JC Penny has been running successfully for near to 90 old ages. Most enterprisers and directors face the same quandary at times. The picks one makes are the footing for his or her company success. The Chief executive officer of JC Penny Ron Johnson was faced with many direction quandary. The first of many quandaries that Ron Johnson was faced with was to introduce or conserve JC Penny. Innovation is of import. but one should besides concentrate on new applications and new markets every bit good. However. the grosss of inventions are in the hereafter. One needs besides to acquire the maximal out of one’s current concern. Harmonizing an article published by Forbes “Ron Johnson did non seek and work outing the existent job with JC Penny. Gross saless fell some 25 % . The stock dropped 50 % He spent extravagantly seeking to refashion the trade name.

He modernized the logo. upped the Television ad spend. spruced up shops and implemented a more consistent pricing scheme. But that all was designed to assist 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 director does non put at that place comes a clip when the current concern diminutions without new invention to take over JC Penny grosss. If a director invests excessively much. it may stop up jeopardizing the continuity of the current concern. Harmonizing to Joshua Kennon “J. C. Penney saw gross revenues autumn from $ 19. 903 billion in 2007 to $ 12. 985 billion in 2013.

This caused the house to travel from a pre-tax net income of $ 1. 792 billion to pre-tax losingss of $ 1. 536 billion. a astonishing swing of $ 3. 328 billion. Dividends were slashed. book value destroyed. There were rumours the company was lasting by forcing collectible measures and stashing cash” ( Kennon. 2013 ) .

The intent of larning squad C’s research is to place the most of import factors to clients that are sing shopping at J. C. Penney. This statement speaks to the researcher’s attending and provinces end or aim of the research. This statement will measure mistakes that were made J. C. Penny’s top direction. seting the company into a really vulnerable quandary with the nucleus clients. The factors that will be considered are straight associated with direction mistakes such as:

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•Misreading what shoppers want- vouchers. gross revenues price/clearance points

•Not proving the thoughts in advance- presuming the civilization was the same as other companies •Alienated the nucleus clients

•Misreading the JC Penney trade name

•Not esteeming the JC Penney company overall

From these mistakes the squad will supply research inquiries to include in the paper. gather the information the is related to the client most recent shopping experience with the company to develop a proposed research program to turn to the most direction quandary.

Draft of Research Questions

Learning squad C intends to research the grounds J. C. Penney had a diminution in client nucleus base and gross revenues which about led to the death of the company. This research will be conducted via study with the purpose of perchance salving the creditability of the company. Our acquisition will supply studies to grownups that have shopped J. C. Penny either online or in the shop within the last two old ages. The study inquiries used would provide direction with chances to prove possible selling schemes to resuscitate gross revenues and retain the company’s initial nucleus client base. LTC will supply the undermentioned inquiries to garner informations for research in the study:

•What is the age group/gender of the participant

•How far from place will he or she be willing to drive to the shop

•What is the importance of vouchers and gross revenues price/clearance points

•How frequent does the participant store online or in the shop

•How of import is the trade name name that is provided by the company

•How of import is the ambiance of the shop ( i. e. Arizona. IZOD. Dockers. etc )

•How of import is the civilization of shop ( i. e. is nutrient tribunals or forte dress shops of import ) After roll uping a more precise list of inquiry to supply for the study. we will rank the factors from least to greatest importance to find the determination devising procedure for J. C. Penney current quandary.


Finally. JC Penny did fire Ron Johnson and rehired the old CEO Mike Ullman. who stills faces large challenges. JC Penny has posted gross revenues beads and losingss in its first three quarters. As JC Penny efforts to retrieve from its quandary from the period in which it alienated consumers. and infuriated its employees. its new CEO Mike Ullman. is doing headway in seeking to purge corporate ranks and convey the clients back to shopping at JC Penny. In concern leaders or directors all face some challenges that if left unaddressed such as JC Penny quandary can massively impact the concern. The good intelligence is that there is now a solution in topographic point to assist JC Penny return to being successful.


Hartung. A. ( 2014 ) . Two Wrongs Won’t Fix JC Penney. Retrieved from hypertext transfer protocol: //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 hypertext transfer protocol: //www. joshuakennon. com/the-collapse-of-jc-penney-what-caused-it-and-can-it-be-fixed/


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