Sean Bishun Thomas Navarra John Shagan Mark Syku

 Former CEO of J.C.Penney  Hired for previous success  Execution was described as “one of the most aggressively unsuccessful tenures in retail history”  Served as CEO from November ‘11- August ’13

 Former CEO Ron Johnson spent tons of money trying to “re-invent” the J.C. Penney brand, in order to compete with other brands like Macy’s and Kohl’s  There were a number of suggestions he could have implemented. Some include:

 Ron Johnson could have focused on improving online presence. This could have resulted in a better online presence for JCP today  J.C.Penney should stop focusing on the past; no more “brick and mortar” strategy  There are too many stores open that are underperforming. JCP should trim the fat

 The J.C. Penney management failed to reach out to the old traditional customers and communicate their new, radical changes  Once Ron Johnson took over as CEO, he ridded of coupons and slashed prices overall  This drove away traditional JCP customers and took away the incentive of shopping at the store  Benchmark- Modells

 JCP should design an ad campaign that shows direct care for their older customers by addressing their concerns in the ad  Another suggestion is to improve loyalty reward system for old customers (discounts to loyal customers)  Finally, J.C.Penney should implement a survey system to get more opinions from customers: what is working and what is not?

 J.C.Penney managers failed to communicate the new changes to their employees and this reflected poorly on them in the eyes of outsiders  A common result of managers and employees not communicating very well is poor performance from the employees and low morale in general  Benchmark- Overstock.com

 Management should conduct regular trainings for employees after new tactics are placed in the company  Management should also continue to emphasize the changes after training to ensure customers get the satisfaction they need  Finally, a change in the culture of the organization to emphasize the changes between the managers and employees would help improve morale

 Measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately  Quick Ratio = (Current assets – Inventory) Current Liabilities  As of February 1 st, 2014, J.C.Penney’s current ratio is 0.67 (4,833, ,935,000)/2,846,000  Since the quick ratio is under 1, JCP is having trouble paying off their current liabilities and should be looked at with caution  Benchmark- Nordstrom

 One way to raise quick ratio is to convert inventory to cash  Another way for J.C.Penney to get their quick ratio over 1 is to sell of all current liabilities  Finally, taking out a long-term loan for all current debt would also help improve the quick ratio

 Also known as the Price Per Share/ Annual Earnings per year = Price - Earnings Ratio  Equation can analyze the market’s stock valuation of a company and it shares relative to the income the company is generating  Share has dropped 8%  JCPenney still recovering from the missteps taken from former CEO Ron Johnson  Benchmark- Macy’s

 Former CEO Johnson announced his transformation vision in January 2012

 Set a goal of how much net income you would like to make. Close underperforming stores who doesn’t reach that quota to cut the lost created  Increase prices of items while keep discounts on other items  Get investors to cash in their shares to get more value for other shareholders

 Ron Johnson (CEO) got rid of sales while selling items  Customers were unhappy because of the ridding of coupons  Sales dropped 16%  Benchmark- Walmart

 Bring back “sales” method  Get managers and employers alike to come up with plans to sell to their target market  Offer more coupons through social media & newspapers

 With the ideas we came up with for the management and financial aspects of JCP, we feel that if implemented the store should see success in the future