Need for Organizational Change Management at Kmart Assignment

Need for Organizational Change Management at Kmart - Assignment Example The annual sales thus achieved were in excess of $10 million. Even during periods of financial depressions and wars, this chain of retail stores stood out as a successful player by virtue of its ability to offer products at affordable prices. What is more, unlike other organizations it helped people sustain their families by offering them jobs. Despite the fact that prices have undergone numerous changes with the passing years, Kmart’s business philosophy remained the same – the company strongly believed that the best way to retain customers is by offering them â€Å"products they need at prices they can afford† (Sears Holdings Corporation-a, 2010). Over the decades Kmart has earned endless accolades that have augmented its position in the global retail sector, and during 1976 it created history â€Å"by opening 271 Kmart stores in one year, becoming the first-ever retailer to launch 17 million square feet of sales space in a single year† (Sears Holdings C orporation-a, 2010). However, the picture at Kmart has not been rosy all through. At the beginning of 2002, â€Å"the company filed for bankruptcy after its debt spiralled to more than $10 billion† (Kelly, 2004), and it has been reported that in the next two years the company had closed nearly 600 stores and laid off nearly 59000 employees. This incident helped Kmart make history yet again because the company had almost â€Å"$17.0 billion in assets at the time of their filing, making it the largest retailer the United States had ever seen declare bankruptcy† (Cole, 2002, p.2). In order to survive the financial plights, Kmart merged with Sears Roebuck in November 2004 following a deal worth $11 billion. Although the company is performing well and trying its best to â€Å"create long-term value in a deliberate and logical fashion, while remaining cognizant of the risks and challenges† (Sears Holdings Corporation-b, 2010), problems that still exist are pushing Kma rt to the back foot.  Ã‚