...Ron Johnson, chief executive officer of J.C. Penney Company, was surprised at the volume of sales events J.C. Penney Company offered over the past year (Mattioli, 2012, as cited in Kinicki & Williams, 2013). The promotions, even though plentiful, were not attracting shoppers and almost 75% of their sales were at 50% or greater discounts (Mattioli, 2012, as cited in Kinicki & Williams, 2013). Ron Johnson planned a risky turnaround by segmenting the store into specialty shops, creating and entertainment area in the center of the high traffic area, and relying on sales using lower everyday prices by lowering prices 40% from current prices (Mattioli, 2012, as cited in Kinicki & Williams, 2013). Ron Johnson also planned to restructure the company's...
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...Strategic Plan STR/581 Strategic Plan James Cash Penney started JCPenney, now known as JCP, 110 years ago. Penney aspired to be a lawyer for his family was not really well-off. His father was a Baptist minister and a farmer. He never had an opportunity to start in law school due to educational expenses that his family cannot afford. He worked in a local dry goods store where he became an assistant manager in Golden Rule Store. He had the chance to acquire one-third of the venture. In five years time, that was 1907, Penney acquired that of his partners (Soylent Communications, 2012). He had a vision to establish an entity that treats people the way he wants to be treated and this is what people commonly hear as “fair and square”. His very first retail business was named Golden Rule as based on his philosophy in life coming from the words of Confucius: “treat others as you want to be treated”. JCPenney was successful in his business for long years. His venture has the capacity to be an industry leader in innovation, pricing, and marketing strategy. Way before internet was invented, JCPenney offered catalogs to showcase their products. And now, they have jcp.com and their facebook page in which they do their promotions, marketing and sales (Toy, 2012). JCPenney had difficult times in keeping a close competition with Macy’s and Dillard’s Department Store especially when there were costs hikes when sales were down. The company adopted measures to deal with its problem. There...
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...analyzed five years’ worth of data provided via the company’s annual reports specifically pertaining to the balance sheet and the income statements. Interpreting a few specific financial ratios, I will provide an in-depth analysis in determining which of the two companies is healthier financially. Introduction Financial ratios are classified according to the information they provide. Some of the frequent used ratios are: liquidity ratios, P/E ratio and profitability ratios. I will provide an in-depth analysis in determining which of the two companies is healthier financially. Liquidity Ratios Target J. C. Penny J. C. Penny is a chain of mid-range department stores based out of Plano, Texas. It was started by James Cash Penney under the initial partnership with Thomas Callahan and Guy Johnson, who owned dry goods stores called Golden Rule (J.C. Penny). Penney took ownership of the store around 1907 when Callahan and Johnson dissolved their partnership. “It currently operates “approximately 1,100 stores and at jcpenney.com, customers will discover a broad assortment of national, private and exclusive brands to fit all shapes, sizes, colors and wallets” (JCPenny.com). Financial Ratios After taking a look at some of the recent financial statements I saw that there was a substantial difference between the two companies. Book Value Per Share Targets current balance sheet ending February 2014, shows that they have total assets of 44, 042 million and total liabilities...
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...SUPPORT@ACTIVITYMODE.COM MGT 500 WK 7 ASSIGNMENT 2 MGT 500 WK 7 Assignment 2 - Management at J.C. Penney Company, Inc. Using the Internet research J. C. Penney Company, Inc. from its inception to current-day operations. Write a five to six (5-6) page paper in which you: 1. Evaluate two (2) key changes in J.C. Penney’s management’s style from the company’s inception to the current day. Indicate whether or not you believe the company is properly managed today. Provide support for your position. 2. Explain senior management’s role in preparing the organization to shift from a catalog-based retailer to an Internet retailer. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support for your rationale. 3. Evaluate management’s decision to use celebrities as key merchandise vendors and spokespersons. Indicate the organizational impact of these decisions. More Details hidden... Activity modeaims to provide quality study notes and tutorials to the students of MGT 500 WK 7 Assignment 2 in order to ace their studies. MGT 500 WK 7 ASSIGNMENT 2 To purchase this visit here: http://www.activitymode.com/product/mgt-500-wk-7-assignment-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 500 WK 7 ASSIGNMENT 2 MGT 500 WK 7 Assignment 2 - Management at J.C. Penney Company, Inc. Using the Internet research J. C. Penney Company, Inc. from its inception to current-day operations. Write a five to six (5-6) page paper in...
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...J C Penney Company, Inc. is an apparel and home-furnishing retailer (JC Penney Company, Inc., 2014). The Company is dedicated to being a preferred retail location for unparalleled attractive, quality, and value at approximately 1,100 stores and at jcp.com (Penney, 2013) . Customers have discovered an inspiring shopping environment that includes a collection of private and exclusive brands along with many new and exciting attractions (Penney, 2013). More than a century ago, James Cash Penney founded the company as an active and responsible community member thus earning a distinctive place amongst American families (Penney, 2013). Mr. Penney opened the first store and practiced many courtesies that are now commonplace (Columbia Business School, 2001). Practices such as money-back returns, uniform pricing, quality merchandise, and pleasant customer service set the store apart from the competition (Columbia Business School, 2001). By investing in the business and remaining committed helped build the company’s legacy. This mode of corporate citizenship continues to contribute to the advancement of social, environmental, and ethical standards (Penney, 2013). In fact, adherence to high ethical standards is an integral part of the organization’s legacy and is vital to shareholders, customers, and suppliers (Penney, 2013). The author will evaluate the changes of J C Penney’s management style, explain the shift from a catalog-based retailer, and discuss the decision to use celebrities...
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...number one priority is to ensure that their company’s image is maintained while making a profit. Security risks are more likely to take place on the internet because of many companies lack of safeguard focus of customer’s information. The Evaluation of JC Penney’s Production and Corporation Information J. C. Penney Company, Inc. is one of America's leading retailers, operates over 1,100 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com. Serving more than half of America’s families each year, the JC Penney brand offers a wide array of private, exclusive and national brands which reflect the Company’s vision to be America’s shopping destination for discovering great styles at compelling prices. Traded as “JCP” on the New York Stock Exchange, the $17.8 billion retailer is transforming its organization to support its Long Range Plan strategies to build a sustainable, profitable enterprise that serves its customers, engages it associates and rewards its shareholders (JC Penney, 20111 JC Penney Corporation’s Internet Marketing Strategies and Competitive Advantages JC Penney used a catalog strategy to better serve customer preferences. The retailer completely migrated from “Big Books”...
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...Conduct Business Research: Part 1 J.C. Penny J.C. Penny Corporation, Inc., is an American retail company that was founded in 1902 by James Cash Penny. The company was called J.C. Penny Stores Company from 1913 to 1924 and then was reincorporated in 1968 to present as J.C. Penny Co. The firm was incorporated in 1913 and the following year the company moved its headquarters to New York City. In 1927 J.C. Penny Co., became a publically traded corporation. J.C. Penny Co. has been a household name for decades, but has seen its share of financial difficulties. Now the company is in the process of changing their culture, as it has discontinued its traditional catalog sales, and created a profitable internet shopping site. The issue that J. C. Penney is facing includes dramatic losses in sales, profits, and stock value. They recently hit a 55 week low with their stock value. They have brought back a former CEO Myron Ullman III to make some changes which does open the door for some new possibilities as well. They are currently making changes by closing 33 stores that have been underperforming to make up some of those losses and project that to make some significant differences. Other issues that come with that are the 2,000 employees that will be laid off as a result. They are battling some tough situations with the economy not in the best place for the retail business while trying to still keep their footprint as a company. Former CEO, Ron Johnson had implemented sales and promotions...
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...Introduction Mr. James Cash Penney Jr. was born on September 16, 1875 to the parents of James Cash Penney and Mary Frances Paxton in Caldwell County, Missouri (Elizabeth, 2010). Mr. Penney got his start in retail business on April 14, 1902 by becoming one-third partners in a New Golden Rule Store. His partners were Thomas M. Callahan and W.Guy Johnson (Elizabeth, 2010).Mr. Penney partners sold their interest in three Wyoming stores in 1907. Four years later, January 17, 1913 the J.C. Penney was incorporated. It started out with 34 stores and 20 shareholders (Elizabeth, 2010). The shareholders were store managers, former partners, Mr. Penney as the president and major shareholder. JC Penney became a public traded listed company on the New York Stock Exchange in 1927 (Encyclopedia Britannica, Inc, 2012).The headquarter is located in Plano, TX, and operates in the United States and Puerto Rico, with more than 1,100 stores and counting. JCPenney merchandises include Women’s, Kid’s, Home, Shoes, Men’s Clothing, and Bed & Bath. My role is an organization consultant. I will provide new idea to JCPenney on how they can become more profitable to consumers again. To improve sales and their image, JC Penny close their catalog business, outlet stores, exit the drug store business, and closed under-performing stores (Booten, 2011). With this reformation, many people were laid off. Problem Statement JCPenny had set the top company priority as making sales for the quarter. With downsizing...
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...Mission and Vision Statement of J.C. Penney Brooke Hall BMGT 495 Strategic Management Professor Swindell November 1, 2013 Table of Contents Introduction 3 Mission Statement 3 Vision Statement 4 JCP’s Strengths 5 JCP’s Challenges 5 Future Goals and Objectives 6 Recommendations 7 References: 8 Introduction Founded in 1902, by James Cash Penney in Kemmerer, Wyoming, JCP has witnessed dramatic changes and overhauls with the arrival of each CEO. Beginning in 2013, JCP again started fresh with the rehiring of retired CEO Myron Ullman who has taken revolutionary steps to improve the company’s performance and pricing structure (Berfield, 2013). Under the leadership of Ullman, JCP is working to rid itself of its former image of inadequate products, at least one price promotion per day, and high employee turnover, and instead focusing on fair pricing for all, interest based marketing, and spotlighting their exclusive brands in comparison to their competitors. Mission Statement According to Daft (2011), having a clear mission and vision for the future as well as a strategy for implementation are key components of accomplishing any goals within an organization. JCP’s mission is simple and straight to the point, “To drive Sales and Profit growth by ensuring our Customer and Associates always know they’re first in our Stores by what We do!” (JCPJline, 2011). As noted in our text, a mission statement serves as both a description of a company’s purpose, while simultaneously...
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...Successful Change 8 References 11 Introduction JC Penney was a thriving retailer business that played on consumer’s emotions and made a consumer feel proud of themselves. JC Penney as a retailer created a buzz about themselves with their pricing strategy and coupons that they offered to their consumers. Consumers often discuss the sales and the great price of a sale of items amongst themselves. This was definitely a strength for this retailer. JC Penney was also a great place to shop for big and tall in a concrete building and store, not a catalog that was another appeal to their consumers. J.C. Penney was using a decentralized system of purchasing merchandise and inventory while other companies began to use centralize systems. To centralize the buying activities and revamp the stores, funds were needed. Funds were raised through the sale of JCP’s Direct Marketing Services, which sold insurance and travel and auto club programs. It led to a significant improvement of cash flow. The company then began to close down 120 of outlet stores that were under performing and sold its interest Eckerd drugstore chain to improve an influx of cash flow. J. C. Penney lost its edge over its competitor and started to lose money in the 1990’s and their investors were starting to get weary and the shares were plummeting from this event. J. C. Penney only hired from the inside until the end of the 1990’s. J. C. Penney has undergone major changes at different time periods and the...
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...Marketing 306 | Library Assignment: J.C. Penney | | 9/21/2013 | JCP? For many years J.C. Penney was a retail giant appealing to customers through their coupons and steep discounts. According to an article in PR News (2013) this was their position in the market and their overall brand message. They competed with retail powerhouses such as Walmart, Target, Macys, and Kohl’s, to name a few. However, in 2010 JC Penney board members fired then CEO Myron Ullman and hired Ron Johnson who at the time was the head of retail operations at Apple. (Buffett, 2013) The decision seemed to be a win for the retailer, but that would soon prove false. J.C. Penney saw loss of cells before the Recession, and the poor economic times didn’t help this failing retailer. It seemed to be a no brainer to hire Ron Johnson especially at a time when Apple was a powerhouse. Once Johnson came on board he tried to revamp the brand to by giving it a snappier name. They made Ellen DeGeneres the face of the brand, and because Johnson believed that the sales and deep discounts were old, they announce the new JCP would have everyday “low prices.” JCP also partnered with Martha Stewart for a retail boutique within the store. In the end, J.C. Penney’s attempt to portray a younger, hip image failed tremendously. (2012) Johnson would only last two years before being dismissed leaving behind a 50% loss in stock value, 1 billion in the red and a lawsuit stemming from the $200 million dollar contract...
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...While some of the department stores covered by this Survey beat our same-store sales estimates for the first half of 2011, some lagged behind. (For details, see the “Same-Store Sales of Selected Department Stores and Discounters” table on the previous page.) Most of the moderate-price department stores such as J.C. Penney and Kohl’s fell behind expectations. On the other hand, discounters such as Dollar Tree Stores and Dollar General reported relatively strong gains in the first and second quarters of 2011. The better department stores such as Saks and Nordstrom have been able to attract upper-income households with limited sales promotions, by offering convenience and a superior shopping experience. These stores are sticking to their core strategies: they are actively striving to come up with innovative marketing programs and customer services, and selling exclusive designer products. (Adams Media Research, 2012) [pic] J.C. Penney and Kohl’s both posted modest sales gains in the first and second quarters. While middle-income consumers are showing reasonable caution in their spending behavior, they’re willing to go slightly over budget when the merchandise is right. Overall, discounters exceeded our same-store sales expectations for the first half of 2011, reflecting stable consumer demand for everyday necessities. Among the big box discounters, we believe Target benefited from an expanded assortment of food and allied categories. We also think the company...
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...J.C. Penny Corporation, Inc. Company Analysis and Prognosis Tasha Liberman CASE STUDY BACKGROUNDER #2 MGMT 498 nd July 22 , 2013 Table of Contents Introduction .............................................................................................................................. 1 Company & Industry Background...................................................................................... 1 Company Strategies ............................................................................................................ 1-2 Current Financial Performance.......................................................................................... 2 Financial Performance Compare to Sub-Sector ........................................................ 2-3 Primary Macro-Level Forces ............................................................................................... 3 Micro-Level Forces.................................................................................................................. 4 Primary Strengths and Weaknesses ................................................................................. 4 Risk and Rewards Potential................................................................................
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...J.C. Penney’s Real Problem: The Shrinking Middle Class * Rita McGrath April 12, 2013 Ron Johnson’s office seat has barely cooled off following his departure as business observers everywhere dissect what went so dreadfully wrong at J.C. Penney. The former Apple executive was too Silicon Valley for the Plano, Texas, retailer. He was arrogant. He didn’t test his ideas, maintaining the Apple mantra that customers don’t know what they want until you show it to them. He approved marketing campaigns that told loyal Penney’s shoppers that “you deserve to look better,” basically telling them that they looked less than glamorous wearing the brand they had trusted and been comfortable with for years. He hoarded information so that individual store merchandisers didn’t know how various lines were performing. He mocked J.C. Penney’s ways of doing things. He abandoned the discounting customers had come to expect from retailers. And he, and most of the team he recruited, were commuter leaders, jetting back to California after cramming in marathon work sessions at headquarters. These factors certainly couldn’t have helped. I think, however, there’s one major reason behind J.C. Penney’s sudden swoon that not enough commentators are picking up on. There’s one big reason JCP would never be “Bloomingdale’s for the mass market,” as Johnson wanted it to be, and that’s because the mass market is gone. Because the middle class is gone, or at least rapidly going. This reflects a troubling development...
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...Financial Analysis FIN 534 Financial Management February 2015 In the history of retail department stores in the United States, very few companies have had the success and notoriety that J.C. Penney Company has made throughout our lives. With the exception of Sears Roebuck and Company and Macy’s, J.C. Penney is one of the more well-known companies of all time in the retail business. J.C Penney, formerly known as Penneys, is a chain of department stores that are based in Plano, Texas. The first store opened in 1902 in Kemmerer, Wyoming by a local entrepreneur, James Cash Penney. In 1912, the company had expanded to 34 stores mainly located in the Rocky Mountain States. The original name of the stores was The Golden Rule Store until the company was incorporated under the name of J.C. Penney Company in 1913. In 1914, the company moved its headquarters to New York City to help with the simplification of financing, transportation and the simplifying of buying goods and merchandise (J.C.Penney). One important milestone for the company was the opening of their 500th store in 1924 in Hamilton, Missouri, James Cash Penney’s hometown. The year 1940 was also an important moment in retail history when Sam Walton began working for J.C. Penney in Des Moines, Iowa. Mr. Walton later went on to become one of the biggest entrepreneur’s in modern retail history with his Wal-Mart franchise. The company now has over 1100 department stores throughout the United States and also Puerto Rico (J...
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