Stacy Bradford
Management Fundamentals
MGM255-1202B-05
Phase 3 – Task 2-IP
Macy’s Strategic Plan
Richard Hilliard
June 18, 2012

Executive Summary
Macy’s is the nationally recognized brand of the Federated Department Store Cooperation. The organization consists of over 850 departments stores from coast to coast and online throughout the United States. In this paper we will look at the company’s strategic plan for success, its mission, its vision, its organizational structure, and what’s working and what’s not. In addition, we will examine the strategies and initiatives that have helped Macy’s to continuously grow and remain competitive over the past 150 years.

Mission Statement
"Our goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, we are moving faster than ever before, employing more technology and concentrating our resources on those elements most important to our core customers. "

Vision Statement
"Our vision is to operate Macy's and Bloomingdale's as dynamic national brands while focusing on the customer offering in each store location."

In just a few words, the above referenced statements convey Macy’s purpose and why it exists. Macy’s commitment to sharing the company’s mission and vision with the employees has kept the entire company moving forward in the face of difficulties, enabling and inspiring leaders and employees alike. Moving toward the same goal, employees and leaders work together to reach a common goal, grow profits and exceed customer expectations. Setting the right goals and objectives creates a road map to success. According to Mindtools (2012), “A good plan of action is the S.M.A.R.T. theory approach. With this system goals are: S-Specific; M-Measurable; A-Attainable-R-Realistic; T- Timely.” Trust and open communication with associates (employees) and employers are equally important. When managers cannot communicate with their employees there are always gaps and lower performance. At the same time when employees cannot communicate with their managers and supervisors, lack of trust will lead to lower performance too. Communications makes it clear of what is expected and how to get there. “Macy's, Inc. clearly recognizes that the customer is paramount and that all actions and strategies must be directed toward providing a localized merchandise offering and shopping experience to targeted consumers through dynamic department stores and online sites” (Macy’s Inc, 2012).

Company Summary
In 1858, Rowland H. Macy opened R.H. Macy & Co. as a dry goods store in New York City. First-day sales totaled $11.06, but the first year’s sales totaled $85,000 dollars; clearly a signal that Mr. Macy was well on the way to achieving his mission and seeing his vision unfold. Fast forward to 1924, Macy’s Herald Square location in New York became known as the largest department store in the world. At the same time, they launched the first Macy’s Thanksgiving parade where over 10,000 people attended. In 1929, Macy’s joined several family owned department stores together to form a holding company known as Federated Department Stores, Inc. One year later, in 1930, Macy’s experienced two major milestones; Bloomingdales joined Federated Holdings, and Federated reported its first year total sales exceeded $112 million dollars.

Macy’s strives to provide products and services that meet or exceed customers' expectations. Their goal is to keep the customer at the forefront of all that they are and everything that they do. The company seeks to be proactive in sharing information and in keeping these key stakeholder groups up-to-date on important and material developments. Ethical business practices guides every facet of the business. Macy's, Inc. is committed to open and honest communications with employees, shareholders, vendors, customers, financial analysts and the news media.
Diversity is at the core of Macy’s, Inc.’s approach to doing business. It touches all areas of the company and the multicultural marketplace they serve. "Diversity is a holistic strategy aligned with Macys, Inc. priorities and integrated into all areas of the business. Simply put, diversity is a business imperative for the company. For over 150 years Macy’s has stood on the principle that you treat others as you want to be treated.
Organizational Structure
Six key elements make up most organizations structure: Work specialization, the degree work can be subdivided into separate jobs; Departmentalization-the division of work by product, customer base, or even geographic area. Span of control – the maximum amount of employees reporting to one single manager; Chain of Command is a decision making process starting from top down, for example CEO level back down to employee level. Similarly, Centralization/Decentralization are two other forms of the decision making process. Centralization management means that all decisions are made by upper management, while decentralization means that lower level management participates in the decision making process or at minimum, the department head may participate. Lastly, with the Formalization type of organizational structure, the focus is on guidelines, or the rules and regulations associated with getting the job done instead of the people associated with the job.

Macy’s organizational structure is centered on a combination of Chain of command, Centralization, and Departmentalization type structures to run its enormous organization. In 2008, the company launched the My Macy’s initiative program aimed at structuring stores around the local market in which it resided. “In order to concentrate more management talent in local markets and reduce "span of control," all Macy's stores nationwide will be grouped into 69 geographic districts that will average 10-12 stores each.” (Macy’s Inc, 2012) The goal was to put Macy’s in a position to implement and develop strategies that enabled each store to effectively identify and serve consumer needs location by location. Macy’s divided the 69 geographic districts into eight different regions. Leadership
Managers are responsible for creating an information highway within the organization. Without this communication, an organization becomes inefficient and confused ultimately negatively impacting profitability Management is responsible for setting guidelines, tracking performance, and utilizing resources to measure what is and is not working; only then can they develop a process is working or improve an existing one. Likewise, accountability and ownership are key to the success and effective management of any business. Someone must be responsible for getting the information needed and for reporting it in a timely manner. At the same time, management should be responsible for the actual outcomes on the measurements. In addition to supervision, management is also responsible for making sure employees are properly trained and coached to ensure they have the skills necessary to do the best job possible. Lastly, to help motivate the team, management should celebrate good performance.
Good management is based upon four: Planning, Organizing, Leading and Controlling. Planning is the process in which management develops the organization’s mission and objectives; and then determines how it will be achieved or accomplished. Managers are responsible for the organizing internal structure, organizing the employees, and the resources of the organization or company. They should focus on how employees should coordinate, and how tasks can be controlled by determining who should report to whom. As a leader, managers make sure that the task are accomplished or completed on the time, and employees are following policy guidelines. Leaders motivate council, instruct employees and guide them to help achieve or accomplish the organization goal. In addition, management implements the control measures that ensure the process working in the desired way to achieve the company’s goals and evaluated for process improvement.

Target Market Analysis

Current Situation
a. What is working well within the company/organization?
b. What is not working
c. Recent Challenge
Theory
Strategic Plan

Macy’s, Inc., with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2011 sales of $26.4 billion. Macy’s offers powerful assortments and the best brands, tailored to each and every customer with obvious value, engaging service and unforgettable moments. An iconic retailing brand with about 800 stores operating coast-to-coast and online at macys.com the company has been gaining market share, strengthening customer loyalty and maintaining efficiencies in operations, all against the backdrop of a stagnant economic environment. Its progress and success are rooted in having become a customer-centric organization that embraces localization, a seamless omnichannel blending of stores, online and mobile, and more meaningful customer engagement on the selling floor. Localization is a key component of Macy’s strategic formula for continued growth and success. Through My Macy’s, they have invested in talent, technology and marketing that allow the company to ensure that each and every Macy’s store is “just right” for the customer who shops in that location. Macy's, Inc. is a premier national omnichannel retailer with iconic brands that each operate outstanding stores and dynamic online sites.

a. Goal 1 - My Macy’s localization
b. Goal 2 – Omnichannel integration c. Goal 3 – Magic d. Goal 4 – Sustainability 8. Financial Plan

Macy’s strategy and commitment to Diversity continues to be a success. Constantly on the lookout for qualified suppliers of goods and services, Macy’s strongly encourages the interest of potential partners through their nationally recognized Supplier Diversity Program, which is open to U.S.-based minority- and women-owned enterprises. With purchases totaling approximately $723 million in 2011, up 29 percent from 2010, Macy’s continues to prove that Diversity is good business for the organization and the vendors. The win-win strategy for Macy’s Diversity Program increases the level of innovative leadership based on fresh thinking and new ideas. Macy’s continuously encourages and strives to establish partnerships between Macy’s and minority- and women-owned business enterprises.

At the same time, Macy’s continues to work on improving quality and value for all customers, which they believe starts with the employee. According to Macy’s Inc, Terry Lundgren, CEO, said “To give our customers the best shopping experience possible, it is imperative that we have the most skilled people in every position throughout the organization.” (Macy’s Inc, 2012). So, after carefully reviewing both employee and customer surveys, Macy’s concluded employee relations and associate training will be an ongoing area for improvement. From merchants to senior management, sales associates to store managers; Macy’s has aggressively launched training programs for all employees. Equally important, another valuable tool is the Macy’s, Inc college recruiting program aimed at helping to guarantee the company continues to hire the best. Likewise, Macy’s diverse training program introduces all associates to “the company, its vision, the brand values, the core customer and the four business priorities, and the company's position on diversity and inclusion.”

9. Conclusion - Outcomes

Reference: Macy’s Inc. (2012). Macy’s, Inc. Same-Store Sales up 4.2% in May. Retrieved on
June 13, 2012 from http://phx.corporate- ir.net/phoenix.zhtml?c=84477&p=RssLanding&cat=news&id=1700705