Jc Penney Versus Harley

In: Business and Management

Submitted By offsides1971
Words 956
Pages 4
Corporate Strategy Benchmarking Composition
By
Kelli Schroeder

I chose JC Penny and Harley Davidson as my two companies to research for this assignment. JC Penney was founded in 1902 with the opening of its first stores along the west coast in small mining towns. It was popular because it brought goods at “one fair price” and also led the way to bring east coast fashions to the west. In 1963 JC Penney mailed the first catalogs out to customers in eight states and paved the way for the mail order business. What made this company strong, fashion at a fair price, was lost among the plethora of items from cookware to scarves that they now sold by mail, and later in stores. ("International directory of," 199) The early nineties brought struggles of competition with lower end stores like Wal-Mart and midrange stores such as Kohl’s. JC Penney found their merchandise had become diverse like Wal-Mart; however, their prices were higher like their competing boutique stores. Product value was perceived by consumers to be suffering. Profits for the more than 1200 stores fell two percent in only one year, leading JC Penney in have the worst performance of its peers in 2011. (Clifford, 2012)
Harley Davidson has also struggled with the same issue of losing itself amongst fierce competition and diversification. Harley-Davidson began in a shed in 1903 by two brothers who set out to make the best American made motorcycles that money could buy. As Harley-Davidson became more successful, management decided to expand their success with two more companies. They deviated from the heavy touring and custom bikes and began producing a wide range of sport performance cycles. Buell sport cycles were the first to be developed and an even more premium sport cycle under the MV Agusta name came next. A very lightweight sport cycle was added later under the Cagiva name.…...

Similar Documents

Jc Penny

...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......

Words: 772 - Pages: 4

Jc Penney

...1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels. 2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the game plan on how the mission will be accomplished. Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales have been “engineered” to pay for it. It appears to me that with Mr. Johnson’s leadership Penney’s is following the five steps of strategic-management process. 5. I feel Penney’s is trying to follow Porter’s Cost-Leadership Strategy: ......

Words: 388 - Pages: 2

Jc Penny

...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......

Words: 319 - Pages: 2

Penney

...MGT 300 Ford and Penney Write-up • James Cash Penney was born on September 16, 1875 and died at age 95 in February 12, 1971 of a heart attack. He was the son of a poor framer, preacher. From the video we watched in class we learned “poverty shaped his moral structure” and, “self reliance was learned from his father.” He believed in “do onto others as you want them to do onto you.” He had an enormous drive to succeed he believed “hard work, high morals, anyone could achieve the American Dream.” • Penney was both a manager and entrepreneur. Working at JM Hales he knew he had to assert himself, he was a top salesman, and he was determined. In 1898 he managed a Golden Rule clothing store. By 1902 he was 1/3 partner in a store. In the store were 1 price goods, low prices, and variety. By 1908 he owned 3 stores. As the years went by he opened more and more stores. By 1917 he had 175 stores. He would not hire any man that didn’t have the capacity to become a partner. When one of his store managers had saved enough money, Penney would help him open a new store as part owner. The manager agreed to train someone to take their place at the existing store. The new manager would then train others until they started up their own stores. In 1929 he worth $40 million, and known as the man with a thousand partners. By the time of his death he had over 1600 stores. • Penney’s ethical behavior was shown in his early years while working at a butcher shop in......

Words: 447 - Pages: 2

Why Did Mike Ullman Decide to Change the Age-Old Culture at Jc Penney (Jcp) Just After a Successful Turnaround?

...Why did Mike Ullman decide to change the age-old culture at JC Penney (JCP) just after a successful turnaround? JCP was originated by a dry goods and clothing store in 1902. In 1907, Penney bought the stakes of his partners and concentrated on expanding the number of stores. The JC Penney Company was incorporated in 1924 and it had been running successfully. Until 1990s, the expansion model had started to show up problems. When competitors were going in for centralized merchandising and inventory systems, JCP was still using a decentralized system of purchasing which resulted in stretched out lead times. JCP was no longer perceived as different from its competitors. Its financials and share prices also plummeted. Luckily, between 1999 and 2004, there was a turnaround in JCP. It was orchestrated by Castagna and Questrom, who joined JCP as COO in 1999 and as Chairman and CEO in 2000 respectively. They were the first outsiders to join JCP in their respective positions. Turnaround occurred in aspects below: 1. To centralize the buying activities and revamp the stores, funds were needed. The funds were raised through the sale of JCP’s Direct Marketing Services (DMS), which sold insurance and travel and auto club programs. It led to significant working-capital improvement. 2. JCP has also closed down 120 outlets that were not performing well. It generated an increase in free cash flow. 3. Ad campaigns were launched and the stores were given a face-lift. New designers...

Words: 784 - Pages: 4

Annual Report Analysis of Jc Penney

...Annual Report Analysis of J.C. Penney Company, Incorporated Sarah Gray & Jade Vinson Hampton University Abstract This paper is going to provide an analysis of the J.C. Penny Company, Incorporated (JCP) and its financial statements. We begin by giving a background of the company and an overview of the company’s commodities for brief understanding; and then proceed to discuss the financial state of JCP. We review and analyze the company by calculating ratios necessary to conclude JCP’s current financial health. We then provide a section showing the company’s current pro forma financial statements. Next, there is a pro forma projection for the year 2020. Lastly, there will be a regression analysis comparing the stock prices of JCP to the S&P 500 Index. Keywords: ratio, projection Annual Report Analysis of J.C. Penney Company, Incorporated In 1898, James Cash Penney entered into business with Guy Johnson and Thomas Callahan for their dry goods stores called Golden Rule located in Wyoming and Colorado. The following year, Penney was sent to Wyoming to open a new store with the owners using his savings and the help of a small business loan. After the opening of the first store on April 14, 1902 he opened two more. In 1907, Johnson and Callahan ended their partnership and Penney bought full interest at all three locations. By 1912, there were 34 stores open and in the following year the company became incorporated under J.C. Penny Company and William Henry......

Words: 1280 - Pages: 6

J.C Penney

...J.C. Penney There is a major issue when a giant retail stores announce they are closing some their stores. However, the issue becomes a management issues when they replace the CEO of the company. JC Penney retail store has a management issues that are as big as their overlarge stores. They are replacing the CEO in hope to correct management issues that has plagued the giant retail store. The retail store giant J.C. Penney announced that the CEO Myron E. Ullman will replace with a new CEO Marvin Ellison. This is a hope that Marvin will slow down and hopefully turn the decline of the giant. JC Penney also has announced they will close forty stores nationwide. These closures are due to issues with JC Penney managing large number retail stores. JC Penney stores are underperforming because the retail store became too large to manage. According to Gray Strauss to has quoted consumer psychologist Kit Yarrow “”Consumers have lost their enthusiasm for trolling through massive stores hunting for a bargain. They can do that online” “. This is an indication that J.C. Penny has failed to keep up with today’s shoppers. It also has failed to attract young generation shopper. Young generation shoppers’ lives are surrounded by smartphones, tablets and computers and are doing most of their shopping online. The retail store has depended on clearance to attract and attain customers; however, these clearances can be easily found through online retailers. Therefore, customers are skipping......

Words: 1377 - Pages: 6

History of Jc Penney and Target

...Analysis and Comparison: JC Penney (JCP) and Target (TGT) Becky Kennedy FINC 350 A Professor Mason February 1, 2015 JC Penney and Target are a huge presence in the retail industry. Both companies specialize in the sale of merchandise and service to consumers through retail stores and e-commerce. Target and JC Penney are companies that are part of an industry known for its competitiveness and few barriers to entry. They compete with other local, national and regional retailers for resources such as customers, employees, locations, merchandise, and other aspects of the retail business. Both companies have stores at several locations throughout the United States, with both company’s operating results depending on their ability to predict and respond to changes in trends and customer preferences by providing consumers with quality merchandise at competitive prices. Both companies face the same kinds of risks. The answers are in the way they are managed. The retail industry is risky with Target and JC Penney both struggling with issues resulting in lost revenue. Risks faced by companies in the retail industry most likely include competition, marketing, branding, employee/customer retention, supply chain management, financial management, data management and much more. Target suffered from a data breach at the end of 2013 that proved to be costly and they are still subject to investigations and private litigations costing them millions of dollars. JC Penney has suffered......

Words: 1109 - Pages: 5

History Target/Jc Penney

...Running head: HISTORY: TARGET AND J.C. PENNEY 1 History: Target and J.C. Penney Russell Canady Columbia College HISTORY: TARGET AND J.C. PENNEY 2 History: Target and J.C. Penney In 1902, Target Corporation began as the Dayton Dry Goods Company. It was George Draper Dayton’s vision to create a store that was in tuned in his belief of “a higher ground of steward ship. The Store soon became known for dependable merchandises, fair business practices and a generous spirit of giving” (Founders, 1). George Draper Dayton would stay as president of Dayton Dry Goods Company until his passing in 1938. From then on his family would grow Target Corporation in to the second largest retailer in the United States. Growing this huge nationwide retailer had some great and not so great milestones along the way. In 1911, the name Dayton Dry Goods Company changed to Dayton Company “to better reflect its wide assortment of goods and services”(Corporate, 1). 1953 brought with it new ventures of the Dayton Company. The company ventures into offering furnishings and decorations for businesses. During this time the name Target surfaces under the name Target Commercial interiors. The following year Dayton Company expands even further with a new location outside of Minneapolis into Rochester. In 1962, the company officially changes the......

Words: 562 - Pages: 3

Jc Penney

...J C Penney Company, Inc. is an apparel and home-furnishing retailer (JC Penney Company, Inc., 2014). The Company is dedicated to being a preferred retail location for unparalleled attractive, quality, and value at approximately 1,100 stores and at jcp.com (Penney, 2013) . Customers have discovered an inspiring shopping environment that includes a collection of private and exclusive brands along with many new and exciting attractions (Penney, 2013). More than a century ago, James Cash Penney founded the company as an active and responsible community member thus earning a distinctive place amongst American families (Penney, 2013). Mr. Penney opened the first store and practiced many courtesies that are now commonplace (Columbia Business School, 2001). Practices such as money-back returns, uniform pricing, quality merchandise, and pleasant customer service set the store apart from the competition (Columbia Business School, 2001). By investing in the business and remaining committed helped build the company’s legacy. This mode of corporate citizenship continues to contribute to the advancement of social, environmental, and ethical standards (Penney, 2013). In fact, adherence to high ethical standards is an integral part of the organization’s legacy and is vital to shareholders, customers, and suppliers (Penney, 2013). The author will evaluate the changes of J C Penney’s management style, explain the shift from a catalog-based retailer, and discuss the decision to use......

Words: 1633 - Pages: 7

Jc Penneys

...Matt Gerstenkorn J.C. Penney Exercise Dr. Robert H. Ross Marketing J.C. Penney Exercise Small and midsize businesses play an important role in our economy. Every day, they fight for our attention while also trying to gain any leverage they can over the big box retailers like Amazon, Target, Wal-mart, and more. There’s no doubt that social media is playing a crucial role in this battle. So the question is, how could J.C. Penney's even attempt to keep up with these massive retailers through social media? The impact of social media on a company's bottom line is tough to quantify, with no hard data on how millions of Facebook fans translate into sales for stores. But during the holiday shopping season, a roughly two-month period when retailers can make up to 40 percent of their annual revenue, stores are uncovering a valuable use for all the seemingly useless online muttering: market research. I believe J.C. Penney's could most utilize the like button. When people press the "like" button, they are giving their seal of approval for a particular company's page which could also lead to people commenting on how much they like the leather boots they just bought. Those are the people that are helping everyone from independently owned small shops to the nation's biggest retailers make decisions about what products to stock up on, what to play up on the sales floor and what promotions to offer online. The way that J.C. Penney's could utilize twitter is by using the common......

Words: 503 - Pages: 3

Jc Penny

...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......

Words: 591 - Pages: 3

Jc Penney Strategic Marketing Plan 2012: Product Strategy

...JC PENNEY STRATEGIC MARKETING PLAN 2012: PRODUCT STRATEGY A Paper Submitted to the Graduate Faculty of the North Dakota State University of Agriculture and Applied Science By Alisha Liane Ostlund In Partial Fulfillment for the Degree of MASTER OF SCIENCE Major Department: Apparel, Design, and Hospitality Management April 2012 Fargo, North Dakota North Dakota State University Graduate School Title JC Penney Strategic Marketing Plan 2012: Product Strategy By Alisha Liane Ostlund The Supervisory Committee certifies that this disquisition complies with North Dakota State University’s regulations and meets the accepted standards for the degree of MASTER OF SCIENCE SUPERVISORY COMMITTEE: Linda Manikowske Chair Holly Bastow-Shoop Jaeha Lee Gerry Macintosh Approved: 04-24-2012 Date Holly Bastow-Shoop Department Chair ABSTRACT The JCPenney Company has undergone a transition from a value retailer to a streamlined, customer-driven retailer in order to set itself apart from its biggest competitors, Macy’s and Kohl’s. Previously, JCP was focused on general, storewide promotions. Currently, JCP has retooled their image to reflect a standard set of prices and special savings. In this exploratory look at JCP’s merchandising strategy, both previous and new methods are examined and additional steps to improve the returns on merchandising investments are offered. During this study, a detailed examination of JCP’s internal and external environments has been conducted, and an......

Words: 11736 - Pages: 47

Jc Penney

...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Jc Penney In: Business and Management Jc Penney 1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels. 2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the game plan on how the mission will be accomplished. Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales......

Words: 526 - Pages: 3

Jc Penney

...the Successful Change 8 References 11 Introduction JC Penney was a thriving retailer business that played on consumer’s emotions and made a consumer feel proud of themselves. JC Penney as a retailer created a buzz about themselves with their pricing strategy and coupons that they offered to their consumers. Consumers often discuss the sales and the great price of a sale of items amongst themselves. This was definitely a strength for this retailer. JC Penney was also a great place to shop for big and tall in a concrete building and store, not a catalog that was another appeal to their consumers. J.C. Penney was using a decentralized system of purchasing merchandise and inventory while other companies began to use centralize systems. To centralize the buying activities and revamp the stores, funds were needed. Funds were raised through the sale of JCP’s Direct Marketing Services, which sold insurance and travel and auto club programs. It led to a significant improvement of cash flow. The company then began to close down 120 of outlet stores that were under performing and sold its interest Eckerd drugstore chain to improve an influx of cash flow. J. C. Penney lost its edge over its competitor and started to lose money in the 1990’s and their investors were starting to get weary and the shares were plummeting from this event. J. C. Penney only hired from the inside until the end of the 1990’s. J. C. Penney has undergone major changes at different time periods......

Words: 2601 - Pages: 11