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Case analysis - Assignment Example

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Consolidating the existing stores many employees lost their jobs. This has badly affected the local economy. The revenue of the city has decreased and due to the shift of jobless employees to other cities the economy was affected. The sales of products in the city have also reduced thus reducing the revenue.
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Download file to see previous pages Hence a negative effect could be witnessed.
"Where there is a will, there is a way". Macy's can definitely recover from this downward trend. It is the effective management practices that play a vital role. A firm's performance solely depends on the strategies followed by the management. Nothing is permanent in the world except the word itself. Failures are the stepping stones for success. They are cyclic process. If a firm is not moving well today then it does not mean that till the end the same trend will continue. Innovations and initiatives will make a difference. So, planned first order and second order changes should be made. Hence the downward spiral for the departmental stores will not continue.

Higher the customer satisfaction, greater is the profit. Some of the steps include:
Perform market research through the firm's market intelligence team to know about the customer's attitude, tastes and preferences.
Find out the prospects and set the store there.
Get frequent feedback from the customers.
Develop a good rapport with the employees and keep them motivated and satisfied.
Deliver good quality products, services and offers to customers. Today the people are quality conscious and not cost conscious.
Provide training to the employees.
Develop a standard mission and vision for the organization.
Plan the strategies perfectly and convey it clearly to the employees.
Make changes only if is really needed and seek the aid of the change agent.
Make planned changes and not unplanned changes.
Make both first and second order changes carefully. Make it only if there is a real need for it.
Adopt strong marketing techniques. If the customers are satisfied then word of mouth would be effective.
Maintain a good reserves and surplus level.
Adopt either focus or differentiation strategy.
Develop a strong competitive advantage.
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