Article Summary Due to Changing Shopping Habits and Increased Online Sales, Macy's

question 206

Essay

Article Summary
Due to changing shopping habits and increased online sales, Macy's announced it would be closing 35 to 40 underperforming stores in early 2016. The stores represent about 5 percent of its total locations, and the company expects to lose about $300 million in sales, or 1 percent of total sales, from the closures. Over the past five years, Macy's has closed 52 stores and opened 12 new locations, leaving the company 770 stores in 45 states.
Source: Ed Brackett and Alexander Coolidge, "Macy's to close up to 40 stores," USA Today, September 9, 2015.
-Refer to the Article Summary above.Use a graph to illustrate average total cost curves for Macy's before and after closing the 35 to 40 stores.Assume that after closing the stores, Macy's will be producing at minimum average total cost.

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Definitions:

Job Design

The process of assigning tasks to a job, including the interdependence of those tasks with other jobs.

Business Strategy Execution

The implementation of plans and initiatives undertaken by a business to achieve its long-term goals and maintain competitive advantage.

Organizational Structure

The system of hierarchy and arrangement of work roles, responsibilities, and communications within an organization.

Analyzer Business Strategy

A strategic approach where a company maintains its current market presence while simultaneously seeking growth through innovation and adapting to market changes.