Recently, JC Penney has had some major issues that have to be resolved to help the company’s growth. The first major issue is that retailing stores keep losing ground to internet retails. JC Penney is now competing against online retailers such as Amazon, Overstock.com, and even Walmart. All of these retailers make it very convenient for their customers to buy things online by having good delivery options and innovating ideas. Additionally, another major issue is enhancing or improving customer experience. JC Penney must also work on expanding their targeted customers to receive more sales and revenues.
Discussion of the Organizational Strategy
The main purpose of having an organizational analysis is to understand the company’s strengths and weaknesses. When deciding what strategy to formulate, the company must match it with the environmental threats and opportunities against corporate strengths and
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weaknesses. In other words, the company must leverage their strengths to capitalize their opportunities.
For example, JC Penney has been in the retailing industry for many years (this is a strength) and this allows them to understand the sudden changes the industry undergoes through and it allows them to be prepared when problems arise. New companies might not understand or prepare themselves for future problems like JC Penney does due to the lack of years they have been part of this industry. The organizational strategy is an appropriate match for the organization’s environment because it allows JC Penney to review the things they are struggling with and weaknesses. It also helps JC Penney understand their strengths and opportunities and how to use them in their favor.
Application of Specific Business Theories and Conceptual Frameworks
There are different types of strategies for businesses such as the corporate strategy, functional strategy, and business (competitive) strategy. The corporate strategy is used to determine what business a company will own and operate (“Managing the
Business” 154). The business strategy takes place at the level of the business unit and focuses on improving the company’s competitive position (“Managing the Business” 154). JC Penney should focus on having a business strategy to be able to improve their service and product and to become a stronger competitor. Additionally, the functional strategy refers to managing specific areas such as marketing, finance, and operations to decide how to achieve corporate goals by performing their activities efficiently and effectively (“Managing the Business” 154). JC Penney should also have a functional strategy to make sure their company is keeping up to their short-term and long-term goals. Another concept that applies to this case is the competitive product analysis. Under this process, JC Penney would have to analyze a competitor’s products or services to identify desirable improvements. In addition, JC Penney must use strategic management to help the organization maintain an effective alignment with their environment (“Managing the Business” 153). Operational, tactical, and strategic plans can also help a company. For example, strategic plans refer to decision about resource allocation, priorities, and steps that need to be performed to meet the company’s goals. Tactical plans work with short-term goals and plans for implementing specific aspects of a company’s strategic plan. Operational plans are developed mid-level and lower-level managers. The operational plans set short-term targets for daily, weekly, or monthly performances (“Managing the Business” 157). JC Penney must focus on a hierarchical structure business model to make sure all of their operations are running down smoothly. Additionally, the model they follow must focus on managing problems.
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
a. Basically, corporation strategy demonstrates a corporation’s overall direction in the light of its general mindset toward growth and the management of its businesses and product portfolios. There are three crucial categories, which are stability, growth, and retrenchment, that involve within corporation strategy. Additionally, business strategy often occurs at the business unit or product level, and it highlights the improvement of the competitive position of a company’s products and service in the particular market segment served by the business unit. Competitive and cooperative strategies are two main categories that match within business strategy. Furthermore, functional strategy is the method that through a functional area to
It is important for an organization to analyze the appropriate economic factors and respond with the correct actions so that they may maintain a competitive advantage within their industry.
Technology does affect how JC Penney and other retail stores do their business. For example, with the new invention of cellphones, now managers must find ways to prevent their employees from using their devices while they are working. Using technology effectively can increase profits and revenues instead of harming the company. All of the companies must adapt to technology to increase and improve their customer service, speed the transactions, and effectively compete against other online stores. The internet allows customers to buy and search things online. JC Penney must have their company connected with the internet to attract more customers. Social media allows JC Penney to promote their services and products, stay involved with the community,
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
This is a crucial part of a strategic analysis because ‘…organisations do not exist in a vacuum, they are part of a complex world’ (Bowman 1987:61) and many factors can influence operations, beneficially and unfavourably. However, these can be difficult to comprehend due to their complexity, diversity and fast changing nature. Necessarily a number of techniques have been developed to facilitate the process and to ‘…contribute to answering the key managerial question…’of what ‘…opportunities and threats might arise in the future’ (Johnson & Scholes 2002:99).
The next major step in environmental analysis is analysis the organization¡¯s competitive position that is how it stands in relation to other organizations competing for the same resources, or customers, as it.
There are two main strategic types of competitive strategy that are most commonly used. Michael Porter gives us a strategic model that addresses two major concerns of a business unit. The first is market focus and the other is product cost or differentiation. Miles and Snow take a different approach at strategy. Their focus is more on the type of firm, based on how they act within a market.
I will first of all define business analysis as a practice of enabling change in an organization setting, by defining needs and recommending solutions that deliver value to stakeholders. Business analysis help businesses do better, it identifies and articulates the need for and how change in organization’s work and hence facilitate the change. Business analysis identifies and defines the solutions that will maximize the value delivered by the organization’s stake holders. The process of business analysis begins with the orientation were we get to understand or get the feel of what’s underway. Clarifying roles and determining primary stakeholders to engage in defining the project’s scopes and business objectives. Next in the process is to define
There are four main business strategies that can be used they are Cost leadership strategy, Differentiation strategy, Focus strategy (low cost) and Focus strategy (differentiation). We can use Porter’s generic business strategies to understand the difference in these strategies.
Strategic managers think in terms of three levels of strategy; Corporate, Business and Functional Level strategy. Corporate-level strategy is concerned with the strategy of the organisation as a whole, and includes all the units and product lines that make up the corporation (Samson & Daft, 2012). AirA...
Penney's approach to strategy is best measured using a SWOT analysis, which maps out the company’s strengths, weaknesses, opportunities, and threats. For instance, J.C. Penney's strengths include a strong liquidity position, an efficient supply chain, and a broad product and service offering. J.C. Penney's liquidity position grew to lend the industry from 2014 to 2015 (J.C. Penney Company, Inc., 2015). Strong liquidity against its competitors provides J.C. Penney with an advantage while funding any potential opportunity that arises in the market. Its supply chain facilitates the flow of goods between two thousand four hundred domestic and foreign suppliers, distributors, and stores (J.C. Penney Company, Inc., 2015). Its efficiency enables J.C. Penney to generate higher margins, which allows for lower prices for customers. Moreover, it allows the business to operate in a cost effective manner. The broad product and service offerings help the company serve the diverse needs and preferences of its customers. J.C. Penney also has the largest apparel, home furnishing, and general merchandise catalog in the United States (J.C. Penney Company, Inc.,
...llenging to the organization is undeniable thus the organizations really have to come out with competitive transformation strategies so that they are strong enough to compete with their business competitors (Tonono, 2008).
Strategy formulation is the process of establishing the firm's mission, goals, and choosing among alternative strategies or plans; it involves and implies that preparing the best approach to respond to the circumstances of a firm's environment, whether or not its conditions are known in advance; being strategic and tactical, then, means being clear about the management's aims; being aware of the company's resources, and incorporating both into being consciously responsive to a dynamic environment (SM, 2010). As nearly all businesses have limited resources, top leaders and management must determine which alternative plans or strategies will do well to the organization most; strategic management requires attention to the big picture and the motivation to adapt to circumstances, and consists of the following aspects:
Additionally, understood the strategy implementation, actions made by firms that carry out the formulated strategy, including strategic controls, organizational design, and leadership. environmental