Introduction
Macy’s has been a pinnacle of success; spanning over a century, delivering nearly 160 years of quality service. Founded in 1858 by R. H. Macy in New York City, New York; its humble beginnings began as a dry goods store – R.H. Macy & Company – in the cities North district (Hanson, 2015).
Through much trial and error, as well as, perseverance and innovation, Macy’s has proved to be a driving force in the retail market. By 1924, they grew to be the largest store in the world; and by 2014, were the 16th largest retail store in the United States. (Hanson, 2015) Their creativity in sales and marketing, inventory management, and customer service are all quality benefactors of their long history. Many of Macy’s innovations have quite literally
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While looking to enhance quality levels, a group of Motorola engineers designed a set of quality management tools that utilized statistical data as an approach toward the reduction of defects, and the improved maintenance of quality (Reddy & Hutton, 2013). Focusing on process improvement and variation reduction, Six Sigma uses a measurement-based strategy to improve quality, based on a systematic methodology known by its acronym - DMAIC (iSixSigma, 2012). Once problematic issues are recognized, the DMAIC model strives toward finding a long-term solution through the five phases of defining systems. By measuring key aspects of the current process for data collection, analyzing the collected data and verifying cause and effect relationships, improving current processes from data analysis, and controlling operations to prevent impact in any future process disruptions (Wallace & Webber, …show more content…
Lean Six Sigma concepts were introduced in the book titled Leaning into Six Sigma: The Path to Integration of Lean Enterprise and Six Sigma (Lean Six Sigma). Lean Six Sigma methodologies combine lean manufacturing and Six Sigma strategies to rely on improved performance from a collective team effort that systematically reduces variation and removes seven kinds of waste, known as Muda. Muda includes any unnecessary motion, transport, wait time, inappropriate processing, excess inventory, overproduction, and defects (Lean Six Sigma). Furthermore, Lean Six Sigma methods aim to provide customers with the best possible quality, cost, and delivery (ASQ.org, n.d.). In all, Lean Six Sigma is a business performance improvement strategy that uses a systematic approach to improving the way people advance processes. Its methodologies allow for systematically enriched processes to satisfy the customer and make money. Simply put, Lean Six Sigma as a business enhancer, ingrained with tools and techniques people can use to learn how to improve their processes (iSixSigma,
Macy’s was founded by Rowland Hussey Macy in 1858 in New York City. Macy's stores target the middle-to-higher-priced market, offering women's, men's, and children's clothing and accessories, housewares, home furnishings, and furniture. After its merger with Federated Department Stores, the company became the largest department store company, operating more than 850 department stores across the US. The company primarily operates in the US. Macy's is headquartered in Cincinnati, Ohio, and employs 166,000 people, including part-time employees.
1. Six Sigma is a management philosophy that sets objectives, collects data and analyzes results as a way to remove wasted expenses from its processes and help reduce the number of defective products produced. Six Sigma uses quality measures to strive for near perfection by eliminating errors and variables.
Macy’s Inc. is one of the oldest enterprises in the United States, belonging to the department stores industry. (Hoovers.com) It is a national brand, owning 850 department stores. During the development of the company, there had several key decisions that were beneficial for the company. However, in recent years, the competitions in department stores industry become more and more serious.
Unlike Starbucks, Macy’s is not doing very well, as evidenced by the fact they announced last month the impeding closure of 68 stores (Peterson, 2017). The company has been struggling for a few years with the growth of the internet and online businesses such as Amazon making their brick and mortar stores impractical in modern times. While the number of stores may not seem like as much of a problem as it is, as other companies have had to close down more in recent years or go out of business in general, this is a symptom of larger problems in both the company and the industry.
The Macy’s Corporation was founded in October 1858, and they are headquartered in Cincinnati, Ohio. The corporation focuses on internet sales in the United States, and they employ 166,900 full-time employees. Macy’s sells a range of merchandise, everything from apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. Similar to Kohl’s, Macy’s sells a special range of clothing, accessories, handbags, jewelry and footwear. As of January 20, 2016, it operated approximately 900 locations in 45 states, the District of Columbia, Guam, and Puerto Rico under the Macy’s, Bloomingdale’s, Bloomingdale’s Outlet, Macy’s Backstage, and Blue Mercury names; as well as Websites, including macys.com, bloomingdales.com, and bluemercury.com (M Profile | Macy 's Inc. Common Stock - Yahoo! Finance). In addition, Macy’s operates as a
"We think of Macy’s today as the Great American Department Store because we have kept alive our heritage while also changing for the future, " (2016, Lundgren). When Macy’s first started, no one would have guessed that it would become one of the world’s largest retail operations in the world. The success of the store lands on many people’s hands. If they know how to work the system, they can help the company grow. Some of the people who are involved in making the company successful are first line mangers, even the top managers are involved. In this case they didn’t work very good making decisions which led Macy’s to go down as a company.
Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market
Collins, Jim. (2009). How The Mighty Fall And Why Some Companies Never Give In. New York, NY: HarperCollins Publishers.
This report presents the financial analysis of Macy’s Inc. The company’s financial position is gauged using ratio analysis and suggestions on improvements are provided. The ratios will be compared to one of its top competitors Dillard’s. Using 2014 key financial statements such the income statement, balance sheet, cash flow, and key statistics found on yahoo finance. It also analyzes the company’s historical stock prices and will compute the stock average, standard deviation, and beta over a 60 month period and compares it to the market average. It then will transition into reviewing future growth estimates and will use the constant growth model to compute the company’s fundamental value. Also, it will review analyst opinion
Critically analyze the organization from the systems approach. You should consider the inputs, transformation and output elements of the operation and consider how the system creates value.
The financial data will support the strategy as the ratios and numbers show that Macy’s has resources and capital available for the implementation. Evaluation of external and internal factors positively presenting an opportunity for Macy’s to use designed strategy to and keep competitiveness in the industry. Summarizing Macy’s is a well-established organization with over 150 successful years in business that still has an ability to compete with leaders in the industry if the right
Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isidore, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. This performance is primarily due to the core functions and operations of the business. Planning, organizing, leading, and controlling. Macy's excels at these forms of management, which has allowed the company to perform at a higher level relative to its peers in the industry.
Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).Other competitors who cater specifically to the middle class consumer have also lost significant amounts of market share as consumers trade down due to the economy. Macy's, with its ride array of assortments and products continues to grow as it attempts to capture market share from failing competitors. Macy's is also unique as it operates in a unique market demographic. It is upscale, but not to the extent of Saks Fifth Avenue or a Nordstrom. It is also not as low scale as a JC Penny
The product life style of the department store is in the mature or declining phase of its product life style, because of the declining sales. Furthermore, according to estimates, market share has eroded away to 7 per cent, as of 2010, and is far below the desirable rate 15 per cent (Johnson, 2011, p. 3). Also, the brand image is being heavily relied upon and the bottom line is not showing significant increase in the years presented in the journal article. Macy’s is afloat due to a strong management team and the aggressiveness to deal with problems as they arise. For example, continuing to adjust its portfolio of stores, focusing on fashion, and developing private labels in bedding, outerwear, ‘tween’ clothing, increase national advertising and using celebrities. Additionally, Macy’s advertising is combining the national department store image with July 4 and the Annual Macy’s Thanksgiving Parade, which appeals to the American citizen. Solution
Lean Six Sigma approach is recognized widely and has been implemented predominately in manufacturing rather than other industries. To illustrate the point, this paper draws attention to the adoption of Lean Six Sigma in various industries with a case study. The combination of Lean tools and Six Sigma methodology is used to improve the process and quality by eliminating the variations and creating workflow in a process. The hypothesis of this study was that the Six Sigma technique can be used along with lean tools in order to improve process and quality in any area of industries. The review of case study discovered the use of