SS company was established in 1892 which primarily sold watches via mail orders that relied on catalogs. The company changed the perspective of shopping as the catalog was delivered at their doorstep and the order was taken via mail. However, urban people's desire to purchase via standalone stores was also met as many stores were opened gradually. During the 1990s, there was a change in technology which also changed the way of shopping. People started purchasing goods online at competitive prices. Ss was burdened with overhead costs and was bureaucratic in nature. SS did not enter online marketing, but W’s profit grew. In 2004, SS was acquired by KEL, who acquired SS did not have retail experience but was an expert in finance. He acquired SS because he saw real estate value as the key. Under him, no importance was given to retailing stores, underinvestment was done in existing store maintenance, mismanagement was also an issue. Sales went down in 2013 and debt further escalated, and the company was losing annually $1 billion. Interpretation: Key causes of SS decline.

Question

Want to see the full answer?

Answer 1

Question

Chapter 2, Problem 2FD

Summary Introduction

Case Summary:

SS company was established in 1892 which primarily sold watches via mail orders that relied on catalogs. The company changed the perspective of shopping as the catalog was delivered at their doorstep and the order was taken via mail. However, urban people's desire to purchase via standalone stores was also met as many stores were opened gradually. During the 1990s, there was a change in technology which also changed the way of shopping. People started purchasing goods online at competitive prices. Ss was burdened with overhead costs and was bureaucratic in nature. SS did not enter online marketing, but W’s profit grew. In 2004, SS was acquired by KEL, who acquired SS did not have retail experience but was an expert in finance. He acquired SS because he saw real estate value as the key. Under him, no importance was given to retailing stores, underinvestment was done in existing store maintenance, mismanagement was also an issue. Sales went down in 2013 and debt further escalated, and the company was losing annually $1 billion.

Interpretation:

Key causes of SS decline.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Summarize Walmart Inc. Who is it? What does it do? Who does it do it to? Propose the social cause for Walmart Inc. and how it supports the mission, vision, and values of Walmart Inc. Analyze the key strengths, weaknesses, opportunities, and threats (SWOT). How does the proposed social cause support the strengths and opportunities of Walmart Inc while helping Walmart Inc to overcome its weaknesses and threats. Assess the ethical principles and frameworks used in making the selection. Include a discussion of the internal and the external impacts that expect to make with this choice. Evaluate any ethical challenges this social cause might present to employees. Justify why it is important for Walmart Inc. to actively participate in a CSR program and promote a global citizenship effort, including the contribution of the proposed social cause.

Response to isaiah Describe the conflicting motivations in the mixed motive nature of negotiation? It is important to understand that in mixed motive negotiations, these type of negotiations combine a number of aspects containing both that of integrative and distributive approaches. In addition to this, these types of negotiations aim to create additional value for all of the parties involved in the negotiation bargaining process, but one must understand that these may not be enough for everyone within the process to get everything they want out of these negotiations. Thus, and based upon the aforementioned information, there will always be some type of conflicting motivations based upon the mixed motive nature of negotiation. What are some options available during negotiation with a ZOPA? One of the options within the Zone of Possible Agreement is to always go back to the negotiation table and continue to try to work out any additional values that will benefit both sides of the…

What are some options available during negotiation with a ZOPA?