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its long term goal is focused on establishing 80 to 100 more branding stores within a store. Objectives JCPenney’s goal is to become the leading store in the retail industry. Strategic Controls.Implementation. Implementation Plan JCPenney tried to create a newer version of the company through its strategic plan inclined to obtain a competitive edge. task ownership and resource allocation. improve its success rate. and modify financial expectations. The new strategy will have effects on organization. . this implementation plan will focus on objectives. JCPenney would have to identify the risk factors related to the strategy. The implementation plan has to be reviewed by top management to ensure that JCPenney will be walking on the roads of success. and Contingency Plans To make JCPenney’s strategy successful all the important factors must be considered. This objective is slowly being achieved by the company through its fair and square pricing. It will guide the organization in making sound decisions. Its logo was also made to match that of the American flag to show its goal of conquering America. action items deadlines. Hence. On the other hand. These are the everyday low prices. functional tactics. This pricing scheme includes three sets of prices. month long values and best prices.
This is why the timeline they create shall be reasonable enough to finish the tasks in their proper schedule. The company still has to improve on its product quality to continue its existence in the industry. These include framework. equipped with knowledge in pricing strategies. The organization believes that this will bring the company to a greater height. All these are grand strategies that assure accomplishment of shortterm goals. the company is adversely affected by economic changes. properly trained. Milestones and JCPenney’s deadlines For successful implementation. and trained in necessary technology. But this was not the focus of JCPenney. Goal achievement is something which cannot be rushed. the company focused on reduction of costs. Action Items and Task Ownership Action items must be identified in strategic planning. approaches in marketing. The current .Functional tactics These tactics are key elements in a company’s daily functions. Resource Allocation Allocating resources must also be considered in developing a strategic plan. JCPenney lacks differentiation thus. Instead. operation and manufacturing. JCPenney developed milestones and deadlines to create a timeline for its goals. and the efficient management of labor. Every employee shall be oriented to giving the best customer service.
He stated that JCPenney can be America’s favorite store but it takes a lot of planning and implementation to achieve this (Korn. modifications can make JCPenney a successful business in the industry. and then eventually identify their necessities and interests. etc. 2012). These .44. Target.” it has to introduce further changes in its organization.com.CEO of JCPenney said that closing stores will not make any sense when the company doesn’t have yet the control over the entire picture of the scene. Apple‘s former senior vice president (Wall Street.1998).. JCPenney’s stocks were offered for $23. Johnson has the better view on this because he knew that people are tired of deciding on the proper occasion to acquire items in the market.com). This new CEO is no other than Ron Johnson. He is well equipped with skills and wisdom in the retail industry and his professional competency can carry JCPenney to the heights of success. JCPenney has been in business for 110 years and is one of the oldest stores and had been in the downside for the past five years. The end product of this analysis shall disclose the opposing class of people. The company evaluates individual preferences and analyzes the effects of the environment to these preferences (Aladwani. JCPenney’s second move is analyzing the target market. JCPenney’s first leap towards the execution of its strategy is hiring a new chief executive officer effective November 2011. The Dayton Hudson Corp. As disseminated marketwatch. Johnson is popular for his successful crafts: Apple. If JCPenney really wants to be “America’s Favorite Store.
fixed costs components are highly important. Fixed costs are analyzed in relation to every unit’s variable cost components. This therefore entails sufficient budget allocation for procurement process and trainings. and managing the supply chain efficiently. This point indicates the quantity where all costs are covered. Allocation of budget must be checked from time to time to monitor efficiency and effectiveness of the plan in meeting its long term objectives. T-shirt 1 . what must be monitored is the sufficiency of allotments to marketing and sales departments. Instead of increasing the dividend pay-out ratio. Financial forecast reveals an increasing GDP which is expected to positively affect JCPenney’s financial status. The break-even point is where total revenue is equal to total cost. These success factors include maximizing revenue. The 2011 statistical data on its financials is anticipated to remain at its current high rate. Presented below are the breakeven presentations for some of JCPenney’s products. In effect. Total revenue is arrived at by getting the product of the number of items sold and their respective unit prices. Of equal importance is the budget for the work force department for it is the company’s resource of labor. distributing channels effectively. This is in line with the company’s fair and square pricing strategy. In break even analysis. there is no income when no product is sold. The number of personnel assigned in every department and store must be considered.Strategy and Key Success Factors Essential in JCPenney’s existence is the preparation of a strategic plan for key success factors.
Dollars Total Revenue Total Costs $ 1950000 Break-Even Point Sweater 48762 Units of Output . Dollars Total Revenue Total Costs $ 650000 Break-Even Point 32516 Cardigan Units of Output Cardigan has a break-even quantity of 48762 wherein the break-even dollar value is at $1950000.T-Shirt 1 has a break-even quantity of 32516 wherein the break-even dollar value is at $650000.
Sweater has a break-even quantity of 39010 wherein the break-even dollar value is at $1560000. Dollars Total Revenue Total Costs $ 2600000 Break-Even Point 37148 Units of Output . Dollars Total Revenue Total Costs $ 1560000 Break-Even Point 39010 Units of Output Outerwear Jacket Outerwear jacket has a break-even quantity of 37148 wherein the break-even dollar value is at $2600000.
Contingencies can adversely affect an organization’s success. Despite efforts to get the bigger portion of the market. Risks and threats should always be noted in making the timeline. Dillard's (DDS). One way to prevent organizational failure is making a risk management plan that will serve as the company’s shield (Hyden. The product costs are evaluated according to the product on which they are associated then these are compared to each product’s selling price. There is no public statement that JCPenney adopted a risk management plan but the entity has to consider this very important aspect. JCPenney cannot control and manipulate other organization’s strategy and motivation to grow. He further states that risks have to be analyzed. 2012). Macy's (M). and controlled.Break-even point shall be computed on an item by item basis since each has different costs to consider. 2011). Competition can be one of the risks that JCPenney would have to anticipate. Dealing with risks shall be part of JCPenney’s current priorities aside from getting the heart of every customer. The probability of every risk factor and the degree of its possible effects must be studied carefully. All efforts could go to waste when these risks are not given proper attention. In Tim Hyden’s article entitled National Fire Protection Association. .]” (Levine-Weinberg. etc. Hyden emphasized that risk management is essential in assuring and entity’s success. Risks Companies shall have their own tailor-made strategic plans matched with the possible timeline for every execution methods. monitored. Other entities will surely make their own promotional scheme to which JCPenney shall take adaptive measures so as not to completely lose its market [Kohl's.
Controlling risk is adopting measures to eliminate or at least reduce the possible negative effects of the recognized risk factors. Execution of the plan shall be monitored accordingly that is to evaluate whether the plan is really working for the company’s goal achievement and whether the back-up plan is really opening the door for revitalization (Hayden. JCPenney will evolve from being a mall . It is essential to continuously monitor every decision that the entity makes to see the effects of these decisions to the buying public.reassessment of pricing strategy. To illustrate. JCPenney may make a periodic assessment of its pricing method and look for the possible means of loss recovery in case the entity would have forgone sales. JCPenney acknowledged the existence of several possibilities that they should focus on to prevent further revenue decreases. It is important to execute risk management plan as the need arises. If plan A fails plan B will be your back up. In the long run. here is a scenario: when sales in the first quarter is decreased by 10%. 2012). 2011). These measures are embodied in contingency plans set in place (Hyden. In summary. JCPenney’s management must therefore equip its personnel with the necessary background of this risk management plan otherwise. the company might have these options in place. the execution will be hard. and acceleration of the roll-out of new outlets (Levine-Weinberg. closing stores. adopt measures to lower costs. 2012). Implementation of the plan shall be as smooth as possible to assure the accomplishment of the purpose for which it is designed. The key success factors that the company put into place is having a new CEO while modifying operations. Risk management plans are often regarded as “PLAN B”.
.department store into the leading clothing line distributor and manufacturer in United States.
54HYDEN. Strategic Sourceror. Retrieved from http://finance.wsj. (2012). Fire Engineering. About JC Penney's CEO Ron Johnson.References 5 Critical Questions For JCPenney's Management.com/article/325792-5-critical-questions-for-j-c-penney-smanagement.yahoo.99. Retrieved fromhttp://seekingalpha. (2012). MA. (2012). Boston.html . (2012). ``Coping with users resistance to new technology implementation: An interdisciplinary perspective’’. (2011). Risk Management: Planning to Avoid Losses. 164(10).. (2012). R. 17-20 May. pp. 2012.com/blogs/daily-ticker/j-c-penney-ceo-becomeamerica-favorite-company-160649186. Retrieved from Bloomsburg BusinessWeek. JCPenny’s risky new pricing strategy: The retailer’s products maybe too homogenous to succeed.C. Aladwani.com/article/APefac0ec7e2984fbaaa5452fd33b92664. J. Wall Street Journal. T. JC Penny chief executive outlines company’s plan to reinvigorate brand. January 30.html Mohammed. A. Proceedings of the 9th IRMA Conference. Retrieved from http://online. Harvard Business Review. Penney CEO: We Can Become America’s Favorite Company. (1998).
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