Kmart - Forced Towards Bankruptcy?|Business Ethics|Case Study|Case Studies

Kmart - Forced Towards Bankruptcy?



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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : BECG021 For delivery in electronic format: Rs. 300;
For delivery through Shipping & Handling Charges extra: Rs.300 +Shipping & Handling Charges extra


Case Length : 15 Pages
Period : 2003
Organization : Kmart
Pub Date : 2003
Teaching Note : No
Countries : United States of America
Industry : Retailing


The case explores the events that led Kmart, a US-based retailing company that was an integral part of the country’s corporate history, to bankruptcy in 2002. The case explains how the company, which was struggling with various problems on the operational front, was pushed into bankruptcy by the various unethical and illegal practices resorted to by its executives including former Chairman Conaway and former President Schwartz.

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The case also takes a brief look at Kmart’s reorganization plans and its efforts to emerge from bankruptcy during 2002-03. Finally, the case discusses Kmart’s future prospects in the light of its changed strategic game plan and the various problems that still persist.


Conflict between economic performance and social/ethical obligations of a company.


  Page No.
Introduction 1
Background Note 2
The Destruction Of Kmart 3
Killing Kmart-The ROle Of Conaway And Schwartz 4
Killing Kmart- Other Malpractices 5
Killing Kmart A Few Lapses 6
Killing Kmart Manipulation Of Financial Statements 7
Taking Remedal Action 8
Kmart's Efforts To Get Back On Track 9
Exhibits 10


Kmart, retailing company, US-based retailing company, Chuck Conaway, Mark Schwartz, Conaway’s turnaround plan, Bayliner motor yacht, Anthony D’Onofrio, David Montoya

Not Just Strategic Failure - Next Page>>


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