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Course Project-Part 3:
Diagnosing the change in those companies and their barriers and resistors. Part I. Diagnostic Model (Macy’s, Inc. 7-S Framework)
Macy’s, Inc., which was once known as Federated Department Stores until 2007, has grown to become of the nation’s largest upscale retailers in the world. The Macy’s brand operates over 800 department stores in 45 states, Guam and Puerto Rico, and also over the internet as macys.com. A large part of Macy’s growth throughout the years has been acquiring other small retail stores under its Macy’s brand such as Filene’s and Jordan Marsh stores. During the 1990s, the company filed bankruptcy in order to reorganize outstanding debt and made changes to its management team. Terry Lundgren, president and chief operating officer for the past five years with Federated, adds the title CEO to his name in 2002. Part II. Model Analysis (Macy’s)

Strategy: Local shoppers of the stores that were acquired weren’t impressed with the many changes taking place within Federated. A new initiative was set in place to help with efforts to protect the environment. They also started to use the social media networks to reach customers in larger volumes. Structure: James A. Zimmerman, who was once chief executive officer and chairman of the board, retires. Terry Lundgren, who is CEO, president and chief operating officer, now also becomes the chairman of the board. Systems: Introduced a new customer loyalty program with many new benefits for its valued customers. Style: Launched a national advertising campaign. The company changed its corporate name from Federated Department Stores to Macy’s, Inc. Staff:

Skills: In order to revive the company, the chain added exclusive merchandise from celebrities such as Martha Stewart, Donald Trump, Usher and Jessica Simpson. Superordinate goals: To grow sales and to continue to increase the levels at which the company can be profitable. The “My Macy’s” initiative is expected to revive the customers lost through the re-structure of the organization and re-develop the growth with Macy’s, Inc. With over a million dollars, plans to renovate the leading store in New York City to resemble the Apple computer store. Create business and shopping experiences international. Part III: SWOT Analysis (Macy’s)

Strengths:
1.“My Macy’s initiative is a unique advertising campaign initiative taken on by Macy’s that has brought in large number of celebrities with their brands, such as Sean Jean and Carlos Santana. 2.The company ended the fiscal year 2011 with over $26 billion in sales. 3.The use of social media sites has been a huge benefit to Macy’s, with about 5 million Facebook users. 4.Online sales with macys.com and bloomingdales.com have increased by 40% compared to online sales of 29% in 2010 (Macys.com, 2011). Weaknesses:

1.Currently, Macy’s has renovation project under way for its main store that is leaving many preservationists feeling unhappy because they feel it is changing its classic Art Deco design to try and mimic the Apple computer store. 2.The company actually has a battle going on with J.C. Penney’s over the Martha Stewart brands. 3.Many petitioners wanted to pull Donald Trump’s brand from the store when Mr. Trump decided to politically attack President Obama in the election campaign. Opportunities:

1.Macy’s has joined many other stores and has rolled out an iPhone application so that customers may have access to shopping straight from their mobile phones. 2.Bloomingdale’s, Macy’s partner, opened a store in Dubai, which could lead to other potential stores opening, doing business on an international scale. Threats:

1.J.C. Penney’s, one of Macy’s biggest competitors, has also decided to reinvent its stores with a new design development and pricing strategies. This could cause the company to lose customers to its competitor. 2.Shipping costs have increased due to an increase in internet sales. 3.Macy’s sued Strategic Marks about issues...
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