Macy's Strategic Plan Group 6

Issac Sinclair, Nathan Greene, Angie Pacitti, Minh Nguyen, Jonathan Hassler, Luke Stump, Joshua Beason

Introduction

  • Macy's is an industry leader in specialized retail
  • Macy's is well known for its service, traditions, and community involvement
  • Macy's has lost it's core values and is not focusing on the right customer
  • Our strategy will keep Macy's competitive in the retail market and allow them to endure a changing industry
  • By investing in new marketing targets and revamping their training and development program the company will once again be an industry leader

Mission and Vision

  • Macy’s is an enduring retail icon, committed to providing individuals with an unsurpassed value in their shopping experience through our outstanding stores and accommodating staff, dynamic websites, and convenient mobile apps for providing exciting fashion and accessories, quality fragrances, cosmetics, jewelry, and home goods that will serve your family for generations.
  • Macy’s, Inc vision is to be the premier retailer, offering sincere customer service for our guests.

IFE Matrix

EFE Matrix

Analysis

  • Macy's has decreasing net income
  • Stock price is low
  • Performance is decreasing because of expenses and debt
  • Retail industry is being threatened by online competitors and by changing consumer shopping patterns
  • Macy's has already begun selling stores

SWOT Matrix

Recommendations

Retrenchment

  • Macy's needs to continue conducting a retrenchment strategy
  • 100 underperforming stores need to close

Marketing

  • Money earned needs to be redirected into improving marketing focus
  • Social media and Internet advertising focus targeting the millennial customer
  • Marketing focus on most profitable segment (female apparel and accessories) and profitable brands

Employee/Customer Satisfaction

  • Money needs to be invested in employee training/retention programs
  • Hiring focus on attracting top talent, long-term career driven employees
  • Outsource a training program for managers on professional selling, customer service, and technology/retail integration
  • Managers reinforced and rewarded for coaching and developing employees
  • Employees will be rewarded for positive sales and customer service

Total Costs Expenditures

Costs (in millions):

  • Outsourced training: $(1.10)
  • Marketing budget: $(660.00)
  • Web and app development: $(2.00)
  • Bonuses: $(1,607.88)

Total cost: $(2,270.98)

Macy's Projected Financials With Strategy

How do the Financial's Support our Strategy?

  • Net sales will increase to $30,872.73 million
  • Net income will almost double to $2,045.62 million
  • Cash and accounts receivables will increase giving Macy's working capital
  • Strategy helps cut down debt and raise inflows
  • Earnings per share will climb with strategy implementation
  • Investment in retention will save in long-term turnover costs

Conclusion

  • Macy's can and will endure throughout a changing industry by realigning the company's focus on its profitable stores, customer's shopping trends, and committed employees
  • Through this strategy Macy's will regain its image back and make a leading company culture that keeps competitive advantage

Credits:

Created with images by evblogger - "Macy's Sign" • JeepersMedia - "Macy's" • PeterJBellis - "New York - Macy's" • shinya - "macy's" • 3dman_eu - "workplace glass facade office building" • StockSnap - "macbook laptop business" • dudarev - "Social Network of UkrTweet participants" • jen_rab - "Macy's" • geralt - "mark marker hand" • Wokandapix - "dominoes game domino" • Pixel Drip - "Macy's Lights"

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