Implementation Plan, Strategic Controls, And Contingency Pla ✓ Solved
Implementation Plan Strategic Controls And Contingency Plan A
Macy’s has had many months of continuous loss and is in need of strategic implementation plan to realign or redesign the way it does business. The purpose of this plan is to find ways to reinvent the store sales, improve its financial status and assure the shareholders that Macy’s is still a leader in the retail store industry. The implementation plan will need to review its objectives, find functional tactics, plan and perform action items along with the possible milestones it will need to meet in order to meet the deadlines.
Macys needs to reinvent itself by revisiting the way it sells its product, to include their store layout and marketing plans. The organization is facing major financial setbacks to include the closing of 100 stores. The main objective of this plan is to get millennials back to the store, reinvent their marketing strategy and make their product more appealing to the current consumer.
The competitors have taken a large part of the market share leaving Macys struggling for costumers. The strategy for departments like marketing and finance department have to interact as both departments will need the support to manage each other from the financial part as well as for the redesigning angle. The functional strategy will need to focus on the production of the organization’s products, how and who are the supply chain and most important gain back the customers by realigning and reinventing the way the business currently handles its customer service.
Some old tactics like having the same thing every year because it has worked for many years is no longer the way stores can run business. Macys must identify which items are important to change so that it can take the organization back to reading in the black rather than the red zone it has seen for the past few years. Some of the actions items are: presentation, product updates, and the closing of stores.
Many millennials are visuals shoppers and for the most want to buy what they like without the disturbance of a sales person telling them what to buy from their display cases. Currently, Macys has their product such as make up behind glass displays and if you want to try a product, you must get someone to help you. Millennials want to grab the product and play with it as they wish and then decide if it’s something they want to buy.
Previously department stores were relying on their product as they were the only store carrying them, therefore, the store could charge full price for them. Millennials now days carry their phone with an application that allows you to take a picture of the product and do a search online for the best price available.
Many online competitors do not have such big overheads as Macys has today. Macys will have to close down stores in the many States it operates and will have to decide by reviewing where they are situated and how well they performed.
Macys has some adjusting to do and the importance to set milestones and their deadlines are as crucial as it is to keep their doors open. A redesign of their displays, store front, and how associates interact with the consumers is a milestone that will include some marketing research and some associate training.
The objectives have been identified and the deadlines have been put in place. Now the challenge is to assign the task to the specific departments such as Human Resources who will take ownership of matching the right associates with the proper training and character to perform the redesigned job duties.
The Finance Department needs to guide upper management to identify which stores are under achievers. Upper management will need to take ownership of this task in order to meet the deadlines and match the set milestone of the strategic plan. Reducing cost as well as reducing overhead will help to refocus Macys energy back on track.
Analyzing Macys weakness and strengths are key factors to its strategy to succeed in this major strategic plan to reinvent its sales and image as a top retailer. A strategy formation is highly recommended for this plan in order to enhance the successful implementation of the specific action items needed along with the deadlines and milestones.
Perhaps the overload of coupon use is currently not working as it weakens Macys image. Discount stores like Marshalls, Ross and TJ Max have clearance racks and many of the Macys brands are found at these stores at major discounts. Macys should concentrate also in setting up clearance racks so that it captures all these lost sales. Another key factor in budget management will be to lower its staff per store and possibly redesign the store layout.
There are several factors that can come up during the implementation and for that reason a risk management plan has been created. Macys must implement a risk strategy that examines business areas, describes their likelihood, severity, control level, and mitigation plans.
Macys has many challenges ahead with extremely tough deadlines, but some very positive milestones it can reach. Although closing stores is not what any successful retail store wants to do, it is crucial for the survival of the organization and the way it will be viewed in the future.
Paper For Above Instructions
The retail industry has faced significant changes, and with the rise of digital commerce, traditional retailers like Macy's are under pressure to adapt their strategies to meet customer expectations. This paper outlines an implementation plan for Macy's to not only survive but thrive in the current retail landscape by focusing on strategic controls and a robust contingency plan.
Strategic Objectives
The primary objective for Macy's is to align its retail strategies with the preferences of the millennial demographic. Research indicates that millennials prefer a personalized shopping experience and are increasingly turning to online shopping options (Wahba, 2017). Therefore, Macy's must prioritize reinvention in product presentation, in-store experience, and marketing strategies to attract and retain these customers.
Functional Tactics
To address the competitive landscape, Macy's should implement several functional tactics. First, the marketing department should leverage social media platforms to engage with younger consumers. Targeted advertising campaigns can showcase the unique offerings of Macy's and capitalize on visual merchandising to catch the attention of visual shoppers.
Secondly, the finance and operations departments should collaborate to streamline inventory management and reduce costs. Understanding which products are consistently in demand can assist in refining the inventory, thus improving the overall shopping experience (Bradley, 2017).
Action Items
To make the shopping experience more engaging, Macy's can consider actions such as introducing interactive technology in stores where customers can browse products digitally while still experiencing the physical store environment. This blend of technology and product interaction can cater to millennials' desires for a hands-on shopping experience. Additionally, stores should reduce barriers to product interaction, such as removing glass displays and providing testers freely available for customer use.
Furthermore, the closure of underperforming stores will allow Macy's to reallocate resources effectively. Each closure must be strategically planned, focusing on locations with the least foot traffic and sales performance metrics. By consolidating stores, Macy’s can work on enhancing the remaining locations to become flagship stores that exemplify the brand's innovative approach.
Milestones and Timelines
Establishing milestones is essential for tracking the progress of Macy's strategic plan. Short-term goals could include achieving a specific increase in foot traffic through targeted marketing within six months, while long-term goals may target overall sales growth and customer satisfaction improvement over the next two years.
Task Ownership and Resource Allocation
Different departments within Macy's will need to take ownership of specific tasks. For example, human resources must develop training programs for staff that focus on enhancing customer service skills and product knowledge. Financial management will need to track expenditures closely to ensure the strategic plan remains within budgetary constraints.
Risk Management Strategy
A comprehensive risk management strategy must be implemented to mitigate potential pitfalls during the execution of the strategic plan. Factors such as market volatility, changing consumer preferences, and logistical challenges must be constantly reviewed. Risk mitigation plans should involve conducting market analysis regularly, collecting customer feedback and employing flexible marketing strategies to respond quickly to changes in consumer behavior.
Conclusion
Going forward, Macy's must remain vigilant in adapting to changes within the retail environment. By focusing on strategic implementation, aligning product offerings with current market demands, and engaging with consumers more effectively, Macy's has the potential to reinvent itself as a leading retailer once again. The key will be to balance short-term results with long-term strategic goals while remaining flexible to future challenges and opportunities.
References
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