This paper utilized the secondary data (i.e. organizational records). In this regard, J. C. Penney’s annual reports, last ten years sales and profitability data as well as financial statements for last five years were downloaded from the Morningstar. Accounting ratios were computed based on the last five years financial statements. While financial projections were estimated on the basis of previous five year average growth and costs derived from common size income statement. While projecting the next three years, the financial forecasting method was applied which was based on current goals and priorities. Findings and Analysis Overall, J. C. Penney is currently in a poor financial health. All of the key metrics in terms of profitability, …show more content…
C. Penney demonstrates good position. Current ratio is maintained at very good levels of above 1.5, while low quick ratio highlights some concerns because low quick ratio indicates that J. C. Penney is exposed to high inventory levels which pose great risk to liquidity. Financial leverage also highlights some concerns because it is continually increasing which is increasing the risk of bankruptcy. Debt/Equity ratio also indicates the increasing reliance on debt. Overall, J. C. Penney’s position in terms of liquidity and financial health is not very good and the company may face liquidity crunch in the foreseeable …show more content…
C. Penney desperately needs clear strategy for revenue growth and increasing customer traffic. J. C. Penney should focus on niche markets and target specific market where it has strength which will ensure greater revenue growth (Kennon, 2013). • J. C. Penney should reintroduce its coupons program because it will help in increasing customer traffic which is necessary for revenue growth. • J. C. Penney should also focus on online sales and mobile commerce which will help in achieving revenue growth. • J. C. Penney should focus on inventory management, i.e. improve its inventory turnover and reduce number of days in inventory. Risks Associated with Recommendations • Low growth industry means there are fewer growth opportunities, so, J. C. Penney should not be overly optimistic about achieving greater growth in near future. • Change in strategy could alienate the customers, which may result in sales declines as what happened during previous strategy realignment. • Focusing on niche market could have severe financial consequences if niche market strategy fails. Revenue
Penney, the company was trying to diversify itself and gain as much ground in the industry as possible. There was auto service center, food facilities, discount stores, and other components that took away from the retail store atmosphere they were creating. Now the strategy is clearly defined. According to the J.C. Penney website, the mission of the company is to be dedicated to fitting the diversity of America with unparalleled style, quality and value. JCP is a retail store that sales, women’s, children’s, and male apparel.
Right now they might not be the ideal company to invest in but if they keep up their margins and smart decisions they will be a strong competitor with Kohl’s. With a good debt- to-asset ratio Kohl’s shows promising reliability to its investors that there have more assets then debt, which is less of a finical risk compared to JCPenney. Lastly, possibly one of the biggest considerations before investing in a company is their earnings per share; Kohl’s earnings per share is $3.48 while JCPenney’s is a -1.68. Kohl’s is by far the better company to invest in as of right now but according our ratios between 2014 and 2015 JCPenney is on a uphill path to
From 2005-2014 the DPO ratio has increased 37%, meaning it takes the company longer periods of time to pay its invoices from trade creditors. Dick’s Sporting Goods Dick’s accounts payable and COGS have steadily increased over the period indicating that the firm has become bigger with the need to purchase more inventory to sell off. Their AP % change/overall sales % change shows major fluctuations between the years of 2006 and 2009. This again can most likely be attributable to the recession. With the lack of sales during this period there would be less of a need for inventory, which would decrease COGS and accounts payable needed to buy the inventory.
The JC Penney Company is a united states based company and is among the leading companies in the apparel and home furnishings especially in the retail sector. The JC Penney Company is dedicated to fitting the American diversity with quality, value and unpatrolled style. JC Penney has opened up many stalls throughout the country where they offer different products with a wide range of sizes, fits, shapes, occasions, budgets among other considerations. For a very long time JC Penney has been raising in the market until the recent past when it seemed to be making the wrong decisions.it was among the largest American mid-range store. They have been very successful with the expansion of their stores all over the region and even with their expansion
In this assignment, I will be evaluating how appropriate business information is for John Lewis which is used to make strategic decisions. One piece of business information used by John Lewis is its annual reports which displays their sales performance during the financial year. They also included other written information on their reports such as investments for the future, how they manage their responsibilities and methods in which they maintain customer satisfaction. (http://www.johnlewispartnership.co.uk/content/dam/cws/pdfs/financials/annual%20reports/JLP-annual-report-and-accounts-2014.pdf).
J. C. Penney Company, Inc. (JCP) is one of America 's largest store department of retailers. In 1902, James Cash Penney established the primary J. C. Penney store of department, initially named The Golden Rule, in the little mining town of Kemmerer in Wyoming. From that moment, J. C. Penney has gotten to be one of the biggest retailers in the discount and department of the retail business in 49 states with 1033 stores including Puerto Rico. Moreover, J. C. Penney works J. C. Penney operates “One of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation’s largest general merchandise catalog business”
J.C. Penney (JCP) has not been returning a lot of profit for its shareholders ever since it dropped from its high pedestal years back. Is capital growth gone for this iconic American department chain? Will $20 or $30 be reached any year soon? This article will further delve into that question. I've covered J.C. Penney many times before on Seeking Alpha.
One of the burning issue Darden restaurants in particular, Red Lobster and Olive Garden encountered was the downward trend in financial performance since 2014. The reasons behind that are ineffective marketing strategies possibly related to televised marketing for the Red Lobster and Olive Garden brands. We will address the impact and problems to Darden Restaurants Inc. due to loss since 2014 and examine strategic analysis for Darden Restaurants Inc. in solving this overarching problem. External environment of Darden Restaurants Inc. have been affected because of this issues, especially the shareholders and the customers of the company. Decreased in sales of the restaurant chains under Darden Restaurants Inc. such as Red Lobster, Olive Garden,
JcPenney (JCP) Company Profile J.C. Penney Company, Inc. (NYSE: JCP), sells more than just conventional goods through the branches of J.C. Penney Corporation, Inc. (JCP), stores in the United States. JCPenney is known as one of the largest retailers offering home furnishings and clothing that offers a wide selection of private, exclusive labels to fit everyone’s shapes and sizes, and coast to coast goods. The department stores of JCP sell apparel, shoes, cosmetics, and jewelry. JCPenney also leases space to provide customers with hair shops, Sephora, portrait studio, jewelry reparation, and optical centers. JCPenney operates 1,020 sites throughout the United States and Puerto Rico and it was a total of 114,000 employees as of the 2014 fiscal
Based on Michael Porter’s discussion of the characteristics of an effective strategy, J.C. Penney has an effective strategy for growth. However, there are areas in the growth and development plan that should be reconsidered. The first characteristic of Porter 's plan is the cost-leadership strategy. The basis of this format is to keep the cost below those in the competitive market. J.C. Penney is adapting to this change by offering twice a month sales as well as keeping merchandise at least forty percent below retail value in efforts to gain back their customers.
Have you ever been shopping in J.C. Penney’s and wondered what was this store like in the 1920’s? In the 1920’s the store J.C. Penney was named after a guy named James Cash Jr. and he led the business. J.C Penney was one of the stores that sold fashion clothes and it later became famous, also it was a store people would always go in and buy a whole bunch of stuff and the store would make a whole lot of money off of it. James Cash Jr. became famous because the store was named after him. The store J.C Penney fell and rose again in the 1930s.
In the last four weeks’ native earnings are clear reflecting Vera Bradley organization is weak. Vera Bradley stocks price of drop 22.6% in the last month. My conclusion is Vera Bradley need to expand domestically, penetrate an Asian Pacific region and rebrand using marketing strong efforts. The path Vera Bradley is on will lead to bankruptcy.
The stores now concentrated on clothing for the family and home furnishings. Although JC Penny attempted to adapt to this new trend, customers seemed to prefer high end or discount stores, relegating JC Penney to the mid-market. To assist in this shift, JC Penny brought in numerous highly compensated executives over the next several years to aid in their restructuring. During this time, there were store closings and employee layoffs, but this enabled the company to increase
1. Describe J.C; Penney 's culture before and during Johnson 's time in the organization. What were the attributes that Johnson changed, and how did this impact the culture and success of J.C. Penney? J.C. Penney’s culture was based on transparency and loyalty before the entry of Ron Johnson.
Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the