ValuEngine Weekly: Finance, JCPenney, Suttmeier, Valuations, JNJ
JCPenney
20
Ashley Kitchens, Dimisha Rodgers, Zach Owens November 26, 2012
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This was a group project of the JCPenney Company and shows the breaking down of their strategies financially, economically, competitively, etc. These strategies define their operations and its ups and downs throughout the company’s history. This ppt. was made as a visual aid for our presentation back in the Fall of 2012.
Transcript of JCPenney
Ashley Kitchens, Dimisha Rodgers, Zach Owens
November 26, 2012
Overview
History
Industry Overview
Current Business Plan
Major Competitors and Competitive
Rankings
Current Competitive and Firm Financial
Performance
Environmental Factors
SWOT
Major Competitive Issues
Recommendations and Results
Risks
James Cash Penney
CEO Ron Johnson
Established 1902
1915 1920’s 2012
83 6471102
Current Business Strategy
GOAL:To Be
"America's Favorite Store”
Price Strategy
Shops Strategy
Major Competitors and Competitive Rankings
Current Competitive and Firm Financial Performance
Environmental Factors
Competition
Competition
Macy’s JCPenney
Industry & Firm Performance• •
•
• HSN•
JCPenney•
Macy’s• Sears
Industry & Firm Performance• •
• •
Industry & Firm Performance
ROE2005 = 9.76%2006 = 8.23%2007 = 9.83%2008 = 11.96%2009 = 12.78%2010 = 17.58%2011 = 12.99%
2012 10.65%
General and Specific Environmental Factors
Segment/Trends and Events Positive Neutral Negative Demographic Aging Population X Changes in Ethnic Composition X Greater disparities in income levels X Sociocultural More women in the workforce X Postponements of family formation X Political/Legal Increases in Federally mandated X Minimum wages Technological Emergence of Internet technology X Miniaturization of computing X technologies Economic Unemployment Rates X Consumer Price Index X Interest rates X Global Increasing global trade X Emergence of the Indian and X Chinese economies
SWOT
Major Competitive Issues
Recommendations and Results
Risks
SWOT Analysis of JCPenney
Strengths: Long History
Brand Recognition Established Locations Nationwide Exclusive Popular Brand Names
Weaknesses: Decline in comparable store sales
Decrease in popularity Changing business strategies Lack of coupons
SWOT Analysis of JCPenney
Opportunities: Internet Sales
Exploring Niche Markets (Maternity or Big&Tall) Attracting New Customers Complete overhaul of marketing strategies Launching new exclusive private label brands
Threats: Rising Labor Costs in the U.S.
Increasing competition in industryInternet-customers comparing pricesWeak consumer spending
Major Competitive Issues
• Changing of brand image• Selling Strategy• Marketing Strategy
• Environmental Factors: Aging Population, Women in the Workplace, Unemployment Rates, Interest Rates, and Minimum Wages.
Strategic Recommendations and Results
• Explore niche markets, for example, Big&Tall and Maternity
• Move more aggressively into online sales
• Allow customers to use coupons again
• Launch new exclusive and private label brands
• Fire the CEO if sales continue to decrease
Risks Associated with Recommendations
• Implementing new strategies could result in more confusion for customers which could lead to a further decrease in sales.
• If reaching out to a niche market, JCPenney could suffer financially if it doesn’t work.
• A change in management would cost the company a considerable amount of time and money.
Questions?
