J.C.Penny’s Strategic Business Analysis

Topics: Financial ratios, J. C. Penney Historic District, J. C. Penney Pages: 70 (24623 words) Published: August 28, 2013
J.C.Penny’s Strategic Business Analysis| July 16
2013
|
Business Analysis 4380| Case study J.C.Penny’s Co.Inc|

Table of contents
Executive Summary3
Company Overview7
* information Fact Table7
* History8
* Mission Statement12
* Awards13
Internal Analysis16
Financial Analysis16
* Liquidity Analysis18
* Profitability Analysis23
* Capital Structure Analysis38
* IGR/SGR Analysis44
Value chain Analysis47
Human Resources Analysis52
* Employee Benefits 52
External Analysis55
* JcPenny’s customers 55
* JcPenny’s brand and competitors brands56
Competitors Analysis58
* Competitor 1: Kohl’s Corporation59
* Competitor 2: Dillards Inc.65
Goals and Strategic Analysis73

Goal and Strategy 174
* Objective
* Strategy
* Strategy Implementation
* Projects Results Payoffs: Scenarios & risk

Goal and Strategy 283
* Objective
* Strategy
* Strategy Implementation
* Projects Results Payoffs: Scenarios & risk
Goals & Strategy 390
* Objective
* Strategy
* Strategy Implementation
* Projects Results Payoffs: Scenarios & risk
Conclusion 93
Financial Work Sheet96
Work Cited100
Models
Goal 1101
Goal 2 102
Goal 3103

Executive Summary
Lead by Chairman of the board and CEO Myron E. Ullman, J.C. Penny’s is now ranked 153 out of 500 companies in America. The company was ranked 146 out of 500 during the year of 2011, while CEO Ronald B. Johnson was in charge of the company. In 1902, James Cash Penny opened the first J.C. Penny in Kemmerer, Wyoming under there slogan the “golden rule”. It was once known as the largest department and discount retail chains in the United States. However today, J. C. Penney Company is a holding company for struggling department store operator J. C. Penney Corp. one of the largest department store and e-commerce retailers in the US. The company targeted middle income families, who wanted the convince of shopping for various brand types of goods at an affordable price without sacrificing quality. J. C. Penny’s operates 1,107 department stores in all 50 U.S states and Puerto Rico as of March 2004. J. C. Penny’s director competitors are, Sears, Roebuck and Company, Kohl’s Corporation and Macy’s Inc. With billion dollar corporations out there, which are in a better position than J.C Penny’s is at the moment it’s important to understand the company from its overall market, advertising and its competitors. An internal and external analysis will do just that, by doing so I will go in depth into the J.C Penny’s corporation and thoroughly examine the Corporation from top to bottom. This analysis will cover the Corporations finances, its competitors what they’re doing to make them stand out from J.C Penny’s, and why they’re profits is increasing while J.C Penny’s is at a steady decline and a SWOT. After all internal and external information is covered; I will begin to discuss the strategic analysis of J.C Penny’s. This information gathered will potentially help the company grow; retail stores focus mainly on economic of scale, lower input cost and investment in a brand image. Staying on top of these key factors, I believe this will help J.C. Penny’s stay one step ahead of their competition. This should help J.C. Penny’s maintain or even increase their market shares. 1 Year Target:| 18|

Today's High/Low:| $ 16.79 / $ 16.41|
Share Volume:| 2,526,321|
90 Day Avg. Daily Volume | 16,363,685|
Previous Close:| $ 16.60|
52 Week High /Low:| $ 32.55 / $ 13.55|
Market cap | $ 3,690,008,099 |
P/E Ratio:| NE|
Forward P/E(1y) | NE|
Earnings Per Share (EPS) | $ -5.32|
Annualized...

Cited: Bhasin, Kim. "INSIDE JCPENNEY: Widespread Fear, Anxiety, And Distrust Of Ron Johnson And His New Management Team Business Insider. N.p., 22 Feb. 2013. Web. 15 July 2013.
Wong, Curtis M. "GLAAD Amplifier Awards 2012: J.C. Penney, General Motors Among LGBT Ad Honorees." Weblog post. The Huffington Post. TheHuffingtonPost.com, 03 Oct. 2012. Web. 15 July 2013
Gupta, Shiri
Peavler, Rosemary. "Profitability Ratio Analysis." Weblog post. About.com Business Finance. N.p., 10 Sept. 2012. Web. 15 July 2013.
Jun, Jae. "Why J.C. Penney Is Not Worth Buying." Weblog post. - Seeking Alpha. N.p., 23 Oct. 2012. Web. 15 July 2013.
Jun, Jae. "Buy Stocks Shifting Their Focus Towards Women." Weblog post. Buy Stocks Shifting Their Focus Towards Women. N.p., 10 Oct. 2012. Web. 15 July 2013.
Sun, Leo. "J.C. Penney Needs a Miracle in 2013." Weblog post. Http://beta.fool.com. N.p., 3 Mar. 2013. Web. 15 July 2013.
Bards, William. "J.C. Penney: The Hot Old Find Gone Cold...Again." Weblog post. Http://beta.fool.com/. N.p., 14 Dec. 2012. Web. 15 July 2013.
Wall Street Journal. "J.C. Penney 's Most Discounted Item: Its Bonds." Weblog post. CNNMoney. Cable News Network, 09 Apr. 2013. Web. 15 July 2013.
"Behind The Chair - Articles." Weblog post. Behind The Chair - Articles. N.p., 20 Oct. 2012. Web. 15 July 2013.
Tuttle, Brad. "Attention JC Penney Shoppers, Look Out for the Return of ‘Sales Galore’." Weblog post. Business Money Attention JC Penney Shoppers Look Out for the Return of Sales Galore Comments. N.p., 16 Apr. 2013. Web. 15 July 2013.
Rameriz, Louis. "JCPenney Increases Retail Prices on Special Collections by 67%." Weblog post. Dealnews. N.p., 30 Jan. 2013. Web. 15 July 2013.
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