J. Crew Business Analysis

J.Crew as an iconic brand targeting young working professional by focusing on preppy and classy look failed in identifying brand focus. Also, their business model is performing poorly in the fast-fashion industry compare to traditional competitors, with its high prices, diverging quality, and undesirable brand image. Hence, the brand perception by customers has changed and many of them prefer to purchase the discounted products rather than full-priced items.

The well-known retailer has grown to nearly 1,100 stores and boasts a workforce of more than 116,000 full and part-time employees (Strand, 1998). JCP

In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of

J.C. Penney’s as a corporation has struggled to maintain a consistent brand, identify with their target audience and change to meet consumer needs.

Together the two heads of JCPenney (JCP) originated from successful corporations and are currently fuelling such achievements into JCPenney. JCP’s restructurment occurred in February 2012 and has changed the assessing arrangement inside the store. The store has been imparted a new style with changes in marketing, rating, store location and administration. All of these variations have been developed to improve the company’s performance.

JC Penney had to undergo and withstand several competitive issues to include changing of brand image, selling strategy and marketing strategy. JC Penney also had to account for Environmental Factors to include: a population that continued to age and also unemployment rates. JC Penney tried to influence customers by portraying an everlasting sale. No matter how hard JC Penney tried to market their products, if people didn’t

As one of the major retailers in the United States, JCPenney has 1,104 department stores in 49 states and Puerto Rico as of February 2, 2013. The key success of its business is tremendously depending on the sales performance. However, the retail business is highly competitive, with low barriers to entry and low profit margin. Due to large sales plunge in 2012, the company is in financial trouble. The thorough analysis of JCPenney’s financial statements is vital to judge the future performance of its business.

The retailer announced their decision to continue a plethora of store closings after suffering a $63 million loss for Q1 of 2015, worsened by the fact that their losses exceeded the expectations of market analysts (Investopedia). Following the absence of CEO Mike Jeffries as of June 2015, Abercrombie’s stock dipped to its nearly annual low of $19 per share. The company continues to increase promotional efforts while offering uncharacteristic discounts in an effort to lure consumers back into their stores despite weakening profit margins. Abercrombie & Fitch has also furthered its efforts to expand and improve its e-commerce site to develop a more user-friendly shopping experience in the wake of over 200 required store closings nationally. While Abercrombie’s Executive Chairman, Arthur Martinez, attributes the company’s losses to a transitional phase that will likely take several quarters to reflect results of their strategic efforts, analysts continue to suggest that its unlikely consumers will return to the brand despite its new incentives (Forbes Contributor). Currently, Abercrombie’s dismal annual report and small scale efforts to rebrand itself makes it a risky investment option, albeit has potential to improve in the future given their focus on improving their online presence and providing a better return for investors.

J.Crew began in 1947 as a low priced clothing company that sold its merchandise door-to-door. It was originally called Popular Club but the name was eventually changed to J.Crew to better suit its preppy image. In 1983 the company released its first catalog in an effort to mimic the success of like Lands’ End and L.L. Bean. People fell in love with the company’s preppy aesthetic that was much more affordable than designers like Ralph Lauren. Within the decade, the company grew its customer base exponentially. Their sales increased from $3 Million to $100 Million in less than 10 years. In 1989 the company expanded into retail stores with their first brick-and-mortar location in South Street Seaport in New York.

In January 2012, newly appointed CEO, Ron Johnson introduced a plan to rebrand the department store chain into a 21st century retail powerhouse. Launching of the new J. C. Penney brand identity was set to occur over four years and would include a new logo, a new in-store experience featuring new and transformed brands, and most importantly, it would change the way that the company priced merchandise. Unfortunately, J. C. Penney suffered a 25% sales decline in the first year and Johnson was fired after only 17 months.

Macy’s Inc. competes with other major players in the Department Store Retail Industry as well as with discounter, luxury stores, specialty stores, mail order and pure play internet retailers. Key competitors include Sears, J. C. Penny, Kohl’s, Nordstrom,

In order to examine this issue further, this research will look at a number of different sources. Contemporary managerial sources are explored in order to understand how other voices in the field are describing similar methods for change. First, popular structures for change management are examined, especially within their correlation to Palmer & Dunford (2009). This is followed with an extensive

Change is a constant in today’s organisations. In a Recent CIPD survey it found more than half of all employees said that their organisation has been going through some kind of major change during the last year. Most organisations more than ten years old look nothing like they did even five years ago. And it is likely that in the next year or two organisations will not look as they do today. Below are 6 factors that drive and influence change In any organisation.

For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.

The purpose of this paper is to discuss organizational change and the management of that change. I will talk about the different drivers of change, the factors a leader needs to weigh to implement change effectively, the various resistances a leader may encounter while trying to implement change, and how various leadership styles will effect the realization of change. I will also discuss the knowledge I have gained through the completion of this assignment and how I think it might affect the way I manage change in my workplace.