Author Note: This paper was prepared for Managing Organizational Change HRM 410
Table of Contents Introduction 3 Background 5 Reason for Change and Change Diagnosis 6 The Success in Change 7 The Undoing of the Successful Change 8 References 11

Introduction JC Penney was a thriving retailer business that played on consumer’s emotions and made a consumer feel proud of themselves. JC Penney as a retailer created a buzz about themselves with their pricing strategy and coupons that they offered to their consumers. Consumers often discuss the sales and the great price of a sale of items amongst themselves. This was definitely a strength for this retailer. JC Penney was also a great place to shop for big and tall in a concrete building and store, not a catalog that was another appeal to their consumers. J.C. Penney was using a decentralized system of purchasing merchandise and inventory while other companies began to use centralize systems. To centralize the buying activities and revamp the stores, funds were needed. Funds were raised through the sale of JCP’s Direct Marketing Services, which sold insurance and travel and auto club programs. It led to a significant improvement of cash flow. The company then began to close down 120 of outlet stores that were under performing and sold its interest Eckerd drugstore chain to improve an influx of cash flow.
J. C. Penney lost its edge over its competitor and started to lose money in the 1990’s and their investors were starting to get weary and the shares were plummeting from this event. J. C. Penney only hired from the inside until the end of the 1990’s. J. C. Penney has undergone major changes at different time periods and the discussion of the changes and how the changes were implemented and the success and failure of it all. After years of continued growth and relative successes, the company