Introduction of strategic audit of jcpenney

JC Penny is a commercial Organization with an impressive and heroic background with it. Unlikely many Commercial Organizations in this world, its pioneer had not had much wealth with him when he just started his career in his early career life. He rather started his career-line as a salesman under the supervision of his Masters named T.M Callahan and Guy Johnson so far. In April 1902, a young boy named James Cash Penny got recruited as a Salesman under the above-mentioned businessmen. James penny worked harder and harder to make his placement in the sales business. Sooner he attained his placement in his company as a Third Partner to his commercial out-let. He gradually emerged as a local businessman of great success in no span of time. By 1912, Penny was successful enough in opening more than 34 stores of his own that were providing qualitative services to all its customers.

Penny had successfully made goodwill and built up credibility for the businesses he was running those days. People started believing in his qualitative services, commodities, and standards. By the same year, Penny’s total net profit was around more than 2 million US Dollars so far. Penny became a success story for the people of his times and for the generations to come in the future times as well. He himself became an inspiring figure for the US public in particular And for the rest of the people of the globe in general. He also started to deliver so many lectures over the success story of his flourishing businesses all across the US. This made him an example for the Business Community of all the America within no span of time. His business mainstream slogan was to provide “unparalleled style, quality, and value to its products for its customers by all the time.” This made Penny win the hearts of the millions of his customers all across the US till that very time.

Figure 1: JCPenney

Source: (Jcpnewsroom, 2018)

History of strategic audit of  jcpenney

History of the Commercial Organization, JC Penny goes deep down in the times, penny himself was struggling as a salesman. He did not want to keep himself in a state of inertia by staying only as a Salesman for the rest of his life. He had a lot of big dreams in his eyes. He wanted to conquer the business world of the U.S.A firstly. Within no span of time, he accepted the challenge to jump into partnership along with his own Company’s owners. It really showed his courage and enthusiasm as an emerng businessman of the coming era. He did not even stop there but kept on moving towards the way forward. He looked giantly towards services industries where he proved himself distinctive and marvelous, unique in introducing “Clothing and Furniture Goods “for his customers.

Figure 2: Historical Background

Source: (Jcpnewsroom, 2018)

Customer satisfaction is a must in the business of services provision. Ensuring the commodities fine quality and keeping in view the prior demand and preference of customers in accordance with the changing fashion factor make you the giant businessman of its own kind. One cannot ever ignore this factor, which prevails in the market that whosoever would innovate his business in the changing world scenario will win the hearts of its customers and would enjoy a Goodwill and Credibility among its regular customers. It was again a never-ending story once he was convinced that he is the one who can better pamper his customers by keeping a sharp eye upon their demands in general and in particular.

Penny was the person with great velour and courage who set up his own mile-stone for the upcoming and emerging businessmen. His courageous and impressive history made him a hero of American business history. He would be remembered and tribute in the history of   American and global business. Nobody can deny or ignore his untiring efforts for the establishment of his business. He really set up new horizons in the sales business category as well. So he is always regarded as an Inspiring and Promising Businessman of his own class. He is a trendsetter of his own type who worked out as a Torch-Bearer in American Society in particular and in the Global Society in general.

Current Status of JCPenny Organization

JC Penny Commercial Organization, which started in the early 1900s as a successful business chain, is running through severe financial crises these days. It is now looked at as some declining chain of business. It has already enjoyed the status of growing business all through the twentieth century. The success story was made possible due to the constant struggle and courage of its pioneer named JC Penny. But today things are changed. the C.E.Os, Chairmen and New Executive body of present JC Penny Chain of stores are now may be different in their mental approach. A struggle plans more aggressively than a person who has got some chain of business in legacy only. So, we must say that the business approach of the pioneer, JC Penny, was far more aggressive and impressive than that of its predecessors.

The inherent of the said Mega Chain of Businesses is now running through the crises of lacking innovations in their plans. The present-day C.E.O s must have thought to bring out something innovative and creative in their stores. Once, it used to be the biggest chain of stores known all across the United States of America. But today, its management is failed in bringing and introducing new designs, standards, and quality in their relative products displayed in their major Store Shelves. That is why the year 2019 proved to be a slump year for the Chain of Stores run under JC Pennys Umbrella of business. Only this year, 27 out of 860 stores are shuttering down due to a lack of introduction in new designs and styles.

Running your business in accordance with meeting the need and demands of the present era or season is the only factor that can keep your business surviving in the present age. No business surviving on planet earth can exist without its continuous self overhauling mechanism. Consistency in your business requires your attention and interest in all matters. You can never keep your business running through your traditional and conservative mindset. We all are living in an ever-changing world where the only constant factor is its ever-changing phenomena.

This is the only phenomenon that makes us different in an indifferent world. Financial crises of such an age-old, classical Chain of Stores in the retail world astonished and shook so many people around America in particular and around the Globe in general. It made all the people totally shocked that such a renowned, trusted, and well-groomed, classical chain of stores can shrink its businesses this way. Because many generations have grown old with the system of these stores, the stores which had all under one roof for all and sundry, its consumers' items were also a never-ending story once. But most sorrowfully, it has now reached to a point where it is losing its real charm for almost all the retail customers of these stores. Every single customer around the globe has a prior mind-set to get discounted items for his necessities, at least. The customer has a prior mentality to be pampered and properly cared for by its dealer. 

The customer expects to get qualitative products on nominal or reasonable prices as present age’s customers are too smart and cunning as they are all moving and shaking the world in their hands with the massive and excessive use of android mobile phones. They have access to all product finest and cheapest rates offered by any of the outlets present in their own relative areas.

They are no more bound to travel or strive to acquire some of their desired products. products are accessible even at the doorstep of these own homes .the comfort level is much more important for every single customer in the present age. All are requiring innovative ideas, designs, and styles in their desired products so far.  Wherever they see something new, they suddenly rush for that very outlet. No matter how recently that outlet has emerged in the present market scenario. The most important thing to a customer is the variety of designs and styles so far. That is why the conventional approach of going after the traditional and classical outlets is a dying phenomenon nowadays. Today's world is known as a speedy world of making speedy choices. In this new world’s scenario, the Renowned, Well-Established, Traditional and Classical Outlets like JC Penny need to re-package their approach and style of marketing and showcasing their products so far.

Impact of Globalization of strategic audit of  jcpenney

Globalization is a modern phenomenon of just two decades or more only. The modern world started its Globalization voyage at the very start of the present Twenty-First Century so far. now it has emerged as a prevailing factor all across the globe. People from all across the world have an equal approach to all knowledge and wisdom. Consumer helping or consumer-friendly gadgets are all in the market. One only needs to google the products he requires for his home-usage  (Baffour Awuah, 2011). 

Every single human is all exposed to the global market price nets. All of the rates of the available product are easily mentioned and described in dollar prices all through the globe. One can easily know what petroleum products are getting sold in Saudi or America with just a single click of google even. the third world countries' governments can no longer befool its people by concealing the facts from their masses. The general masses are all having direct access to compare the prices of their regional products in comparison to the prices going on in the rest of the world so far. So, globalization is a factor that can not be ignored in the present day world scenario  (Albrow, 2016).

Everybody is enjoying its right to have information of all types through the usage of the internet .the world today is totally a changed world in comparison to the world of our ancestors. Our ancestors did not have much access to global affairs and scenarios the way we people are enjoying the freedom of spreading and gathering various types of news and information. Keeping in view, the present globalization factor, all the Business Organizations around the globe should develop a new mechanism for themselves for the sustainability of their classical businesses even  (Al’Abri, 2011).

 Identification of Industry and Competitors

J.C. Penney is one of the nation’s largest company that is not dealing in just one kind of a product, but it has a wide variety of:

· Furniture

· Bed and Bath

· Men, women and kids apparel

· Jewelry

· Shoes

It covers almost eight hundred and fifty stores across the United States of America; it also has dozen of stores in other countries as well. Along with Puerto Rico, it is one of the powerful e-commerce site, jcp.com, which is being used to deliver style as well as value for all the American families who are working hard day and night (Bergen & al, 2002).

It is a great time of evolution for J.C. Penney. Their heritage as a departmental store is evolving quickly to meet all the demands of the 21st century. Evolution is being done for a dynamic retail environment in which almost all of the personal technologies are influencing a different kind of decisions behind almost every purchase.

Many people who are living near the store visit it and purchase their favorite items from the store; in short, the majority of the sale is still being done in the store. While their online home page is not less than a store. Many different people buy through their online website by sitting at home or those who are not living near this store. There are many of the online shoppers who are finding multiple positive reasons to visit a J.C. Penney store. Almost there is a ratio of 80 percent of online orders which are touching the store.

J.C. Penney is a department store that is a leading destination for the style and value both. In the last few years, they closed almost 140 chains due to several different reasons. This is a store that is making something different from the market, and that attracts the customers. Due to their hard work and unique ideas, they made significant progress in their growth initiatives from the last two years.

The main focus on different items to make them remarkable

Their main focus is to maintain the style and quality by staying in a budget. Let’s have a deeper look at the main focus of the J.C. Penney:

Focus on Women’s apparel of strategic audit of  jcpenney

As we all know that Americans are becoming increasingly casual when it comes to their clothing and fashion. Whether women are going to the office, university or shopping they prefer wearing casual clothes which can make them comfortable and relax, but it doesn’t mean this at all that they don’t like to wear trendy and fashionable outfits. They are increasing the ratio of dresses, which are casual yet trendy to offer their customers a more balanced assortment of different styles.

The style for every size of strategic audit of  jcpenney

Wide variety in sizes is one of the major key points of the fastest-growing categories in represents, and sales play a significant role in the sale opportunity. There are many special kinds of customers who like to touch, feel and try on the clothes in a store to make sure they look good enough, and size fits them completely. J.C. Penney is one of those stores which shares a strong history of serving the special size customers no matter whether they are tall or short, fat or slime. Their team, while designing different clothes, always keep this fact in mind that no matter how is the shape of a body and how does it look, everybody and every person deserves a great style, and J.C. Penney is a store that always satisfies their customers.

Delighting young shoppers with new and different styles

Back in 2017, J.C. Penney launched a new section for the kids, especially with a wide variety and making it easy and comfortable for the moms to shop for their kids in no time. At times, it seems a great panic to look out for the clothes of kids who are of different age groups. So this problem has also been solved. Now mummies can shop a variety of clothes and shoes for their kids no matter which age group they are and which gender they have. This store provides stylish and comfortable clothes for the kids.

New Destination for the toys of strategic audit of  jcpenney

Now kids can shop their favorite toys be staying in the same store. They don’t have to look here and there to shop for their favorite toys. J.C. Penney made this sure that families who are coming to shop at their store must enjoy their trip as well. They offer toys of every age group for both girls and boys, and families show a positive response. They have different sections like dolls section, cartoon characters section and so on.

Helps in giving your home a new look of strategic audit of  jcpenney

J.C. Penney is a store that also deals in different styles of furniture, and now one can easily shop their favorite furniture from this store no matter whether it is a bed of master bedroom, children bedroom or sofa set of the lounge. They provide unique and different styles. They are also famous in their sheets, pillows, and towels.

Good News for the ladies and young girls of strategic audit of  jcpenney

Now all the ladies can have personalized beauty services at J.C. Penney store without looking for a salon where they can take out time for them and relax. They offer a complete variety of different services within a store.

Along with this, they are also providing a complete range of different cosmetics, which is the need of every woman these days. Starting from foundation to skincare products. Everything is easily available. They also offer different jewelry styles starting from lower prices towards the expensive one. They have beautiful and unique styles which increase the beauty.

Golden Rule of J.C. Penney of strategic audit of  jcpenney

The golden rule of this store has been set from day one when this store was launched, and it is still the same. Their main focus and aim are to make customers satisfied in every possible way. They never compromise on the quality and style as well. All the staff behind this store is loyal, passionate, and kind. All the staff of JCP always try their best to satisfy and help the customers in all the possible ways. This is teamwork, and nothing is possible if a single employee doesn’t complete their responsibilities honestly and enthusiastically.

Competitors of J.C. Penney

This is a department store that is not just famous for one thing in it, but it is providing multiple things and services under one roof. It has gained much importance in society and the citizens of the USA because of their quality and different, trendy styles. As we all know when anything in the market becomes successful than many different people also try to copy up the same idea and try to become famous. The same is the case here, there are several competitors this J.C. Penny store and trying to take the position of this store in the society as well as in the hearts of the people by applying different techniques.

When it comes to the discount segment, it is known that it plays a significant role in the retail and department stores, threats will be present constantly. Customers or buyers have several significant options when they have to choose from the cheaper department store. Therefore, JCP needs to understand the demands and values of the customers. Many customers prefer buying good quality stuff and don’t care much about the money, but it doesn’t mean that the prices can go high and high. The standard should be maintained along with the budget.

There are several different significant and similar challenges that all players have to go through in this industry to remain profitable and survive. These challenges include the low switching of the costs, the steady growth of the industry, and exit of a few barriers.

Top three Competitors of JCP are:

1. Sears Holding: It is considered to be JCP’s one of the biggest rivals. This brand generates almost 28 percent of the JCP revenue (Searsholdings, 2019).

2. Walmart: It is one of JCP’s top competitors. It was founded in 1962. As compared to the employees of JCP, it has 2,094,000 and more employees  (Walmart, 2019).

Target: It is the 3rd rival of JCP; it was founded back in 1902. This store generates $41.2 Billion in revenue (Wylie, 2018).

Above mentioned are the top three rivals or competitors of JCP. Let’s have a deeper look at some more competitors of this brand who are trying to make their roots strong. The below-mentioned table shows the top six competitors of JCP, along with some of their basic information (Dishman, 2012).

Al’Abri, K. .. (2011). The impact of globalization on education policy of developing countries: Oman as an example. ,. Literacy Information and Computer Education Journa, 2(4), 491-502.

Albrow, M. E. (2016). The impact of globalization on sociological concepts: Community, culture and milieu. Innovation:. The European Journal of Social Science Research, 7(4), 371-389.

Baffour Awuah, G. &. (2011). Impact of globalization: The ability of less developed countries'(LDCs') firms to cope with opportunities and challenges. . European Business Review, 23(1), 120-132.

Bergen, M., & al, e. (2002). Competitor Identification and Competitor Analysis: A Broad-Based Managerial Approach. MANAGERIAL AND DECISION ECONOMICS, 23, 157–169. doi:10.1002/mde.1059

Dishman, L. (2012). Why Wal-Mart and J.C. Penney Are Still Struggling. forbes.

Jcpnewsroom. (2018). JCPenney. Retrieved from https://www.jcpnewsroom.com/about-company-info.html

Searsholdings. (2019). About us. Retrieved from https://searsholdings.com/

Walmart. (2019). About us. Retrieved from https://www.walmart.com/

Wylie, M. (2018). Wal-Mart is top brick-and-mortar retail stock, J.C. Penney lagging. bizjournals.