Money and Finance
- The Characteristics Of Easy And Difficult Turnarounds
In his 1979 letter to shareholders, Warren Buffett wrote: Both our operating and investment experience cause us to conclude that “turnarounds” seldom turn, and that the same energies and talent are much better employed in a good business purchased...
- Eddie Lampert's Letter To Sears Shareholders
Link to: Eddie Lampert's Letter to Sears ShareholdersI am writing to you after my first full year serving as both your Chairman and Chief Executive Officer. While our financial results remain challenged, 2013 may have been the year that justifies...
- At Sears, Eddie Lampert's Warring Divisions Model Adds To The Troubles
Every year the presidents of Sears Holdings’ (SHLD) many business units trudge across the company’s sprawling headquarters in Hoffman Estates, Ill., to a conference room in Building B, where they ask Eddie Lampert for money. The leaders have made...
- Eddie Lampert's Letter To Sears Shareholders
The retail industry is complex and changing rapidly. But, it's not just retail. Many industries are going through a transformation driven by information technology—financial services, newspapers and magazines, books, music, movies, healthcare, you...
- A Storied Name On Sale?
Likewise, Sears' business is getting short shrift, as some of Lampert's restructuring efforts are likely to bear fruit. Too, the retailer's real estate has considerable value that is not reflected in the stock. Add up this real estate, valuable...
Money and Finance
Eddie Lampert: Turnarounds and Transformations
Link to: Turnarounds and Transformations
At Sears Holdings’ annual stockholders meeting this week, we talked a lot about the difference between turnarounds and transformations. I want to share some of those thoughts here.
Turnarounds happen when a company succeeds again at doing what it had once done successfully before. Transformations are almost entirely different – they occur when companies adapt their business model to fundamental shifts in technology, competitive landscapes, government policies and regulations, or macro trends to serve their customers (or, in our case, members) in new ways. Over the last decade, incidentally, Sears and Kmart have faced all of the challenges I just listed.
As you might expect, we talked a lot about Sears and Kmart at our annual meeting. But we also took a close look at the transformations of three other companies: Apple Inc. (formerly Apple Computer), General Dynamics Corporation, and Eastman Kodak Company. I want to be clear that I am in no way saying that Sears Holdings is just like any of these companies, but there are lessons to be learned from them, two that were successful and one that was unsuccessful in their transformations.
- The Characteristics Of Easy And Difficult Turnarounds
In his 1979 letter to shareholders, Warren Buffett wrote: Both our operating and investment experience cause us to conclude that “turnarounds” seldom turn, and that the same energies and talent are much better employed in a good business purchased...
- Eddie Lampert's Letter To Sears Shareholders
Link to: Eddie Lampert's Letter to Sears ShareholdersI am writing to you after my first full year serving as both your Chairman and Chief Executive Officer. While our financial results remain challenged, 2013 may have been the year that justifies...
- At Sears, Eddie Lampert's Warring Divisions Model Adds To The Troubles
Every year the presidents of Sears Holdings’ (SHLD) many business units trudge across the company’s sprawling headquarters in Hoffman Estates, Ill., to a conference room in Building B, where they ask Eddie Lampert for money. The leaders have made...
- Eddie Lampert's Letter To Sears Shareholders
The retail industry is complex and changing rapidly. But, it's not just retail. Many industries are going through a transformation driven by information technology—financial services, newspapers and magazines, books, music, movies, healthcare, you...
- A Storied Name On Sale?
Likewise, Sears' business is getting short shrift, as some of Lampert's restructuring efforts are likely to bear fruit. Too, the retailer's real estate has considerable value that is not reflected in the stock. Add up this real estate, valuable...