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J.C.Penny’s Strategic Business Analysis

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J.C.Penny’s Strategic Business Analysis
J.C.Penny’s Strategic Business Analysis | July 16
2013
| Business Analysis 4380 | Case study J.C.Penny’s Co.Inc |

Table of contents
Executive Summary 3
Company Overview 7 * information Fact Table 7 * History 8 * Mission Statement 12 * Awards 13
Internal Analysis 16
Financial Analysis 16 * Liquidity Analysis 18 * Profitability Analysis 23 * Capital Structure Analysis 38 * IGR/SGR Analysis 44
Value chain Analysis 47
Human Resources Analysis 52 * Employee Benefits 52
External Analysis 55 * JcPenny’s customers 55 * JcPenny’s brand and competitors brands 56
Competitors Analysis 58 * Competitor 1: Kohl’s Corporation 59 * Competitor 2: Dillards Inc. 65
Goals and Strategic Analysis 73

Goal and Strategy 1 74 * Objective * Strategy * Strategy Implementation * Projects Results Payoffs: Scenarios & risk

Goal and Strategy 2 83 * Objective * Strategy * Strategy Implementation * Projects Results Payoffs: Scenarios & risk
Goals & Strategy 3 90 * Objective * Strategy * Strategy Implementation * Projects Results Payoffs: Scenarios & risk
Conclusion 93
Financial Work Sheet 96
Work Cited 100
Models
Goal 1 101
Goal 2 102
Goal 3 103

Executive Summary
Lead by Chairman of the board and CEO Myron E. Ullman, J.C. Penny’s is now ranked 153 out of 500 companies in America. The company was ranked 146 out of 500 during the year of 2011, while CEO Ronald B. Johnson was in charge of the company. In 1902, James Cash Penny opened the first J.C. Penny in Kemmerer, Wyoming under there slogan the “golden rule”. It was once known as the largest department and discount retail chains in the United


Cited: Bhasin, Kim. "INSIDE JCPENNEY: Widespread Fear, Anxiety, And Distrust Of Ron Johnson And His New Management Team Business Insider. N.p., 22 Feb. 2013. Web. 15 July 2013. Wong, Curtis M. "GLAAD Amplifier Awards 2012: J.C. Penney, General Motors Among LGBT Ad Honorees." Weblog post. The Huffington Post. TheHuffingtonPost.com, 03 Oct. 2012. Web. 15 July 2013 Gupta, Shiri Peavler, Rosemary. "Profitability Ratio Analysis." Weblog post. About.com Business Finance. N.p., 10 Sept. 2012. Web. 15 July 2013. Jun, Jae. "Why J.C. Penney Is Not Worth Buying." Weblog post. - Seeking Alpha. N.p., 23 Oct. 2012. Web. 15 July 2013. Jun, Jae. "Buy Stocks Shifting Their Focus Towards Women." Weblog post. Buy Stocks Shifting Their Focus Towards Women. N.p., 10 Oct. 2012. Web. 15 July 2013. Sun, Leo. "J.C. Penney Needs a Miracle in 2013." Weblog post. Http://beta.fool.com. N.p., 3 Mar. 2013. Web. 15 July 2013. Bards, William. "J.C. Penney: The Hot Old Find Gone Cold...Again." Weblog post. Http://beta.fool.com/. N.p., 14 Dec. 2012. Web. 15 July 2013. Wall Street Journal. "J.C. Penney 's Most Discounted Item: Its Bonds." Weblog post. CNNMoney. Cable News Network, 09 Apr. 2013. Web. 15 July 2013. "Behind The Chair - Articles." Weblog post. Behind The Chair - Articles. N.p., 20 Oct. 2012. Web. 15 July 2013. Tuttle, Brad. "Attention JC Penney Shoppers, Look Out for the Return of ‘Sales Galore’." Weblog post. Business Money Attention JC Penney Shoppers Look Out for the Return of Sales Galore Comments. N.p., 16 Apr. 2013. Web. 15 July 2013. Rameriz, Louis. "JCPenney Increases Retail Prices on Special Collections by 67%." Weblog post. Dealnews. N.p., 30 Jan. 2013. Web. 15 July 2013.
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