JC PENNEY STRATEGIC PLAN
COMPANY OVERVIEW
James Cash Penney started JCP
“the Golden Rule” was his idea for treating clients reasonably
JCPenney commenced a shopping catalog with an immense success
in 1964
JCPenney started a website based on online shopping in 1994
By 2010, entire catalog of JCPenney was available on facebook
JC PENNEY VISION
Associates - We value the contributions and talents of all associates and also develop and reward
them.
Reliability – We work with the highest manner and morals.
Performance – To perform at the highest intensity, we offer training.
Acknowledgment – We celebrate even if someone else achieve something.
Collaboration – Our way to win is to go through leadership, collaboration, open and honest
Excellence – We do our best in gaining excellence in work, product and services.
Innovation - inventive thinking and
Community - We are concerned about our communities and are involved in it.
communication and respect.
smart risk taking.
STRATEGY
•
Operational Excellence
•
•
Product Leadership
•
•
Customers get the best cost and a competitive price with a well liked manner
A strategy where companies always try put forward the best products to it`s customers
Customer Intimacy
•
Settling up a policy where individual customer satisfaction is established and product leadership
confirms a continuous stream of state of the art products and services .
Strategy for price
•
low price offered everyday
Unique products and services
Selecting younger customers for marketing
spruce up merchandising and product placement throughout the stores
STRATEGIC GOALS FOR 2012
EXECUTION PLAN
Improvement of internal procedures and coordination
Efficiency on an increase
Reducing cost reduction
Improving quality of products
Consumer loyalty increased
BREAK EVEN CHART
$12,000,000.00
$10,000,000.00
$8,000,000.00
Sales
$6,000,000.00
Fixed
Total Cost
$4,000,000.00
$2,000,000.00
$0.00
0
50000
100000
150000
200000
250000
RISK MANAGEMENT PLAN
Lose customers to competitors
•
If the retailer cannot deliver the everyday low price approach as promised. if the retailer
does not deliver as promised with their everyday low-price approach then they might start
to get fond of some other things like coupons and this will take business elsewhere
[Kohl's, Macy's (M),
Loss in revenue
•
If sales drop by 10% in Q1 of this year, would management then reconsider the pricing strategy
or closing stores or they might look for further cost cuts and will try to accelerate the rollout of
the new shops? (Levine-Weinberg, 2012)
SUMMARY
Decrease customer expenditure
customer worth raising
overall operational costs Simplification
REFERENCES
References:
Heller, L. (2012). Why JCPenney Will Be the Most Interesting Retailer of 2012.
Retrieved from http://www.forbes.com/sites/lauraheller/2012/01/26/why-jcpenney-will-be-the-mostinteresting-retailer-of-2012/
Jcpenney manifesto (2012). Retrieved from
http://www.jcpmediaroom.com/media/31/jcpenney-manifesto
JCPenney BIOS (2012). Retrieved from http://www.jcpmediaroom.com/browse/Bios
Soylent Communications (2012).J.C.Penney Retrieved from
http://www.nndb.com/people/656/000160176/
Sushinsky, G. (2010). Ackman’s Big Stake In JCPenney. Retrieved from
http://stocks.investopedia.com/stock-analysis/2010/Ackmans-Big-Stake-InJCPenney-JCP--FO-BGP-SHLD-M-DDS-GGP-VNO1013.aspx#axzz1nstgVPnH
Toy, T. (2012). JCPenney’s New CEO Ron Johnson, the Genius of the Apple Stores,
Begins the Transformation of JCPenney’s.PBT Consulting Blog. Retrieved from
http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2012/01/why-jc-penney-will-be-the-mostinteresting-retailer-of-2012.html
d'Innocenzio, A. (2012). J.C. Penney gets rid of hundreds of sales. Retrieved from:
http://finance.yahoo.com/news/j-c-penney-gets-rid-151954852.html
Horwath, R (2006). Strategy & Value: The Customer’s Treasure Chest Retrieved from
www.strategyskills.com
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