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A chain of department stores in the US is called Kohl's Company. Maxwell Kohl founded the business in Milwaukee, Wisconsin, as a grocery store in the year 1927. In the year 1962, the company launched its first department store. The business offers a wide range of goods and services, including private labeling, national brand clothing, shoes, and cosmetics for both adults and children (Bloomberg, 2017). The growth of the company's sales volume has been significantly aided by online sales. Since the proprietors do not hold managerial responsibilities, Kohl's Corporation is a limited company. The company's main office is in Menomonee Falls, Wisconsin. Moreover, the company is tax compliant since it pays the taxes on the level of revenue realized from its operations (Jameson, 2016). The amount of tax paid varies depending on the sales volume and the applicable tax rate in a given financial year.
The vision, mission and the core values adopted over a given period play a significant role in determining the level of progress in a firm. Whereas the company mission and core values are bound to change depending on the growth level as well as attainment of objectives, their understanding by both the management and the personnel plays a significant role (Kohl's company, 2017). Kohl's company uses a vision that stipulates the essence of shopping at one's comfort. The vision is "We not only offer the best merchandise at the best prices, but we're always working to make your shopping experience enjoyable." The company collaborates with the outline of its vision statement as revealed by the provision of the online platform to ensure customers access the goods with ease. Neither the vision nor the mission has reported changes (Bailey, 2015).
Kohl's mission statement involves "To be the leading family-focused, value-oriented specialty department store offering quality exclusive and national brand merchandise to the customer in an environment that is convenient, friendly, and exciting. Kohl's to the Core in all that we do and all that we are, Kohl's strives to embrace the core values that have long-defined our mission in this industry. We look toward the future, but remain principled in the past." The firm's mission statement is based on the core values adopted. Kohl's corporation's core values include; results oriented, building teams and partnerships, informed approach, developing of self and others as well as acting with integrity (Kohl's company, 2017).
The vision and the core values play a significant role in the attainment of the business's mission. The building of suitable working teams and partners as a core value underlines a significant number of professionals and talented associates who have ensured the company expands at a fast pace (Jameson, 2016). Moreover, the core values such as results oriented and acting with integrity are instrumental in the maintenance of high ethical standards as well as the responsibility roles embraced by Kohl's corporation in ensuring it is among the leading firms in the United States. Just as the vision statement, the core values determine the course of operations of the business. The vision statement provides a broader goal that the core values several distinct core values ensure it is coherent with the mission statement. Focus and preparedness have provided the firm get the positive results as well as success in its expansion objective. Also, the informed approach as a core value together with the organization's vision which underlines the essence of making shopping experience enjoyable permitted the introduction of the website as a transaction platform (Kohl's company, 2017).
The primary stakeholders for Kohl's corporation include the customers, creditors, suppliers, employees and the shareholders.
The shareholders play a significant role by providing adequate capital to ensure the business continues to its day to day operations. Besides, the company works closely with its creditors, suppliers and the buyers to provide its trading activities are effective and efficient (Bloomberg, 2017). The harmonious relation between the company and its primary stakeholders play a significant role in the attainment of its strategic goals such as expansion and provision of quality products.
The porters five sources represent an analysis platform that is useful in determining the degree of competition available in a given market as well as the business strategy development. Porter's five forces play a significant role in analyzing the success probability of a Kohl's Corporation (James, 2014). The five forces consist of industry rivalry, the threat of new entrants, substitutes, bargaining power of the customers and the bargaining power of the suppliers. Kohl's Corporation is an already existent firm in the business field, is accustomed to devising different measures concerning Porter's Five Forces to combat the challenges in the market (Dobbs, 2014).
Kohl's corporation has faced several challenges in its growth and expansion goals. The competitive rivalry posed by several firms such as the Target Corporation, J.C. Penny Company, and the TJX Companies Inc. has ensured the business draws great strategies to remain active in the market (Bloomberg, 2017). Kohl's Corporation has achieved its competitive advantage over its rivals by using the strategy of selling its apparels, footwear, private labeling and beauty products at lower prices as compared to the other competing firms. The ability to sell at relatively lower prices underline the fact that the Corporation can control the prices of the commodities. Similarly, the merchandising relationships inhibited by the Corporation with top brands such as NIKE, Levi's, Oshkosh B'Gosh, has enabled the strategy of selling at a relatively lower price to become the Company's focal source of competitive edge (Dobbs, 2014). Moreover, sound leadership and improved online advertising is key to Kohl's competitive advantage over other firms. The Corporation's CEO Mr. Kevin Mansell has ensured there is a sound yet harmonious working environment. Consequently, the expansion program and online advertisement provide Kohl's Corporation has a wider market share compared to its competitors.
The threat posed by new entrants in the market is insignificant. The insignificance in the threat of entry is as a result of the high cost of initial capital required to start and run the business. Hence, the high initial cost of capital is an instrument for keeping other potential firms at bay. Moreover, the rising taxation trend has played a significant role in neutralizing the threat posed by probable new entrants in the market (Dobbs, 2014). Kohl's Corporation has utilized the opportunity provided by lack of new entrants by expanding its business activities to various parts of the United States.
Alternative refers to a commodity that serves the same purpose as the product in question. Kohl's Corporation deals in a variety of goods. As a result, the threat of substitute products affects the running of the firm. In a bid to counter the threat of substitutes, Kohl's utilizes its strength of acquisition ability as portrayed by the company's move to acquire BATUS Inc. Moreover, the corporation has the opportunity to sell its products through the online platform. Since companies such as J.C. Penny and Target corporations utilized the online platform for selling, Kohl's Corporation overcame its weakness by adopting an efficient online selling and marketing (Jamerson, 2016).
The bargaining power of customers has a significant effect on the sales volume of a given entity. There are two types of customers; wholesale customers and the end buyers. Although the bargaining power of the buyers can impact negatively on the business activities of a firm, Kohl's Corporation's selling trend at a relatively lower price has served as the basis for minimizing the bargaining power of the customers (Bailey, 2015). Moreover, the online platform ensures the customers can shop at their convenience with the ability to make inquiries and areas for improvement as far as trading activities are concerned to ensure their satisfaction is guaranteed.
Kohl's Corporation has a diverse supplier base especially foodstuff commodities and beauty products (Weebly, 2017). The diverse supplier base plays an integral role in ensuring the company does not experience the negative impacts of the bargaining power of the vendors. Moreover, the sound merchandising relationships adopted by the Kohl Corporation with brands such as Nike plays a significant role in ensuring there is the minimization of the effects of supplier bargaining power on the day to day activities of the firm.
Power refers to the factors found within a given business entity that plays a significant role in ensuring the attainment of the set goals. The several strengths held by Kohl's Corporation such as sound leadership from its employees and a broad range of products have ensured a significant market share (Weebly, 2017). Moreover, the company has adequate resources suitable for ensuring the firm can sell its products on the online platform. Besides, the firm has an updated selection merchandise selection criterion that ensures it is up to date with the market dynamics. On the weaknesses side, the company does not train its employees a fact that impacts negatively on its operations. Besides, the majority of the Corporation's managers do not embrace a proper dressing code. Majority of Kohl's merchandise targets women and teenagers instead of incorporating the entire population. Consequently, the firm has little online presence a fact that has led to a reduction in the sales volume.
Kohl's corporation has utilized several opportunities such as unique products to ensure it thrives in its trading activities. Besides, the firm has a good merchandising relationship with its suppliers. The corporation's online growth is an important aspect that underlines its expansion strategy. Also, the general outlook underscored by the firm's 1,154 departmental stores in different parts of the United States as of January 2017. Moreover, the company deals with a variety of products that are updatable. The firm also consistently sells its brand of goods. The quality name of the corporation provides a basis for improvement in the organization's reputation at a future date. On the other hand, the firm faces threats such as lack of adequate enthusiasm from the employees. Besides, the firm faces stiff competition from companies selling similar goods such as J.C. Penny Company. Lack of security at the stores poses a threat of theft cases (James, 2014).
The Kohl's Corporation should increase the number of department stores further. Similarly, the firm aims at becoming the most engaging retailer company as far as customers are concerned. Kohl's corporation has underlined five strategic goals. The goals include; provision of amazing products, better customer experience in accessing and buying products, personalized connections, incredible savings and having winning teams (Weebly, 2017). The goals are in line with the company's mission that aims at ensuring the firm creates a friendly and exciting customer environment as well as being family focused (Jameson, 2016). Moreover, the strategic goals have incorporated the organization's core values. The incorporation of fundamental values in the policy goals serves as a basis for the easier attainment of the set long term and short term targets.
A suitable strategy to ensure Kohl's Corporation is satisfied for the foreseeable future is to utilize the available resources effectively in the enhancement of the online presence. Besides, the strategy should outline stringent rules about dressing code for both the managers and the employees as well as employ more workers to ensure there is an increased base for providing more up to date products (Bloomberg, 2017). Also, the firm should increase its departmental store while beefing-up security personnel and apparatus such as the CCTV cameras to aid in the safety of the business premises and the goods. The corporation should train its employees on the emerging market trends in the world. As part of the training, Kohl's should utilize team building to help in strengthening bonds between workers and improve their morale towards work.
Kohl's Corporation can utilize the acquisition strategy to improve its competitive advantage over other rival companies in the industry. The plan would ensure that Kohl's acquires firms operating and dealing with similar products. The acquisition of related companies is vital as the employees will not take a long time in adjusting from their previous working patterns (Weebly, 2017). Also, the strategy ensures the employees are flexible as it provides room for learning new dimensions for undertaking certain roles. Besides, the firm can adopt growth strategies in the event where it opens new branches in new localities.
The growth strategy is vital in increasing the market share for the Organization's products. Also, the firm can utilize the coordination of unit activities to ensure the roles and responsibilities are divided between the departmental units appropriately. The harmonization of group activities is essential in ensuring there is product and resource security in the workplace (Weebly, 2017). Coordination of group activities, growth, and acquisition strategies will ensure Kohl's Corporation can compete effectively hence increase its profitability level. The Corporation can utilize the annual general meeting, use of mass media, letters or emails, and social media to educate and communicate with the stakeholders on the strategies required for improved profitability.
Kohl's Corporation relies on the internal and external mechanism to govern the organization. The internal mechanism involves the use of both the inner and outer devices. The internal mechanism plays an integral role in monitoring the activities of the corporation and how they progress. Kohl's Corporation utilizes the internal mechanism to ensure the firm's day to day operations are following the set objectives (Bailey, 2015). As a result, Kohl's internal mechanism involves internal auditing, management oversight, structuring the board of the Directorate by both the long and short-term goals. Also, the internal mechanism incorporates the elements of policy and control development segregation to enable a given system to be successful.
An external device is an essential tool for the governance of Kohl's Corporation. The external mechanism relies on the factors outside the business to control the activities of the corporation. Kohl's Corporation's external mechanism involves debt management and legal compliance strategies. Consequently, the external procedures are imposed by the stakeholders and outside regulators. The guidelines have impacted positively on Kohl's activities as it complies with the set rules regarding the formation and running of departmental stores.
Kohl's corporation is led by a CEO who also acts as the president of the entire firm. The organization has a power structure with the CEO at the top as department managers provide an anchorage at the base of the authority framework. The sound leadership is responsible for the increased expansion activities as well as the incorporation of technology in the operations of the business (Jamerson, 2016). The organization should adopt a strategy whereby it will have other CEOs in charge of the different brands it sells. Kohl's Corporation has put incredible effort into ensuring it embraces ethical values in its operations. The corporation takes into consideration the customer's pleas and needs as highlighted by the firm's move to embrace the online platform to fulfill the wish of the client to have such a platform for shopping (Bailey, 2015).
In conclusion, an organization's vision, mission, and core values play a significant role in ensuring the attainment of long-term and short-term goals and objectives. The Kohl's corporation has embarked on an expansion program since it was founded in 1962. Despite its formation several years ago, the firm has embraced technological know-how in its day to day activities such as the use of the website in achieving the sales objectives. The vision and the core values have ensured the firm works towards fulfilling its mission. Moreover, the company has utilized its strengths to ensure it competes effectively with its competitors in the market. Sound leadership is vital to the success of the enterprise.
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