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Macy’s Corporation: Strategic Information

Executive Summary

In this case study, Macy’s, Inc. is chosen for the analysis. Its long history, a variety of approaches to cooperate with different stakeholders, and opportunities offered to customers and employees serve as the main reason for why this company is used in the analysis. Macy’s representatives have already survived economic crises, promoted the idea of repositioning, and showed how the company may follow its goals and missions. I

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n this case study, the attention to such decision criteria as the maintenance of customer satisfaction and the improvement of the corporate image is paid. The project aims at explaining why customers’ characteristics and differences should be considered by Macy’s in order to improve the level of satisfaction of consumers that has been decreased considerably during the last several years. The analysis of the current situation and the recommendations regarding the abilities of the companies will be offered regarding different accounting, economic, marketing, management, legal, etc. aspects.


Macy’s, Inc. is one of the well-known and oldest department stores in the United States of American established in the middle of the 19th century. “No one would have guessed that the small, fancy dry goods store that opened on the corner of14th Street and 6th Avenue in New York City in 1858 would grow to be one of the largest retailers in the world” (Macy’s, Inc. history, 2016). This way is how the company begins its history. There is no need to offer some bright explanations or descriptions. For Macy’s, it is enough to mention the facts in order to prove that the example of this company can be followed by many current organizations. Macy’s is known as the company that has challenged the retail industry by means of its one-price system, orientation on female consumers between 25 and 55, and the respect to conservative traditions.

Rowland H. Macy was the founder of the company that was introduced as a dry goods store. The first-day sale was $11.06 (Macy’s, Inc. history, 2016). Nowadays, there are more than 870 stores that can be found in 45 states of American and several countries worldwide. Still, recent research shows that US consumer satisfaction with the services offered by Macy’s has been failed considerably with 3% decline (Miller, 2014). Therefore, Macy’s strategy should be focused on the idea to maintain customer satisfaction and use its corporate image as a powerful basis to work better.

Target Market

A target market of Macy’s has been improved during the last several centuries. Nowadays, it is hard to identify clear boundaries for consumers, who may be interested in the production of this corporation. As a rule, the main consumers are the representatives of the American middle class, who appreciate the quality of products at affordable prices (Bailey, 2015). There are many types of consumers, and Macy’s is the company that considers this categorization and treat people in regards to their groups such as Hispanic population, Millennials (people between 16 and 34), Alfani (people between 25 and 50 with different tastes and preferences), etc. (Bailey, 2015).

Market Needs

To stay competitive and impress the customers with different tastes and opinions, Macy’s should focus on the market needs and standards. Macy’s focuses on the ethical aspects of business, protects the interests of all shareholders, obeys the laws, and treats others in a good way so that quality and values are considered.


The main goal according to which Macy’s try to organize its services and cooperation with people is to stay a retailer that can see the opportunities and stay competitive. Macy’s should become a national brand that could gain respect around the whole world. The potential of the company is huge indeed because Macy’s strategies are developed and implemented by the experienced and talented people, who understand how crucial the competitive edge their company demonstrates is.

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Decision Criteria

The decision criteria of this case study are based on the necessity maintain customer satisfaction and improve the corporate image with the help of which customers can learn more about their options, set clear expectations, and understand what they can get with Macy’s. In this case study, it is not enough to improve the level of satisfaction. It is necessary to understand what can make customers pay their attention to the services and products offered by Macy’s and prefer this department store to other stores available. Customer satisfaction is one of the crucial metrics in management and marketing that cannot be ignored. It demonstrates the level of consumer’s loyalty and intentions to focus on the services of the chosen company.

It helps to increase the consumer lifetime value and reduce the negative outcomes of cooperation with Macy’s. The investigations show that American consumer satisfaction in the retail sector has been improved considerably during the last years (Miller, 2014). However, Macy’s is still on the list with low customer satisfaction ratings. It is a problem of the staff and the industry in general. The retail market is competitive indeed, and the department stores have to be very careful while introducing new ideas and improving the already established standards and services. Macy’s is not the worst example of how customer satisfaction may influence its corporate image. However, it has been already identified as a problematic sector. Therefore, the problem should be solved to avoid any complications and negative changes in the nearest future.


Customers should understand their importance in the store. They should realize that their participation is highly appreciated by the company and its people. At the same time, customer satisfaction also depends on such factors as the quality of services, the options available to customers, and the future changes that can be attractive to people of different age. To follow the principles established by the company and to improve the ratings that have been already identified, Macy’s should improve its work in several directions:

  • Cooperation with customers (to comprehend what people want, why they want some changes, and when they expect to get the required changes using interviews and questionnaires that can be offered online or directly in the store);
  • Establishment of new managerial standards (to train the staff so that the employees know how to behave with customers, predict their possible discontents or demands, and offer the solutions that can improve the situation, the corporate image, and customer-employee relations);
  • Analysis of the company and its future in terms of customer services (the employees can learn what the company has at the moment and if it is possible to take some actions in the present in order to promote a better future).

At the moment, Macy’s has a chance to find a solution and improve the ratings based on customer satisfaction because there are still regular customers and people, who want to learn what Macy’s can offer to its customers. The corporate image is working for the company, and Macy’s should not lose the opportunity to stabilize it and make use of it to provide customers with guarantees, confidence, and quality.

Data Analysis


Macy’s underlines the presence of the continued profitable growth that has been observed during the last several years. The goals that were established for profitable rates have been successfully achieved in 2014 (Highlights of progress, 2016). Therefore, it may be possible that the company does not actually see or feel the changes based on the decrease in customer satisfaction because some consumers are ready to spend much money at the store and new clients cover the changes.

Administrative Studies

There are three main alternatives that can be available to Macy’s: cooperation with customers, managerial changes, and future prospects. Each alternative has its impact and its cost. For example, the cooperation with customers like the organization of the interviews or questionnaires and the analysis of information should not cost a lot but lead to a number of positive benefits:

  1. A team of three people (it is better to hire new analytics, who are not interested in the people of the company but on the results that are achieved and have to be achieved, and who agree to pass a trial period with minimum salaries);
  2. No more than $500 is required to cover the office costs and organize online questions;
  3. No more than two months are necessary to gather and analyze information in order to offer the improvements.
  4. The experience and results are expected to be priceless.

Managerial changes require more costs in comparison to the first alternative. Still, the outcomes may differ as well:

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  1. One new manager should be hired to promote the transformation of the company.
  2. This manager’s salary is usually high because an experienced professional is required.
  3. One month is enough to analyze the situation, one month is required to develop a new transformational plan, and one month is necessary to implement the plan and observe the results.
  4. The outcomes of changes are unpredictable: some employees may be fired or want to leave a working place, the majority of the already improved approaches should be changed, and the actual results can be observed in several months after the implementation process.

The analysis of future prospects and the changes that employees can promote is probably the cheapest alternative. Still, its outcomes are also of the doubtful quality.

  1. No new people are required.
  2. No salary changes are required.
  3. One month is enough to analyze the situation and make the predictions.
  4. No particular solutions can be offered and justified. Just some ideas can be introduced.


The global retail market is characterized by a sustainable growth. The impact of China and Europe remains to be crucial for Macy’s.


Regarding the peculiar features of the alternatives, it is hard to calculate the discounted cash flows and revenues of the company because such factors as the period of transformation, the choice of personnel, and expected outcomes influence the decisions made.

Legal Area

The options under analysis are free from some legal or environmental obligations because the main requirement is not to impose the ideas on consumers but provide them with a chance to make independent decisions.


Macy’s has a team of professional and experienced employees, who are able to understand the necessity of transformations and do everything possible to reduce human resource costs and improve the quality of services.


The products of Macy’s are marketed in many American states and several countries and delivered by independent dealers worldwide. Therefore, Macy’s is a decentralized marketing organization that can develop many productive relations.


The Internet and the opinions people like to share through Instagram, Facebook, and other social media can be used as the main source of information about Macy’s and its quality of work.

Preferred Alternative with Rationale

Macy’s should pay its attention to the relations that can be developed with consumers in order to improve customer satisfaction level and prove the quality of the corporate image. Therefore, cooperation with customers as the main source of information about the services and products offered by Macy’s is chosen. The rationale for this choice should be clear.

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First, the company is in need of fast and effective decisions. Cooperation with consumers may start anytime as soon as the need occurs. The quality of information cannot be put under a question because all facts are obtained from customers, who visit the store and use the services. Second, Macy’s should have a new idea of how to change its culture. Independent analytics and their cooperation with customers can show the most effective way to achieve good results in a short period. Finally, the value of the outcomes achieved after the offered procedure is higher than the costs that should be spent on it.

Justification/Predicted Outcomes

Several outcomes may be predicted in case the offered alternative is chosen.

  1. People want to believe that they can influence the development of different organizations they are not directly involved in. As soon as people learn that they can offer their suggestions, and the best suggestion will be rewarded, they will be eager to visit the store and participate in the life of the company.
  2. Customers will believe that their suggestions can be used by the company. People will want to try if their pieces of advice are considered. As soon as they observe the changes, they will be satisfied.
  3. Customers are the group of people, who have to be satisfied, and customers are the group of people, who share the suggestions. The company does not spend money on searching for some new strategies or improvements. The analysis of hints is the only portion of work that should be done.

Regarding the information given, Macy’s manager should comprehend if the company needs such changes and if the approaches can be justified considering the outcomes identified.


During the last five years, Macy’s has been working hard to improve the quality of customer services and the level of customers’ satisfaction. The reputation of the department store is a powerful aspect that can be used by the team to introduce new approaches to work. However, lowered ratings based on customers’ satisfaction cannot be ignored, and Macy’s faces a new task and a new goal. The alternative to focus on cooperation with customers and improve their satisfaction has many justifications and explanations to prove that Macy’s has a chance to achieve good results.


Bailey, S. (2015). Macy’s target consumers: Do they make a difference? MarketRealist.

Highlights of progress in 2014. (2016)

Macy’s, Inc. history. (2016)

Miller, J. (2014). Customer satisfaction falls for JCPenney, Macy’s, Target: Walmart maintains lowest satisfaction score. Diamonds.

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