According to Allyn Young, growth is simply the increase in capacity of a firm or economy at large in terms of production of goods and services from one time to another, and it is normally measured in real terms. Progress on the other hand, is the ability or process of gradually improving or showing any signs of positive improvement when compared from time to time. Growth and progress are the main signs that are used to measure the success of a particular firm, institution, organization or any other undertaking that one tries to venture in. However, growth and progress can only be achieved if a firm or company is willing to embrace the new ideas in the world we live in in order to counter the changes such as prices variations, changes in the exchange rates, technological changes, and interest rates. Not to mention other changes that occur in the economy as well.
Outdated ideas leads to stunted growth and progress since the changes occurring in the current economy need newer and strategized ideas, so as to be at par with the various trends just as John Maynard Keynes stated that, “The difficulty lies not so much in developing new ideas as in escaping from old ones”. To take and in depth insight on the effect of the outdated ideas on growth and progress, a perfect fit for explanation is an example on the Sears company. 2 To begin, Sears is an American chain of department stores founded by Richard Warren Sears and Alvah Curtis Roebuck in 1893. Sears carries home appliances, electronics, automobile supplies and clothing. Sears is a company that is currently filing for bankruptcy, whom also owned Kmart, which has already gone out of business. Business insiders states Sears biggest issue was that the CEO, Eddie Lampert was never present in the company, “…he met with employees maybe once a year.” (Business Insider reporter). If a consumer went in to a sears they would notice the bare walls and minimal supplies. BI states this is from the lack of attendance from the CEO Eddie. BI states, “Lampert’s physical absence might be better received if Sears[…] was in better shape.
But the retailer, famous for selling everything from shoes to vacuum cleaners to whole houses, is facing its biggest crisis ever. It’s closing hundreds of stores. Others are in shambles, with leaking ceilings and broken escalators. In some, employees hang bed sheets to shield shoppers from sections that stand empty.” So, why would Sears be in such a rut other than the lack of support from the CEO? I believe the lack of customer support is a big issue, not many people want to see a store in such as bad of shape as Sears stores, and most-likely, the shoppers could sense the owners did not care as well. To add to this, the owners probably didn’t care because the CEO didn’t seem to care either. To continue, I asked my Grandfather the question on why he thought Sears would be going bankrupt and he stated, “Maybe because no one shops there, who goes to sears any ways. I mean I can go log on to Amazon and get the same things for half the price without ever having to leave my couch.” I told him he mad a very valid point. “I actually just ordered a part for my dishwasher, while I also got your grandma her christmas present, and a new juicer. I could have gone to Sears to get this ‘I guess,’ but there’s no guarantee they’d have the exact match to my 3 dishwasher, and I really hate having to waste gas drivin’ up and down this (Bent) mountain.” As an Amazon shopper myself I agreed with my Grandpa. I do think Sears is failing because of the lack of innovation in its company. Like John Maynard Keynes stated, It is difficult to fall away from old ideas, but doing so will lead to future success.
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To add, myself and my grandfather both agree that Sears has lost its way to success and finding ways to escape from old ideas. I also decided to ask my younger sister about Sears, she is eleven. Her first reaction was “What’s Sears?” So, I had to explain to her what Sears was and where it was in our mall at Valley View. She only recognised Sears from the one time my family and I had family pictures taken there. I asked her if she would ever shop there and she said, “Probably not, they don’t have any toys I like.” I then asked her why she thought they didn’t have any toys or things she liked there. Her only reply was “Maybe I would go if mommy took me, but she doesn’t shop there.” Then, I asked her if she has heard of Amazon. She said “duh.” I asked her to explain what Amazon was and she stated, “A place online where you can get everything you want and it comes in the mail really fast.”
After our conversation I went on each company’s websites and noticed that Sears website isn’t really up to date and user friendly. They also aren’t up to date with the most elaborate electronics, children’s clothing, and/or toys. So, it makes sense why a young kid wouldn’t know about this store opposed to Amazon which is user friendly and really easy to find things on. Next, as we know, Amazon is a very big company that is extremely successful and popular locally and internationally. Google described Amazon as “an American electronic commerce and cloud computing company based in Seattle, Washington, that was founded by Jeff 4 Bezos on July 5, 1994.” I believe Amazon is a big factor in why companies like Sears are failing in today’s society. Sears hasn’t grown as a company like Amazon has, and hasn’t grown economically at all in a long time. For example, Amazon is willing to fail and take risks. A web page on Entrepreneur.com states, “[The CEO of Amazon] Bezos notes that you can’t be innovative if you aren’t willing to fail.” Meaning, Amazon is willing to make more risks despite the outcome.
I think Sears CEO was so uptight and scared of trying new things that his company failed. This was all in fear of failing and lossinging money, and in the long run this lack of trying ran them into bankruptcy. With comparing Sears to Amazon and applying what one has learned from the two companies, lets learn about what Sears could have done or can still do differently to grow within the company. I asked my Grandpa first what Sears could have done differently and he stated, “Hire better employees and make things better to shop for online.” I kind of agreed with his statement. I think if sears would have became up to date with today’s society and the changes of everything it could have had a fighting chance. I also think the CEO should have been more present and allowed room to evolve and others to add their creative opinions. Lastly, if Sears stayed up to date with the latest technology and trends then maybe it would still be striving in the economy. If you look at most companies like Amazon and Walmart they carry a wide variety of of basically everything one can think of. Personally I believe unless Sears was to merge more online, it wouldn’t survive.
I have learned that in the 80’s it was more geared towards fashion and the stores were actually in malls, like the one at Valley View mall. If a store is in a mall, I believe it needs to consist of mainly clothing, not electronics and automobile care like most Sear’s sold. Think about it, if one is going to the mall they are most 5 likely going to buy things they can’t get online, and to try these things on. If Sears would have stayed with their fashion as their main center focus, then it may have had a fighting chance. It could still sell fashionable house items like the department store Macy’s does. I also think Sears would need to have good quality items at unbeatable prices like most department stores nowadays. Also, if it is going to be a in-store retailer their service would need to be impeccable, so customers would have a friendly shopping experience and want to come back to shop again. In conclusion, the great economist John Maynard Keynes stated that, “The difficulty lies not so much in developing new ideas as in escaping from old ones.” As one can now conclude the reason Sears had to file for bankruptcy is because of the CEO’s lack of escaping old ideas and developing new ideas, like Keynes states. Sears simply couldn’t keep up with the new retail stores and their crafty innovations to keep their stores booming. Sears failed to grow and progress as a company and because of this they are now going out of business. On the contrary, Amazon has been able to keep up with developing new ideas an escaping old ideas. Amazon progressed with their new ideas and developments and grew as a foundation.
