KMART: Fighting for a Comeback COMPANY: Kmart Corporation is facing a serious problem regarding bankruptcy protection that has allowed it to continue its business even though had defaulted on more than $4.7 billion in obligations owed to creditors, sellers and tenants. The bankruptcy filed in January 2002 was the largest bankruptcy in U.S. retail history and was the culmination of decades of poor strategy execution that resulted in an overall deterioration of Kmart's competitive position in the retail industry discounters and a history of roller-coaster earnings. Strengths and Weaknesses: A. Employees The company's concern about the attitude and performance of Kmart store managers and associates was negatively impacting shopper visits and loyalty. Hall brought together all the Kmart store managers. The executive team made it clear that they intended to end Kmart's historically insular and distrustful organizational culture and adopt a more team-oriented atmosphere at both headquarters and stores. The company announced its new management development program to help the company develop future managers at the store and company levels within the company. The company is criticized for its lack of interest in promoting sound management to ensure productivity and efficiency in the process.B. CustomerIt is sad to note that Kmart does not respond to customer service. A 1994 Forbes article cited customer complaints of indifferent Kmart employees who, when asked for a specific item in the store, would wave their hand in a general direction. One disgruntled shopper complained: "At superstores in Farmington Hills or Southfield, the help is on... a paper system......t poor supply chain management. The company is threatened by losses financial and in its inability to remain liquid, solvent and profitable. The opportunities for the company are great if it can manage its finances and its product lines.2 Customers are the lifeblood of the company, it is customer service needs to be improved Customer service is poor If customer service is not managed properly, further losses would mean the business goes out of business Consumer preferences and choices need to be assessed to ensure customer satisfaction3 Prices should be low but the quality service Poor pricing strategies It is threatened by the problem of its competitor's strategy gaining competitive advantage The opportunity depends on its ability to remain liquid and solid in solving the problem.siurce:company annual reports