J C Penney Company Case Study Solution


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J C Penney Company Case Study Solution

Background and Facts

J C Penney Company a workplace supplies merchant for small and average sized organisations has just recently been involved in planning for a merging with its competitor Residence Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor associated with lawful complications presented by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With obstacles in the kind of a prospective cultural modification as well as low worker spirits, the organization wants a full reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of J C Penney Company is increasing uncertainty in the workplace causing numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting tactical choices since Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Payment's intervention at the same time. Provided the reality that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to influence efficiency or strategic goals. Federal Profession Compensation's antitrust fit versus the merging took up important time of the company's elderly management suggesting that 'political' factors can have severe effects for an international service.

Economic Factors: Economic factors such as the development of small businesses in the worldwide situation recommend that J C Penney Company is flourishing in an atmosphere where there is possible development of organisations. Truth that shop clients are mainly looking for workplace products for home workplaces suggests that the market has an increasing trend of entrepreneurs as well as residence based organisations.

Social factors: Social fads in the economic situation reveal that consumers are seeking ease along with eye-catching rates. Market research demonstrates how the customer for J C Penney Company does not have awareness about locating remedies which can provide a mix of benefit and also low costs.

Technological factors: Technology plays an important role in J C Penney Company's business technique particularly as the company is piloting Technology facilities which would certainly supply technology sales as well as assistance in the type of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior concerns can be seen in J C Penney Company's case as highlighted in this area.

Worries regarding social change: There is worry regarding a social modification that would certainly happen as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the staff members already revealing discontent over this potential step. This expected modification has actually created tension in the workplace which has actually been paired with the previous tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of personnel that can match the difficult setting of a busy company. Not just does this bring about problem in locating the ideal individuals, it puts stress and anxiety on new hires as can not hold up against the speed and also stress that the company anticipates them to bear.

Double Reporting Lines: Beginners locate this business culture troublesome as well as hard to deal with especially as dotted line relationships are suggested to be weaker generally and objective setting as well as efficiency examination is still done by the solid line supervisor. This suggests that beginners might shed clarity about their corresponding functions and also purposes especially as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified and also ideal for the job however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Instability: Concern and also insecurity can be identified as 2 major problems that Lewis would be taking care of specifically as the merging has now be cancelled and also two senior execs of the advertising department would be leaving. The entire duty of the division would be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural modification but would certainly likewise need to prove herself in her new role.

Inappropriate Management Design of Leader: Lewis's monitoring design and its incompatibility with the advertising and marketing division's function can likewise be viewed as an OB difficulty particularly as she has actually been made use of to taking care of problems in the procedures division where personnel are instructed to concentrate on processes as well as obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of people who are used to being nurtured by Krasnow that concentrated much more on result than procedures.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, advertising, merchandizing and also procedures specifically over the appropriation of the marketing mix can be identified as an additional OB concern. The marketing department does not share the same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not agree over the advertising mix allowance amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be identified as one more OB concern which could require further attention. The fact that the advertising and marketing areas in the marketing division are disconnected is stopping both departments from acquiring from each other's experience and also expertise. Assimilation of marketing with merchandising as well as operations would certainly come to be harder if the advertising and marketing division itself is degenerated which can be one more possible OB concern.

J C Penney Company Analysis

Numerous concepts have been utilized to clarify the circumstances to obtain additional clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are passive and careless, have little passion and withstand change. The scenario at J C Penney Company is not completely complying with Concept X, it can be seen that new hires are discovering this environment instead difficult which may at some point lead to a better inclination of the administration in the direction of Theory X. Even while analyzing Lewis's management style, theory X may have been suitable in the operations division to some degree but the Advertising and marketing department would require reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern about bringing harmony in between the advertising as well as marketing department is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Team effort Theory'. By combining the marketing as well as marketing division's job, there might be the same first disconnect which could lead to the 2nd stage of 'storming' where the groups test one another.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), individuals are fairly awkward with change, which is obvious by the scenario at J C Penney Company The scenario can be seen as a typical course of life if is researched as per Bridge's concept where he discusses that individuals experience 3 phases of shift when they experience adjustment. 'Ending, losing and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into phase one and so there may be feelings like despair, uncertainty, aggravation, rage, fear, denial and also disorientation.The situation at the marketing division of J C Penney Company is comparable so Lewis can get comfy with the concept that it is not amazing behavior. In the 2nd stage, there might be a requirement to connect the void in between the new as well as old culture so Lewis may need to face this challenge once Krasnow leaves. There may be low spirits and low performance at this stage which must not be taken as a trouble. It is throughout this phase that Lewis will have to offer assistance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this transition simpler by making Lewis get associated with the division a year prior to his real departure. As per Bridges' Version, stage three will bring about openness to knowing, High power and also commitment as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the importance of 'safety needs as being a lower degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure as well as out of danger' is at the second level of needs. Prior to an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Safety and security' requires fulfilled.

SWOT Analysis for J C Penney Company Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to recognize just how to manage the current circumstance at hand. The following three choices have been recommended to aid Lewis manage the business obstacles in the advertising division. Each of these choices has actually been suggested for reducing the transition required to bring the marketing department according to the requirements of the marketplace and for making the social modification that would adhere to when the current leader leaves.

Integration of advertising and marketing functions. Separating Adverting as well as Production functions. Combination of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has competence in business-to-business advertising along with firm and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and also advertising and marketing features.

The benefit of this strategy is that it will incorporate both functions while lowering the requirement for hiring an additional resource for advertising. Along with this, Lewis would be heading the advertising department as well as regardless her substitute would be needed for the current role that she is performing. The disadvantage of this option is that external hiring might cause animosity from internal personnel that may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the competitive stress and high quality work required from the advertising agency, it is suggested that Lewis must enable the manufacturing unit to be a separate feature from the advertising system. Because most advertising agencies had these two functions as separate systems, it makes even more feeling to comply with the standard. Both features might be able to concentrate on their core activates more effectively. The negative aspect of this strategy would be that extra costs would have to be birthed for setting up different manufacturing features. Along with this, a manufacturing head may need to be worked with which might increase overheads for the organization.

Combination of Marketing with Procedures: Considering that Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes sense to incorporate the two features because she has actually been successfully taking treatment of both ends. The fact that Lewis has to adjust her administration style for the marketing department suggests that these 2 departments would certainly be culturally diverse.


An assessment of the 3 choices suggests that combination of advertising and operations would not be a viable action due to the substantial distinctions between the two departments although that currently Lewis is handling both. While splitting up of the production function might have been a positive move for the marketing department, the fact that it would certainly mean putting a third feature under Lewis's wing suggests this ought to be stayed clear of. The combination of the marketing department is the most effective alternative in regards to getting the optimal arise from the division. An action prepare for this option is talked about listed below.

Activity Strategy.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

Judith Shapiro will be employed to take Lewis's area as SVP of advertising and marketing.

Production function will stay part of marketing under marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management design with staff member empowerment will be made use of in advertising division.

Open up door policy and also emphasis on cross department interaction will be focused on eliminating disharmony.

Backup plan.

If the combination does not exercise as intended, a backup plan would certainly adhere to which would separate the production feature from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will most definitely be divided by placing it under an SVP manufacturing.