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Running head: ORGANIZATIONAL ISSUES AND SOLUTIONS
Organizational Issues and Solution
ORGANIZATIONAL ISSUES AND SOLUTIONS
Organizational Issues and Solutions
The Organization and Issues
Macy’s was founded in 1858 and operates as a department store. By 2015, the company
was the largest departmental store in the country in terms of retail sales. The company has 546
stores with 130000 employees. Herald Square is the largest departmental store globally and is
owned by Macy’s. In recent years, Macy’s has been facing challenges reflected in a decline in the
stock price. Some of the challenges are due to a decline in the retail industry and global trade
pressure. However, an analysis shows that there is a problem in the product sold and the store
environment. This has led to a 4.3 decline in revenue and a margin profit of 2 million dollars
(Paridhi, 2016). The company market share has also been declining, and investors seem to view
the company negatively. The decline in the share price can show this. Lastly, the company’s
amount is earning as net profit is too low to allow the company to transform and address the
issues within its organizational culture.
The organization’s culture is more focused on employees. Throughout the company
history, it has made a significant impact on employees’ relationships. For example, it was the
first retail store to promote a female into the executive. Also, it has higher employee retention
while compared to other retail stores. On customers, the company uses a dynamic model that
helps it to offer products at a low cost. The organization culture leaves the development of the
company aside. As the company continues to invest in employees, the development of the
company’s physical location has been neglected, leading to product and environment stores.
Lastly, the company is still operating as a traditional store since it has not transferred most of its
ORGANIZATIONAL ISSUES AND SOLUTIONS
Areas of Weakness
The company currently does not have a competitive advantage over most retail stores in
the industry. Most companies that have been in a similar industry have invested in online
business and successfully transformed. This allows such companies to gain a wider market share.
The profit earned is insufficient in addressing the issues facing the company. Therefore, the
company is either forced to sell its assets or borrow to finance the development projects. There is
also there is an issue with customer satisfaction. The culture employed by the company does not
show a high focus on customers, which, in the end, reduces the satisfaction level. Lastly is on
acceptability level of stakeholders. For the project to succeed, there must be clear goals set and a
high acceptance level on the transformation needed.
The company should reevaluate its value proposition towards consumers….
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