Summary of case study:

In 1851, Rowland Hussey Macy established a dry goods store in Haverhill to serve the
whaling community. In 1858, he moved to New York to establish elite shopping district
named R.H Macy & Company. Macys went public in 1922 and opened additional
stores around New York and Long Island. Later, he launched franchises in San
Francisco and Kansas City. The company opened its new stores outside the New York in
1983. In 1986, Macys chairman Edward Finkelstein led a $3.5 billion buyout of Macys
and took it private. The company debt increased into the early 1990s and filed for
bankruptcy in 1992 but it covered up its loss in 1996.in 2001, federated stores decided
to convert 19 of its sterns locations in New Jersy and New York to its strongest store
brands.
In June 2007, Federated stores changed its corporate name to that of its most famous
brand Macy. They opened 10 stores and a furniture gallery. On August 30, 2005
federated completed its $11 billion acquisition of rival May department store. In Oct
2006, it completed the sale of its 48 store Lord & Taylor operated chain to NRDC
equity partners LLC for nearly $1.1 billion. In 2008,Macys celebrated its 150 th
birthday by opening 4 new stores and one furniture gallery.
Macys believes that Integrity, Creativity and to provide quality products are the basic
tools to gain profit and accelerate comparable store growth. It can achieve its targets
by effective use of excess cash flow through a combination of strategic growth.Macys
wants to work in the boundaries of its cultural heritage to get optimal results.
Macys has also been an innovator by introducing the items such as Idaho baked
potato, colored bath towels. It also piloted new food concepts in selected stores.
Macys direct to consumer business.
Macys made commitment to making a worthwhile difference in improving the natural
environment. The company use solar panels in its stores to consume energy.they
organized customer fund raising programs.
Macys offers beautiful colored baskets made by widows. These baskets are not
available on any other stores. Its new products are eco friendly. it also adopted
welfare to work programs.
Macys use the new methodologies for advertisements by using digital, online and
direct marketing. The Macys Thanks giving day parade has a worldwide impact.
Macys competitors are Dillards Inc., J.C Penny Corporation, Inc. and Saks,Inc.

Vision:

A belief in the promise of the future with the energy and determination to get
us there.
A belief that our heritage mirrors the optimism, inclusion and integrity that
provide for both stability and growth.
A belief that taking advantage of the right opportunities will continue to lead
us to success in all that we do.

Mission:

We will continue to increase the profits of company and providing quality

products by being good corporate citizens, obeying all laws, protecting the
interests of shareholders and respecting the rights of others.

Vision(own words):
We believe firmly to work in the frame of our heritage mirror to get success.

Mission(own words):

Creativity
Integrity
Quality

SWOT Analysis:
S: Strengths:

Right products, quality and reliability.

Superior product performance vs. competitors.
Better product life and durability with leading brands.
We can change direction quickly if we find that our marketing is not working.
Our lead stores (franchises) have strong reputation in the market.

W: Weakness:

We are vulnerable to vital staff being sick, and leaving.

Staff has little loyalty.
Decline in market share.

O: Opportunities:

Our business sector is expanding, with many future opportunities for success.

Local government wants to encourage local businesses.

Could develop new products.
Local competitors have poor products.
Profit margins will be good.
End-users respond to new ideas.
Could extend to overseas.

T: Threats:

Environmental effects would favor larger competitors.

Vulnerable to reactive attack by major competitors.

IFE (Internal Factor Analysis):

strength

data base
quality, reliability
product performance
durability of products
financial position
Reputation in the
market.
Technology
weaknesses
Commitment and
loyalty.
market share

weig rati weighted

ht
ng
score
comments
0.1
4
0.4 strong database
effective marketing
0.1
3
0.3 strategies
0.15
3
0.45 consistent quality
0.25
3
0.75 superior durability
higher profits and
0.12
4
0.48 revenues
0.12

0.12

0.02
0.02

1
1

24

0.48 strong reputation

innovation and new
0.24 ideas

0.02 staff has less loyalty

0.02 decline in market share
organization is strong
3.04 internally

TWOS matrix(Matching Tools):

Macys Inc.
Internal Strengths

Internal Weaknesses

(S)

(W)

1. Existing brand with

existing customer base.
2. Subscribe to ethical

1. Sales staff has less

business practices in

loyalty and

every facet of our

commitment.

business.
4. Better product life and
durability with leading
brands.
External
Opportunities
(O)
1.Cross selling
2.New markets.
3. Unique selling
point.

W-O
S-O
Joint venture
Expand globally

Acquire competitor

Diversify
Develop new products

External Threats
(T)
1.Customer Choice
2.Competitors

S-T

W-T

Diversify
Divest

Acquire competitor.

increase promotion
Downsize

Space matrix:

Competitive (CA)
(-6 worst, -1 best)
X
A
X
I
S

average: -2

+5 ease of entry
+5growth potential
+4 profits
+4 tech: know how
+5 financial stability
+5 resource utilization
average: +4.7

Financial (FS)

Environmental (ES)

(+6 worst, +1 best)

+4 working capital
+4 return on
investment

(-6 worst, -1 best)

-2 price of competing
product

-1 product quality
-2 market share
-2 customer loyalty
-2 tech: know how
-3 product life cycle

Industry (IS)
(+1 worst, +6 best)

+2 ease of exit

+2 business risk
average: +3

-4 barriers of entry
-3 technological
changes
-4 competitive
pressure
-3 demand variability
average: +3.2