Jc Case Study

1069 Words3 Pages

As humans we can only retain so much knowledge. To the CEOs and managers who are resistant to changes, JCP is a prime example of how overconfidence, bias, not looking both at the inside and outside view, not paying attention to competition, and not paying attention to what customers want, can lead to good decisions turning into bad outcomes. Companies like JCP should take their time to evaluate their choices and judgements to improve their decision making process. One reason for resistance might be that CEOs and managers are strong, smart business people who have experience, therefore their decisions are for the better of a company. They feel like they know what is best for their company’s success. However, experience does not mean you are …show more content…

Overconfidence in people like the CEO, plays a big role in JCP’s failure to succeed. Johnson set very ambitious goals due to his experience and previous successes with companies like Apple and Target. Unfortunately, Johnson was not flexible with his decisions. His thought process was that if it worked once with Apple and Target, it can work again with JCP. He did not process, identify red flags through his strategy and implementation, and lost the best opportunity to adjust before matters got …show more content…

Throughout the recession, Macy’s and Kohl’s decided to keep coupons and discounted rates, and constant sales, to keep customers wanting to shop. These stores also recognized the opportunity e-commerce would bring to their business and spent money on creating a better online shopping experience, while JCP ditched that idea and focused on improving the appearance of its physical stores. It also kept to EDLP while Macy’s and Sears had both tried that pricing strategy in the past and had failed because they realized that customers are more attracted to and will pay more attention to coupons and discounts. Additionally, Johnson did not include a crucial piece in his strategy. He mentioned retraining customers to shop, but he didn’t explain why this was so important or even necessary. They did not explain to customers “why” they no longer have to think of sales to believe they are getting a good deal, because the deal is already in JCP items without the

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