Macy's Inc. GRoup 4: Jordan Martin, Audrey mackenzie, laura mcmillan, david baseme, zach vanbibber, anders bengtson

New Mission Statement

“Macy`s mission is dedicated to serving their customers by developing their products and services, to focus on specific needs of each consumer throughout their lifetime. Macy`s will continue to employ efficient technology that better utilizes their resources, while striving for new opportunities with the highest ethical standards. Macy`s will strive to create long lasting and beneficial relationships that add value to all of its stakeholders."

Internal Assessment

Strengths:

  • Strong Omnichannel Presence
  • Efficient Supply Chain-RFID Integration

Weaknesses:

  • 6% sales decline and 40%in net income 15-16
  • Low inventory turnover (3.02)
  • Declining stock price, from $72.31 to $35.7
External Assessment

Opportunities:

  • High growth potential in E-commerce
  • Estimated $1 billion of customer spending due to various department store closings

Threats:

  • Intense competition
  • Overall industry revenue is expected to decrease 1.2% total to $155 billion.
  • Trend toward conversion to supercenters for convenience
EPS/EBIT Analysis
  • Amount of capital needed: $1.2 billion (Double advertising and marketing expenses: $1.2 billion, Sales Training Program: $1.5 million)
  • EBIT Range: $1.80-1.90 billion
  • Interest Rate: 5%
  • Best Option: 100% Debt Financing
Projected Financial Statements
  • Sales Increase
  • NPV of $830 million
  • IRR of 25.66%
  • Increase in Operating Income
  • Selling, General and Administrative Expense

Credits:

Created with images by ahisgett - "Macy's" • JeepersMedia - "Macy's" • JeepersMedia - "Macy's" • Tony Fischer Photography - "Macys Worlds Largest Store, New York City" • JeepersMedia - "Macy's" • JeepersMedia - "Macy's" • jfjwak - "Macy`s" • Kofi_MT - "Macy's Thanksgiving parade II"

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