1. What changes has Macys introduced in terms of the four elements of organizational structure?
2. What contingencies suggest that Macy’s new organizational structure is appropriate for its environment?
3. What problems do you think Macy’s might experience with the new organizational structure? What factors suggest that the new organizational structure may face problems?

Macy’s, Inc., wants to get more personal with its customers. The world’s largest department store is responding to declining sales by introducing a new organizational structure in which local districts and stores have more autonomy to personalize merchandise and marketing for customers in that area. This change is part of its “My Macy’s” strategy developed a year earlier, which is aimed at getting customers to feel a personal connection to the Macy’s outlets in their area by ensuring that those stores provide merchandise assortments, size ranges, marketing programs, and shopping experiences that are more closely aligned to local needs.“Improving sales and earnings performance requires innovation in engaging our customer more effectively in every store, as well as reducing total costs,” explains Macy’s CEO Terry J. Lundgren. “We believe the right answer is to reallocate our resources to place more emphasis and talent at the local market level to differentiate Macy’s stores, serve customers, and drive business. In essence, we plan to drive sales growth by improving our knowledge at the local level and then acting quickly on that knowledge.