Kohls presentation - This is the paper that went along with a required \"current events\" business PDF

Preview

Summary

This is the paper that went along with a required "current events" business PowerPoint presentation. ...

Description

Running head: KOHL’S STRATEGIC MANAGEMENT

Kohl’s Strategic Management Southern New Hampshire University

Strategy is perhaps the most important thing for a manager to keep in mind. A good strategy is the difference between a successful company and a failed company. Even if an organization begins with a successful strategy, it is imperative to continually reexamine and adjust that strategy as culture and buyer behavior change with the times. One such company that has recently taken strides to adjust its strategic management is popular retailer Kohl’s. CNN business reporter Nathaniel Meyersohn discusses this decision in his recent article titled “Kohl’s is Shrinking Stores, Leasing Extra Space to Planet Fitness,” published March 5, 2019 on WMUR (Meyersohn, 2019). Meyersohn is a retail reporter who covers the retail industry news, including breaking stories and original analytical pieces that cover trends affecting the retail industry (CNN, n.d.). The article briefs the reader on Kohl’s recent decision to shrink ten of its stores this year and lease the extra space out to Planet Fitness (Meyersohn, 2019). This decision is very innovative on Kohl’s part, and will help the retailer continue to be successful in this era of online shopping. Kohl’s CEO Michelle Gass came up with the idea to partner with Planet Fitness in order to draw in more consumers. The partnership with a gym reflects Kohl’s recent additions of more athletic clothing, including new products from Under Armor and Fitbit. Gass hopes that consumers will come to Planet Fitness for their daily or weekly workout, then visit the neighboring Kohl’s to purchase clothing or accessories (Meyersohn, 2019). This strategy has a lot of benefits for both Planet Fitness and Kohl’s. Shrinking its stores is part of the strategy as well: with smaller space, the retailer will have less area to maintain, less workers, can carry less inventory, and the stores will be easier for customers to navigate. Gass has demonstrated her skill for strategic thinking by refusing to remain complacent with Kohl’s current strategy. A good business person knows to continually reassess the

KOHL’S STRATEGIC MANAGEMENT

2

company’s strategy, always looking for ways to make the company more successful (Magretta, 2002). Gass has also demonstrated her ability to think outside the box, avoiding what is referred to as the “9-dot problem” (Magretta, 2002). Gass didn’t get stuck by thinking exclusively of solutions that had been done before, or solutions that seem obvious. She thought outside of the constraints of what the company was currently doing and what other companies are doing, and came up with a unique and fresh idea. Kohl’s also demonstrated its strategy choice out of Porter’s three generic strategies; the company is clearly using the differentiation strategy by shrinking its stores and partnering with a gym to lease out that extra space (Porter, 1980). No other retailer has purposefully shrunk its stores in order to lease out space to a fitness organization before. This strategy gives Kohl’s shoppers a different and unique experience. As brick-and-mortar stores continue to struggle, Kohl’s has been finding a way to not only stay afloat, but to remain successful. Kohl’s identified two trends of today: struggling retailers, and growth in popularity of fitness, and came up with a solution to address both of these issues. Kohl’s and Planet Fitness are actually benefitting as more unsuccessful retailers close stores or go out of business, taking advantage of the freed up real estate. Planet Fitness plans to double its U.S. presence to 4,000 stores this coming year, and Kohl’s can help that happen as it leases its building space to the fitness company. Kohl’s and Planet Fitness have truly found a win-win partnership. By coming up with a creative and innovative solution to the struggles of retail stores today, Kohl’s CEO Michelle Gass has demonstrated her aptitude for strategic management. If the trial run of ten Kohl’s stores leasing to Planet Fitness goes well this year, the partnership has lots of potential to increase tremendously. Kohl’s has shown that its CEO and managers have a smart approach to strategic

management. This recent strategic partnership is a clear indication that Kohl’s will do just fine in the coming years.

KOHL’S STRATEGIC MANAGEMENT

4

References Magretta, J. (2002). What management is: How it works and why it’s everyone’s business. New York, NY: The Free Press. Meyersohn, N. (2019, March 5). Kohl’s is shrinking stores, leasing extra space to Planet Fitness. WMUR. Retrieved from https://www.wmur.com/article/kohls-is-shrinking-stores-leasing-extraspace-to-planet-fitness/26690052 Porter, M. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York, NY: The Free Press. CNN. (n.d.) Profiles: Nathaniel Meyersohn. Retrieved from https://www.cnn.com/profiles/nathaniel-meyersohn...