ACCT 600, Week 4 Team Deliverable

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1ACCT 600, Week 4 Team DeliverableAnalyzethe operational, technological, and reputational risks faced by Kohl’s and J.C. Penney, focusingon their impact on customer experience and business performance. Additionally, propose strategies toaddress these risks and improve their competitiveness inthe retail market.Word Count Requirement:750-1000 words.

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2Kohl’s is a company operating 1,146 stores in 49 states with stated “focus on providing excellent valueto customers through offering moderately priced, exclusive and national brand apparel while boastingoperating margins in excess of 11%. Kohl’s operatesas the natural fit for those lost in JC Penney’s andSears wave of ineptitude.Furthermore, as a retailer with famously lowcost operations, Kohl’s willbelooking ahead to amore positive 2014.If recent news is any indication, however, the retaileris in anunenviable position within the market with November salesdown nearly 5%, and Black Fridaysales atstores openingat 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 thedepartment store for middle-income families, especially for men’s and women’s apparel, children’sware, and home goods. JC Penney was particularly well known for home goods and children’s ware. Andonce the family went there, they also shopped for men’s and women’s apparel, which accounted foralmost half of sales. JC Penney had a very strong private label program, and to its credit, previousmanagementhad 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 ofevolution of technology, operational risks,and reputational risks. In the retail industry, corporations must be able to maintain a great technologicalconnection to entice consumers. In order to be profitable in the industry, JC Penney and Kohl’s muststay up to date on all technology connections, and how customers views of the technical infrastructureof the company.Weather conditions could adversely affect consumer shopping patterns:

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3Because a significant portion of JC Penney and Kohl’s businessis apparel and subject to weatherconditions in the markets, the operating results may be adversely affected by severe or unexpectedweather conditions. Frequent or unusually heavy snow, ice or rain storms; natural disasters such asearthquakes, tornadoes, floods and hurricanes; or extended periods of unseasonable temperatures inthe markets could adversely affect performance by affecting consumer shopping patterns, diminishingdemand 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 havean 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 keyemployees. This depends to a great extent on JC Penney’s ability to retain, attract and motivate talentedemployees throughout the organization, many of whom,particularly in the stores, are in entry level orpart-time positions with historically high rates of turnover. As a result of restructuring activities takenduring the past few years, JCPenney now operate with significantly fewer individuals who haveassumed additional duties and responsibilities, which could have an adverse impact on their operatingperformance 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. Thelack of a strong information system to perform as designed cause disruptions to the business, and canbe 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 becomingimportant inthe customer’s shopping experience. Due to internet being a reliable source to compareretail prices, Kohl’s strive to offer an omni-channel shopping experience for customers, and use social

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