Final answer:
Sears' failure under Eddie Lampert's management could be correlated with poor corporate governance similar to that of Lehman Brothers, where a lack of oversight and emphasis on short-term gains by the Board of Directors led to risky management decisions and a failure to adapt to market changes.
Step-by-step explanation:
Regarding the failure of Sears under Eddie Lampert's management style, a parallel can be drawn to the failure of Lehman Brothers, which was largely attributed to inadequate corporate governance. In the case of Lehman Brothers, the lack of effective oversight by the Board of Directors allowed managers to engage in excessively risky endeavors. This inadequacy was highlighted in Tim Geithner's testimony, where he noted the Executive Compensation Committee's preference for short-term gains without sufficient risk assessment. Furthermore, the Lehman Brothers' board had limited experience in financial services and neglected the intricate details of the business's operations, as found in the court examiner's report.
If Bowie were to apply this understanding to Sears' downfall under Lampert, potential reasons could include a similar lack of oversight, whereby the management might have focused too narrowly on immediate profitability, potentially ignoring the broader strategic risks. This could have led to decisions that failed to position Sears favorably in the evolving retail industry. Without sufficient oversight, leadership may have overlooked critical changes necessary for long-term success in favor of immediate financial results.