Individual Critical Analysis #1 Final Report

Critical analysis reports must be a maximum of three pages in length; only the first three pages

will be read and evaluated by the instructor. You will identify the problem or opportunity and discuss

a viable solution based on your analysis of the case. The general structure of all critical analyses:

1. Describe the business situation, including the macro-environmental and micro-environmental

conditions facing the organization.

2. Develop the problem statement: the opportunity or threat facing the organization.

3. What alternative strategies and programs would you consider for dealing with the opportunity

or threat to the organization? Present each alternative in sufficient detail to give the reader an

idea of why it may be beneficial.

4. Recommend one or more of the alternatives you have identified. Inform the reader of your

reasons for these recommendations.

5. Describe tracking metrics to determine whether your recommended strategies and programs are

effective. Be sure to include both intermediate and conclusive metrics to guide managements

redirection of ineffective strategies.

6. Summarize what you have learned from your critical analysis.

You are encouraged to do external research on the industry or the company as a context for your

analysis. APA format in-text source citations and a comprehensive bibliography are required for

each critical analysis report. Your report must include the focal reading plus at least three

references in addition to the companys website or Wikipedia

The outline: Macro-environmental and micro-environmental issues.

2. Concise problem statement.

3. Alternative strategies and programs.

4. Recommended solutions.

5. Intermediate and conclusive program performance metrics.

My included outline feedback: his is not a properly formatted report outline. Single-page outlines must be written as a set of brief and focused numbered or bulleted declarative statements. Please develop an original and descriptive title for your reports.

Your background analysis should present the key macro- and micro-environmental factors that have led Macys Department Store to introduce a range of changes to its Chicago location. The companys cultural, social, demographic, and competitive environments have changed markedly over the years, and it has been slow to keep pace. Macys is one of several department store chains facing an existential crisis. Its management has decided to introduce changes in the way that the retailer merchandises, presents, prices, and promotes its offerings to meet its customers evolving preferences. Ultimately, the chain hopes to be the preferred alternative for older shoppers who still frequent department stores and younger customers who are seeking new and leading-edge merchandise.

Your problem statement is conclusory. Clearly and concisely identify the opportunity or threat that Macys must address to resume its sales growth. How can the retail chain improve its value proposition? What are “brand partnership improvement opportunities”?

Present more specific alternative (new) solutions. How should Macys increase its appeal for consumers? Propose specific and actionable solutions.

Your recommendations must be selected from among your alternative solutions. What do you mean by “strategic flagship investment with omnichannel acceleration”? Explain why you made those specific recommendations.

Present a set of intermediate and conclusive program performance metrics. What conclusive metrics will show whether your recommended programs have ultimately created shareholder value? Share price is not a program-specific metric. Market share is not a conclusive program metric.

General comments regarding the assignment:

Macys was founded in 1842 on 6th Avenue in New York City. It is one of the oldest and largest department store chains, with 450 stores on the United States mainland and in Puerto Rico and Guam. It is among the last full-priced chains in a retail category that is rapidly declining. Lord & Taylor, Sears, Gimbels, Abraham & Straus and a host of other prominent names in this category closed their doors in the past 40 years, leaving Macys as one of the few surviving brands. In recent years the company has received acquisition bids, some hostile, but management has successfully fended off all offers. The company remains committed to maintaining its independence and has asserted on several occasions that there is significant sustained value in its retail brand and operations.

Most recently, Macys revamped its State Street Chicago location as a model for chain-wide department store rejuvenation. One important change is an updated merchandising strategy featuring Ralph Lauren in a mix of core brands, younger brands, trending brands, and some upscale brands not usually found at Macys. New flooring, improved lighting, and better signage are also important elements of the State Street upgrade. Associates at this location are better-trained and more knowledgeable about the merchandise. Management hopes that these changes will improve the customer experience and enhance Macys brand image. The challenge is clear: Macys must prove that department stores generally, and Macys in particular, can create value for a broad range of customers.

Macys management is hoping its State Street upgrades will fuel a turnaround. Although Macys reported strong business performance in Q2 2025, with net sales of $4.8 billion (0.8% above the comparable quarter of 2024) and an EPS of $0.31, equity markets remain wary of Macys stock. What additional programs and policies should Macys consider for implementation? What other changes can the company make to increase the popularity of its value proposition? How can the chain further differentiate itself in the crowded retail market space? Overall, what changes should be made to Macys marketing mix to improve its customers satisfaction and increase shareholder value?

Be sure that your final critical analysis report includes a focused background analysis of the key macro- and micro-environmental factors impacting the firm. The problem statement should very briefly (in one or two sentences) summarize the opportunity or threat the company must address. Your alternative solutions should concisely present a set of realistic alternatives for solving the identified problem. Recommended solutions should be justified based on implementation speed, relative cost, and the cost-benefit impact on the firm. Develop a set of intermediate and conclusive program metrics to help management determine whether your programs have been successful in creating customer and shareholder value.