Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Karstadt Warenhaus GmbH: Do Department Stores Have a Future? Description

At the end of 2013, Karstadt Warenhaus GmbH, the second-biggest German department store chain and one of the most traditional and well-known companies in Germany, was in a highly challenging strategic position. Following recent mismanagement, it had narrowly escaped insolvency. By the end of 2013, however, Karstadt was still struggling against competition in the retail sector. Could the newly appointed chief executive officer come up with a business model and strategic direction that would ensure the company's continued existence and sustainable profits in the near future? Challenges that she had to address included increasing competition (e.g. from online shops), low liquidity, delays in necessary investments, and rising concerns about job security among employees. What strategic options were best for turning around the performance of the iconic 130-year-old department store chain? Robin Dresenkamp is affiliated with University of MA?nster. Max MeinhA?vel is affiliated with University of MA?nster. Friedrich Sommer is affiliated with University of Muenster. Arnt WA?hrmann is affiliated with University of MA?nster.

Case Description Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Strategic Managment Tools Used in Case Study Analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

STEP 1. Problem Identification in Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 6. Recommendations Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

STEP 7. Basis of Recommendations for Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study

Case Analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Karstadt Warenhaus GmbH: Do Department Stores Have a Future? is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Karstadt Warenhaus GmbH: Do Department Stores Have a Future? is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Karstadt Warenhaus GmbH: Do Department Stores Have a Future? will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Karstadt Warenhaus GmbH: Do Department Stores Have a Future?, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Step 1 – Problem Identification of Karstadt Warenhaus GmbH: Do Department Stores Have a Future? - Harvard Business School Case Study

The first step to solve HBR Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Karstadt Nster is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Karstadt Nster, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Karstadt Warenhaus GmbH: Do Department Stores Have a Future?.

The external environment analysis of Karstadt Warenhaus GmbH: Do Department Stores Have a Future? will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study. PESTEL analysis of " Karstadt Warenhaus GmbH: Do Department Stores Have a Future?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Karstadt Warenhaus GmbH: Do Department Stores Have a Future? macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

To do comprehensive PESTEL analysis of case study – Karstadt Warenhaus GmbH: Do Department Stores Have a Future? , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Government policies have significant impact on the business environment of any country. The firm in “ Karstadt Warenhaus GmbH: Do Department Stores Have a Future? ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Karstadt Nster is operating, firms are required to store customer data within the premises of the country. Karstadt Nster needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Karstadt Warenhaus GmbH: Do Department Stores Have a Future? has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Karstadt Nster in case study Karstadt Warenhaus GmbH: Do Department Stores Have a Future?" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Karstadt Nster in case study “ Karstadt Warenhaus GmbH: Do Department Stores Have a Future? ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Karstadt Nster in case study “ Karstadt Warenhaus GmbH: Do Department Stores Have a Future? ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Karstadt Warenhaus GmbH: Do Department Stores Have a Future? ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Karstadt Nster can compete against other competitors.

Government Scheme & Subsidies Impact on Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Karstadt Nster needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Social Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Technological Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Environmental Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Legal Factors that Impact Karstadt Warenhaus GmbH: Do Department Stores Have a Future?

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study. PESTEL analysis of " Karstadt Warenhaus GmbH: Do Department Stores Have a Future?" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Karstadt Warenhaus GmbH: Do Department Stores Have a Future? case study solution