Project Report on Nordstrom, Inc.

Name: Mehwish Naeem

Registration No: 1358130
Course Name: Strategic Human Resource Management

Dated: October 09, 2016

 Table of Contents
1. Introduction....................................................................................................... 3
2. Company Profile: Nordstrom, Inc...................................................................4
1. Company Introduction....................................................................................... 4
2. Company Vision................................................................................................ 4
3. Company Mission.............................................................................................. 4
4. Company Core Values....................................................................................... 4
3. External Audit................................................................................................... 6
1. Nordstrom SWOT Analysis: Focus on Opportunities and Threats......................6
2. Nordstrom PESTEL Analysis...............................................................................6
3. Nordstrom Porters Five Forces Analysis............................................................7
4. External Factors Evaluation Matrix....................................................................8
4. Internal Audit.................................................................................................... 9
1. Nordstrom SWOT Analysis: Focus on Strengths and Weaknesses.....................9
5. References....................................................................................................... 10

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1.Introduction
We would like to submit this project report on Nordstrom, Inc. to our Strategic
Human Resource Management professor, Umer Iftikhar.

Within this project report we have stated details about the company including
company profile, external audit, internal audit, alternative strategies and
recommended strategy.

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2.Company Profile: Nordstrom, Inc.
1. Company Introduction

Nordstrom, Inc. is a retail seller that started its origin in 1901 in Seattle through the
vision of its founder John W. Nordstrom. Presently it has 340 stores in 40 US states
and Canada. It also serves 96 countries online through Nordstrom.com,
nordstromrack.com and their HauteLook site. It offers clothing, shoe, accessories
and much more to its customers (Company History, 2016).

2. Company Vision

"At Nordstrom, our goal is to provide outstanding service every day, one customer
at a time."(Nordstrom Mission Statement, 2016)

Proposed Company Vision: Be the global fashion retailer and provide

outstanding service every day, one customer at a time.

3. Company Mission

"At Nordstrom, we value the richness that diversity brings to our workforce - it
makes our Company better and the communities we serve stronger."(Company
Information and Profile of Nordstrom, 2016)

In our store or online, wherever new opportunities arise- Nordstrom works

relentlessly to give customers the most compelling shopping experience possible.
The one constant? John W. Nordstrom's founding philosophy: offer the customer the
best possible service, selection, quality and value.(Company History, 2016)

Proposed Company Mission with below nine components highlighted:

Nordstroms mission is to be the leading fashion retailer (2) in the world

(3), giving customers the most compelling shopping experience possible
(1) (7) in our store or online (4). We provide customers with the best
possible service, selection, quality and value (6). At Nordstrom our
employees are an extension of us (9) and we value the richness that
diversity brings to our workforce - it makes our Company better (5) and
the communities we serve stronger (8)."

4. Company Core Values

1. "We're family. We continue to cherish our shared experiences, celebrate our

achievements and appreciate one another just like family.
2. Use good judgment. We trust each others integrity and ability.
3. Be empowered. We want you to take the initiative, and we'll support your
efforts to deliver exceptional service.

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 4. Setting goals matters. At Nordstrom, you can determine your own success
and make a real difference by accomplishing the goals you set.
5. It's your business. Our employees have a personal, financial and
professional stake in the success of our company.
6. Healthy competition is good. We love to win.
7. Be honest. We value open, honest and respectful communication.
8. Be recognized. We value people who drive results, and we regularly
recognize outstanding performance whether you're serving customers or
supporting those who do.
9. Be a good neighbor. Our company and our employees support hundreds of
community organizations through contributions, outreach programs, special
events and volunteering their time.
10.Be kind. We work hard to offer great service to each and every customer
and we believe great service begins with showing courtesy to everyone,
customers and coworkers alike.
11.Have fun. If you're passionate about fashion, this is the place for you.
12.Our door is always open. It's important to us that every person who works
here feels valued, welcome and cared for."(Company Mission Statement
Examples, 2014)

Proposed Core Values: As their tone of voice is very humanistic thus

proposed core values are in the same tone of voice.

1. Be Virtuous: Be honest with co-workers and customers. Be ethical and

uphold Nordstroms integrity and values.
2. Have compassion: Be helpful and kind to your co-workers and customers.
Treat customers as part of your extended family. Go the extra mile.
3. Be Empowered: Have a sense of ownership and citizenship. Treat
Nordstroms success and failures as your own.
4. Be Visionaries: Take initiatives. Think out of the box. Experiment and have
fun.
5. Maintain Quality: Ensure quality of service and provide value to your
customers.
6. Only the best: Seek excellence in every aspect of work. Set goals, make
plans and execute!

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3.External Audit
1. Nordstrom SWOT Analysis: Focus on Opportunities and Threats

Opportunities:

1. Increase sales by marketing to other classes in minority groups in US and not

only target the upper/middle class (STR 222 Situation Analysis, 2015).
2. Adding new line of products (STR 222 Situation Analysis, 2015)
3. Looking into emerging products (STR 222 Situation Analysis, 2015)
4. Pursue new markets in US (STR 222 Situation Analysis, 2015)
5. Pursue global markets (STR 222 Situation Analysis, 2015)
6. Growing economy of US (STR 222 Situation Analysis, 2015)

Threats:

1. Products price too high (STR 222 Situation Analysis, 2015)

2. Intense competition in US (STR 222 Situation Analysis, 2015)
3. Outlet malls and stores in US may sell offbrand items (STR 222 Situation
Analysis, 2015)
4. Increasing interest rates in the US (STR 222 Situation Analysis, 2015)
5. Economic Recession (Management at Nordstrom, 2015)
6. Predicting Fashion Trends (Management at Nordstrom, 2015)
2. Nordstrom PESTEL Analysis

Political: International political and economic relationships influence import tariffs

and international trade policy. Unstable or adverse political relationships can
prevent the company from expanding into those markets (Cuba Example). Trade
Agreement such as NAFTA (Strategy for Nordstrom, 2014).

Economic: For Nordstrom sales decrease when the economy takes a downfall. Over
the past years, economic environment in the shopping has suffered due to bad
economy thus affecting sales volume of Nordstrom. It is therefore in the best
interest of the company to keep its customers incentives and lower the prices of its
products to ensure they remain loyal even during bad economic times (PESTEL
Analysis of Nordstrom, 2016).

Social: The social aspect of Nordstrom is very important to its success. The
company explores its niche markets to focus more on clients that are willing to
purchase luxury products. As a matter of fact, the trend has been that cultural and
luxury retail stores are tailored for clients that are price insensitive and Nordstrom
rack for clients who are price sensitive (PESTEL Analysis of Nordstrom, 2016).

Technological: The aspect of technology is additionally an important factor for

Nordstrom. This is attributed to the fact that it uses a website that is highly
functional and clients can purchase products online. The company updates its
website regularly and it keeps changing the design of its products. Therefore,

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technology will for a long time if not forever play a significant role in the success of
the company (it is very crucial for its database and online purchases). It increases
its brand visibility and sales volume (PESTEL Analysis of Nordstrom, 2016).

Ecological: Due to changing economy, external or ecological factors of the

environment affect the way in which clients react to demands they are facing. There
are also EPA regulations affecting client purchases (PESTEL Analysis of Nordstrom,
2016).

Legal: Nordstrom also has to maintain a sense of legality in its operations. It has to
adhere to US labor and manufacturing regulations when dealing with its
stakeholders and customers. This affects its profitability because it incurs costs as
its tries to avoid issues that can affect its operations and reputation in general
(PESTEL Analysis of Nordstrom, 2016).

3. Nordstrom Porters Five Forces Analysis

Competitive Rivalry: The rivalry among existing competitors is high. Nordstrom is

competing with Mid-tier department stores (Macys, Dillards), Luxury retail industry
(Saks 5th Avenue) and Discount retail industry (Kohls) (Nordstrom Wikidot, 2016).

Threat of New Entrants: Threats of new entrants is low. Many specialty retail
stores have working relationships with their suppliers. Nordstrom also carries
exclusive products made by Facconable. It would be hard for new entrants to gain
licensing for exclusive products (Nordstrom 5 Forces Analysis, 2012).

Threat of Substitutes: Threat of substitute products is medium. Outlet malls and

stores that sell "off-brand" items are threats. Buying directly from a designer,
instead of Nordstrom, is also a threat of substitute products (Nordstrom 5 Forces
Analysis, 2012).

Bargaining Powers of Buyers: Power of Buyers is moderate because of brand

image, and buyers are willing to pay what the price is set at for high-end products.
As a convenience to its customer and to stay in competition, Nordstrom price
matches with other retailers (Nordstrom 5 Forces Analysis, 2012).

Bargaining Power of Suppliers: Power of Suppliers is moderate because there

are limited specialty retail stores. Department stores also need to carry certain
brands. This gives the suppliers bargaining power for their products to sell at a
reasonable price (Nordstrom 5 Forces Analysis, 2012).

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4. External Factors Evaluation Matrix

S.
Weigh Ratin Weighte
N Critical Key Factors
t g d Score
o.
Intense competition in US (STR 222 Situation
1. 0.02 3 0.06
Analysis, 2015)
2. Products price too high (STR 222 Situation
0.015 2 0.03
Analysis, 2015)
3. Ability to predicting changing fashion trends in the
0.01 3 0.03
US (Management at Nordstrom, 2015)
4. Addition of new products (STR 222 Situation
0.01 2 0.02
Analysis, 2015)
5. Increase sales by marketing to other classes in
minority groups in US and not only target the
0.01 1 0.01
upper/middle class (STR 222 Situation Analysis,
2015).
6. Pursue new markets in US (STR 222 Situation
0.01 2 0.02
Analysis, 2015)
7. Pursue global markets (STR 222 Situation
0.01 3 0.03
Analysis, 2015)
8. Economic Recession (Management at Nordstrom,
0.005 2 0.01
2015)
9. Increasing interest rates in the US (STR 222
0.005 2 0.01
Situation Analysis, 2015)
Growing economy of US (STR 222 Situation
10. 0.005 2 0.01
Analysis, 2015)
Total weighted score of 0.23 indicates that the Nordstrom present
0.23
strategies lacks the ability to respond to critical factors mentioned above

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4.Internal Audit
1. Nordstrom SWOT Analysis: Focus on Strengths and Weaknesses

(STR 222 Situation Analysis, 2015)

https://prezi.com/xkyuxaozqvk8/management-at-nordstrom/

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5.References
Company History. (2016). Retrieved from
http://shop.nordstrom.com/c/company-history?origin=leftnav
Company Information and Profile of Nordstrom. (2016). Retrieved from
http://www.makingafortune.biz/list-of-companies-n/nordstrom.htm
Company Mission Statement Examples. (2014, July 10). Texas Education
Agency. Retrieved from http://cte.sfasu.edu/wp-
content/uploads/2014/05/Company-Mission-Statement-Examples.pdf
Management at Nordstrom. (2015, December). Retrieved from
https://prezi.com/xkyuxaozqvk8/management-at-nordstrom/
Nordstrom 5 Forces Analysis. (2012, April 12). Retrieved from
http://team2misnordstrom.blogspot.com/2012/03/five-forces-model.html
Nordstrom Mission Statement. (2016, October 7). Retrieved from
http://nordstrom3.blogspot.com/
Nordstrom Wikidot. (2016, October 7). Retrieved from
http://nordstrom.wikidot.com/
PESTEL Analysis of Nordstrom. (2016, January 4). Retrieved from
http://www.globalcompose.com/blog/sample-essay-on-pestel-analysis-of-
nordstrom/
STR 222 Situation Analysis. (2015, May 2). Retrieved from
http://blogs.butler.edu/summerfusion/files/2015/05/STR222SituationAnalysis.p
df
Strategy for Nordstrom. (2014, April). Retrieved from
https://prezi.com/b1j6cpusb62s/a-strategy-for-nordstrom/

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