Strategic Report: Sears Holdings Corporation - BUS 500, Fall 2024

This report provides a strategic analysis of Sears Holdings Corporation, examining its current financial crisis and declining market share. The report delves into the company's strategy, stakeholder analysis, organizational performance, and external factors such as political, economic, and social influences. It also conducts an internal analysis using SWOT (Strengths, Weaknesses, Opportunities, and Threats) to identify key strategic factors. The report proposes a strategic plan, including an implementation plan and recommendations for organizational redesign, focusing on leadership styles and their impact. The analysis covers various leadership styles, including autocratic, democratic, strategic, transformational, laissez-faire, and charismatic leadership, to provide a comprehensive understanding of the challenges and potential solutions for Sears Holdings' revival in a competitive market. The report highlights the importance of adapting to market dynamics, managing stakeholders' interests, and leveraging internal strengths to overcome external threats and weaknesses.

RUNNING HEAD: STRATEGIC MANAGEMENT AND LEADERSHIP
STRATEGIC MANAGEMENT AND LEADERSHIP
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGIC MANAGEMENT AND LEADERSHIP
Table of Contents
Assignment task 1: Strategic Report................................................................................................3
Executive summary:....................................................................................................................3
Introduction:................................................................................................................................3
Strategy:.......................................................................................................................................4
Stakeholder analysis:...................................................................................................................4
Organizational performances:......................................................................................................5
External factors:...........................................................................................................................6
Political factors:.......................................................................................................................6
Economic factors:....................................................................................................................7
Social factors:..........................................................................................................................8
Internal analysis:..........................................................................................................................9
Strengths:.................................................................................................................................9
Weaknesses:...........................................................................................................................10
Opportunities:........................................................................................................................11
Threats:..................................................................................................................................12
Strategy:.....................................................................................................................................12
Analysis of the strategy:............................................................................................................14
Implementation plan:.................................................................................................................15
Recommendation:......................................................................................................................19

2STRATEGIC MANAGEMENT AND LEADERSHIP
Conclusion:................................................................................................................................19
Assignment Task 2: Organizational redesign................................................................................20
Present organizational structure:................................................................................................20
Leadership styles:......................................................................................................................24
Autocratic leadership style:...................................................................................................24
Democratic leadership style:..................................................................................................24
Strategic leadership style:......................................................................................................25
Transformational leadership style:........................................................................................25
Laissez-faire leadership style:................................................................................................25
Charismatic leadership style:.................................................................................................26
References:....................................................................................................................................28

3STRATEGIC MANAGEMENT AND LEADERSHIP
Assignment task 1: Strategic Report
Executive summary:
Sear Holdings Corporation, a leading business organization, is facing the problem of the
financial crisis. This report aims to develop a strategic plan for this business organization, which
will help this company to regain its position in the market. To develop the strategy the
relationships between strategies, expectations of the stakeholders, organizational performance
will be analyzed. It will be helpful to identify a strategic plan for this company. To compete in an
intensely competitive market, this company has to use a low pricing strategy. The management
team of this company has to identify the strengths and opportunities to manage threats and
weaknesses. The recommended strategic plan will help this company to manage the crisis within
one year. This company has to analyze economic factors, cultural factors and political factors. To
regain its market position, this company has to utilize its strengths and opportunities.
Introduction:
Sear Holdings Corporation, an American holding business organization, was the parent
business organization of Kmart chain stores and Sear chain stores. Due to bankruptcy in 2018,
the assets of this organization was sold. At present Transform Holdco LLC is the owner of this
company. CEO of this company is Edward Lampert. However, being failed to do business in an
intensely competitive market, this organization is losing its market share, identity and money.
This report aims to develop a strategic report for this company and strategy for the organizational
redesign. An in-depth analysis will be conducted in this report to identify the present scenario of
this company and recommendation will be provided, which can be helpful for this company to
survive in the competitive market.

4STRATEGIC MANAGEMENT AND LEADERSHIP
Strategy:
The management team of Sears has developed a new strategy to revive the business
organization in an intensely competitive market. The management team of this organization has
decided to lay off employees and shut down many stores for the revival (HURTIBISE 2020).
This organization was unable to manage the pressure of the debt load and faced intense
competition from Amazon and Walmart. This organization has decided to shut down stores,
which are unable to generate profit, and run the profitable stores. Transform Holdco has decided
to operate 182 Stores. Primarily there are five reasons for which this company is facing these
problems.
 This organization was diversifying too much. To diversify its business, the management
team of this organization included insurance real estate banking and Investments.
 To manage the problems of Sears, the management team this company decided to
purchase Kmart, another retailer who was struggling to manage its business. That was a
bad decision.
 In comparison with other retail organization, this company spends a huge amount of
money for the up-gradation both for offline stores and online business.
 For the last ten years, top real estate properties of the Sear holding company were sold.
Rest of the properties are not worth as much the sold property.
 The CEO of Transform Holdco LLC is Eddie Lampert, who is from a finance
background (Loeb 2019). It is difficult for Lampart to lead a retail business organisation
which is in a troubling situation.

5STRATEGIC MANAGEMENT AND LEADERSHIP
Stakeholder analysis:
The business organization has the responsibility to fulfil the interest and needs of the
stakeholders. The management team of Sears Holding has the responsibility to fulfil the interests
of the stakeholders (Missonier and Loufrani-Fedida 2014). Stakeholders of Sears Holdings are
the employee, management team, suppliers, consumers, competitors, and government.
Among these stakeholders, the management team and government have the most
influence on the business operation of this company. Whether Sears holding is following the
legal regulations or not is the interest of the government. The interest of the management team of
this company is to run the business efficiently. The management team is interested to guide the
company to achieve the business objectives of the company. The influence of this stakeholder on
the business organization is high. Employees are important for this company to achieve business
objectives (Abdollahi, Hosseini and Alimohammadzadeh 2019). However, the influence of the
employee on the business organization is low because they are easily replaceable. Suppliers of
these organization provide the best quality product. However, the influence of the supplier on
business performance is medium. The success of a business organization depends on the
suppliers. The interest of the customer is to receive maximum benefit from lower cost with
maximum quality. The influence of the customer on the business organization is high. The
competitors of Sears Holdings generate huge competition in the market. Competitors create an
impact on the business operation of Sears Holdings.
Organizational performances:
In 2016, the annual revenue of Sears Holding was $5.4 billion. In 2017, the annual
revenue of Sears Holding was $22.1 billion. In 2018, the annual revenue of Sears Holding was
$16.7 billion (HURTIBISE 2020. So it can be said that this organization is not in good condition.

6STRATEGIC MANAGEMENT AND LEADERSHIP
That is the reason a new strategy must be applied by the management team of this company. The
HRM strategy of this company will be analyzed in this part. For the training and development
purpose, this company spend a huge amount of money in comparison with its competitors. The
aim of this company is to make an efficient workforce aligned with the mission, vision of this
company, which will help this company to accomplish business objectives. To motivate the
employee, this company has been continuing the reward system for the employee. Competence
centered salary for the manager of this company is followed in this company (CIMENT 2019).
The reward system is based on the performance of the employee. By delivering the best
performance, any employee can receive incentives. For the recruitment purpose, this company
follows a soft approach. According to the executive of this company to make a loyal employee
this company choose an employee from the organization and provide adequate training to the
employee so that that employee can acquire the required skills.
External factors:
Political factors, economic factors and cultural or social factors will be analyzed in this
part. These factors have the ability to interrupt the business operation of Sears Holdings.
Political factors:
In this part, political factors will be identified which may create an impact on the chances of
survival of this business organization. To manage this critical situation, this organization can
expand its business at the international level. Sears Holding is exposed to several political factors
which are following.
 The political stability of a country can create an impact on the department stores like
Sears holding.
 Military invention can create a negative impact on the revival strategy of this company.

7STRATEGIC MANAGEMENT AND LEADERSHIP
 If the corruption level of a country is high then it will be difficult for this organisation to
manage the business, which is already in a difficult situation, successfully (CIMENT
2019).
 If the government of a country interferes excessively in the department stores industry,
then it will be difficult for this company.
 Regulations to protect the intellectual property of a company can be beneficial for Sears
Holdings.
 Trade barriers can affect the business operation of this company.
 This company can ensure maximum profits by investing in a country where the low
minimum wage is followed. It will enhance the chances of survival for this organisation.
Economic factors:
This organization is already affected by economic factors. To survive in an intensely
competitive market, the management team of this organization has to analyze the economic
factors which are affecting the business of this company. Those economic factors which are
creating an adverse impact on this company will be analyzed below.
 Before entering a new country this company has to analyze the economic system of the
host country and the stability of the economy of that country.
 Rule of the complement of the host country in the free market and related services must
be analysed by this company before investing in a new country.
 Stability of the currency of the host country must be analysed by this company.
 The quality of infrastructure of this industry, which is available in the host country, must
be analysed by this company before expanding its business at an international level.

8STRATEGIC MANAGEMENT AND LEADERSHIP
 Other economic factors, which must be examined, are economic growth rate, the rate of
unemployment, the rate of inflation and discretionary rate (CIMENT 2019).
 Not only the labour cost but also the productivity of the host country’s economy must be
evaluated.
 As Sears Holdings is facing the problem of bankruptcy, so it can be said that before
investing in a country the management team of this company has to analyse these factors
and develop a strategic plan, which will help this company to implement the survival plan
appropriately.
 At present, the retail sector is in a turbulent environment which must be managed by this
company with a proper strategic plan and extra precaution.
Social factors:
Social factors can influence Sear Holdings because society, in which this organization
will do the business, will influence the business operation style of this company. Social factors
which have the potential to increase the business of Sears Holdings will be discussed below.
 Demographics of a country can influence the business of this company. The success of
certain products depends on the ages and genders of that country's population. The
management team of Sears Holdings has to prepare a strategic plan to manage this factor.
 Class distribution of the targeted market is a significant factor which can influence the
survival plan of this organization. Promoting a premium product in a lower-middle-class
population can be the wrong strategy for this company.
 Interests and priorities of the target market are very important which must be identified
appropriately by this company. The difference regarding educational background

9STRATEGIC MANAGEMENT AND LEADERSHIP
between the population of the target market and the marketers of this company to
accomplish the business objectives (Tarí, Heras-Saizarbitoria and Dick 2014).
 This organization has to change the preferences of the customers towards the experience
related to expending.
 Maintaining the quality, level of health standards and sustainable products can be
beneficial for this company. It will enhance the brand reputation in the target market.
 Cultural differences can influence the survival plan of this company. That is the reason
this company has to relate the cultural differences between the host country and home
country.
Internal analysis:
The SWOT analysis is beneficial for a business organization to identify the strength and
weaknesses, which are the internal strategic factors and opportunities, threats, which are the
external strategic factors (Gürel and Tat 2017).
Strengths:
 This organisation offers a wide range of goods for its customer which is a strength for
this company. Customers of this company get a wide range of products in a store of
Sears Holdings, which is helpful for them.
 Worldwide presence in the Retail Industry is a strength of this company. Do this
organisation is in a critical situation can be said that to survive its business operation
appropriately the management team of this company has to utilise its ward wide presence.
 Multi-channel integration is a strength of this company which must be utilised
appropriately by this company for its survival. This company has been doing its business

10STRATEGIC MANAGEMENT AND LEADERSHIP
in Retail Industry for a long time. As a result of this, a strong distribution network has
been developed by Sears Holdings.
 By utilising automation of activities the management team of Sears Holdings Corporation
not only ensure the quality of the product but also maintain the consistency of the
product.
 These organisation had a successful track record, which can be used to regenerate its
brand reputation.
 This organisation was successful to develop new products. So it can be said that the
product innovation ability of this company can be utilised as a strength.
Weaknesses:
 Sears Holdings was unable to achieve success outside of its core business. Though this
organisation was one of the leading company in Retail Industry yet this company faced
several challenges while moving to other product segments (Hirsch and Thomas 2018).
 Though Sears Holding was the leading corporation in the retail Industry yet there were
gaps in the product range, which were sold by this organisation. Competitor of this
company used these gaps to attract customers and destroy the loyal customer base of
Sears Holdings.
 The organisation is in a critical situation because of the leader and the management team
of this company was unable to get an idea about the market trend (James 2018).
 In comparison with other business organisation of this industry, the attention rate in the
workforce of this company is very high. For the training and development purpose, this
company has to spend a huge amount of money (Hirsch and Thomas 2018).

11STRATEGIC MANAGEMENT AND LEADERSHIP
 Market share of this company is decreasing and competitors of this company like
Walmart and Amazon are capture in the market share of Sears Holdings.
 This organisation is unable to manage the pressure of loan debt. It is a threatening
situation for this company.
 The organisation structure of this company is the expansion procedure of this company.
 The management team of Sears Holding was unable to develop appropriate and efficient
financial planning. That is the reason this company is in a troubling situation.
Opportunities:
 The management team of this company is defining a distinct target market. It can be an
opportunity for this company to survive in an intensely competitive market. This
initiative will help Sears Holdings to analyse the characteristics and demands of the target
market appropriately.
 To enhance brand awareness, this company can utilise the advertisement. Through
advertisement, this organisation can manage its negative reputation in the market.
 To survive in an intensely competitive market this organisation can utilise the strategy of
partnerships.
 The loyal customer of this company is not in good shape. To create a new loyal customer
base, Sears Holdings has to attract potential customers by providing discounts and
coupons.
 At present online sales is the market Trend the management team of this company has to
invest more to develop a smooth online operation. It will help this organisation to
compete with Amazon and Walmart (Forbes 2020).

12STRATEGIC MANAGEMENT AND LEADERSHIP
 Private brands such as craftsmen and Kenmore are growing in the market. It can be an
opportunity for Sears Holdings to capture the market.
 The management team of this company can enhance social media involvement to
interact with the targeted customer
 By developing a system, which will allow the customers to do shopping through the
mobile application, this organisation can attract the target market. This can be an
opportunity for Sears Holdings.
Threats:
 Sears Holdings has to manage its business in an intensely competitive market. Several
competitors are doing business in the retail industry such as Walmart and Amazon.
 Lack of growth in almost every product lines is a threat for Sears Holding. Craftsman,
which is the number one brand name product of Sears Holding, also facing this problem.
The senior executive of this company must analyse the issue and develop a solution for
this threat (James 2018).
 Supply chain management strategy of this company is not adequate to compete with its
competitors like Amazon and Walmart. An efficient supply chain management will help
this company to achieve competitive advantage.
 At present consumers prefer online shopping. These consumers have a negative
perception of shopping at offline stores and mall.
 The loyal customer base of Sears Holding is destroyed which is a threat for this company.
To manage this situation, the management team of this corporation has to create a loyal
customer base.

13STRATEGIC MANAGEMENT AND LEADERSHIP
 The price of raw material is increasing which is a treat for the profitability of Sears
Holdings.
Strategy:
The organizational objective of Sears Holding is that this organization is committed to
developing the lives of consumers by delivering the best quality services, solutions and products,
which will build not only trust but also a healthy relationship with the customer, which will stay
for a lifetime. Improving productivity and efficiency is another business objective of Sears
Holdings.
Sears Holdings is unable to compete with its competitors like Walmart and Amazon.
Competitors of Sears holding are implementing the most efficient business strategy through
which they are destroying the loyal customer base of Sears Holdings. Besides of that the
leadership approach and strategic plan are not suitable for this company. That is the reason Sears
Holdings are in a troubling situation. A new strategy can help this company to manage these
challenges and accomplish the organizational objectives.
The new strategic plan aims to transform Sears Holdings as it was in the 1990s. The new
strategic plan will help this company to accomplish four objectives which are generating
revenue, increasing profit, enhance customer satisfaction, and investor returns. By fulfilling these
four objectives, the new strategic plan will help Sears Holdings to accomplish its business
objectives.
It can be said that by following a pricing strategy this organization can remain
competitive in Retail Industry. Low pricing strategy will help this company to enhance its
attractiveness towards its customer. To ensure profits the management team of Sears Holdings

14STRATEGIC MANAGEMENT AND LEADERSHIP
has to depend on high volumes of sales as they have to follow a low pricing strategy (Noda
2015). To ensure the most efficient low pricing strategy, the executives of this company has to
create the strongest relationships with its suppliers and producer. Not only that the executives of
this company has to bargain with its suppliers and manufacturer to maintain low pricing strategy.
Walmart is one of the largest competitors of Sears Holding. By following the low pricing
strategy, Sears Holding can directly compete with Walmart. Also, a low pricing strategy is
followed by Walmart. So it can be said that to compete with Walmart the management team of
Sears Holding has to choose low pricing strategy (Sasagawa, Kajiyama and Ouchi 2014). To
compete with Amazon, this company has to invest in technological advancement. The
management team of Sears Holding has to use a low-pricing strategy to attract the customer.
Besides that, the management team of this company has to invest in technical advancement,
which will help this company to compete with Amazon.
At present Sears Holding is facing financial issues. However, this organization is
successful to develop a good reputation regarding payback commitment. So it can be said that to
implement a new business strategy, which will help this company to achieve its business
objectives and competitive advantage, the management team of this company will accumulate
more debt. The proposed HRM strategy for this company will be discussed here. The
management team has to implement employee appreciation because it will motivate the
employee to perform at their best level. For recruiting new employee, the application will be
collected through online and interviews will be conducted in-store. After 6 months of employee
performance evaluation, the newly recruited employee will be eligible for a pay increase.
Though this organization mostly choose the leader from the company. But it can be suggested

15STRATEGIC MANAGEMENT AND LEADERSHIP
that outside professionals or consultants for the leadership role can be helpful for this
organization.
Analysis of the strategy:
In this part, whether the suggested strategy for Sears Holding encourages innovation and
changes or not will be analyzed. By dropping the prices of the products this organization can lure
customers away from its competitors like Walmart and Amazon. However, this organization has
to implement technological advancements and innovation to ensure profit because lowering
prices strategy lowers the profit margins per unit (Sathyamoorthi and Mburu 2016). Without
Innovation and technical advancement, it will be difficult for them to operate at a lower marginal
cost. As this company is in a critical situation, this strategy will help them to regain the market
share and customer base. It can be said that to regain the competitive advantage, the management
team of Sears Holdings has to use a lower pricing strategy with the help of innovation and
technological advancement. This strategy will help Sears Holdings to muscle out Walmart and
Amazon.
The contribution of this strategy for Sears Holdings will be analyzed here. By following
this strategy this company can compete with its competitor. As this organization was successful
to create a loyal customer base and captured a huge market share in the 1990s, so it can be said
that by using this strategy the management team of Sears Holdings can attract the customer
again. By offering a lower price for the goods, this company not only create a loyal customer
base again but also muscle out its competitors such as Amazon and Walmart.
Implementation plan:
Strategy Activity Time frame Measurement

16STRATEGIC MANAGEMENT AND LEADERSHIP
Low pricing
strategy
 Mass
production
 Analyse the
pricing
strategy of the
competitors
1 year  The ability to
maintain mass
production
and ensure the
best quality.
 After one year
the
management
team of this
company
should have
in-depth
information
about its
competitors.
Innovation  Empower
innovative
employees.
 Training and
development
 Prioritise
every
innovative
1 year  Whether the
employee’s
ability in
innovation is
flourished or
not will be
evaluated.
 The

17STRATEGIC MANAGEMENT AND LEADERSHIP
opinion of the
employee.
knowledge
gathered from
the training
and
development
programme
will be
evaluated.
 Whether a
free
workplace is
developed or
not will be
analysed
which will
allow the
employee to
share
innovative
ideas.
Technological
advancements
 Investment in
the R&D
department.
 1 year  The
responsibility
of the R&D

18STRATEGIC MANAGEMENT AND LEADERSHIP
 Scrutinising
the
technological
trends
department is
to provide
innovative
ideas,
products,
which will
attract the
customer and
improve the
online
business of
this company.
Major stakeholders of Sears Holdings are management team, employees, customers,
suppliers, government and competitors. This organization is facing a financial crisis as a result of
this interests of stakeholders are not fulfilled by this organization. That is the reason this
organization has to utilize a new strategic plan, which is a low pricing strategy. By using the
strategy, Sears Holdings can attract potential customers, create a new customer base, and
compete with its competitors. A low pricing strategy will help this company to manage the
present financial crisis. Consumers will get the best quality product at a low cost. Employees will
get benefit if this organization accomplish its business objectives. Not only the employee but
also the management team will get the benefit of the success. The management team of this
company has to ensure that the business operation of this company follows the legal framework

19STRATEGIC MANAGEMENT AND LEADERSHIP
set by the government. By following a low pricing strategy, Sears Holdings will create mass
production and defeat its competitors by analyzing the pricing strategy of competitors. For the
innovation purpose, training and development will be provided to the employee and opinion of
the employee will be prioritized. The employee of this company will realize their importance by
these initiatives. Research and development department of this company will utilize innovative
ideas, products and services, which will help this company to maintain a low margin profit.
Through mass volume sale, this organization will manage the financial crisis.
Recommendation:
It can be recommended that Sears Holdings not only has to utilize a new strategic plan
but also change the organizational structure and leadership approach to survive in an intensely
competitive market. To regain its market position and market share this company can utilize its
nostalgia in the country. This organization can shut down those stores which are not profitable.
In future, if Sears Holdings can create a customer base and enhance the market share, then the
management team of Sears Holdings can explain their business. To compete with Amazon this
organization has to utilize technological advancement appropriately and to compete which
Walmart this organization has to follow the low pricing strategy. Change of leadership can
motivate the employees to perform at their best level. Change your organizational structure can
be beneficial for this company.
Conclusion:
Thus this report concludes that to manage the financial crisis this organization has to
adopt a new strategic plan. By following a low pricing strategy and applying the technological

20STRATEGIC MANAGEMENT AND LEADERSHIP
advancements Sears Holding can regain its market position and enhance its market share. It will
help this company to fulfil the Desire of its stakeholders. To reduce the cost management team of
this company can shut down those tools which are not generating profit. Besides of that change
of organizational structure and leadership can motivate the employees of Sears Holdings to
perform at their best level. So it can be said that an entire modification is needed for Sears
Holding which includes a strategic plan, organizational structure and leadership change.

21STRATEGIC MANAGEMENT AND LEADERSHIP
Assignment Task 2: Organizational redesign
Present organizational structure:
Chairman and CEO of this company Edward S. Lampert:
Chief Financial Officer Robert A. Riecker
Chief Digital Officer & Head-Customer
Experience
Leena Munjal
Chief Digital Officer & Head-Customer
Experience
Robert Naedele
Director and Managing Director Alan Jeffrey Carr
Director Ephraim J. Bird
Independent Director William Charles Kunkler
Independent Director Paul G. DePodesta
Independent Director Ann Nolan Reese
Independent Director Thomas J. Tisch
Source: (Wsj.com 2020)
Business objectives of Sear Holdings are to make a strong and highly reputable brand,
which can attract the maximum consumers to buy the products and services, offered by this
company. It is a need for this organization to enhance its sales and profitability respectively. The
business model, which this organization is interested to follow, is known as 'shop your way'.
Whether the present organizational structure is successful to accomplish this business goal or not
will be discussed here. At present Sears Holding is in financial crisis. This organization has to
face intense competition from Walmart and Amazon. Eddie Lampert as a chairman of this

22STRATEGIC MANAGEMENT AND LEADERSHIP
organization tried his best to transform this company into an online competitor of Amazon.
However, Eddie Lampert is from a finance background. It is difficult for him to understand the
entire scenario of the retail industry. As a result of this, Sears Holdings is in a bankruptcy
situation. So it can be said that the present organizational structure is not able to manage the
crisis of Sears Holdings. This organization was the leading business organization in the US.
However, the business strategy of Walmart and Amazon lead this business organization to face
the bankruptcy situation. The brand reputation and brand awareness of these company are lost.
That is the reason Eddie Lampert has hired Alan J.Carr as a chairman and managing directors of
Sears Holding (Transformco.com 2018). Alan J.Carr owns a huge experience as a principal,
investor, and advisor leader for complex financial restructuring. This person has the experience
to reorganize the business. To regain the leading position in the market of USA and Canada,
Sears Holding not only has to implement a new strategic plan but also modify its organizational
structure. The management team of this company is expecting that the leadership of Alan J.Carr
can guide this company and led Sears Holdings to success.
Sears Holding is facing a financial crisis. The board of directors and the executive team
are unable to guide this company to accomplish its business objectives. That is the reason for
which an organizational restructure is necessary for Sears Holding. The reasons for
organizational reconstruction are to ensure competitive advantage, to implement new technology,
to ensure competitive advantages, appropriate utilization of talent, and to decrease its debt.
Restructuring of Sears Holding can be beneficial for this organization because through this
initiative the management team of this company can get financial benefits, enhance the value of
the company, ensure competitive advantages, and support the company to regain its position in
the market. This organization has to follow a new strategic policy like a lower pricing strategy

23STRATEGIC MANAGEMENT AND LEADERSHIP
and implement the technological advancement in the business operation to accomplish
competitive advantages. However, this organization has to allow appropriate time for planning
and applying the restructure. The restructuring process of Sears Holding includes certain stages
which are described below.
 Which areas needed to fixed and restructured, must be identified.
 Identify the strengths, weaknesses, threats and opportunities of Sear Holding are
necessary. I t will help Sears Holding to develop a short-term plan and long-term plan.
This plan will utilise the strengths and opportunities to manage the weaknesses and
threats.
 While applying the short-term plan this company has to develop an appropriate action
plan.
 The secured areas must be founded by the management team of Sears Holding.
 The appropriate calculation is necessary for organizational reconstructing.
 The outcome of short-term planning and organizational reconstructing must be evaluated.
It will help this company to identify areas which needed to be modified.
In this part, new organizational structure for Sears Holding will be recommended which will
help this company to ensure the smooth business operation and accomplish business objectives.
It can be said that by using ‘flatter organizational structure’ this company can perform better.

24STRATEGIC MANAGEMENT AND LEADERSHIP
In this part justification for choosing this organizational structure will be analyzed. Though
there are several other organizational structures yet ‘Flatter organization structure’ is
recommended for Sears Holding. This organizational structure will enhance communication
between management and employees. By reducing the communication gap the management team
of Sears holding can influence the employee to perform at their best level. It will be beneficial
for this company to accomplish its target with the help of the most efficient workforce. This
organizational structure has minimum management layer which will enhance the interaction
between the employees and other higher levels such as management. Fewer management layers
can help Sears Holdings to identify innovative skilled employees. Lesser management layers will
help this company to manage its financial crisis. Not only that experienced employees at a higher
level in the Sears Holding will expect the highest salary than lower levels. So reducing the
management layers will help Sears Holding, which is in financial crisis, to manage its low-cost
business operation. Due to the fewer management layers, the decision-making process is easy in
flatter organizational structure. Making a quicker decision is very important right now for a
company like Sears Holding. The communication between employees and management is hosted
in this organizational structure. By using this structure, this organization can enhance the
morality level of the employee. Less bureaucracy is present in flatter organizational structure

25STRATEGIC MANAGEMENT AND LEADERSHIP
which is helpful for a company like Sears Holdings. These are the reason for which a flatter
organizational structure is recommended for this company.
So it can be said that by using the flatter organizational structure, Sears Holdings can get
several benefits. To gain competitive advantages and enhance market share this company has to
follow this organizational restructuring. The present organizational structure is unable to lead
this company to its business objectives. That is the organizational structure change is necessary.
This flatter organizational structure will help Sears Holdings to identify employees with
innovation ability, foster communication, reduce bureaucracy, faster decision-making process,
enhance the morality level of the employees and reduce communication gap.
Leadership styles:
Through leadership style, a leader develops a positive attitude among the sub-ordinate
employees and guide the team members to accomplish the goal. There are several leadership
styles which can help a business organization to develop corporate values, CSR and manage
strategic changes. In this part, several leadership styles will be analyzed. Among these leadership
styles, one leadership style will be recommended for Sears Holdings, which will help this
organization to manage the crisis and led to its business goals.
Autocratic leadership style:
This leadership style, one-dimensional leadership style, which provides full authority to the
manager to makes every decision without consulting with the subordinates. After taking the
crucial decision, an autocratic leader communicates with sub-ordinate team members to share the
decision and expects that the sub-ordinate team member will work according to the decision,
taken by the autocratic leader. It can be said that an autocratic leader is a supreme decision-
maker. Autocratic leadership style is very much rigid (De Hoogh, Greer and Den Hartog 2015).

26STRATEGIC MANAGEMENT AND LEADERSHIP
However, while taking a quick decision, develop structure and supervision, this leadership style
is the most appropriate.
Democratic leadership style:
This leadership style is participated by nature which allows the leader to involve subordinate
employees while taking important decisions. This leadership style is known as a participated
leadership style. If the sub-ordinate employees of an organization are experienced and skillful
then this type of leadership is appropriate to guide them. In the workplace, this leadership style is
preferred by the sub-ordinate employees. In this leadership, style communication is very much
active. This leadership style boosts creativity skill, endorse fairness, honesty and enhance
intelligence. The flow of ideas and discussion are prioritized in this leadership.
Strategic leadership style:
This leadership style refers that the leaders have the capability to supply the strategic vision for
the company and motivate the employees to accomplish the strategic vision with appropriate
strategies and tools. If the sub-ordinate team members have the ability to manage risks then this
leadership style is useful. In this leadership style, the leader develops the strategic vision and
influence the employee to pursue the goal (Strand 2014). This leadership style helps employees
to become a leader in future. However, in this leadership, the leader must have the potentiality to
create a strategic vision, which is aligned with the vision of the organization,
Transformational leadership style:
This leadership style is one of the most desirable leadership styles. By creating effective
communication in the team, this type of leader develops a work culture, which has high goals
and deadline. In this relationship style, the leader prioritizes the results and depends on the
present structure of the organization and evaluate the success according to the rewards and

27STRATEGIC MANAGEMENT AND LEADERSHIP
penalties system of the company. The transformational leader has the responsibility to maintain
the routine of both individual performance and group performance. The value of order and
structure is prioritized by the transformational leader (Mittal and Dhar 2015).
Laissez-faire leadership style:
In this leadership style, the leader envoys the responsibility to subordinate team members and
allow them to work freely with minimum interference (Skogstad et al. 2016). Scope of
innovation and flexibility is prioritized by this type of leader. The self-motivated team without
any supervision can perform better in this leadership style (McCleskey 2014). The power to take
decisions is on the employee. However, in this leadership style, the leader takes responsibility. In
this leadership style, sub-ordinate employees enjoy freedom.
Charismatic leadership style:
In this leadership style, a charismatic leader influences subordinate people with their charm and
charisma. This type of leader is passionate, confident and self-motivated. In this leadership style,
the success of a business organization heavily dependent on the charismatic leader. The goal of
the organization reflects the vision of the charismatic leader. This type of leader has the ability to
influence and motivate employees to perform at their best level to accomplish the vision of the
charismatic leader. However, there is a drawback of this leadership style, which is the
charismatic leader is not interested to learn from the mistakes (Zehir et al. 2016).
In this part, the leadership style for Sears Holdings will be identified. It can be
recommended that transformational leadership can be helpful for Sears Holdings. This leadership
style will develop corporate values, CSR and manage strategic change for Sears Holdings. In this
part justification for choosing this leadership will be discussed. Transformational leadership will
help individual employee of Sears Holding to maintain self-growth and development. It will help

28STRATEGIC MANAGEMENT AND LEADERSHIP
this organization to influence the employees to perform at their best level to accomplish the
business goal. This leadership style will help the employees to improve their morality level.
Sears Holdings is in a crisis. This leadership style can influence the followers and increase the
performances of the workforce (Mittal and Dhar 2015). It will help this company to maintain
mass production. The leadership style, followed in Sears holding, is not successful to lead this
organization to accomplish its business objectives. That is the reason organizational structure
change is necessary. Transformational leadership style is the most appropriate leadership style to
manage structural change and organizational development. To manage the challenges, faced by
this company, this leadership style can be very much useful. Wide application of this leadership
is a reason for which Sears Holdings should utilize this leadership style.
Thus this report can be concluded that the management team of Sears holding not only
has to use a new strategic plan but also follow organizational structure modification and new
leadership style. By using a low pricing strategy Sears Holding can compete with Walmart. By
improving the infrastructure of online business and applying technological advancement this
company can compete with Amazon. For the leadership purpose, it can be suggested that
transformational leadership can be useful for this organisation. As the present organisational
structure is not able to manage the crisis of the company. So it can be recommended that by
using 'flatter organizational structure' this company can enhance the communication level and
ensure smooth business operation.

29STRATEGIC MANAGEMENT AND LEADERSHIP
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