This document provides an overview of the Macy's department store company including a brief history, business model, organizational structure, and SWOT analysis. Macy's was founded in 1858 and is known for its flagship store in New York City and the annual Macy's Thanksgiving Day Parade. The company operates over 800 stores across the US and employs over 175,000 people. It generates revenue through its business-to-customer retail model selling a variety of brand name products. The organizational structure consists of divisions, regional leadership, and corporate oversight. A SWOT analysis identifies Macy's strengths in branding and advertising but also weaknesses such as declining profits and lack of diversification.

1. Strategic management case study
By Mihika Baisya
12030141003
MBA-IT Div-B
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2. Agenda for the day
• Company Overview
• Business Model
• Organizational Structure
• SWOT Analysis
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3. Brief History
Rowland Hussey Macy Macy’s Thanksgiving Parade 1932
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5. 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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7. Organizational Structure
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8. SWOT Analysis
Strengths Weaknesses
• Strong brand equity • Macy as a declining net profit
• Strong advertising • Downturn in economy for in store
• Economies of scale shopping
• Ethical, socially responsible, and • Lack of diversification in the
sustainable company with strong merchandise
value • Not being able to find the middle
• Bloomingdales a subsidiary of Macy’s ground between Wal-Mart’s low
appeals to upscale customers while prices, and Bloomingdales high prices
Macy’s offers “affordable luxury” while maintaining reputation.
items. • Macy’s has to overcome the client’s
• Large piece of the market share perception of the impersonality of
national brand
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9. SWOT Analysis contd
Opportunities Threats
• Open new stores to boost revenues in • The economic recession in the United
the medium term States
• There is a growth trough overseas • The increase of the minimum wages in
operation the United States
• There is a growth of sales in the online • Intense competition in the retail
retail spending stores such as Dillard’s, JC Penney, and
• Many smaller stores are looking to be Saks
bought out because of the recession • Lower price competition
• Merchandise such as • Numerous employee layoff
apparel, cosmetics, and children’s • A change in customers has occurred
clothing are experiencing fastest over the past year, but Macy’s has not
growth changes to satisfy customers.
• Robotic machines to help sales such as
IPods and IPads
• Opportunities to buy out smaller
brands because of its size
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10. Macy’s Video
• http://video.foxbusiness.com/v/1113195521001/kee
ping-the-macys-brand-fresh-in-a-tough-economy/
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11. 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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