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Essay / Research Paper Abstract
This 7-page paper discusses various aspects of the merger between Sears and Kmart, including streamlining of economies of scale, consumers, markets, supply chain logistics and how workers will be integrated. Bibliography lists 4 sources.
Page Count:
7 pages (~225 words per page)
File: D0_MTseakma.rtf
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Unformatted sample text from the term paper:
waiting period now over, the time is now coming when the merger might actually be a reality. When it is finalized, the $11
billion deal will make this combined company (to be called Sears Holdings Corp.) the third-largest retailer in the country (Wal-Mart and Home Depot will be ahead (Corlett et al, 2004).
Edward Lampert (who owns a majority of Kmart and about 15 percent of Sears, according to Newsweek analyst Allan Sloan), will end up being chairman of Sears Holding Corp., while
Aylwin Lewis, president and chief executive of Kmart (whose background is in the restaurant industry), will take over as the CEO of Kmart and Sears Retail (Corlett et al, 2004).
The main reason for the deal, ostensibly, was to become very competitive in a market in which Wal-Mart is the undisputed king
(at least at this point) of retail (Corlett et al, 2004; see also Sloan, 2004). But Sloan points out, for example, that there are other things at stake, such as
real estate and value. For example, the companies, as of now, are close to the same stock-market value (Sloan, 2004). Though the new
merger has yet to actually take place (though approval seems to have been obtained), many experts, needless to say, have many questions as to how this will work out and
what the impact will be. Once the merger goes through, revenues are estimated to be about $55 billion a year, coming from 2,350
main stores (and more than 1,000 specialty stores) (Anonymous, 2004). Kmart and Sears will continue trading on the stock markets under their own names, but a few of the Kmart
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