Solution Preview Step 1Sears planned a new system in which accounts are charged off automatically when the customer fails to make a required payment in each of the eight billing cycles following a missed period. The purpose of the new system according to Sears is to help Sears better manage its collection efforts by identifying delinquent accounts earlier and enabling better control of uncollectible expenses.
Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions.
Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.
Step 2 - Reading the Sears: Accounting for Uncollectible Accounts HBR Case Study To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study.
Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions.
Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information.
My case study strategy involves - Marking out the protagonist and key players in the case study from the very start. Drawing a motivation chart of the key players and their priorities from the case study description.
Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
Evaluate each detail in the case study in light of the HBR case study analysis core ideas. Step 3 - Sears: Accounting for Uncollectible Accounts Case Study Analysis Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template.
You can do business case study analysis by following Fern Fort University step by step instructions - Company history is provided in the first half of the case.
You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground.
Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey.
Time line also provides an insight into the progressive challenges the company is facing in the case study. Accounting for Uncollectible Accounts Once you finished the case analysis, time line of the events and other critical details.
Focus on the following - Zero down on the central problem and two to five related problems in the case study. Accounting for Uncollectible Accounts.
SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing. Accounting for Uncollectible Accounts In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point.
Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in.
Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.
Accounting for Uncollectible Accounts Another way of understanding the external environment of the firm in Sears: You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry.
Accounting for Uncollectible Accounts Case Study Solution Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case.
You can use the following strategy to organize the findings and suggestions. Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectivesand how your suggestions will take the company to next level in achieving those goals.
Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand.
So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand.
You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy.
For example you can recommend a low cost strategy but the company core competency is design differentiation. Case study solutions can also provide recommendation for the business manager or leader described in the business case study.
Step 8 -Implementation Framework The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions.Solution Preview.
Step 1. , Sears planned a new system in which accounts are charged off automatically when the customer fails to make a required payment in each of the eight billing cycles following a missed period.
Sarah Simons, an investment analyst for the retail industry, has just received the Sears, Roebuck and Co. Annual Report. Sears has had trouble in the past with the collectibility of receivables from customer credit purchases using the Sears Card. The percentage of merchandise sales and services transacted with the Sears Card in declined to % compared to % in , due to a greater preference for other payment methods, including cash, check and third-party credit cards.
Domestic provision for uncollectible accounts and related information is as follows. Sears: Accounting for Uncollectible Accounts Case Solution,Sears: Accounting for Uncollectible Accounts Case Analysis, Sears: Accounting for Uncollectible Accounts Case Study Solution, Sarah Simmons, an investment analyst for retail, just got a Sears, Roebuck and Co.
Annual Report. Sears was a problem in the past with the . SEARS: ACCOUNTING FOR UNCOLLECTIBLE ACCOUNTS. Sarah Simons picked up the Annual Report for Sears, Roebuck and Co., which had Just been delivered to her office.
As an analyst for a major brokerage, she was responsible for providing investment advice regarding companies in the retail industry, including Sears. She looked over the income. Accounts are transferred net of the related allowance for uncollectible accounts and income is recognized generally on an effective yield basis over the collection period of the transferred balances.