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solve below two case studies :- v 551% CASESTU DY 1 Read the first case study below and prepare a written case analysis. Guidelines Individually,
solve below two case studies :-
\\v 551% CASESTU DY 1 Read the first case study below and prepare a written case analysis. Guidelines Individually, ou are to PERFORM A WRITTEN CASE ANALYSIS on the first case study (include all steps discussed in the student gUI e to case studies and class lectures) Read and carefully analyze the case study using all the tools and techniques we have discussed. Go back to the student guide for case studies for assistance in analyzing and writing a case summary analysis if needed. Do not plagiarize' This should be in your own words' Plagiarism software will be enabled for this submission Times New Roman font 2 pages not including the cover page 12 Font Size Double Spaced First page (cover page) should include: Your name, Instructors Name, Course name and Code, College LOCO and FCT ID' An identication of issue in the case study An in-depth and detailed analysis of the issue Develop and evaluate the alternatives Provide recommendations v FLEMING \\ COLLEGE TORONTO Starbucks Founded in 1971, based in Seattle, with over 30,000 locations, 330,000 employees, and annual revenues of around $25 billion, Starbucks is the largest seller of coffee in the world. Roz Brewer joined Starbucks' business in America as chief operating ofcer in 2017, the rst woman and rst African- American to hold such a senior position in the company. In her new role, she had a number of problems to deal with. The company's iconic founder and executive chairman, Howard Schultz, had decided to leave the company after three decades. After ve years of exceptional growth, sales had stalled. In 2018, the company was accused of racial bias after a manager called police to deal with two Black men who had been waiting for a friend in an outlet in Philadelphia; they had not bought drinks and refused to leave when asked. Some customers called for a Starbucks\" boycott after a social media video of the arrest went viral. When Brewer analyzed Starbucks' business operations in detail in her rst three months, she found that the company was \"melting down behind the coffee bar.\" Paradoxically, this was the result of the success of the mobile order and pay system; customers placed their orders through an app before coming to the store. But the stores were not ready for the sudden increase in orders. Crowds of customers jostled each other as they waited for their drinks, and stressed haristas struggled to keep up with the ow. She also found that 40 percent of employees\" time was spent on tasks away from the customers, such as counting milk jugs three times a day and unnecessarily restocking the oor with cups. And like many other organizations, there were too many development and change initiatives being run by corporate headquarters. Page Source: Managing Organizational Change, A Multiple Perspective Approach, 4th Edition , Starbucks \\v EIOELTIENGCE TORONTO Brewer was not an obvious choice for the role at Starbucks. Her previous position was as a senior executive at Walmart. Investors were skeptical that her experience with a bigbox retailer could translate to a \"high touch\" coffee shop business. And she preferred green tea to coffee. However, one of Brewer's colleagues at Walmart said, \"Roz is a tough cookie. She's into the details. She's not a uffy person. She gets things done.\" Another colleague said, \"She's an operator. She's not just a person with a point of view and vision. She can execute\" (Kowitt, 2019, pp. 86 and 88). Schultz had managed the company by instinct and intuition. Brewer, who trained as a chemist, focused on the numbers and sought to bring some discipline and order to the stores. Brewer and her team simplied, eliminated, or automated tasks to allow store staff to spend more time with customers. Dedicated baristas were appointed to handle the mobile orders in stores where those were popular. Cleaning was carried out when the stores were closed. Twothirds of the corporate projects were stopped. Only those relating to three prioritiesbeverage innovation, store experience, and the digital businesswere allowed to continue. Brewer earned a reputation for making tough decisions. For example, she asked her team to assess the benets and disadvantages of MercatoStarbucks' fresh food business that was introduced, with much publicity, to 1,500 stores in 2017. The assessment showed that Mercato did not t the company's priorities, so she killed it. She also cut specialist stand alone, time-limited offers, like the Unicorn Frappucino. These were popular with only a small number of customers, and they complicated the baristas' work. She had the development team work instead on simpler products that could be made with existing ingredients. Following analysis of the timing of customer visits to stores and focusing on converting occasional midday customers to \"rewards\" members (who account for 40 percent of sales), Brewer was able to grow the afternoon business, which was traditionally a slack period. Starbucks \\'l EIOELTIEBEE TORONTO Following what became known as \"the Philadelphia incident,\" Brewer ew to Philadelphia to apologize in person to the two men, and she organized racial bias training for 175,000 employees. Brewer also spent a lot of her time visiting the stores, talking to employees, and assessing their pride in the business. Do employees who recognize her look her in the eye? Brewer says, \"If they look down at their feet, they're not proud about the store. Ninety -nine percent of the time I'm right about that\" (Kowitt, 2019, p. 91). Brewer sees Starbucks' stores as more than coffee shops; they are also public spaces, like libraries, serving the needs of employees and communities. In some shops, if they think that safety will be increased, managers have been allowed to install needle boxes in restrooms, for the disposal of drug users' syringes. \"Brewer wants baristas to make the perfect at white or pour-over, But she also wants them trained in how to deal with the hardest social situations they could possibly encounter so that everyone feels like they belong in Starbuc \" (Kowitt, 2019, p. 92), FLEMING \\v COLLEGE CAS ESTU DY 2 Read the second case study below and prepare a presentation case analysis. Guidelines Perform a case analysis PowerPoint presentation (include all four steps discussed in the student guide to case studies and class lectures) Read and analyze the case study using all the tools and techniques we have discussed in class. 00 back to the student guide for case studies and previous lectures for assistance in analyzing/writing a case summary analysis, and creating case analysis presentations If needed, Do not plagiarize. This should be in your own words. Plagiarism software will be enabled 8 10 PowerPoint slides not including the title slide and final slide, First slide should include: Your na me, Instructors Name, Course name and Code, College LOGO and PCT ID Your Case Presentation should include: An identification of issue in the case study An in-depth and detailed analysis of the issue Develop and evaluate the alternatives Provide recommendations Sears Holdings \\'l EIOELTlENGCE TORONTO L A household name in America, Sears was once the world's largest retailer. In October 2018, the company filed for bankruptcy, and its remaining assets were sold to a hedge fund, ESL Investments, owned by Eddie Lampert. What happened? Sears Holdings Corporation was a specialty retailer, formed in 2005 by the merger of Kmart and Sears Roebuck. The merger was the idea of Eddie Lampert, a billionaire hedge fund manager who owned 55 percent of the new company and who became chairman. Based in Illinois, the company operated in the United States and Canada, with 274,000 employees, 4,000 retail stores, and annual revenues (2013) of $40 billion. Sears and Kmart stores sold home merchandise, clothing, and automotive products and services. The merged company was successful at rst, due to aggressive cost cutting. By 2007, two years after the merger, prots were down by 45 percent. Source: Managing Organizational Change, A Multiple Perspective Approach, 4th Edition . FLEMING Sears Holdlngs v coogHgGE L Lampert decided to restructure the company. Sears was organized like a classic retailer. Department heads ran their own product lines, but they all worked for the same merchandising and marketing leaders, with the same nancial goals. The new model ran Sears like a hedge fund portfolio with autonomous businesses competing for resources. This \"internal market\" would promote efficiency and improve corporate performance. At first, the new structure had around 30 business units, including product divisions, support functions, and brands, along with units focusing on ecommerce and real estate. By 2009, there were over 40 divisions. Each division had its own president, chief marketing ofcer, board of directors, prot and loss statement, and strategy that had to be agreed on by Lampert's executive committee. With all those positions to fill at the head of each unit, executives competed for the roles, each eager to run his or her own multibillion-dollar business. The new model was called SOAR: Sears Holdings Organization, Actions, and Responsibilities. When the reorganization was announced in January 2008, the company's share price rose 12 percent. Most retail companies prefer integrated structures, in which different divisions can be compelled to make sacrifices, such as discounting goods, to attract more shoppers. Lampert's colleagues argued that his new approach would create rival factions. Lampert disagreed. He believed that decentralized structures, although they might appear \"messy,\" were more effective and they produced better information. This would give him access to better data, enabling him to assess more effectively the individual components of the company and its assets. Lampert also argued that SOAR made it easier to divest businesses and open new ones, such as the online \"Shop Your Way\" division. Sears was an early adopter of online shopping. Lampert (who allegedly did all his own shopping online, but had no previous experience in retailing) wanted to grow this side of the business, and investment in the stores was cut back. He had innovative ideas: smartphone apps, netbooks in stores, and a multiplayer game for employees. He set up a company social network called Pebble, which he joined under the pseudonym Eli Wexler, so that he could engage with employees. However, he criticized other people's posts and argued with store associates. When staff worked out that Wexler was Lampert, unit managers began tracking how often their employees were \"Pebbling.\" One group organized Pebble conversations about random topics just so they would appear to be active users. . FLEMING Sears Holdlngs \\v COLLEGE TORONTO The Chairman i At the time of the merger, investors were confident that Lampert could turn the two companies around. One analyst described him as \"lightning fast, razor-sharp smart, very direct.\" Many of those who worked for him described him as brilliant (although he could overestimate his abilities). The son of a lawyer, it was rumored that he read corporate reports and nance textbooks in high school, before going to Yale University. He hated focus groups and was sensitive to jargon such as \"vendor.\" His brands chief once used the word consumer in a presentation. Lampert interrupted, with a lecture on why he should have used the word customer instead. He often argued with experienced retailers, but he had good relationships with managers who had nance and technology backgrounds. From 2008, Sears' business unit heads had an annual personal videoconference with the chairman. They went to a conference room at the headquarters in Illinois, with some of Lampert's senior aides, and waited while an assistant turned on the screen on the wall opposite the U-shaped table and Lampert appeared. Lampert ran these meetings from his homes in Greenwich, Connecticut; Aspen Colorado; and subsequently Florida, earning him the nickname, \"The Wizard of Oz.\" He only visited headquarters in person twice a year because he hated ying. While the unit head worked through the PowerPoint presentation, Lampert didn't look up, but dealt with his emails or studied a spreadsheet until he heard something that he didn't likewhich would then lead to lengthy questioning. In 2012, he bought a family home in Miami Beach for $38 million and moved his hedge fund to Florida. Some industry analysts felt that Sears' problems were exacerbated by Lampert's pennypinching cost savings, which stied investment in its stores. Instead of store improvements, Sears bought back stock and increased its online presence. In 2013, Lampert became chairman and chief executive, the company having gone through four other chief executives since the merger. Page 9 . FLEMING Sears Hold ngs VEOngTEGE Instead of improving performance, the new model encouraged the divisions to turn against each other. Lampert evaluated the L divisions and calculated executives' bonuses, using a measure called \"business operating prot\" (BOP). The result was that individual business units focused exclusively on their own profitability, rather than on the welfare of the company. For example, the clothing division cut labor to save money, knowing that oor salespeople in other units would have to pick up the slack. Nobody wanted to sacrice business operating prots to increase shopping traffic. The business was ravaged by inghting as the divisionsibehaving in the words of one executive like \"warring tribes\"ibattled for resources Executives brought laptops with screen protectors to meetings so that their colleagues couldn't see what they were doing. There was no collaboration and no cooperation. The Sears and Kmart brands suffered. Employees gave the new organizational model a new name: SORE. The reorganization also meant that Sears had to hire and promote dozens of expensive chief financial ofcers and chief marketing officers. Many unit heads underpaid middle managers to compensate. As each division had its own board of directors, some presidents sat on five or six boards, which each met monthly. Top executives were constantly in meetings. The company had not been protable since 2010 and posted a net loss of $170 million for the rst quarter in 2011. In November that year, Sears discovered that rivals planned to open on Thanksgiving at midnight, and Sears' executives knew that they should also open early. However, it wasn't possible to get all the business unit heads to agree, and the stores opened as usual, the following morning. One vice president drove to the mall that evening and watched families ocking into rival Stores. W'herl SEars Opened the next day, cars were already leaving the parking lot. That December, Sears announced the closure of over 100 stores. In February 2012, Sears announced the closure of its nine \"The Great Indoors" stores. From 2005 to 2013, Sears' sales fell from $49.1 billion to 399 billion, the stock value fell by 64 percent, and cash holdings hit a 10year low. In May 2013, at the annual shareholders' meeting, Lampert pointed to the growth in online sales and described a new app called \"Member Assist" that customers could use to send messages to store associates. The aim was \"to bring online capabilities into the stores." Three weeks later, Sears reported a rstquarter loss of $279 million, and the share price fell sharply. The online business contributed 3 percent of total sales. Online sales were growing, however, through the \"Shop Your Way" website. Lampert argued that this was the future of Sears, and he wanted to develop \"Shop Your Way\" into a hybrid of Amazon and Facebook. The comDanv's stock market Valuation fell froni $10 billion in 2007 to $60 million in October 2018. mStep by Step Solution
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