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Case Study: Jcpenney

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Case Study: Jcpenney
Ron Johnson made some bad decisions that caused him to only last as the CEO of JCPenney for seventeen months (Kinicki & Williams, 2013). His bad decisions consisted of misreading what the shoppers wanted, no testing of ideas prior to execution, distancing himself from the essential consumers, misread the JCPenney brand (Tuttle, 2013).
First, he removed the use of coupons and most of the promotions, when he incorporated the “Fair and Square” pricing plan in his strategy (Tuttle, 2013). Since consumers enjoyed the thrill of bargain hunting, the removal of coupons caused JCPenney to lose several of their customers (Tuttle, 2013). Second, he didn’t test his ideas prior to execution (Tuttle, 2013). Mr. Johnson refused to test his “Fair and
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