JC PENNEY STRATEGIC PLAN

COMPANY OVERVIEW

James Cash Penney started JCP

“the Golden Rule” was his idea for treating clients reasonably

JCPenney commenced a shopping catalog with an immense success in 1964

JCPenney started a website based on online shopping in 1994

By 2010, entire catalog of JCPenney was available on facebook

JC PENNEY VISION

Associates - We value the contributions and talents of all associates and also develop and reward them.

Reliability – We work with the highest manner and morals.

Performance – To perform at the highest intensity, we offer training.

Acknowledgment – We celebrate even if someone else achieve something.

Collaboration – Our way to win is to go through leadership, collaboration, open and honest communication and respect.

Excellence – We do our best in gaining excellence in work, product and services.

Innovation - inventive thinking and smart risk taking.

Community - We are concerned about our communities and are involved in it.

STRATEGY

• Operational Excellence• Customers get the best cost and a competitive price with a well liked manner

• Product Leadership• A strategy where companies always try put forward the best products to it`s

customers

• Customer Intimacy • Settling up a policy where individual customer satisfaction is established and

product leadership confirms a continuous stream of state of the art products and services .

STRATEGIC GOALS FOR 2012

Strategy for price• low price offered everyday

Unique products and services

Selecting younger customers for marketing

spruce up merchandising and product placement throughout the stores

EXECUTION PLAN Improvement of internal procedures and coordination

Efficiency on an increase

Reducing cost reduction

Improving quality of products

Consumer loyalty increased

BREAK EVEN CHART

0 50000 100000 150000 200000 250000$0.00

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

SalesFixedTotal Cost

RISK MANAGEMENT PLAN

Lose customers to competitors• If the retailer cannot deliver the everyday low price approach as promised.

if the retailer does not deliver as promised with their everyday low-price approach then they might start to get fond of some other things like coupons and this will take business elsewhere [Kohl's, Macy's (M),

Loss in revenue• If sales drop by 10% in Q1 of this year, would management then reconsider the

pricing strategy or closing stores or they might look for further cost cuts and will try to accelerate the rollout of the new shops? (Levine-Weinberg, 2012)

SUMMARY Decrease customer expenditure

customer worth raising

overall operational costs Simplification

REFERENCES

References: Heller, L. (2012). Why JCPenney Will Be the Most Interesting Retailer of 2012.

Retrieved from http://www.forbes.com/sites/lauraheller/2012/01/26/why-jcpenney-will-be-the-most-interesting-retailer-of-2012/

Jcpenney manifesto (2012). Retrieved from http://www.jcpmediaroom.com/media/31/jcpenney-manifesto

JCPenney BIOS (2012). Retrieved from http://www.jcpmediaroom.com/browse/Bios Soylent Communications (2012).J.C.Penney Retrieved from

http://www.nndb.com/people/656/000160176/ Sushinsky, G. (2010). Ackman’s Big Stake In JCPenney. Retrieved from

http://stocks.investopedia.com/stock-analysis/2010/Ackmans-Big-Stake-In- JCPenney-JCP--FO-BGP-SHLD-M-DDS-GGP-VNO1013.aspx#axzz1nstgVPnH Toy, T. (2012). JCPenney’s New CEO Ron Johnson, the Genius of the Apple Stores, Begins the Transformation of JCPenney’s.PBT Consulting Blog. Retrieved from

http://tommytoy.typepad.com/tommy-toy-pbt-consultin/2012/01/why-jc-penney-will-be-the-most-interesting-retailer-of-2012.html

d'Innocenzio, A. (2012). J.C. Penney gets rid of hundreds of sales. Retrieved from: http://finance.yahoo.com/news/j-c-penney-gets-rid-151954852.html

Horwath, R (2006). Strategy & Value: The Customer’s Treasure Chest Retrieved from www.strategyskills.com