Penney

A 19% step-down in selfsame(prenominal) store sales took place in the head start quarter of 2012 for J. C. Penny followed by 350 employee layoffs and the de set popure of President Michael Francis (Turner, 2012). This led to a prototype of their new store c at one timept in collection to cede the social club. CEO Ron Johnson, responsible for the redesign of Apple stores, was bought on as part of the team to agree this turnwell-nigh successful. Unfortunately, Johnson struggled to implement his new company flock to make this transformation which was originally dependent on discounts and coupons to drive sales.Johnson launched a three-tiered pricing scheme meant to make the shopping experience simpler and attract more than nodes. Advertising and direct mall received new eye sleuaffair attention. similarly the company mixtured the concept of constantly demand sales to consistently having lower prices. Incomplete execution of the change is why the intended results failed to raise (Basin,2013). A complete transformation was attempted by J. C. Penny, however failed to impart any customer touch-point. Merchandising, Marketing, Customer Service, Store Environment, and its new character were the areas that inevit fitting 100% focus and planning.The around important agents of change, the employees, had non been completely brought on board. This being the case, the strategy failed to generate the urgency and excitement required to make the change successful with employees and customers. One of the stupendous mis trains was perhaps too practically change too quickly without adequate testing on what the partake would be, said Bill Can tramp, the principal look ath elderer of J. C. Penny(Edwards, 2013). As good as Johnnys Intentions authorizedly were, he was not experienced with bringing a retail store above ground.The director image is the image that best suits this administrational situation of ever-changing how J. C. Operates on a day-to-day ba sis. This image is ground on an image of management as control and of outcomes being manageable (Palmer, 2009). It is up to the change manager Monsoons) to direct the system (J. C. Penny) in specialized ways to reach the desired outcome. It is assumed that the change is a well-planned selection that managers make and the well-being and survival of J. C. Penny depends on them. The objective is to be a better-performing, better-aligning organization.You rearnot change the organizational nuance without knowing where your organization wants to be or what elements of the current organizational culture need to change. When an organizational culture Is already launch, people mustiness unlearn the old values, assumptions, and behaviors before they can learn the new ones. Executives must lead the change by changing their own behaviors. It is extremely important for change. Members of the organization must clearly fancy what is expected of them, and must know how to actually do the new behaviors, once they arrest been defined.The culture of the change is that the sales have plummeted significantly, employee layoffs, and the departure of the chairman (Townsend, 2013). The role culture played in the change is that the economy changes and so do people and what hey desire. What might have massageed in the retail headache one year might not work the next. The changes that took place in the J. C. Penny Company were most definitely Second order, discontinuous change. This change is transformational, radical, and primaevally alters the organization at its core (Palmer, 2009).What Johnson is severe to do is seen as large-scale and disruptive, and so is second-order change. J. C. Penny is transforming the nature of their organization, not developing. This is already an established and well known company it Just needs to turn itself around to be saved. For example, if we were to go skydiving it wouldnt be successful to Jump out while we were not flying. Therefore i n order to arrive at a successful place to make the Jump, we have to stay in the same plane and fly around to move to the right spot. Johnson is a new face to the company and customers and should not come in and only throw out all things old.Instead of this drastic change to sponge out all that is old, the old and new should be integrated. Not everything that is old is broken and it once worked perfectly fine. However since the beginning of the pedigree orifice there have been changes, and now they Just arent working. Empowerment and teamwork should be seen as assisting in the development of functional and di mintal structures rather than replacing them (Palmer, 2009). Since this study change is restructuring and reengineering, this is altering the basic functioning of the company and therefore is transformational.In order to deal with highly competitive changes in the business environment, producing a fundamental reorientation of J. C. Penny is demand. Some of the key challen ges with J. C. Penny are change magnitude quality and customer value, enhancing concept, motivating rung, and enhancing competitive advantage. These challenges can easily be met if the right rationales are put in place. To increase quality and customer value Johnson needs to increase customers expectations (Palmer, 2009). Without customers, retail store would be non-existent. Enhancing innovation needs to meet customers expectations.Customers Expectations are hard to only assume without doing becoming planning. Motivating staff needs to gain effective contributions. This is one of J. C. Pennys portentous faults. The employees were not fittingly trained and knowledgeable about the new changes. world sore about the opportunities of a many and being able to capture that message to current and future customers is everything when a new system is turn over out. The method for implementing the change was simple, or so Johnson thought. Johnson thought it do awareness to cut to t he chase by listing realistic prices from the get-go and antecedent nonstop sales.It does make logical sense. However, customers are often drawn to stores not by the promise of fair pricing, but by the lure of airup for deals using coupons and price markdowns. The How Much You Saved line at the arsehole of the receipt serving as a score is nice to look at until one day it disappears. Even Johnson acknowledged the mistake the stores had do when sales started falling even more in summer 2012 be known as having consistently low prices. The vision of the company is the most important thing to know so you know where to start with plans, objectives, and budgets (Palmer, 2009).Vision unremarkably paints a picture of the future and is inspirational. If J. C. Penny had a well-specified market vision, this would have helped to identify how the company would have grown and competed. Meaning is created throughout the organization about what it is the organization does when the vision is a ligned with the knowledgeable dimension of organizational beliefs and values (Palmer, 2009). The change that J. C. Penny went through was communicated poorly. J. C. Penny failed to insure every customer touch-point. Customer service, Marketing, Merchandising, store environment, and employees were not fully developed (Edwards ,2013).The biggest declivity was the employees not being fully onboard. If employees are confused or timid about a new change than it would be impossible to share this with someone else. This caused a lack of urgency and excitement that the company needed to make the change successful. On a scale of 1-10 of the change agents work in the execution of the new vision for J. C. Penny, I would give him a 2. While his intentions were good and he thought he had the experience needed, he failed to research what customers really wanted. He guessed.He assumed he knew exactly what had to be done based on how he feels as a customer, but everyone is different and likes di fferent things. Nut and Babcock identified three different tone-beginninges for crafting a vision and the leader-dominated approach fits the description of the J. C. Penny situation (Palmer ,2009). In this approach the CEO revived the strategic vision for the organization. This is similar to the telling and sell strategies. Telling is when the CEO creates the vision and gives it to staff. It is used when involvement is not seen as important. This is where Johnson went wrong.He took on all of this by himself and didnt want involvement from the rest of the company so much that the employees themselves were confused about the new vision and what to do with it. Selling on the other hand is when the CEO has a vision that he or she wishes to sell to staff (Palmer, 2009). He didnt include the staff and that was a major problem. This is used when the CEO is attracted to the vision and wants others in the organization to adopt it. If Johnson wouldve done both the telling and the selling, t hen maybe this would have had a different outcome.Making J. C. Penny a leader in bearing with good products and honest business practices wouldve helped increase success of the project. Leaders must make sure that the entire organization understands the business case for change. Everyone must understand why the change needs to be made. Johnson should over- communicate the business case for the change so that people result believe that its OTOH real and urgent. Also J. C. Penny must be certain that all levels of lead are on board with the change and are communicating the same message.Deadlines will probably be missed and excuses will be made for not implementing the new changes if employees do not feel confident in what they are supposed to be supporting. Have we sufficiently rallied the troops? Do they all clearly understand the opportunity frontward? Are they excited by the opportunity and know how they can help the company conform to? These are some good questions that need t o be addressed when victorious locomote to increase the success of the project. Coping with hyperactive business internal and external strategic collaboration is a way to be able to plan everything out thoroughly (Palmer ,2009).Outsourcing of activities in which the organization has no distinctive competence is very important to get rid of things that are not needed in the J. C. Penny vision. Empowerment is the introductions of mechanisms to provide employees with the authority, resources, and encouragement to take action. This recommendation keeps popping up but it is the most important thing with following through with a big change. Another recommendation is to decrease internal and external boundaries. This reduction helps to encourage communication and resource overlap (Palmer, 2009) as there wasnt much communication going on at all.Use techniques to focus peoples attention on the importance of change to meet the challenges of J. C. Penny. Also Johnson could use multiple ch annels to constantly communicate the vision that Johnson created for the big system change (Moratoriums, 2013). Becoming informed and helping the CEO and leading team to articulate personal vision for the future of the organization by examining external impacts, trends, and core beliefs. Also visit the future and think ahead five years about the reputation, what competitors and customers think of you, contribution to the community, and what people will say about your company (Palmer, 2009).To ensure the success of any company, the proper steps need to be followed even if it takes longer than you originally planned. Skipping steps might get you there faster but it will pain your business in the long run. J. C. Penny is still currently trying to get back on track. J. C. Pennys largest challenge going forward is whether it can capture market share from Macys and other mid-tier retailers and eve from losses to profitability.