Business and Research Project: Part One
Business and Research Project: Part One
QNT/561
June 23, 2014
Business and Research Project: Part One
JC Penny has been running successfully for close to 90 years. Most entrepreneurs and managers face the same dilemmas at times. The choices one makes are the basis for his or her company success. The CEO of JC Penny Ron Johnson was faced with many management dilemmas. The first of many dilemmas that Ron Johnson was faced with was to innovate or conserve JC Penny. Innovation is important, but one should also focus on new applications and new markets as well. However, the revenues of innovations are in the future. One needs also to get the maximum out of one’s current business. According an article published by Forbes “Ron Johnson did not try and solving the real problem with JC Penny. Sales fell some 25%. The stock dropped 50% He spent lavishly trying to remake the brand. He modernized the logo, upped the TV ad spend, spruced up stores and implemented a more consistent pricing strategy. But that all was designed to help JC Penney competes in traditional brick-and-mortar retail. Against traditional companies like Wal-Mart, Kohl’s, Sears, etc” (Hartung, 2014). If the leader or manager does not invest there comes a time when the current business declines without new innovation to take over JC Penny revenues. If a manager invests too much, it may end up endangering the continuity of the current business. According to Joshua Kennon “J.C. Penney saw sales fall from $19.903 billion in 2007 to $12.985 billion in 2013. This caused the firm to go from a pre-tax profit of $1.792 billion to pre-tax losses of $1.536 billion, a staggering swing of $3.328 billion. Dividends were slashed, book value destroyed. There were rumors the company was surviving by pushing payable bills and hoarding cash” (Kennon, 2013).
The purpose of learning team C’s research is to identify the most important factors to customers that are considering shopping at J.C.
QNT/561
June 23, 2014
Business and Research Project: Part One
JC Penny has been running successfully for close to 90 years. Most entrepreneurs and managers face the same dilemmas at times. The choices one makes are the basis for his or her company success. The CEO of JC Penny Ron Johnson was faced with many management dilemmas. The first of many dilemmas that Ron Johnson was faced with was to innovate or conserve JC Penny. Innovation is important, but one should also focus on new applications and new markets as well. However, the revenues of innovations are in the future. One needs also to get the maximum out of one’s current business. According an article published by Forbes “Ron Johnson did not try and solving the real problem with JC Penny. Sales fell some 25%. The stock dropped 50% He spent lavishly trying to remake the brand. He modernized the logo, upped the TV ad spend, spruced up stores and implemented a more consistent pricing strategy. But that all was designed to help JC Penney competes in traditional brick-and-mortar retail. Against traditional companies like Wal-Mart, Kohl’s, Sears, etc” (Hartung, 2014). If the leader or manager does not invest there comes a time when the current business declines without new innovation to take over JC Penny revenues. If a manager invests too much, it may end up endangering the continuity of the current business. According to Joshua Kennon “J.C. Penney saw sales fall from $19.903 billion in 2007 to $12.985 billion in 2013. This caused the firm to go from a pre-tax profit of $1.792 billion to pre-tax losses of $1.536 billion, a staggering swing of $3.328 billion. Dividends were slashed, book value destroyed. There were rumors the company was surviving by pushing payable bills and hoarding cash” (Kennon, 2013).
The purpose of learning team C’s research is to identify the most important factors to customers that are considering shopping at J.C.
References: Hartung, A. (2014). Two Wrongs Won 't Fix JC Penney. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_01_01.asp Kennon, J. (2013). The Collapse of J.C. Penney – What Caused It and Can It Be Fixed?. Retrieved from http://www.joshuakennon.com/the-collapse-of-jc-penney-what-caused-it-and-can-it-be-fixed/