2. JCP- AN INTRODUCTION
1902
• Set up by James Cash Penney
• Partnership with Thomas M Callahal & William
Guy Johnson
1907
• Bought partner’s stake
1920
• 312 stores in 26 states
3. 1924
• Incorporation as JCPenney Company
1930
• 1452 stores, 25000 employees denoted as Associates
1951
• Revenue: US $ 1 Billion
CONTD…
4. CONTD…
1964
• Revenue: US $ 2 Billion
1990’s
• Competition from WALMART & Dillards
2000’s
• COO: Vennesa Castagna
• Chairman & CEO: Allen Questrom
• In 2004, Mike Ullman succeeded Questrom
5. TURNAROUND AT JCPENNY
Till 1998 : Decentralized Merchandizing
1990s : Retail Scenario in US changed
1999-2004 : Turnaround orchestrated
by Questrom and Castagna
7. Formal & Rigid Structure
Absence of Open Door
Policy
Prominence of
Managerial Ladder
Strictly Formals
Office Police
Motto: ‘The Penney Idea’
Also known as HCSC
14. TRAINING & DEVELOPMENT
Identification of ‘Hypos’
Establishment of Retail Academy , 2006
Harnessing IT in Training
Brand Repositioning as “Everyday Matters”
17. RESULTS
Increase in Job Involvement by 6% in 2006
Increase in operating profits by 22.5% in 2005
Qualitative Talent attracted
Further Increase in Profits by 17.8% in 2006
18. CONTD…
28 New Stores
Hike in Stock prices by 10 Times
Improved Job Satisfaction
Low Employee Turnover
21. OTHER LEARNINGS
Commitment of Top Management Vital in Culture Change
Participative Approach
Job Satisfaction Not a Function of Monetary Incentives only
Happy Employees make Happy Customers
Emphasis on Job-Misfit Theory