STR 581 Week 5 (1100 words except reference)

Robert Gil

STR 581

Claudia Duranceau

Introduction

As technology changes the way we shop, specially millennials, department stores need to reconfigure the way they do business. Macy’s has had many months of continuous loss and is in need of strategic implementation plan to realign or redesign the way it does business (Wahba, 2017).  The purpose of this plan is to find ways to reinvent the store sales, improve its financial status and assure the shareholders that Macy’s is still a leader in the retail store industry. The implementation plan will need to review its objectives, find functional tactics, plan and perform action items along with the possible milestones it will need to meet in order to meet the deadlines. Tasks required by each major department of the organization will have the responsibility to make them work or adjust as needed with the resources given or allocating resources that will keep the organization in line of the proposed plan.

Objectives

Macys needs to reinvent itself by revisiting the way it sells its product, to include their store layout and marketing plans. The organization is facing major financial setbacks to include the closing of 100 stores. The main objective of this plan is to get millennials back to the store, reinvent their marketing strategy and make their product more appealing to the current consumer (Wahba, 2017).  In previous years, high end product was only available at high end stores, but currently, you can almost get anything on online stores such as eBay and Amazon (Bradley, 2017). 

Functional Tactics

The competitors have taken a large part of the market share leaving Macys struggling for costumers. The product sold at Macys its available almost anywhere in the online market. The strategy for departments like marketing and finance department have to interact as both departments will need the support to manage each other from the financial part as well as for the redesigning angle (Bradley, 2017).  The functional strategy will need to focus on the production of the organization’s products, how and who are the supply chain and most important gain back the customers by realigning and reinventing the way the business currently handles its customer service.

Action Items

Some old tactics like having the same thing every year because it has worked for many years is no longer the way stores can run business. Macys must identify which items are important to change so that it can take the organization back to reading in the black rather than the red zone it has seen for the past few years. Some of the actions items are:

1. Presentation – Many millennials are visuals shoppers and for the most want to buy what they like without the disturbance of a sales person telling them what to buy from their display cases. Currently, Macys has their product such as make up behind glass displays and if you want to try a product, you must get someone to help you, but to make it worst, the store associate must stay in control at all times. They tell you which color you are, what goes with you and what doesn’t and when you decide, they apply it for you. Millennials want to grab the product and play with it as they wish and then decide if it’s something they want to buy.

2. Product – Previously department stores were relying on their product as they were the only store carrying them, therefore, the store could charge full price for them. Millennials now days carry their phone with an application that allows you to take a picture of the product, sku number or model number of the product and do a search online for the best price available. Within seconds consumers have a list of at least 5 stores that have the same item for the same price or much less than the current selling price at Macys.

3. Close Stores – Many online competitors do not have such big overheads as Macys has today. For example, in 2017, Macys had 125 stores in the State of California and these stores are putting the organization in a budget crisis because they can’t compete with online retailers ("Stores By State", 2017).  Macys will have to close down stores in the many States in operates and will have to decide by reviewing where they are situated and how well they performed.

Milestones and Deadlines

Macys has some adjusting to do and the importance to set milestones and their deadlines are as crucial as it is to keep their doors open. For this purpose, a redesign of their displays, store front, how associates interact with the consumers is a milestone that will include some marketing research and some associate training. As stores begin to close and the business structure gets realigned, associates that stay on board must be familiar with the business improvement strategic plan as these steps have to be met at the deadline set within the project management. Short term goals and long-term goals will need to be identified (Wahba, 2017).  The process can take a year to accomplish and a timeline can be very helpful to view what the objectives of the short-term goals, such as retraining associates or as complicated as the long-term requirements of the closing of specific stores.

Task and Task Ownership

The objectives have been identified and the deadlines have been put in place. Now the challenge is to assign the task to the specific departments such as Human Resources who will take ownership of matching the right associates with the proper training and character to perform the redesigned job duties.

Resource Allocation

The Finance Department to guide upper management to identify which stores are under achievers in comparison with others in their perspective demographic locations. Upper management will need to take ownership of this task in order to meet the deadlines and match the set milestone of the strategic plan. Reducing cost as well as reducing overhead will help to refocus Macys energy back on track.

Organization Strategy Change

Analyzing Macys weakness and strengths are key factors to its strategy to succeed in this major strategic plan to reinvent its sales and image as a top retailer. A strategy formation is highly recommended for this plan in order to enhance the successful implementation of the specific action items needed along with the deadlines and milestones that will keep the organization in track.

Key Factors

Perhaps the over load of coupon using is a key factor that is currently not working as it weakness Macys image and lowering the prices so much that it is no longer a high-end retail store. Because the end consumer is able to find brands sold at Macys at many retailers now days, Macys needs to refocus its energy in their own brand and market it that way. Discount store like Marshalls, Ross and TJ Max have clearance racks and many of the Macys brands are found at these store at major discounts. Macys should concentrate also in setting up clearance racks so that it captures all these lost sales. Another key factor in budget managing will be to lower its staff per store and possibly redesign the store layout so that there are fewer cashier locations.

Risk Management Plan

There are several factors that can come up during the implementation and for that reason a risk management plan has been created.

Conclusion

Macys has many challenges up ahead with extremely tough deadlines, but some very positive milestones it can reach. This plan has point out key action and objectives that it needs to accomplish. Although, closing stores is not what any successful retail store wants to do, it is crucial for the survival of the organization and the way it will be view in the future. With the help of the different departments and what it needs to accomplish, the possibilities of making this strategic plan work are high and promising.

References

Bradley, J. (2017). Functional Business Strategy. Retrieved from

http://smallbusiness.chron.com/functional-business-strategy-61991.html

Gaines, M. (2017). How to Develop Milestones for Your Business. Retrieved from

http://smallbusiness.chron.com/develop-milestones-business-25635.html

Stores by State. (2017). Retrieved from

http://www.macysinc.com/for-investors/store-information/stores-by-state/default.aspx

Wahba, P. (2017). How Macys New CEO Plans to Stop the Bleeding. Retrieved from

http://fortune.com/2017/03/22/macys-ceo-plan/