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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 answering the questions what is our business?, why do we exist?, and who do we serve? (David, 2012). While JCP misses the mark with answering the question what is our business, it is well emphasized that the most important components of their existence is centered around customer and associate satisfaction, sales, and profits by the capitalization of these key terms. As previously mentioned, JCP’s mission statement is not without flaws. A focal area that was missing from the mission statement dealt with addressing and identifying their target market. Because of this shortcoming, JCP added a preceding statement to their mission which reads “We want to take care of the Families and the Fashion Forward that depend on great value and great service” (Ostlund, 2012). By adding this additional declaration to their mission, JCP was able to create a re-energized motto for all.
Vision Statement An effective vision serves as a roadmap between what is happening today, and what an organization hopes to accomplish tomorrow and beyond. JCP’s vision which reads; “JCPenney is executing a strategic Long Range Plan that consists of four integrated strategies aimed at building a deeper, more enduring relationship with our customers, increasing the engagement and retention of our Associates, and delivering industry leading financial performance to our shareholders” serves as a bridge between their current state and their hopes for future growth and opportunities (J.C. Penney, 2013).
With research and analysis, strategists have found that good vision statements are comprised of certain components which translate into inspiration, energy, and a destination for the organization. JCP’s vision fits the criteria for a good vision statement as it is written from a present tense while also describing their future goals and relationships with customers and shareholders while also invoking passion and emotion from its readers. Another plus to their vision is it is not filled with large amounts of business jargon that consumers may find hard to follow making it seem impersonal. As with their mission statement, JCP again misses the mark in making a clearing differentiation between themselves and their competitors. If one were to remove the mention of JCPenney at the beginning of the vision, there would not be a clear distinction between their specific organization or any others with shareholders and consumers.
Strengths and Opportunities: Distribution for JCP focuses on the utilization of two distribution channels; exclusive in-house distribution, and selective distribution. Exclusive distribution refers to all private labels, and JCP only labels, whereas national brands are distributed through their selective distribution channels. Due to high distribution practices and a strategy that combines both systems to create a strong customer oriented turnover, JCP has become a leader in the industry for distributing products to more than 1,100 stores nationwide. Another strong organizational resource that JCP possesses is their customer relationships. The creation of the JCP rewards credit card and rewards program in 2011 gave consumers an opportunity to receive coupons towards future merchandise for using either their J.C. Penney credit card or another registered card either online or in store (J.C. Penney, 2013).
Without question, one of the best resources that JCP has tapped recently is the rehiring of former CEO Myron Ullman to resume the top leadership role. Ullman has brought with him a better team environment, more assertive long range plans to pitch for the growth of the company, and a more streamlined distribution and store image.
Weaknesses and Threats:
There are some internal challenges currently threatening the culture and structure of JCP. In reviewing the negative aspects of the company’s current and anticipated cultural issues, employee morale was found to be extremely low and voluntary turnover high. According to researchers, an employee who presently makes $50,000 annually will cost the organization $75,000 to replace them which does not include the added cost of fringe benefits for employees who were with the firm longer (Bliss, 2013). JCP is not exempt from these rising cost and often times have to deal with the added costs of an employee leaving shortly after training. A final challenge for the company is the difficulties they have faced as it pertains to the handling of multiple CEO changes over the last decade. Although they have been able to weather the storm of the changing economy, management has resorted to short-term planning only, as they were uncertain or unprepared for future change within the organization.
Future Goals and Objectives The future of JCP has changed dramatically over the years, as well as in recent months with the reappointment of Myron Ullman as CEO. Revised goals and objectives reflect the desire to change not only the promotional structure of the organization, but the overall image, store experience, and target markets. Several specific objectives have been set up to achieve these goals. * Anticipating, creating, and hiring a team of loyal long-term employees. By raising the associate retention score to approximately 62% over the upcoming year Ullman believes the needs of the company can be more beneficial as well as the enhancement of the overall customer experience.

* In conjunction with spokeswoman Ellen DeGeneres, JCP plans to refocus on their target markets;young, trend-forward families. In particular, they hope to increase their name brand products by a minimum of 70%, while also seeing consistent growth of power brands such as Liz Claiborne, Sephora, and A.N.A by a minimum of 15% over the upcoming fiscal year.

* Raising accessibility and ease of use as it pertains to browsing their stores for merchandise or maneuvering their website by 60% is a growing objective, as more and more consumers are asking for a better virtual experience since that is where the majority of their items are being purchased now.

* Lastly, JCP hopes to increase online referrals in store from 50% to 55% over the course of the upcoming fiscal year, as well as meet or exceed EBIT (earnings before interest and taxes) from the previous fiscal years (J.C. Penney, 2012).
Recommendations
In order to achieve the aforementioned goals and objectives, JCP’s new organization must be designed to alleviate the main concerns of their consumers. A study conducted by CustomerFirst found that retailers which had too many promotions gave the impression that their merchandise was not of good quality, the products were not worth the price, or that the store employees could not meet the needs of the consumer (Cotte et al., 2010). During restructuring, JCP must utilize their strongest asset, Myron Ullman. Under his leadership, all employees regardless of position must have a clear understanding of the vision and strategies needed to reach the organizations full potential. They need to work together with a ‘shared purpose’ and above all, it needs to be effective. There is no real need to update the mission and vision statements as the addendum to the original mission satisfies the characteristics outlined by researchers. Moving forward, creating additional partnerships with high-end brands is not only popular, but would continue to give JCP the leverage they need to elevate their image, while remaining a great value. Utilizing the strengths of Ullman as an Executive to rally his team members behind a common goal, as well as the floor experience of customer service employees will allow JCP to reach its goals and objectives of increasing their presence in consumers lives, while remaining family and budget conscience.
References:
Berfield, S. (2013). J.C. Penney Rehires Myron Ullman to Clean Up Ron Johnson's Mess.
Retrieved on October 23, 2013 from http://www.businessweek.com/articles/2013-04-11/j-dot-c-dot-penney-rehires-myron-ullman-to-clean-up-ron-johnsons-mess

Bliss, W. (2013). Cost of Employee Turnover. Retrieved on October 22, 2013 from http://www.isquare.com/turnover.cfm Cotte, J, et al. (2010). Advertisers’ Theories of Consumers: Why Use Negative Emotions to Sell?
Retrieved on October 25, 2013 from http://www.acrwebsite.org/volumes/v32/acr_vol32_30.pdf

Daft,R.(2011).The Leadership Experience(5thed.).Mason,OH:South-Western
Cengage Learning

David, F. (2012). Strategic Management: A Competitive Advantage Approach,
Concepts and Cases. 14th edition Pearson/Prentice Hall

J.C. Penney (2013). Company Information and Profile of J.C. Penney.
Retrieved on October 25, 2013 from http://www.makingafortune.biz/list-of-companies-j/j-c-penney.htm

JCPJline (2011). International Code of Business Ethics. Retrieved on October 25, 2013 from https://www.tnwgrc.com/jcpenney/New72011JCP_20International_20SBE.pdf jcprewards (2013). JCP Rewards Program Terms and Conditions.
Retrieved on October 25, 2013 from https://www.jcprewards.com/nonmember/termsconditions.aspx

Ostlund, A. (2012). JC Penney Strategic Marketing Plan 2012: Product Strategy
Retrieved on October 25, 2013 from http://library.ndsu.edu/tools/dspace/load/?file=/repository/bitstream/handle/10365/19627/Alisha%20Liane%20Ostlund.pdf?sequence=1

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