ACCT 600, Week 4 Team Deliverable

Name: ACCT 600, Week 4 Team Deliverable
Brand: American Public University
Price: 2 USD
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Author: Scarlett Carter

Team-based assignment focused on accounting analysis and reporting.

Scarlett Carter

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ACCT 600, Week 4 Team Deliverable
Analyze the operational, technological, and reputational risks faced by Kohl’s and J.C. Penney, focusing
on their impact on customer experience and business performance. Additionally, propose strategies to
address these risks and improve their competitiveness in the retail market.
Word Count Requirement: 750-1000 words.

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Kohl’s is a company operating 1,146 stores in 49 states with stated “focus on providing excellent value
to customers through offering moderately priced, exclusive and national brand apparel while boasting
operating margins in excess of 11%. Kohl’s operates as the natural fit for those lost in JC Penney’s and
Sears wave of ineptitude. Furthermore, as a retailer with famously low cost operations, Kohl’s will be
looking ahead to a more positive 2014. If recent news is any indication, however, the retailer is in an
unenviable position within the market with November sales down nearly 5%, and Black Friday sales at
stores opening at least a year dropping 5.6 percent.
With more than 1,000 stores and great locations in malls across the country, JC Penny used to be the
department store for middle-income families, especially for men’s and women’s apparel, children’s
ware, and home goods. JC Penney was particularly well known for home goods and children’s ware. And
once the family went there, they also shopped for men’s and women’s apparel, which accounted for
almost half of sales. JC Penney had a very strong private label program, and to its credit, previous
management had worked hard to manage costs and shorten the supply chain. None the less, J.C.
Penney's and Kohl’s key problem ties into their reputational, organizational, and technological risks.
Operational Risks:
In today’s society, nearly every industry faces the risk of evolution of technology, operational risks,
and reputational risks. In the retail industry, corporations must be able to maintain a great technological
connection to entice consumers. In order to be profitable in the industry, JC Penney and Kohl’s must
stay up to date on all technology connections, and how customers views of the technical infrastructure
of the company. Weather conditions could adversely affect consumer shopping patterns:

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Because a significant portion of JC Penney and Kohl’s business is apparel and subject to weather
conditions in the markets, the operating results may be adversely affected by severe or unexpected
weather conditions. Frequent or unusually heavy snow, ice or rain storms; natural disasters such as
earthquakes, tornadoes, floods and hurricanes; or extended periods of unseasonable temperatures in
the markets could adversely affect performance by affecting consumer shopping patterns, diminishing
demand for seasonal merchandise and/or causing physical damage to our properties.
The failure to retain, attract and motivate employees, including employees in key positions, could have
an adverse impact on results of operations for JC Penney and possibly Kohl’s.
Results depend on the contributions of employees, including senior management team and other key
employees. This depends to a great extent on JC Penney’s ability to retain, attract and motivate talented
employees throughout the organization, many of whom, particularly in the stores, are in entry level or
part-time positions with historically high rates of turnover. As a result of restructuring activities taken
during the past few years, JC Penney now operate with significantly fewer individuals who have
assumed additional duties and responsibilities, which could have an adverse impact on their operating
performance and efficiency.
The operations of Kohl’s corporation are dependent on their information systems to manage sales,
distribution, merchandise planning, and so much more. They also generate sales via their website. The
lack of a strong information system to perform as designed cause disruptions to the business, and can
be very harmful to sales. Today, consumers use multiple sources to make purchases therefore omni-
channel retailing is growing quickly. Computers, mobile phones, tablets, and others are becoming
important in the customer’s shopping experience. Due to internet being a reliable source to compare
retail prices, Kohl’s strive to offer an omni-channel shopping experience for customers, and use social

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University

American Public University

Subject

Accounting

ACCT 600, Week 4 Team Deliverable

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