This paper is a written comprehensive review of the change within the Macy’s and Belk’s organization. This paper will revisit each organizations mission, inspire its stakeholders and increase the company’s impact and productivity. Every Belk and Macy’s department should aspire to engage stakeholder and audience with the changes within the Macy’s culture and organizations during change. This document will help ensure public trust in the organizations during this acquisition merger and buyouts.
This written form of communication is to motivate, inform and counsel employees and attract and retain stakeholders, raise public awareness and increase understanding, commitment and productivity.
Included in this paper are relevant aspect of Belk and Macy’s during the organizational change. The 6-box diagnostic model used will utilize and review aspects of change, activities and actions that have been taken by both Macy’s and Belk Department store. The paper will explain the strategies and details that are relevant to the each organizations performance, SWOT analysis and perspective, and implantation during the organization change process.
Brief Summary R. H. Macy & Co. , Inc. also known Macy’s is a subsidiary of Federated Department Stores, Inc. and operates through two department store groups. The company is divided into Macy’s East and Macy’s West. Together these groups operate approximately 187 stores located in 21 states. Macy’s stores target the middle-to-higher-priced market, offering women’s, men’s, and children’s clothing and accessories; house wares; home furnishings, and furniture. The company also maintains two direct-to-customer retail operations: a mail-order catalog business called Macy’s By Mail, and an e-commerce web site, macys. om. The Macy’s-Federated merger created a true retail giant. The combined companies laid claim to more than $13 billion in revenue, 11 department store chains, and more than 300 stores in 26 states. It was not long after coming under Federated ownership that Macy’s felt the first tremors of change. Federated began rolling several of its smaller chains into the two large Macy’s East and Macy’s West divisions to streamline operations and avoid inter-company competition. As an initial move in this direction, Federated consolidated its Jordan Marsh chain into Macy’s East.
The following year, the company phased out its 130-year-old Abraham & Straus chain in January, converting most stores to Macy’s, Rich’s, Bloomingdale’s, or Stern’s. Nine of the former A&S stores joined the Macy’s East division. Macy’s structure is use a model for retailers throughout the industry. The company culture and demographics creates a podium for retailer across the board. Belk is the nation’s largest privately owned mainline department store company with more than 300 fashion department stores in 16 contiguous Southern states and sales totaling $3. 5 billion in its past fiscal year.
The company has continued to expand its retail leadership position in key Southern markets by acquiring the profit’s McRae’s and Parisian department store groups from Saks Incorporated in 2005 and 2006. Belk also opens new stores and expands existing stores each year as part of its long-term growth strategy. In 2006, Belk acquired the assets of Mississippi-based Migerobe, Inc. a fine jewelry company and established a fine jewelry division at its corporate offices in Charlotte. Belk and Co. Fine Jewelers shops now offer a wide assortment of fine jewelry, watches and quality gift items in more than 150 Belk stores.
The first Parisian store in Michigan opened in Laurel Park Place in Livonia in 1993; but a series of mergers and acquisitions found the chain owned and operated by a series of mega chains like Saks, Inc. thereafter. In March of 2006, the chain was sold to Belk, Inc. , and the majority of its stores were converted to the Belk brand. Five of the chain’s 40 stores, however, were sold by Belk, Inc. in October of 2006 to Bon-Ton Stores, Inc. , including the store at Laurel Park Place, The Village of Rochester Hills and the Partridge Creek in Clinton Township.
The Comparison The Comparison of the companies are fairly difference. The main differences are the process in which the companies were combined. The merger between Belk and Macy’s one was a buyout and the other was a merger. The companies went through the same things as far closing down store and managing employees. Belk and Macy’s had to rearrange the company structure. This included layoffs, high turnover and managerial rearrangements. Belk’s buyouts closed down most of the Parisians while Macy’s simple change the names on most of the Rich’s marquee’s.
The main comparison within the companies is the steps taken to combine the two organizations and the images need to make sure the companies could survive in this competitive market. The images within the organizations are a solid reflection each other. Both Macy’s and Belk policy, procedures and protocol are place together by a committee board of that delegates the companies structure while creating room for expansion and productivity. The over all view of the images through out the company are assigned from top to bottom. The CEO and Director image is in place to balance main budgets, productivity and product.
In Belk and Macy’s, Store Manager or the Navigation image provides the structure with a control over organizational needs while making sure the companies culture and standards are implemented on a professional level. The coach or department leads/Supervisors apply the change within the organizational structure and provide assist to the nurturer while focusing branding and sales. The nurturer image or full-time employee work together to create a foundation and oversea product while maintaining sales and other department needs.
The Caretaker image or part-time employees assist with sales goals, customer services, inventory and productivity. Diagnostic Model [pic] [pic] Belk’s VS Macy’s Purpose Belk department store purpose is rooted in timeless values and a rich heritage. They are committed to delivering fashion and today’s top brands to the modern Southern lifestyle. They aim to be gracious, friendly, passionate, and colorful at every turn. Their belief that Southern isn’t just a place: it’s an attitude and state of mind. At Belk, you’ll find today’s styles at prices that are just right for our customers.
Their main objective is to take care of our customers in ways that make them feel special. Belk’s structural decisions are shaped by a team of experienced industry leaders and Belk family members, all who aim to deliver the modern, southern life style to each customer. Macy’s, Inc. , with corporate offices in Cincinnati and New York, is one of the nation’s premier retailers, with fiscal 2011 sales of $26. 4 billion. The Macy’s brand operates about 800 Macy’s department stores and furniture galleries in 45 states, the District of Columbia, Guam and Puerto Rico, as well as macys. com.
The Bloomingdale’s brand includes 37 department stores and home stores in 11 states, bloomingdales. com, seven Bloomingdale’s Outlet stores in five states, and a licensed store in Dubai. Macy’s, Inc. ’s diverse workforce includes approximately 171,000 employees. Prior to June 1, 2007, Macy’s, Inc. was known as Federated Department Stores, Inc. The company’s shares are traded under the symbol “M” on the New York Stock Exchange Structure Belk’s director sets the corporate tone for all organization as a whole. The Board act as the ultimate decision making body of the Company and advises and oversees management.
In fulfilling these roles, each director must exercise his or her business judgment in a manner that he or she reasonably believes to be in the best interests of the company and its shareholders. The company expects directors to be active and engaged in discharging their duties and to keep themselves informed about the business and operations of the company. If a director significantly changes his or her primary employment during his or her tenure, that director shall immediately notify the Chairman or Secretary.
The Nominating and Corporate Governance Committee will consider whether such change significantly affects the qualifications of the director to remain on the Board and will recommend to the Board such actions, if any, that it determines to be appropriate. The Board presently has nine members. Although the Board considers its present size to be an appropriate one, it may consider increasing or reducing its size in accordance with the Company’s Articles of Incorporation under such circumstances as the Board determines to be appropriate. The
Board limits the number of terms for which an individual may serve as director. Directors who have served on the Board for an extended period of time are able to provide valuable insight into the operations and future of the company based on their experience with and understanding of the company’s history, policies and objectives. Although the Board has determined that term limits for its members are not necessary, the Board shall periodically review the appropriateness of director tenure and term limits in connection with its procedures for the selection and nomination of directors.
The Board has four standing committees: Executive, Audit, Compensation and Nominating and Corporate Governance. Committee members will be appointed by the Board on an annual basis. Only Independent Directors may serve on the Audit and Compensation Committees. Non-Independent Directors may serve on the Executive and Nominating and Corporate Governance Committees. The Board may, from time to time, establish or maintain additional committees as it deems appropriate and in the best interests of the company.
While the rotation of committee members should be considered periodically, rotation is not required because the Board believes there are significant benefits attributable to continuity and experience gained in service on a particular committee over time. Macy’s approaches to doing business on a more personal level, it touches all areas of our company. They expect their associates, their advertising and in-store presentations, and the companies with which they do business to mirror the diverse multicultural marketplace.
Macy’s different perspectives are important to the company, and they benefit greatly from the individual strengths of each associate. To serve our diverse customers, we have to be a diverse company. Women represent more than 78 percent of the workforce across Macy’s demographic and more than 69 percent of management-level executives are women. Racial minorities represent more than 51 percent of our associate team and represent more than 32 percent of our management team. The company’s Board of Directors and management are committed to the highest standards of corporate governance.
Macy’s organizational structure is managed by a Board of Directors. This committees regulates and overseas all policies and company structure. The non-management members of the Macy’s Board of Directors, including members of the Audit Committee are managed like Belk’s structure. Rewards Belk incentives are limited however; they offer more advancement opportunities to employees who are interested, with a college degree. Belk offers training programs for those who want to prepare for advancement within organization. Belk’s 40% employee discount and employee incentives for selling company credit cards.
Belk also gives Employee recognition rewards include verbal praise, award ceremonies and public announcements for a job well done. Belk incentives for employee are very few however, they offer 401k plans for employee that can be deducted out there checks. Helpful Mechanism Belk department store were one of the first department stores to place a POS ( point of sales) cash register in there store. The POS allows Belk employee and management to handle and check all sales, inventories, orders, and schedules. Belk department stores are very concerned with the environment within their store region wide.
The company works with other supplier like clique, Ralph Lauren buyers and other vendor to provide the newest merchandise. The company main focus is provide customer with a a product and environment that represents the companies culture Macy’s helpful mechanisms are more detail and structure those Belk department stores. This is due to the international sells and levels of stores revenue. Macy’s adopted a corporate culture that defines its goals, objectives, and products and ultimately dictates its business structure and strategy.
Macy’s strives to provide its customers with products and services that meet and exceed customers’ expectations. Macy’s provides its customers They differentiate themselves from their competitors like Belk with Special Events, such as the Macy’s Thanksgiving Day Parade, Fourth of July Fireworks, flower shows, fashion extravaganzas, celebrity appearances, cooking demonstrations, Santa Clause tree lightings, etc. Macy’s is publicly engrossed in volunteer efforts in local communities throughout the United States. Macy’s puts much effort and resources into environmentally friendly practices.
Macy’s main objective is to lead by example by reflecting the face of America through its workforce. Macy orchestrates this by employing a large percentage of females with their workforce and nearly a half of the workforce is comprised of racial minorities. Macy’s takes pride in its reputation for quality, value, and service, as well its high caliber associates. Macy’s subscribes to high ethical business practices in every facet of its business from its dealing with customers and vendors to the public at large.
Macy’s just like Belk declares itself a law abiding company that will not knowingly tolerate or condone illegal activities from its employees, suppliers, or associates. Macy’s respects the faith it has been given by its investors and makes it a point to act in their best interests at all times. They take the relationships and future with their stockholders very important. Relationships Belk takes pride in making sure that employee and management are in a positive work environment. Employee to employee conflict are usually handle in house, however the conflict can not be handled within the store Belk 1-800 number can be used.
The 1-800 complaints and issues are handled by the Committee board. Technology issues are handled by the POS call center 1-800 number. Macy’s greatest strength lies in the skill, judgment and talent of their employees and customer. Every day a production of massive importance takes place on our selling floors and behind the scenes. Employees on all levels bring the company’s strategic goals to life. The main priority of attracting, retaining and growing the most talented people in the retail industry has been and will continue to be the greatest advantage. Leadership
Belk’s and Macy’s structures are managed by The Nominating and Corporate Governance Committee rounds out the three standing committees of a public company’s board of directors. It plays a critical role in overseeing matters of corporate governance for the board, including formulating and recommending governance principles and policies. As its name implies, this committee is charged with enhancing the quality of nominees to the board and ensuring the integrity of the nominating process. Given the recent focus on board composition and diversity, director elections, and proxy access, the ole of nominating/corporate governance committee is in the spotlight. Communicating Macy’s change Good Morning Macy’s Stakeholder and Audience, We are proud to announce the merger/acquisition of the Macy’s and Riches department stores. We are very excited about this business venture and believe that the marketplace will benefit from this arrangement. Our company’s mission has not changed! Macy’s will always survive to be a retailer that can see opportunities, seize them and establish clear pathways of capitalizing on them.
However, in order for us to take advantage of the growth ahead of us we must move faster than ever in exploring and employing more technology opportunities. In addition we must also concentrate on new resources and elements that would be most important to our core customers. As we unify into one organization scheme that will service our nationwide structure please be advised that we have streamlined our corporate support, finance, operations, information technology and human resource to reinforce Macy’s company structure.
Our policies and procedures have been centralized into one single approach. These new efficiencies in combination with the company’s reconstruction, consumer connection, collaboration and interaction will benefit stakeholders as well as current and future customer as it relates to improving customer care and employee productivity. Our growth and success is rooted in becoming a customer-centric organization that embraces blending stores locally and online sales to create a meaningful customer engagement on the selling floor and the internet.
Our overall goal is to create an improved culture that exceeds our retail expectation, synchronize sales, marketing, customer service and technical support for employees as well as current and new consumer. Macy’s vision will always encompass different perspectives that are important to our company. We realized that each associate’s, support and strengths are what makes this establishment number one in the market place. Macy’s CEO, Analysis from Public Eye: The results of the merger caused Macy’s to close many Rich’s stores.
Macy’s elected to close down one of the most prominent and historical Rich’s establishment located downtown Atlanta. The eastern region consists of some of the highest productivity and employment in the area During the 1990’s after the Macy’s/Rich’s merger, the closing of this very resourceful store left many Atlanta residences out of work. In addition many Atlanta consumers’ had to travel outside of the city to locate a competitor retailer. According to Georgia encyclopedia “Rich’s Department Store symbolized the retail shopping experience in Atlanta during the twentieth century.
In an effort to retain Rich’s customers, Macy’s market strategies consisted of many closeout sales, established consumer incentives to convert accounts, and the communication of the opening of the new and improved Macy’s at Lenox Square Mall in Buckhead as well as a commitment to its customers and a strong sense of civic responsibility. Rich’s is believed to have been an invaluable link to the history of the city of Atlanta and this is something that Macy’s recognized and supported. Riches downtown Atlanta was well known for its high quality and upscale shopping experience, it’s annual Pink Pig expo and Christmas carol event.
After the merger Macy’s preserved the Rich’s tradition of the Lighting of the Great Tree where thousands of people travel from around the world to attend the event during their Thanksgiving festivities’. The tree-lighting ceremony now takes place at the Lenox Square Mall store in Buckhead. Riches consumers adapted to the change of venue and it’s culture gradually. The loss of the Riches Stores affected sales and demographic in the downtown Atlanta area dramatically. Implementation Change While the Macy’s and Belk organization change management is a process. Both ompanies must rearrange the mindsets, and a methodology which organizations leverage to implement change. According to ( TMC, 2002), Within the organizational change there are three stage process to begin effect change. In the first stage of change Macy and Belk must unlearn bad behavior and old processes before new practices can be absorbed. Each organization should be aware of this process before adopting to a new set of practices or technology without understanding how much of a stretch these new ways of doing business are in conflict with current activities.
In the Macy’s organization growth is king. The more net stores Macy’s adds to the portfolio, the more Wall Street and investors applaud and stakeholders are needed to implement the company’s structure on a professional level. This single focus, however, can have negative effects on Macy’s when change is needed. Belk however, is a smaller department store with a niche and solid consumer base and need. This allows Belk expansion goals more refreshing to consumers due to demographics of the stores and products.
In the second stage, change within both organizations introduces new business practices, new technology, or new behaviors. This stage of implementation sets the foundation of effective change. Training and communication are tools needed ensure and reinforce the desired change. For example, First organizations must communicate the link between what is being changed, why it is being changed, and what the differences are between the old and new behaviors. Second, organizations should provide the necessary support infrastructure to provide assistance to the workforce.
Finally, organizations should make the new process or technology as user friendly as possible without sacrificing function. The third stage of deals with making sure Macy’s and Belk manage and hang on to organizational change that is being implemented . It is in this stage that each retailer must link the new process or behavior to a realistic reward system. In many cases this motivates stakeholders, either by reward or punishment, long term sustainability of the change is unlikely to occur and this will decrease turnover, boast productivity and diversity. Conclusion
In Conclusion, Macy’s and Belk department store have taken the lead in effective organizational change by merger acquisitions and company buyout. Due to their success these companies are established a great foundation of how organizational change is needed to expand organizations and meet there companies goal and over all missions. Many companies have failed due rushing through the change without stepping back and understanding what is needed in making this transition effective however, their are many organizations like Belk and Macy use the necessary tools to maintain and expand there organization and consumer need effectively.
Cite this The Organizational change of Belk and Macy’s Department store
The Organizational change of Belk and Macy’s Department store. (2016, Oct 23). Retrieved from https://graduateway.com/the-organizational-change-of-belk-and-macys-department-store/