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Strategic management case study

By Mihika Baisya12030141003MBA-IT Div-B

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Agenda for the day

• Company Overview• Business Model• Organizational Structure• SWOT Analysis

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Brief History

Rowland Hussey Macy Macy’s Thanksgiving Parade 1932

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The Business Model

• Business to customer model• Highly consumer driven• Retails several brands Alfani, Anne Klein, Bar

III, DKNYC, Ellen Tracy, Tommy Hilfigure, Armani, Calvin Klein…

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Organizational Structure

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SWOT AnalysisStrengths

• Strong brand equity • Strong advertising • Economies of scale• Ethical, socially responsible, and

sustainable company with strong value

• Bloomingdales a subsidiary of Macy’s appeals to upscale customers while Macy’s offers “affordable luxury” items.

• Large piece of the market share

Weaknesses

• Macy as a declining net profit• Downturn in economy for in store

shopping• Lack of diversification in the

merchandise• Not being able to find the middle

ground between Wal-Mart’s low prices, and Bloomingdales high prices while maintaining reputation.

• Macy’s has to overcome the client’s perception of the impersonality of national brand

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SWOT Analysis contdOpportunities

• Open new stores to boost revenues in the medium term

• There is a growth trough overseas operation

• There is a growth of sales in the online retail spending

• Many smaller stores are looking to be bought out because of the recession

• Merchandise such as apparel, cosmetics, and children’s clothing are experiencing fastest growth

• Robotic machines to help sales such as IPods and IPads

• Opportunities to buy out smaller brands because of its size

Threats

• The economic recession in the United States

• The increase of the minimum wages in the United States

• Intense competition in the retail stores such as Dillard’s, JC Penney, and Saks

• Lower price competition• Numerous employee layoff • A change in customers has occurred

over the past year, but Macy’s has not changes to satisfy customers.

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Macy’s Video

• http://video.foxbusiness.com/v/1113195521001/keeping-the-macys-brand-fresh-in-a-tough-economy/

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Sources• "Macy's Inc. History." Macy's Inc.. Sanger and Eby, Web. 7 Apr 2012.

<http://www.macysinc.com/AboutUs/History/default.asp&xgt;.• "Organizational Chart, Macy’s." The Official Board. Septemper 23, 2012. Web. 7 Apr 2012.

<http://www.theofficialboard.com/org-chart/macy-s>.• "Macy’s." Company-Statements-Slogans. Web. 7 Apr 2012. <http://www.company-statements-slogans.info/list-

of-companies-m/macys.htm>.• Hart, Carly. "Macy’s 2009 Reorganization Means 7,000 Layoffs." Yahoo Voices. Web. 7 Apr 2012.

<http://voices.yahoo.com/macys-2009-reorganization-means-7000-layoffs-2604039.html>.• "Macy." Yahoo Finance. April 5, 2012. Web. 7 Apr 2012. <"Macy." Yahoo Finance. April 5, 2012. Web. 7 Apr

2012. http://finance.yahoo.com/echarts?s=M Interactive• "FDO: Munich Stock Chart- Macy’s." Bloomberg. April 5, 2012. Web. 7 Apr 2012.

<http://www.bloomberg.com/quote/FDO:GR/chart>.• "Financial Ratios for Macy’s." Barchart. April 5, 2012. Web. 7 Apr 2012.

<http://www-04.aws.barchart.com/profile.php?sym=M&view=ratios>.• "Social Responsibility." Macy’s Inc. 2012. Web. 7 Apr 2012. <http://www.macysinc.com/aboutus/sustainability/>.• “Maps." Macy’s Inc. 2012. Web. 7 Apr 2012. <http://www.macysinc.com/Macys/maps.asp&xgt;.• "Macy’s Fact Book 2011." Macy’s Inc. April 2, 2011. Web. 7 Apr 2012.

<http://www.macysinc.com/Investors/vote/2011_fact_book.pdf>.• David, Fred. Strategic Management Concepts and Cases. 13th ed.,. Upper Saddle River: Prentice Hall, 2007. Print.• Supman, Jacqueline. "Case Study: Macy’s Private Label." Merchandise Strategies. Web. 4 Apr. 2012.

<jacquelinesupman.com/downloads/jsupman

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