Hudson’s Bay Company - Restructuring in a Retail Decline

Hudson’s Bay Company
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As the CEO of the Hudson’s Bay Company, there are several things we need to restructure as a company. This is due to a retail decline that has been prevailing in the market. The company has been making losses over the past few years following the high cost of production, failures to monetize its real estate assets, and the use of outdated technology in production. Using analytical tools would be instrumental in understanding the strengths and weaknesses of the organization and would help in comprehending the measures that the firm is expected to undertake to restructure its operations in Canada retail; this will help in facilitating the success and productivity of the firm.
The problem: In 2017, the Hudson’s Bay Company was in a serious standstill after it faced significant pressures from the Land & Buildings Investment Management (LBIM) after making a huge loss of approximately CA$201 million. Besides, the company failed to monetize its real estate assets and the firm was accused for withholding essential information which was aimed at making the company private; it was suggested that the firm was waiting for an industry turnaround which was unlikely to occur. It is therefore necessary to examine ways though which start regaining profitability in the Canadian retail.
Analysis
stakeholder theory
Like the shareholder approach, the stakeholder strategy aims at maximizing the economic benefit of the Hudson’s Bay Company. Ideally, the stakeholders include the various groups of individuals who are affected by the company’s activities. The benefits of using the stakeholder theory in the firm will be critical in comprehending the negative and positive impacts that the stakeholders have on the business. For example, customers are significant stakeholders in any company, and every organization is expected to ensure that its customers are happy. This is possible through establishing dedicated customer-services teams that evaluate whether the company is effectively meeting the needs of its customers. Hudson’s Bay Company has happy customers because it provides quality products, which has made it possible for the consumers to transfer money from their pockets into the business (Pinegar, 2019). However, it is essential to note that although the customer does not have to be right, they should be adequately cared for, and effective customer service philosophy should be implemented to help the customers understand what they mean to the business. Having happy and satisfied customers will be critical in ensuring that they do not go to the competitors.
Besides, employees are also critical stakeholders to the company, and they facilitate the company’s success. Most often, if the employees are unhappy, then the business is likely to fail. Having dissatisfied employees would affect the company in different ways. For example, the workers are likely not to advocate the firm to the customers, and the quality of work will also reduce due to lack of motivation. Besides, low morale among the workers would result in decreased production. Hudson’s Bay Company is committed to treating its employees right, and the workers act as ambassadors to the compa...