Company analysis - Sears Term Paper Example | Topics and Well Written Essays - 1500 words

Company analysis - Sears - Term Paper Example Henceforth, the study attempts to determine the recent corporate governance issues that are currently affecting the company's decisions and to report how the company is or should be handling the issues. Mission, vision, and primary stakeholders: The most important mission of the company is to build customer relationships by providing better qualities of wide ranges of goods and services, like clothing, footwear, bedding, furniture, jewelry, beauty products, appliances, housewares, tools, and electronics. Profitability or the policy of making more money is another important mission of the company. The final mission of the company is to make improvements in each and every day in the business domain and also in the market and to the customer through achievement of greater customer satisfaction. The most important vision of the company is explained by the company itself which is: â€Å"Sears is committed to improving the lives of our customers by providing quality services, products, an d solutions that earn their trust and build lifetime relationships† (Vision, mission, values, 2012, p. 1). The company was founded by Richard Warren Sears and Alvah Curtis Roebuck in 1886. From its beginning, the primary stakeholders of the company were Richard Warren Sears and Alvah Curtis Roebuck. In 2005, the company was merged with Kmart and created Sears Holdings Corporation. Since then, the owners of Kmart also become the primary stakeholder of the company (Corporate History: A retailing legend is born, 2012, p. 1). Five forces of competition and its impacts on the company: Threat of new entrants: The large size of the company, the large size of the market share of the company, the high level of customer satisfaction, cost-effective business strategies, as well as high level of profit making ability are creating potential threats for new entrants to enter into competition with the company. This is in effect raising the level of profit and market share of the company. Thr eat of Substitute Products: Since the company is only a departmental store of various goods and services which are products or services of other production houses, therefore, the theory of substitute is not directly related to the company. However, the company faces competition from other departmental store like WalMart. In this case, the company takes strategies like lowering prices of various products and/or increasing the quality of these products to create treats to substitute companies and their products. These strategies are helping the company to increase the share of the market and also to make more profits. Bargaining power of suppliers: The bargaining power of the suppliers of various goods and services supplied to the company depends upon the markets for those products and services. Since the markets for various products sold by the company are very large, therefore, these suppliers are also gaining little bargaining power in the market and, hence, the amount of earned pr ofits of the company is very high. Between 1950s and 1970s the high quality of products sold by Sears and greater volume of profits gave the company’s suppliers negligible amount of bargaining power. Bargaining power of customers: The greater level of customer satisfaction is the most important part of the success story of the company. In this regard, the level of bargaining power of the customers of the company is also low. However, this does not mean that the company implements whatever policies it wants to