Sears: A Failed Diversification Strategy

Word Count: 250

Sears: A Failed Diversification Strategy

To: Edward Scott Lampert, CEO Sears, Roebuck & Company

Business Case Summary

Sears is US multinational middle-sized chain of department store and has headquartered in Hoffman Estates, Illinois. During 1981, the company made a strategic mistake by diversifying its core business of retail into real estate and financial services through making purchase the Coldwell Banker real estate operation and the Dean Witter Reynolds securities firm. However, the issue was this new lines of business had no or little alignment with the core business of the company. In addition, the company provided its rival ...