management is a major focal point for them. Sears close down 172 stores Best Buy 50 TJ Maxx 50, family dollar 100 to name just a few. It was inability of the management understand the shift in consumer requirements and adequately modify the strategy for marketing and sales to exploit the option of growth and globalisation through the internet. Their loss seems to have been the gain of the Mover and shaker of the online retail market Amazon, alongwith eBay and other global players who made a quick shift to theOnline digital platform.

Strategic means related to strategy in other words it is the identification of overall aims and the means to be adopted for achieving them. It consists of devising a plan for achievement of specific goals and following through with perfect implementation of the plan together with adequate control measures to ensure the goal is achieved. Actually, what finally matters is always the goal. Strategic leadership and management both emulate these basic features of strategizing within their jobs. So, a strategic leader whether at top, middle or department level needs to absolutely understand and be attuned to the objectives to be achieved, the plan for the same and how they will manage the people and processes to derive optimal results and what control measures they will implement to ensure success. A leader has to motivate his entire team through performance and maintain a human element through inclusion and encouragement for each individual to explore their talents and excel. I have absolute belief that strategy is the most important management tool at the disposal of leaders for successful achievement of goals, and also to exceed expectations. Lack of a well formulated strategy to lead and motivate others towards achievement of goals as a unified team, is sure to lead to failure or average results at best. It is like going on a treasure hunt without a map. I utilized this strategy to the maximum with absolute focus on the goal.

With the unprecedented development and Communication Technology business has gone global crossing all national as well as, international boundaries. This has impacted every business even the ones which have not expanded their frontiers into foreign lands. Procurement and sales are the two departments which have been greatly impacted with development in information technology. Both these processes can be managed entirely over Information Technology platforms due to presence of online supply and procurement marketplaces in the form of sites which work as a platform linking buyers to suppliers. This has effectively provided access to suppliers across the world for every organisation, making it possible to procure the best quality act the lowest price thereby greatly reducing input cost and enabling competitive pricing for the end product. With globalisation, it has become essential for every organisation to be absolutely dynamic and open to change and adaptability within every process and department, to be able to sustain, grow and attain organisational goals. Due to the presence of procurement opportunities across the globe organisations cannot afford to get complacent about these processes as the opportunity for constant improvement is always a possibility. The opportunity for constant improvement is always a possibility. Thomas friedman is definitely being proved right, as regards his The world is Flat concept, as procurement from remote areas of China, India and Africa as possible as from the neighbouring states or countries. The concept of e-Procurement has greatly enhanced product quality as well as reduced pricing effectively contribute into the profitability and success of organisations. Concept is gradually gaining favour with all organisations worldwide and may soon become the norm where most business processes are concerned such as, procurement, sales, marketing, and recruitment. Therefore, it is important to adapt to the changing environment and exploit this platform for maximum benefits to positively impact the business and achieve all growth and globalisation goals of the company adeptly facilitated by this medium. Structure definitely follows a strategy as strategy is the key element around which structure has to be given shape, given the dynamic and volatile nature of the economic environment every global organization needs to be prepared to constantly modify strategy through implementation of adequate monitoring and control measures. There is no one size fits every location for strategy within one global organization itself, where it may require to be tailor-made for every country it forays into. Every leader needs to be aware of the pulse of the markets and be able to make quick and decisive moves to exploit or control as the situation requires. Companies following the strategy follow structure approach have failed at it miserably, with Walmarts historical Germany experiment being a standing example of the importance of strategy over structure.

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