The premise of the Article

The behavior of the department store Macy closing multiple stores soon and their justification for it is the premise of this article. In response to digitisation, the American department store chain Macy’s has implemented a radical conversion initiative. 2017 will see the closure of 100 shops. Consumer behavior changes necessitated fresh thinking and difficult choices (Jacksonville, 2017). Reevaluating the significance of internal transactions is necessary. According to the management’s ambitions, Macy’s will become an Omni channel provider. For instance, the 728 locations that are currently open will all be shut down at the start of 2019. The affected retailers are currently generating annual sales of $1 billion. This revenue is to be absorbed by other sites and the online shop. In the short term, their sales will decline, but in the long term, the company will be prosecuting this step. We will continue to invest heavily in our highly profitable locations and grow aggressively in the digital and mobile markets, said Jeff Gennette. Already in the past years, Macy’s shops had closed. In the past six years from 2010 to 2016, 90 sites have been abandoned. Last year, Macy’s achieved annual sales of approximately $27 billion. Operating income was $2 billion.

How does the author describe organizational behavior?

The organizational behavior for the retail chain per the author will be taking the appropriate steps like putting the focus on main strategic concerns, improving organizational alertness and lessen expenses. Macy declared its new plan to concentrate the financial power and talent it possesses on the location that it performs best. The store department strategies invest in stores are strong financial and perfume best, Marcy’s will highlight new vendors, increase the quality and of the staff, it possesses and invests in the new technology Jacksonville. (2017).

Why is organizational behavior important?

The behavior of an Organizational scrutinizes on the one hand how people behave as individuals, in groups, and in entire organizations because of their discernment, thought and felt, and on the other hand, how people are predisposed by the process, structures, and activities of/in organizations in their behavior (Guillot, 2017). The focus of interest is the substantial behaviors exhibit by human behavior in organizations, which is always embedded in different inner and non-organizational contexts (Matt, 2016).

Which business concepts covered in this course were you able to identify?

Management for Macy realized that management must change their view on retail and be putting more focus into e-commerce (Huong, 2017). I would also say that the author described a brief overview why organization culture and innovation played a part in Macy’s CEO’s decision to close several stores.

`References

Guillot, C. (2017). Issue: Omnichannel Retail Omnichannel Retail.

Huong, H. (2017). The Maker: An Innovative Artisan Apparel Brand and Retail Partnership.

Jacksonville. (2017). Macy’s to Streamline Store Portfolio, Intensify Cost Efficiency Efforts and Execute Real Estate Strategy. Professional Services Close - Up.

Matt Egan. (2016). Macy’s is closing another 100 stores. Retrieved January 17, 2017, from http://money.cnn.com/2016/08/11/investing/macys-closes-100-stores/