STR/581 : Strategic Plan

Name: STR/581 : Strategic Plan
Brand: University of Phoenix
Price: 2 USD
Availability: InStock
Author: Isabella Moore

Development of a strategic business plan incorporating industry analysis and growth strategies.

Isabella Moore

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Strategic Plan
STR/581
Analyze JCPenney's strategic plan, focusing on its operational excellence, new leadership, and product
strategies. How does the company aim to regain market position through its cost leadership and
differentiation efforts? Include specific tactics and resource allocation in your analysis. (Word count:
1,500-2,000)

Strategic Plan
James Cash Penney started JCPenney, now known as JCP, 110 years ago. Penney aspired
to be a lawyer for his family was not really well-off. His father was a Baptist minister and a farmer. He
never had an opportunity to start in law school due to educational expenses that his family cannot afford.
He worked in a local dry goods store where he became an assistant manager in Golden Rule Store. He had
the chance to acquire one-third of the venture. In five years time, that was 1907, Penney acquired that of
his partners (Soylent Communications, 2012). He had a vision to establish an entity that treats people the
way he wants to be treated and this is what people commonly hear as “fair and square”. His very first
retail business was named Golden Rule as based on his philosophy in life coming from the words of
Confucius: “treat others as you want to be treated”. JCPenney was successful in his business for long
years. His venture has the capacity to be an industry leader in innovation, pricing, and marketing
strategy. Way before internet was invented, JCPenney offered catalogs to showcase their products. And
now, they have jcp.com and their facebook page in which they do their promotions, marketing and sales
(Toy, 2012).
JCPenney had difficult times in keeping a close competition with Macy’s and Dillard’s
Department Store especially when there were costs hikes when sales were down. The company adopted
measures to deal with its problem. There were reorganization and product modifications to satisfy their
customers. JCPenney used to adopt a Mission Statement that speaks of the company’s aim to provide
fashionable and high quality products at reasonable prices. It wishes to supply its customers the best
service and products that an entity can provide. By establishing stores in ideal locations, JCPenney can
respond to customer orders and inquiry on a timely manner.
Today’s vision of JCPenney includes eight "Winning Together Principles"-associates, integrity,
performance, recognition, teamwork, quality, innovation, and community.
All associates are valued, developed and rewarded by JCPenney for all their hardwork and skills.
To show the company’s integrity, JCPenney conducts its business in accordance with ethical business
principles. Trainings and comments are provided to personnel to boost their performance. The success of

every employee is recognized by the company. To show teamwork, JCPenney’s workforce strive for
success together by means of headship, cooperation, open and straightforward communication, and
respect. The company aims to provide quality and innovative products, work, and services with the touch
of creativity and smart ideas. As part of JCPenney’s ethical principles, the entity cares for its
environment.
Before the end of 2011, JCPenney recognized the necessity of bringing together a new set
personnel to fill the organizational hierarchy especially the top level who would lead the entire team
towards the fulfillment of its revised vision. One of the persons who filled a very important position is
Ron Johnson, the company’s new CEO since November 2011. Johnson has a very competitive record in
the field of retail business and he is the man behind the success of Apple Inc. and Target Corporation.
Another personality is Michael Francis who became jcp.com’s president during December 2011. Having
a successful experience in Target Corporation, Francis provided JCPenney with his skills in marketing,
merchandising methods, and harmonization. For financing, relationship with stakeholders, company
plans, budgeting, supply chain, management of resources, and technological innovations, JCPenney hired
Mike Kramer as its new COO during December 2011. JCPenney’s Senior Vice President Michael
Dastugue is its present Chief Financial Officer. This new organizational line-up was introduced by
JCPenney to achieve its target sales figure and give its entity a new image that can help attract new
customers.
JCPenney has this new program statement that shows the entity is redoing things and is willing to
recover from the negative effects of the past moves the entity made. It further announced that their
organization wants to entertain clients the way they want to be entertained: fair and square. JCPenney
wants to be of value to the community more than its goal to be the biggest store in the retail industry. The
company strives to be the American’s favorite store (jcp.com, 2012). This program characterized
JCPenney and confirmed the philosophy of the entity’s creator.
After the company experienced decreasing revenue figures for a matter of ten years, it has now
decided to follow a new strategic plan. Its aim is to offer its products at affordable prices and give its

clients memorable and satisfactory services at the lowest possible cost. The company adopted a strategy
that would entail the lowest cost and that would provide products matched to the needs of specific class.
When a generic strategy is already in place, the company shall reflect on execution plans that best suit its
strategy.
Identify the Best Value Discipline
The very foundation of every successful company can be one of the three important concepts of
value discipline. These concepts are operational excellence, product leadership, and customer intimacy
(Horwath, 2006). In operational excellence, the company is devoted to provide the clients with the best
value products (Horwath, 2006). In customer intimacy, the company is devoted to provide specific clients
with their specific requests thus promoting individual contentment. In product leadership, the company is
devoted to provide its clients with the endless supply of trendy items and services (Pearce & Robinson,
2011).
The latest program of JCPenney aimed to earn client’s trust and provide product segregation
through its pricing strategy. In 2011, the company introduced the two latest member of its board. The
organization validated this information by releasing the statement that these two new directors have the
same enthusiasm as those of the current members and that enthusiasm is to achieve success for the entity
(jcp.com, 2012).
Of the three value disciplines, JCPenney is adopting operational excellence. The entity aimed to
operate in the most efficient means by lowering overhead, minimizing non-value adding activities,
minimizing transaction expenses, and maximizing resources and potentials (Pearce & Robinson, 2011).
With these, it is evident that the foundation of JCPenney’s new method is its operational excellence.
Identification of a generic strategy
Generic strategy is a means to execute a grand strategy with no other framework but to aim for
success in the industrial competition. Generic strategy can be classified into three. These are aiming for
an efficient industry leadership; aiming to release exceptional products for people from all walks of

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University

University of Phoenix

Subject

Business Management

STR/581 : Strategic Plan

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