...Target Corp. & J.C. Penney Company Inc. MAURICE D. ALFORD FINC 350 BUSINESS FINANCE 5/11/2013 TABLE OF CONTENTS Executive Summary……………………………………………………………………2 Profitability………………………………………………………………………………..3 Asset Reutilization……………………………………………………………………..3 Capital Accounts…………………………………………………………………………4 – 5 Fixed Assets………………………………………………………………………………..5 – 6 Non-Current Assets…………………………………………………………………….6 Deferred Tax Accounts……………………………………………………………….7 Liquidity……………………………………………………………………………………..7 – 8 Debt Utilization…………………………………………………………………………..8 Recommendation……………………………………………………………………….8 -10 Resources……………………………………………………………………………………………………………….. EXECUTIVE SUMMARY The bottom line up front, J.C. Penney Company Inc. would present a more attractive acquisition than Target Corp. J.C. Penney Company Inc. has a strong brand that is widely known and has all the tools to once again become a prominent organization within the retail industry. The organization’s recent purchase of Liz Claiborne, another well-known brand in addition to their real estate value, helps strengthen the decision to acquire this business. J.C. Penney has recently garnered the attention of a major investor, Soros Fund Management LLC. Soros has acquired a 7.91 percent stake in J.C. Penney. The billionaire investor George Soros acquired 17,386,361 shares reported by the Securities and Exchange Commission. The business community is starting to sniff something here...
Words: 2273 - Pages: 10
...Ron Johnson Out at J.C. Penney “Ron Johnson's troubled tenure as chief executive officer of J.C. Penney Co. Inc. is over and his predecessor Mike E. "Myron" Ullman 3rd is returning to the chain as CEO.” Johnson joined Penney's in November 2011 after a successful run as head of Apple Inc.'s groundbreaking retail business. Hailed at first as savior of the chain, Johnson steered a controversial course at Penney's, eliminating coupons last year and alienating customers, driving sales down 24.8 percent. The retailer lost $985 million last year as Johnson tried to reinvent the chain as a collection of specialty concepts. One of Johnson's first acts as CEO was to cut a deal to bring Martha Stewart-branded home goods to Penney's. But Macy's Inc., which already had a deal with the home goods brand, disputed the arrangement, which is now the subject of a trial in New York State court. Shares of the company shot up 5.7 percent to $16.78 in afterhours trading today as word of Johnson's departure leaked out. Activist investor William Ackman, Penney's largest shareholder, installed Johnson as CEO and gave him free reign to reinvent the firm. Ackman's was one of Johnson's loudest cheerleaders, but his support publicly began to wane last week when he said that the execution of the changes at Penney's had been "something very close to a disaster”. Ackman also noted Penney’s had seen “too much change too quickly without adequate testing” and that the execution of the reinvention “has been something...
Words: 378 - Pages: 2
...Zippittelli v. J.C. Penney Company, Inc. The plaintiff, who is 63 years old, brought this employment discrimination suit against her employer, J.C. Penney, after the company failed to promote her to the position of shift operations manager at the company's Moosic, Pennsylvania Customer Service Center. She alleged violations of the Age Discrimination in Employment Act Title VII of the Civil Rights Act of 1964. She brought these claims against both the company and the PHRA claims against her supervisor at the Moosic center, James Johnson. She was the first associate hired at the new Customer Service Center in Moosic. James Johnson became personnel manager at the facility in March 1990. Johnson was promoted to manager of the call center in March 1999. After Johnson came to the facility, plaintiff frequently sought promotion to a management position. In 1990, she sought promotion to seasonal shift leader, also known as general lead clerk and was denied both positions. Plaintiff contends that after she complained in 1993 or 1994 to a supervisor about her lack of opportunity for promotion, Johnson told two of her co-workers that plaintiff would "never be promoted while he was there.” This template is formatted according to APA Style guidelines, with one inch top, bottom, left, and right margins; Times New Roman font in 12 point; double-spaced; aligned flush left; and paragraphs indented 5-7 spaces. The page number appears one inch from the right edge on the first line of...
Words: 1097 - Pages: 5
...Assignment 2 - Management at J.C. Penney Company, Inc. Using the Internet research J. C. Penney Company, Inc. from its inception to current-day operations. Write a five to six (5-6) page paper in which you: 1. Evaluate two (2) key changes in J.C. Penney’s management’s style from the company’s inception to the current day. Indicate whether or not you believe the company is properly managed today. Provide support for your position. 2. Explain senior management’s role in preparing the organization to shift from a catalog-based retailer to an Internet retailer. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support for your rationale. 3. Evaluate management’s decision to use celebrities as key merchandise vendors and spokespersons. Indicate the organizational impact of these decisions. More Details hidden... Activity modeaims to provide quality study notes and tutorials to the students of MGT 500 WK 7 Assignment 2 in order to ace their studies. MGT 500 WK 7 ASSIGNMENT 2 To purchase this visit here: http://www.activitymode.com/product/mgt-500-wk-7-assignment-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 500 WK 7 ASSIGNMENT 2 MGT 500 WK 7 Assignment 2 - Management at J.C. Penney Company, Inc. Using the Internet research J. C. Penney Company, Inc. from its inception to current-day operations. Write a five to six (5-6) page paper in which you: 1. Evaluate two (2) key changes in J.C. Penney’s management’s...
Words: 797 - Pages: 4
...Strategic Plan STR/581 Strategic Plan James Cash Penney started JCPenney, now known as JCP, 110 years ago. Penney aspired to be a lawyer for his family was not really well-off. His father was a Baptist minister and a farmer. He never had an opportunity to start in law school due to educational expenses that his family cannot afford. He worked in a local dry goods store where he became an assistant manager in Golden Rule Store. He had the chance to acquire one-third of the venture. In five years time, that was 1907, Penney acquired that of his partners (Soylent Communications, 2012). He had a vision to establish an entity that treats people the way he wants to be treated and this is what people commonly hear as “fair and square”. His very first retail business was named Golden Rule as based on his philosophy in life coming from the words of Confucius: “treat others as you want to be treated”. JCPenney was successful in his business for long years. His venture has the capacity to be an industry leader in innovation, pricing, and marketing strategy. Way before internet was invented, JCPenney offered catalogs to showcase their products. And now, they have jcp.com and their facebook page in which they do their promotions, marketing and sales (Toy, 2012). JCPenney had difficult times in keeping a close competition with Macy’s and Dillard’s Department Store especially when there were costs hikes when sales were down. The company adopted measures to deal with its problem. There...
Words: 3430 - Pages: 14
...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Jc Penney In: Business and Management Jc Penney 1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels. 2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the game plan on how the mission will be accomplished. Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales have...
Words: 526 - Pages: 3
...Running head: FINANCIAL ANALYSIS OF TARGET & J.C. PENNY Financial Analysis of Target & J.C. Penny Linda S. Mosquera Columbia College University Abstract There are two companies which stand out as being optimal candidates for selling out to CB&M. I collected each company’s financial statements and analyzed five years’ worth of data provided via the company’s annual reports specifically pertaining to the balance sheet and the income statements. Interpreting a few specific financial ratios, I will provide an in-depth analysis in determining which of the two companies is healthier financially. Introduction Financial ratios are classified according to the information they provide. Some of the frequent used ratios are: liquidity ratios, P/E ratio and profitability ratios. I will provide an in-depth analysis in determining which of the two companies is healthier financially. Liquidity Ratios Target J. C. Penny J. C. Penny is a chain of mid-range department stores based out of Plano, Texas. It was started by James Cash Penney under the initial partnership with Thomas Callahan and Guy Johnson, who owned dry goods stores called Golden Rule (J.C. Penny). Penney took ownership of the store around 1907 when Callahan and Johnson dissolved their partnership. “It currently operates “approximately 1,100 stores and at jcpenney.com, customers will discover a broad assortment of national, private and exclusive brands to fit all shapes, sizes, colors and wallets”...
Words: 725 - Pages: 3
...In 2007, shares of department store J.C. Penney (JCP) reached $80. In 2015, four years after a failed makeover attempt by former CEO Ron Johnson and the following struggle to keep the company out of bankruptcy, the stock trades for less than $10 per share. JCP has posted a net loss in each of the past four years, with revenues falling from $17.7B in 2011 to $11.9B in 2014. Even though progress has been slow, same-store sales are growing once again and revenue projections for fiscal year-end 2015 are $12.3B.1 A return to profitability would certainly be a positive development for the company and its shareholders, but there are a few major problems that will continue to keep J.C. Penney in the red. This paper will examine the problems faced by J.C. Penney using information collected from reputable Internet sites to draw a conclusion on solutions that would repair the company’s image and profitability. Brief History of J.C. Penney For over a century, J.C. Penney has been one of America’s leading retailers with steady growth since its opening in 1902. At its peak, JCP had 1,109 department stores operating in the United States and Puerto Rico. In addition to its brick and mortar locations, JCP.com was one of the largest apparel and home furnishing sites on the Internet and the nation’s largest general merchandise catalog business.2 Through these retail channels, J.C. Penney offers a wide array of national, private and exclusive brands, which reflect the Company’s commitment...
Words: 1518 - Pages: 7
...Preparing to Conduct Business Research: Part 1 Christine Beverley-Wagner, Megan Hackel, Eric Cantu, and Charles Dougherty RES/351 July 21, 2014 Marcus Sherrill Preparing to Conduct Business Research: Part 1 J.C. Penny J.C. Penny Corporation, Inc., is an American retail company that was founded in 1902 by James Cash Penny. The company was called J.C. Penny Stores Company from 1913 to 1924 and then was reincorporated in 1968 to present as J.C. Penny Co. The firm was incorporated in 1913 and the following year the company moved its headquarters to New York City. In 1927 J.C. Penny Co., became a publically traded corporation. J.C. Penny Co. has been a household name for decades, but has seen its share of financial difficulties. Now the company is in the process of changing their culture, as it has discontinued its traditional catalog sales, and created a profitable internet shopping site. The issue that J. C. Penney is facing includes dramatic losses in sales, profits, and stock value. They recently hit a 55 week low with their stock value. They have brought back a former CEO Myron Ullman III to make some changes which does open the door for some new possibilities as well. They are currently making changes by closing 33 stores that have been underperforming to make up some of those losses and project that to make some significant differences. Other issues that come with that are the 2,000 employees that will be laid off as a result. They are battling some tough situations...
Words: 1090 - Pages: 5
...Analysis and Comparison: JC Penney (JCP) and Target (TGT) Becky Kennedy FINC 350 A Professor Mason February 1, 2015 JC Penney and Target are a huge presence in the retail industry. Both companies specialize in the sale of merchandise and service to consumers through retail stores and e-commerce. Target and JC Penney are companies that are part of an industry known for its competitiveness and few barriers to entry. They compete with other local, national and regional retailers for resources such as customers, employees, locations, merchandise, and other aspects of the retail business. Both companies have stores at several locations throughout the United States, with both company’s operating results depending on their ability to predict and respond to changes in trends and customer preferences by providing consumers with quality merchandise at competitive prices. Both companies face the same kinds of risks. The answers are in the way they are managed. The retail industry is risky with Target and JC Penney both struggling with issues resulting in lost revenue. Risks faced by companies in the retail industry most likely include competition, marketing, branding, employee/customer retention, supply chain management, financial management, data management and much more. Target suffered from a data breach at the end of 2013 that proved to be costly and they are still subject to investigations and private litigations costing them millions of dollars. JC Penney has suffered from a tarnished...
Words: 1109 - Pages: 5
...Introduction Mr. James Cash Penney Jr. was born on September 16, 1875 to the parents of James Cash Penney and Mary Frances Paxton in Caldwell County, Missouri (Elizabeth, 2010). Mr. Penney got his start in retail business on April 14, 1902 by becoming one-third partners in a New Golden Rule Store. His partners were Thomas M. Callahan and W.Guy Johnson (Elizabeth, 2010).Mr. Penney partners sold their interest in three Wyoming stores in 1907. Four years later, January 17, 1913 the J.C. Penney was incorporated. It started out with 34 stores and 20 shareholders (Elizabeth, 2010). The shareholders were store managers, former partners, Mr. Penney as the president and major shareholder. JC Penney became a public traded listed company on the New York Stock Exchange in 1927 (Encyclopedia Britannica, Inc, 2012).The headquarter is located in Plano, TX, and operates in the United States and Puerto Rico, with more than 1,100 stores and counting. JCPenney merchandises include Women’s, Kid’s, Home, Shoes, Men’s Clothing, and Bed & Bath. My role is an organization consultant. I will provide new idea to JCPenney on how they can become more profitable to consumers again. To improve sales and their image, JC Penny close their catalog business, outlet stores, exit the drug store business, and closed under-performing stores (Booten, 2011). With this reformation, many people were laid off. Problem Statement JCPenny had set the top company priority as making sales for the quarter. With downsizing...
Words: 2504 - Pages: 11
...J.C. Penny started off selling work clothes and shoes to mining families in Wyoming. The basis of the how the company conducts business was actually its initial name as James Cash Penney, named the company the Golden Rule, showing that they want to provide the customer a buying experience that a J.C Penney employee would want to receive as a consumer.?? (JCP.net) J.C. Penny grew from a small town store to multiple stores in the region by providing consistently high quality apparel that the whole family could depend on which attracted loyal customers. After expanding their stores throughout its existence, corporate headquarters has moved to Utah, to New York City, closer to the suppliers and consumers to decrease costs, then the latest moved to Texas because of the current lower cost of business compared to NYC. As Ron Johnson talks about a trouble company in JCPenny’s, he seems to be the most excited and in his element, seeing the opportunity for JCP to flourish (possibly add to this). He compares JCP to Apple when first joining the company, with the same market share, but with JCP having higher market cap, revenue, profit, and six times more customers, showing JCP is not as bad as what Apple was. Johnson started off in clothing retail, because he wanted to have a job he loved to do and that has shown to provide very positive results looking at the success of the last two companies he has left, with the businesses running very successfully. The new CEO explains that J.C. Penny’s...
Words: 2300 - Pages: 10
...History of J.C. Penney Company, Inc. J.C. Penny is the second largest of all the United States department stores. The nearly thousand stores are dispersed around the United States and even in Puerto Rico and Mexico. J.C. Penny has been around for over 100 years. According to International Directory of Company Histories, “James Cash Penney started his first retail store in 1902 in Kemmerer, Wyoming, a small mining town.” (Grant, 1997) The store has since transformed to more of fashion-oriented retail store instead of a wide variety of goods. Since their refocus of the company, JCPenny’s has been able to compete in the very harsh market with a lot of competitors such as Sears, Walmart and Kmart. The internet shopping options provided by JCPenny has been showing great growth for the company. In fact the company is so well known because of its ability to adapt to the new forms of sales such as online. JCPenny SWOT Analysis Strengths: * JCPenny has a long history in the business * Brand Recognition * Locations nationwide that are in nearly every mall * Exclusive popular brand names that are not available other places Weaknesses: * Decline in comparable store sales * Decrease in popularity due to competitors * Changing business strategies a little too often * Lack of coupons Opportunities: * Growing internet sales * Exploring specific markets such as maternity and/or big & tall * Attracting new customers through new business...
Words: 995 - Pages: 4
...Mission and Vision Statement of J.C. Penney Brooke Hall BMGT 495 Strategic Management Professor Swindell November 1, 2013 Table of Contents Introduction 3 Mission Statement 3 Vision Statement 4 JCP’s Strengths 5 JCP’s Challenges 5 Future Goals and Objectives 6 Recommendations 7 References: 8 Introduction Founded in 1902, by James Cash Penney in Kemmerer, Wyoming, JCP has witnessed dramatic changes and overhauls with the arrival of each CEO. Beginning in 2013, JCP again started fresh with the rehiring of retired CEO Myron Ullman who has taken revolutionary steps to improve the company’s performance and pricing structure (Berfield, 2013). Under the leadership of Ullman, JCP is working to rid itself of its former image of inadequate products, at least one price promotion per day, and high employee turnover, and instead focusing on fair pricing for all, interest based marketing, and spotlighting their exclusive brands in comparison to their competitors. Mission Statement According to Daft (2011), having a clear mission and vision for the future as well as a strategy for implementation are key components of accomplishing any goals within an organization. JCP’s mission is simple and straight to the point, “To drive Sales and Profit growth by ensuring our Customer and Associates always know they’re first in our Stores by what We do!” (JCPJline, 2011). As noted in our text, a mission statement serves as both a description of a company’s purpose, while simultaneously...
Words: 1689 - Pages: 7
...Tim Pruitt In the fall of 2011 Ron Johnson was appointed CEO of JC Penney and also the savior responsible for breathing new life into one of the oldest American retail stores. Seventeen months later and many, many mistakes later, he was out of a job (Tuttle, 2013). You may ask why? The answer to that question is simple in a way, sales for JC Penney were decreasing and the weak sales cost JcPenney to exit the catalog business and close 19 of its catalog outlet stores. An additional seven stores, two call centers, and one customer decorating facility were closed as well (Heller, 2011). Johnson came out the corner swinging in the early 2012, he announced a major overhaul of the way JCPenney does business with a new “fair and square” everyday low pricing scheme to replace the “fake prices.” (Tuttle, 2013) The idea seems great but that wasn’t what the customers/consumers wanted. Yes, it seems realistic with all the fuss over “fake prices,” but the data didn’t come back successful at all. The first quarter after the installment of “Fair and Square,” sales declined 18.9 percent. Total sales decreased 20.1%, and Internet sales through jcp.com were $271 million in the first quarter, a 27.9% decrease from last year. Overall the store reported they lost $163 million net loss in the quarter (Tuttle, 2012). The idea made logical sense, but shoppers aren’t logical. They’re often drawn to stores not by promising low prices but by the chances of catching a deal with coupons or prices. ...
Words: 591 - Pages: 3
