...JC Penny On April 14, 1902 James Cash Penney the founder and two partners opened the Golden Rule dry-goods store in the small town of Kenner, Wyoming. In 1907 Penney bought out his original partners and took on new ones, beginning with Earl Corder Sams. When the firm was incorporated on January 17, 1913 as JC Penny Stores Company, there were 34 stores in the American West. Penney then moved the company’s main headquarters to New York. Today Penny’s is engaged in marketing apparel, home furnishings, jewelry, cosmetics, and cookware. With all those things and for many years JC Penny has been a great retail store to buy your home goods. And in recent events there has been many bad decisions that have brought Penny’s into a financial bad place. Bring in Ron Johnson, not communicating with their strategy, and not having a good strategy plan. JC Penny former CEO Ron Johnson went bold on his attempted rescue of the fading retailer, but his top to bottom makeover failed. After successful plans at Target, it seemed Ron Johnson could do no wrong. But the winning streak came to a well-publicized end during his two year run as CEO of JC Penny, when everything he tried seemed to backfire. During that time sales one year fell 25 percent, resulting in a net loss of $985 million, when Johnson took over Penny’s 50 to 70 percent of all sales were at discounted prices. The problem that high low pricing cause are huge. The customer like the merchandise, but do not like the price, and nobody...
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...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. ...
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...JC Penney is large retail chain in the US. The company sells everything from clothing to furniture. According to Data Manager (2010), the company employs about 154,000 people. Now with the help of technology, JC Penney also has a fully functioning website. A good leadership team for this store has to be able to understand the customers and the employees. Everything that a leader expects from their team they have to also meet the same standards. The leader must also pay attention to the competition. If another known retail store, that sells the same products as JC Penney, has a holiday or weekend sale, JC Penney may have to come up with a similar sale to make sure that stay in completion with the other stores. Good leaders are able to guide people so that the organization can become more effective in meeting its goals that they planned for. JC Penney is not a global retail store so they are mostly only affected by the U.S. economy. As the economy weakens, consumers are less inclined to shop for retail items so it is likely that JC Penney and other retail stores have experienced a decrease in sales and profits. The leader or leaders should be encouraging their employs to come up with more innovative ideas to increase merchandise sales and stay positive until the economy begins to thrive again. The leadership should make themselves known throughout the company also, visiting stores, getting to know some of their employees and regional managers. The leadership...
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...Project Human Resource Management includes the processes required to make the most effective use of the people involved with the project. It includes all the project stakeholders – sponsors, customers, partners, individual contributors and others.” (Project Management Institute, 2013, p.107). J.C.Penney needs new blood, new ideas, new strategies and new approach to the customers. For this reason, changing the team of top executives is considered as part of solution. Such action refreshes the stagnant management culture of J.C.Penney. However, connections, social networks and reputation of old leaders also should be kept in mind. Retaining few old ones may eliminate the risk of resistance for change among the employees. New CEO will gain trust based on his initiative and plan for change. Employees will become less concerned about the future and communicate better with leaders. (Jacob, D.L., 2013) Organizational planning is an important part of HRM. Therefore, it will be wise to identify, document and assign project roles, responsibilities, and reporting relationships to each member of management and their immediate subordinates. HR department must consider the possible consequences of the new pricing strategies. Marginalization and demoralization of mid-level employees is one of the potential negative consequences. Management must apply best practices to demonstrate the appreciation for employees efforts since they will have to re-tag millions of items with each coming sale...
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...Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) x|ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934| For the fiscal year ended January 29, 2011 or ¨|TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934| For the transition period from to Commission file number 001-15274 J. C. PENNEY COMPANY, INC. (Exact name of registrant as specified in its charter) | | | Delaware| |26-0037077| (State or other jurisdiction ofincorporation or organization)| |(I.R.S. EmployerIdentification No.)| 6501 Legacy Drive, Plano, Texas 75024-3698 (Address of principal executive offices) (Zip Code) (972) 431-1000 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | | | Title of each class| |Name of each exchange on which registered| Common Stock of 50 cents par value| |New York Stock Exchange| Preferred Stock Purchase Rights| |New York Stock Exchange| Securities registered pursuant to section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ¨ No x Indicate...
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...MYCORP MYCORP T Executive Summary Similar to any emerging technology, innovators struggle in persuading typical consumers to adopt their products or services. MyCorp is facing a difficulty in winning any significant share of the television consumer market. Their inaccurate positioning and targeting strategies are the main reasons for this undesired 0.04% market penetration. MyCorp needs to take into account the consumer’s hard-coded habit of watching television and how they used to do in the past decades. The current positioning strategy is effectively targeting the early adopters, but is not as effective with the early majority segment of the market. Since MyCorp has proven to be a technological success, MyCorp can influence their consumer’s perception by vividly visualizing the benefits of their product. MyCorp needs to reposition their product closer to people’s eyes and easier on their pockets. MyCorp should strategically partner with cable and satellite providers to streamline their product. “Program your own network” Besides the idea that consumers are not ready to believe that they can program a TV network themselves, the proposed positioning tagline also undermines TV network providers. The proposed commercial with a Network Executive thrown out of the window could also be perceived as offensive to network providers. For such a revolutionary product to win the mass market, consumers need to experience MyCorp in action. MyCorp puts the programs under the consumer’s...
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...The first problem we discovered is 80/20 which is 80% of your sales or profit comes from 20% of your customers, and JCP losing loyal customers because of “Fair and Square” pricing strategy. The next big problem we found was the lack of market research, JCP did not conduct proper market research. Much blame put on the marketing execution and the customers reliance on price promotions. Johnson believed JCP will end up successful like Apple where he worked previously and targets new pricing strategy. Having Ellen DeGeneres as a spokeswoman shortly after her ad aired a conservative Christian group took offense to her homosexuality and viewed it as problematic for the brands image and the traditional family demographic. Integrated Communication is another problem that JCP faced because they failed to clearly communicate their new pricing strategy with their customers. The new “Fair and Square” ads were reminiscent of targets award-winning ads, these ads failed because only 16% associated “Best Price” with JCP. Failed to communicate their three tier prices “everyday”, “Month Long Value”, and “Best Price Friday”. And also ended odd end pricing and the consumer didn’t understand why. Finally they had promotional problems, they eliminated what made JCP loved and differentiated from its competitors such as Cash coupons, Redzone clearance aisles and doorbuster sales and Black Friday sales. Which everyone knows that brings in the demographic that JCP has relied on for years...
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...Target vs JC Penny Financial Statements Salencia Johnson Finance 350 01/19/2013 The two companies that I will compare are Target and JC Penny. When most people think of target they think of a large retail store where you are able to purchase a variety of things anywhere from home goods and décor, clothing for your family to groceries at a discounted rate. All of those things are true however those are not the only things that generate revenue for the company. Target also has a credit card segment which offers credit cards to qualified guest through their branded proprietary credit cards, the target visa and the target card. Additionally they offer a proprietary branded Target debit card. Together those different cards create a bond between the guests driving sales and contribute to the results of operations. Target’s key to their ongoing success is effective inventory management. Target utilizes various techniques such as demand forecasting and planning and various forms of replenishment management. Target achieves effective inventory management by being in-stock in core product offerings, maintaining a positive vending relationships and carefully planning inventory levels for seasonal and apparel items to minimize markdowns. In the retail segment target’s competition is with traditional and off-price general merchandise retailers, internet retailers, wholesale clubs, category specific retailers, drug stores, supermarkets and other forms of retail commerce...
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...Blooming Clothing .193 Case 11.3 Blooming Clothing A bumpy path to exports It was nine o'clock on a misty Irish morning in February 1995. Martha O'Byrne cycled down the narrow avenue to the clothing factory of which she was managing director and the main shareholder. Wheeling her bicycle into her small office, she wondered if Janet Evans had called yet. Janet, the chief buyer with the Mothercare chain of stores in the UK, had promised to phone her that morning, to let her know if she would be placing a further order with her company. Listening to the messages on her answering machine, Martha remembered the path that she had taken to establish her own enterprise. Blooming Clothing, the small company that Martha O'Byme owns and manages, is situated in the Liberties, an aid and historic part of Dublin, Ireland. Established in 1985, the firm employs 80 people manufacturing maternity wear for the Irish and export markets. Martha O'Byrne had come to this business by an unusual route. Having established herself as a successful merchant banker, she had been considering setting up her own business for same time. 'Women, I think, can have a mid-life crisis at the menopause, but I got mine when I was 28', she recalls. In 1984, a shopping trip with her pregnant sister-in-law revealed that the maternity wear available on the Irish market was dowdy and depressing. In that moment, the idea for Blooming Clothing was conceived. Martha resigned from her position in the investment bank in 1985...
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... You end up having $9.43 but you don’t have the extra Penny to buy all of your items so you have to put back an item to purchase the rest of your food. If only the penny didn’t exist so your total could be rounded down to $9.40 so you could purchase all of your snacks. The United States should ban the use of the Penny because of its high cost to produce, its large space it takes up, and the little amount that it's worth. The first piece of evidence that supports the topic of the U.S. banning the penny comes from source one. “Pennies cost more to make than they are worth, it costs $2.41 to produce the Penny in the U.S.” Pennies are a waste of money to produce and they should be banned from the United States currency. Another reason is that overall the U.S. lost over $60.2 Million dollars in 2011 from producing the Penny, it takes way more money to produce it then it is worth and it needs to stop, and the amount of money being wasted producing the Penny and it is adding up to this day. Therefore,...
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...For years, there has been a heated debate about the lincoln faced one cent piece that we all know as the penny, and if it should stop being minted. There has been countless arguments about if the penny should stop being minted, people want the penny to stop being minted due to it being heavy and hard to carry, the coin itself not being worth enough, but, the biggest and the most real argument for the penny to stop being produced is this, it costs the U.S. thousands and millions to produce pennies every year, we lose this kind of money every year because it costs more to actually mint the penny than the penny is actually worth. It costs 1.5 cents to create a penny, to quote one of my sources, Penny Wise, or 2.4 Cents Foolish? by Jeff Sommer, it says, “‘From the standpoint of economics, that’s just a total waste of money,’ Mr. Velde says.”....
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...Lab 2: The Density of Pennies Brennan Woodward Lab partner: Stephen Akinniranye Section 22 September 15, 2014 Brennan Woodward 15 September 2014 Section 22 Experiment 2: Density of Pennies Introduction The composition of the penny has gone through several changes throughout its life, having 6 composition changes. The penny was composed of pure copper when it was started but due to rising prices of copper it was moving to a cheaper composition. As time went by the composition transitioned away from pure copper into mixtures of copper and other metals, or an alloy. From the years 1837 to 1962 the composition underwent an alternation from a bronze metal to copper and zinc alloy1. After tin’s removal and somewhere in the time range of 1962 to the present time, the penny’s metal alloy changed to a 95% copper and 5% a second metal. The present composition of the penny is 2.5% copper and 97.5% of the second metal. The purpose of the lab was to explore the physical properties of matter through density and to find the identity of the second unknown metal. Density is an intensive physical property that can be used to determine an unknown substance, where the amount of the substance does not affect the density. Even though two objects may...
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...thought about the kids who benefit from penny drives? If you have then you know how important pennies are. One reason that the penny should stay in use is that the help charities. Also, they keep prices low. But, a lot of people think they’re useless. These reasons prove that the U.S. should keep the penny. One reason that the penny should stay in use in the because they keep prices low. One example is the supporters of the penny point out that if the U.S. stops using the penny cash transactions will have to be rounded up to the nearest nickel. This would make people pay more than what they would have if we have the penny. Also, prices show that if cash sales get rounded up to the nearest nickel, that would cost consumers more than $600,000 a year. According to the “Federal Reserve Bank,” low-income Americans are more likely to pay with cash. They would be hit hard if prices were rounded up to the nearest nickel. This reason is why pennies keep prices low. But, there are other reasons that the U.S. should keep the penny....
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...cities to memorials across the suburbs. Such is the case with our attentive preservation and production of pennies. Although some would argue to simply eliminate such an “obsolete” coin, many more would beg to differ. Contrary to popular belief a single cent resembles and represents much more than mere currency, for it embodies several crucial aspects such as history, legacy, culture, and economic prosperity. Firstly, penny production provides an economic advantage to the state of Tennessee. Those who attack production such as U.S representative Jim Kolbe do not do so out of moral righteousness, rather they act out of ulterior motives., “Kolbe’s home state of Arizona is rich in copper – which makes up a bigger percentage of the larger – denomination coins that might be more heavily used if the penny were discontinued.” (Source A) Banning production of the penny in such example would prove detrimental to Tennessee’s economy, a state which relies on the famous penny. Furthermore, there are a few individuals who seem to have a grudge...
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...THE POWER OF THE PENNY Only in America, with its epidemic commercialism has consumerism risen to the echelons of the ridiculous and bizarre. Bargain hunting is ubiquitous, seen in its many forms and transmutations: couponing, run deals, clearance blasts. You name it- we are running for it. The constant revolving door of new merchandise in stores being marked down to clearance has resulted into what I call the “Penny Phenomena.” Clearance gets clearanced and an overwhelming push for new inventory created a wormhole straight thru Shopper’s Paradise. Thanks to a beautifully flawed pricing system where merchandise automatically goes through a series of markdowns, all the way down to the lowest decimal known to man- a penny. But c’mon, 1 cent!? Where will that take you? It used to be and always- nowhere. No one in proper headspace would think you can go far with a penny or a bunch of pennies jingling in your pocket. But go ahead, type in #pennyfinds, #pennyhunting, #pennydeals on Instagram and you will be taken to a nether space in the universe full of amazing, whowudathunk deals. The purchasing power of a singular coin has marked the online collective consciousness and “pennyhunters” boast of a ludicrous following on social media. We’re not talking about cheap crap either. $200 designer shoes for a penny! Ding! A Rag & Bone sweater that retails for $350 for a penny? Ding, ding! A Dyson vacuum for $0.01 cents? Ding, ding, ding! Toys, clothes, shoes, jewelry, appliances, home...
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