The Failure of Ron Johnson as CEO of J.C. Penney

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Introduction: Brief Professional Biography Ron Johnson was born October 15, 1959, and grew up in Minnesota as the son of an executive of General Mills. He received his Masters of Business Administration from Harvard School of Business and his Bachelor of Arts in Economics from Stanford University. As Vice President of Merchandising at Target, Johnson brought about a more upscale feel to the company with the introduction of new lines to the company. He was Senior Vice President of Retail Operations at Apple from 2000 to 2011, where he led a team that created the sleek, fun and functional Apple retail stores that can be found today. Most recently he was hired by J.C. Penney in November 2011 as CEO, where he received a tremendous amount of attention. Unfortunately his actions hurt the company generating negative publicity for him and J.C. Penney thus held his position for only slightly longer than a year. This paper will discuss Ron Johnson’s personality, decision making processes, leadership skills, and possible biases and how these aspects affected the companies that he worked for. Early Career After earning his MBA in Business from Harvard, Johnson turned down a high paying position at Goldman Sachs to take a position at Mervyns. This is why he took a low paying job with plenty of room for growth and turned down a high paying job with less room for growth. Johnson quickly climbed the ranks at Mervyns before taking a Job at Target. (CNN Money, 2011) While at Target Johnson held many different managing positions, but it wasn’t until he held the position as head of housewares that he made his biggest impact on Target. Here he designed a low cost house ware product line. After this risky move Johnson started getti... ... middle of paper ... ...ube. Web site http://www.youtube.com/watch?v=kzMIiQN7cVQ Reingold,Jennifer. (2012, March). Retail’s new radical. CNNMoney.com. http://management.fortune.cnn.com/2012/03/07/jc-penney-ron-johnson Sawyer, Keith. (2013, April). Why Ron Johnson’s Apple magic failed J.C. Penney. Market Watch. http://www.marketwatch.com/story/why-ron-johnsons-apple-magic-failed-jcpenney- 2013-04-10 Shrugged, A. Johnson, Ron.(2013). YouTube. Web site: http://www.youtube.com/watch?v=uN1rxbk8a0o Tuttle, Brad (2013, April). The 5 Big Mistakes That Led to Ron Johnson’s Ouster at J.C. Penney. TIME. Retrieved from http://business.time.com/2013/04/09/the-5-big-mistakes-that-ledto- ron-johnsons-ouster-at-jc-penney/ Useem, Jerry. (2011,August). How apple became the best retailer in america.CNNMoney.com. http://tech.fortune.cnn.com/2011/08/26/how-apple-became-the-best-retailer-in-america

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