Macy's PESTEL Analysis

Political
The political environment where Macy's operates in affects the activities of Macy's
Company in the US and beyond. Macy's political action committee (PAC) allows the
company to take part in different political contributions (Macy's Inc., 2016). For
example, in 2010, the company contributed $50,000 to political parties both at the
national and local level.

Economic
An Economic environment where Macy's operates determines its success in the
industry. The existing economic conditions are determinants to any successful
business enterprise. According to Macy's Inc. (2016), the economic factor as an
external environment element has an influence in the operations of the company
within the American market. Just like other retailers, the Macy's feels the impact of
economic turbulence, thus, affecting its economic goals. The economic environment
of this company further reveals there is a high rate of unemployment. Part of this is
brought about by seasonal recruitment by the company (Lee, 2014). Otherwise,
Macy's is in the right direction towards achieving a better performance in the
domestic market. The company generated about $25 billion as revenue in 2010 with
an operating income of over $1 billion, a figure that translates into a 5% increase
from 2009.

Socio-Cultural
Giving back to the society is part of the Macy's Company business strategy. In
partnership with other charity organisations, the company has adopted corporate
social responsibility of making yearly donations that are channelled directly to the
surrounding community to better their lives. Macy's Foundation, for example, has
been the beneficiary of this program due to its community-based initiatives of
improving the lives of the locals (Macy's Inc., 2016). Besides, the company remains
cognisant of the changing fashions to remain in the market.

Technological
Technological developments play a considerable role in determining the success of
the business. In the recent past, the company has adopted the use of IT systems to
enhance the flow of information from within and without the organisation (Yuksel,
2012). It also uses technology to expand and improve its online business platform to
strengthen its e-commerce platform. For example, the Omnichannel strategy of the
business is driven by technology (Lee, 2014). The buyers have managed to have a
new as well as a better buying experience via the internet. Besides, Macy's has used
mobile technology to its advantage, which has made its e-commerce sites to become
highly effective and operational.

Environmental
Caring for the environment is considered to be one way that an organisation can
utilise to achieve sustainability. From the company's social responsibility report, the
company stays committed to giving the prospects a superior experience whenever
they shop from any of the company's stores (Lee, 2014). Macy's looks up to
conforming to good, healthy, and safe business practices that help in safeguarding
or protecting the business and its surrounding environment. In other words, it
concentrates much on achieving customer satisfaction without necessarily causing
harm to the environment (Yuksel, 2012). For the purposes of achieving environmental
friendliness, the company reduced the use of paper while at the same time
embracing recycling of waste products to minimise environmental pollution, reduce
wastages and enhance efficiency (Macy's Inc., 2016). With its plan, Macy's is aiming at
raising its uptake of renewable energy to 5% from 3% as well as encouraging the use
of sustainable raw materials to perform its business operatives.

Legal
The legal environment has an impact on the operations of a company. The legal
requirements or regulations are issued by the state, federal and local authorities.
Specifically, the regulations provide guidance on how the business should be
operated or governed (Yuksel, 2012). For example, Macy's had been sued for selling
unsafe and hazardous clothing (Macy's Inc., 2016). Worth to note is that all these
proceedings have affected the company negatively.