Product details

Nordstrom, one of the largest specialty retailers in the US was started in Seattle (as a shoe store in 1901) by John Nordstrom and his friend Carl Wallin. When its shoe business started to decline, the second generation Nordstroms diversified into apparels. Under the third generation Nordstroms, the company went public. The third generation of Nordstroms handed over the reins of the company to John Whitacre under whose leadership, the company witnessed a decline in profitability due to its decentralised buying structure and overall customer dissatisfaction. The fourth generation Nordstroms took over the company after Whitacre's resignation. They restructured the company, brought in new technologies, expanded into new markets and transformed the company into one of the largest family-run businesses in the world. The pedagogical objectives are: (1) to understand the traditional business model of Nordstrom through three generations; (2) to analyse the reasons behind the financial downturn of Nordstrom under John Whitacre; (3) to discuss the expansion strategies adopted by the fourth generation Nordstroms; and (4) to discuss the dynamics of a typical family-run business. A structured assignment '307-001-4' is available to accompany this case.