Jc penney case study

of 21/21
PRESENTED BY: ZAHID MEHRAJ LOVELY PROFESSIONAL UNIVERSITY BBA-MBA

Embed Size (px)

Transcript of Jc penney case study

PRESENTED BY:
ZAHID MEHRAJ
LOVELY PROFESSIONAL UNIVERSITY
BBA-MBA


















JC Penney Chief Breathes New Life into an American icon

Jc Penney is the series of American mid rang department stores situated in plano,texas and north part of Dallas. The company operates 1,150 department stores in all 50 U.S states and Puerto rico. Jc Penney also operates sales merchant office national wide in many small markets.

QUESTORM:

Chairman and chief executive officer Allen Questorm {2000-2004} was the first outsides who assumed the top position at jc Penney in the companys one hundred plus history when he joined jc Penney in Septemberfrom barneys newyork.

PROBLEMS FACED:

SOL.

IN EFFICIENT SUPPLY CHAIN:

Improvement in new products.

Supply should be according to demand.

There should be increased number of stores in middle market, were there is bulk of customer

Employing more continuous moves.

Improving trailer utilization and partnering with carriers to secure capacity.

Stodgy brand name:

SOL.

1. Launching new updated products.2. He should think about customer satisfaction.3. Introduce rate cutting so that the customers are able to purchase them.4. Planning of such offers focusing on products in demand.

Money losing drug store operation:

SOL.

As drug store is going through a huge lose so, he has to close the drug store immegately and focus on another business. where from he can get more profit.

LOST CUSTOMERS:

TO RETAIN BACK TO ITS ROOT:

START SMALL AND EMPHASIZE HUMAN TOUCH:

BE FLEXIBLE:

Q1.Which managerial function is Questrom trying out of planning to carry out?PLANNING:

To get Back pennys roots.

centralizing the buying decisions focus on running the stores.

Organizing:

He set in motion a five year plan to rescue the embattled retailer that focused on improving marketing merchandising profitability and hiring.

He introduced division of work.

Staffing:

Questrom believed in hiring the right person for job, even when his personal inclination on the other side.

Tried to increase the percentage of outside talent to about 20% in order to keep new ideas flowing into the company.

Hired by identifying the work force and invertering the people.

Leading:

Focus on customers.

CONTROLLING:

Measure and corrupt individual and organizational performance to tenure the events.

He said we have to be aware of whats happing in the fashion world and bring that to middle America at great values.

Q2.Which managerial roles are Questrom carrying out of planning to carry out?As an interpersonal roles: motivated subordinates, selection and training of employees, seek behind own personal issues.

As an disturbance handler: took care of organization correcting on going issues.

As a resource allocator: decided the expenditures of the organization physical, financial, etc

Q.3As a personal adviser to Questrom,suggest what need to be done to improve Penneys market share of the department store business?Introduce new products.

To emphasize on decision making.

There should be efficient supply accordingly.

The brand name should not be stodgy {typical}.

Q4..To what extend do you think participating in a marching band would help a person develop the discipline to be successful as a manager?Yes, because in marching band there is a team work.

Q5.Based on whatever current information you can locate how successful has Questorm been in helping make Penney more profitable?He put forth a team work method.

He believed first to set the objective and make the people understand and execute them.

He focused on middle class market.

He offered competitive prices to shoppers i.e. cutting costs

He added new offices in new York and los Angeles to put Penney closer to the biggest concentration of vendors.

He suggested his company as a new company when he closed44 of Penneys 1000 stores and lying of about 5000 staff.

He recruited outsiders to improve Penney corporate culture.

He has also remoulded stores to make them attractive for customers.

SWOT ANALYSIS:

STRENGTHS:

They put initiative for customers first.

Wide product and service offerings.

There brand is reachable to customers.

Efficient supply chain.

Has a strong distribution network.

It has more than 50 years of experience in direct sourcing.

WEEKNESS:

Excess inventory was not able to be sold quickly.

No Reliance on seasonal trade.

Variable assortment.

Weak offerings.

Not the best merchandising standards.

Rising costs put pressure on customers.

OPPORTUNITIES: 1.Focus on expansion. 2.Launching new products.
3.Put emphasis on online investments and purchase.

4.To attract a huge piece of the market by appealing to middle income families by creating affordable and updated fashions for both the home and the individual.

THREATS:

1. Rising labor cost.2. New store openings.3. Rising competition.

CONCLUSION:

Questrom can be designated as a MASTER OF CHANGE

Helped JC PENNEY to retain its position in all the possible way.

Showed for any good manager of a company is to get the present cadre of people to refocus.

Retained the market value which got declined about $3 billion from a peak of $20 billion in 2002

By the strategy as Questrom said to start making money again.

By 2004 made huge success by achieving their goal of creating a profitable enterprise .

Which was a one- year sale growth of 45 percent, with a net income

Of $928 million.

like the characters of some play managers too after perform different roles bound by their position one cannot help but remember the famous line; a world is stage and men and women mere players

Click to edit the title text formatClick to edit Master title style

Click to edit the outline text formatSecond Outline LevelThird Outline LevelFourth Outline LevelFifth Outline LevelSixth Outline LevelSeventh Outline LevelEighth Outline Level

Ninth Outline LevelClick to edit Master text styles

Second level

Third level

Fourth level

Fifth level

2/25/15

Click to edit the title text formatClick to edit Master title style

2/25/15