Question

In the 1980s, Sears acquired several financial services firms, including Allstate Insurance and Dean Witter Brokerage Services. Sears kept these businesses as largely autonomous divisions. By 1994, the strategy had failed, and Sears had divested all of its financial services holdings. Bearing in mind the dictum that structure follows strategy, identify the strategy that Sears had in mind when it acquired these businesses, and recommend a structure that might have led to better results.

Answer 1

Sears' strategy in acquiring financial services firms in the 1980s was to diversify its business, but this ultimately failed. Integrating the financial services divisions more closely with its retail operations could have led to better results.

Step-by-step explanation:

The strategy that Sears had in mind when it acquired financial services firms in the 1980s was to diversify its business and expand into new markets. By acquiring Allstate Insurance and Dean Witter Brokerage Services, Sears hoped to leverage their expertise and customer base to generate additional revenue. However, this strategy ultimately failed, and Sears divested all of its financial services holdings by 1994.

A better structure for Sears might have been to integrate these financial services divisions more closely with its existing retail operations. By aligning the businesses and sharing resources, Sears could have created synergies and better cross-selling opportunities. This would have allowed Sears to leverage its strong brand and customer relationships to drive growth in both the retail and financial services sectors.