Abstract

The case focuses on the restructuring initiatives taken up by Sears, Roebuck & Co. The restructuring initiatives started in 1992, when Sears reported the biggest ever loss in its history. The case explains in detail the changes initiated by Martinez to turn the company around and results of the restructuring efforts. The case provides information about the increasing problems faced by the company due to unrelated diversifications such as Credit card operations. The case also throws light on the role of Sears' credit card in the company's profits and its contribution to the company's growth. Further the case also provides information about the restructuring initiatives undertaken by the new CEO - Alan Lacy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Failure to adapt to a changing environment threatens survival.

Keywords

Restructuring, initiatives, Sears, Roebuck & Co, loss, Martinez, turnaround efforts, unrelated diversifications, Credit card operations, Sears' credit card, profits, contribution, growth, Alan Lacy