Jc Peny Company Case Study

3008 Words13 Pages
1. BACKGROUND OF JCPENNEY COMPANY, INC
J. C. Penney Company, Incorporated is an American chain of departmental stores founded by James Cash Penny. According to Curry (1997), James worked in a dry goods store before he was hired as an assistant manager in a store called The Golden Rule. In 1902, the success of the store led to an offer for him to be a shareholder in a new branch in Wyoming. This store was the first of J. C. Penny’s chain of stores. The company was later incorporated in 1913. According to JCPenny (2014), with approximately 1,100 stores in all 50 states in the United States and Puerto Rico, J. C. Penny is considered to be one of the biggest retailers for both apparel and home furnishings. Apart from their home brands, J. C. Penny
…show more content…
C. Penney recently went through a change that brought in a new Chief Executive Officer to manage positive changes. The company underwent changes due to poor strategic management by ex CEO, Ron Johnson. Issues rose when the stocks and shares of J. C. Penney declined, and when his strategies did not align with the direction of the company. It developed a drastic distress amongst the associates and board of directors. This resulted in a replacement of a new CEO (Aimee Groth, 2013). Mike Ullman, the current CEO of J. C. Penney, uses a top-down management hierarchy. That was his leadership approach. The company is now recovering and getting better in the market and its customers are well attended to. This is in sync with the golden rule of J. C. Penney. Coming from a great experience in retail industry, he is capable of improving the company and bringing it back to how it was before. Mike and the board of directors appoint people selectively with strong retail experiences in order to restore the company 's confidence in its associates, customers and…show more content…
Due to the loss that J. C. Penney has faced, the best solution to recover its profitability is to downsize its company. J. C. Penney announced that they will be closing 47 Stores in the United States and approximately cut 5,500 jobs by the end of June 2014. (abc NEWS, 2014)

High Involvement Organizations (HIO’S)
Implementing High Involvement in Organizations creates a support change for the associates. It is a change in the entire design of the organization through the implementation of employee involvement strategies. J. C. Penney will benefit from this intervention as associates will be given a chance to voice out and give their opinions on work decisions. By doing so, they will contribute up to date information about the company to help make effective decisions. When associates feel involved in the organization, they will start to be more concern about their workplace and put in more effort to help the business. This encourages associates’ commitment, leading to the success of the

More about Jc Peny Company Case Study

Open Document