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Running head: MACY’S ENVIRONMENTAL ANALYSIS 1

MACY’S ENVIRONMENTAL ANALYSIS 5

Macy’s Environmental Analysis

Name

Institution

Macy’s Environmental Analysis

Internal environment

Macy’s enjoys a well-organized internal environment that although has several weaknesses, is strong enough to support its bid to expand oversea. The organization of the company is diverse and includes many associates such as the women workforce and ethnic minorities. In addition, there is a well-organized network of marketing and advertising team that help the company carry out its operation. A group of diverse suppliers helps the company reach out its intended customers. What is more, the company boasts of a well-organized executive management that has very talented and skilled managers. Macy’s has a workforce of approximately 167,000 employees, which includes full time and regular employees as well as part-time workers ("Growth on all fronts", 2012). Their culture helps keep their employees together as they relate very well. The company’s compensation program that recognizes the output of every employee is a strong advantage towards its success.

Eternal environment

The external environment of Macy’s defines it outside forces that are beyond their control. The company has been involved in occasional sponsorship of political parties as well as the state. The most notable one was in 2010 when the company donated $50,000 to both state level parties and national level parties. In addition, the economic environment is also a great factor affecting the company. The ever-shrinking markets continue to affect the company although it remains strong amid the economic difficulties. The company records an average of $1 million operating income every year.

The socio-cultural environment of the company entails its support for the society. The company has done a good job in this sector with several partnerships with charity organizations. It also donates to needy and disadvantaged groups in the society. What is more, the company gives gifts to education institutions, support women issues and has contributed towards the control of HIV/AIDS. The technological environment of the company involves massive adoption of the current trends in technology. The company has implemented e-commerce technology that allows it to connect with buyers from all over their internet (Enright, 2011). The online buying platform has been a great boost to the company’s marketing. In addition, the company operates under the legal environment. It complies with numerous legal requirements under the state, federal as well as the local government. It is also keen to adapt to the legal environment in the oversea countries.

Strengths

Macy’s is one of the largest companies in United States. It boasts of an average of a profit of approximately $25 million dollars. It also operates over 800 department sin united states, which are distributed in over 40 states. It has the second largest market share with approximately 13billion dollars of worth ("Growth on all fronts", 2012).

Problem statement

Despite its success, Macy’s has been experiencing a decrease in its market share as well as profits. For instance, in 2013, its net sales in United States decreased by 3% and the overall profit dropped by approximately 26% (Young, 2015).

Recommendations and implementation cost

The decreasing home performance has led to adventure in oversea markets in a bid to increase its customer base. The implementation costs could spur to over $15 million. It also risks this amount in oversea countries because it is not sure the new customers will accept its products.

Evaluation and control processes

In order to assess the success of this move, the company will evaluate the strategy through measures such as analyzing the sales in a specific brand and assessing the profits made. The control process will include selling their products through other operating companies in those countries rather than selling on their own.

References

Enright, A. (2011). Macy’s goes global. Internetretailer.com. Retrieved 10 August 2016, from https://www.internetretailer.com/2011/06/27/macys-goes-global

Growth on all fronts. (2012). MACY’S, INC. FACT BOOK 2012, 1-64. Retrieved from https://www.macysinc.com/assets/docs/for-investors/annual-report/2012_fact_book.pdf

Young, D. (2015). Slipping Macy's Seeks Tonic in China E-Commerce. Forbes.com. Retrieved 10 August 2016, from http://www.forbes.com/sites/dougyoung/2015/08/14/slipping-macys-seeks-tonic-in-china-e-commerce/#219e99915df9