091- Sack, Man Fai Anthony V.
118-0008
BME 90 Strategic Management
2021-2022 Thursday 3:00-5:00 pm
Written Case #1: Lands’End
August 14, 2021
I. MANAGEMENT PROBLEM
Lands’ End was founded by Gary Comer in 1963 and was known as an American clothing
retailer. The company is located in Dodgeville, Wisconsin. It was acquired by Sears in
2002 and was later listed on the NASDAQ stock exchange. The company eventually had
a hard time competing with other clothing companies. Thus, to revive its growth, the
company hired Frederica Marchionni in February 2015 as its new CEO. But instead of
reviving the company, it suffered a loss of $19.5 million for the year ending January 29,
2016, and lost another $7.7 million in the first half of 2016. In addition to that, the company
is exposed to external environmental pressure brought by the COVID-19 pandemic.
Did Lands’ End make the right choice in selecting her for the CEO position? And what
actions could Ms. Marchionni have taken to improve Lands’ End’s prospects for success
in the marketplace given a competitive and pandemic stricken environment?
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II. STRATEGIC ANALYSES – SWOT
A. Strengths
● The company is known for its wholesome style which highlights its traditional yet
classic clothing. Thus, making its wholesome style one of its competitive
advantages
to
other
clothing
companies.
● Also, the company had fostered a great familial culture which brings the
employees and the top-level management to have a goal congruency. This
organizational culture unifies the company to meet its objectives and goals.
B. Weaknesses
● The company lacked strategic leadership and management because Ms.
Marchionni didn’t try to understand the organizational culture first.
● The company also lacked corporate symbioses or simply cooperation and
coordination. This is manifested in the case story when Ms. Marchionni's vision
didn’t fit with the culture of the organization and employees.
C. Opportunities
● The company had a big opportunity to revive its company’s growth when it hired
a new CEO. It had the opportunity to improve its apparel and products safely and
sustainably.
D. Threats
● The clothing industry like the high end by brands like Michael Kors Holdings Ltd.
and Coach, Inc. and lower end, fast-fashion retailers including H&M operator
Hennes & Mauritz AB can lower and threaten the company’s profits.
● The COVID-19 pandemic as an external environment pressure can limit the
company’s business activities and customer engagements.
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III. RECOMMENDATIONS
A. Ms. Marchionni should have tried to understand and appreciate the firm’s family
culture and wholesome style first. Understanding the organizational culture is very
important for a new CEO to plan its strategic management. She should focus on
analyzing organizational goals and objectives as it will serve as her basis in her
strategic analysis and planning. Also trying to adopt the organizational culture will
help the employees to build trust in Ms. Marchionni. Like for example eliminating
the private bathrooms in both of her offices will comply with the company’s culture.
B. Also, Ms. Marchionni should focus to serve the existing customer as they are one
of the important stakeholders in the company. They are the one who creates sales
and buys the products. Instead of injecting more style into the maker of outdoorsy,
casual clothes, she should have innovated and improved the wholesome style
apparel of the company. Through this strategy, the company could have retained
the existing customers while also attracting new customers.
C. Lands’ End Company should have evaluated the background of Ms. Marchionni
and its strategic management before making her the CEO of the company as she
had a background in high-end names like Ferrari and Dolce & Gabbana. The
human resource management should have reviewed if Ms. Marchionni has a
romantic view of leadership or an external control view of leadership. With this, the
company will be assured that Ms. Marchionni has the suitable leadership skills for
the company.
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