Management Style: J.C. Penney’s management in Focus

Management Style: J.C. Penney’s management in Focus

 

Introduction

The management style in an organization is one thing that cannot be taken for granted. This is because the management of an organization is usually the backbone of the organization’s success. The importance of putting in place a proper management style in an organization is emphasized by the fact that the management has the mandate of making decisions for an organization (Wetherly & Otter, 2008). It is worth noting that the decisions of a company define the path towards achievement of the objectives. This means that whenever the management style of an organization is not proper, the decisions made will be misleading.

To explain the importance of proper management style, the evaluation of J.C. Penney’s management’s style will be useful.

J.C Penney is a company operating several department stores. This company was founded in the year 1902. It is currently headquartered in Plano, Texas in the United States of America. Over the years, the company has seen several changes taking place in the management style. Business need and change of the company’s top leadership has contributed to the changes in the management style.

Two (2) key changes in J.C. Penney’s management’s style from the company’s inception to the current day

The management in J.C Penney has changed in several ways since the company was founded. One of the changes is seen in the management of corporate culture. Until recently, the company had a company culture which exhibited high standards of protocol. Currently, this is not the case. This means that the directions or instructions on doing things usually change rapidly. This leaves everyone confused on the way forward regarding the way things should be handled. Secondly, the management style of the company has changed when it comes to the requirements in the work environment. The previous management headed by Ron Johnson went for a more casual environment. For example, the dress code was more casual. The current management style under Mike Ullman has ensured that the environment is more official and professional. Unlike the immediate previous management style, the dress code has changed to business- casual. This is aimed at giving the customers an easy time when locating store attendants.

I believe that the company is being managed properly today. This is because there are very many good things in the management style being used by Mike Ullman. Firstly; Mike Ullman has made it clear that there will be no ‘quick fixes’ to errors which were committed in the past. This means that there are big chances of having the company’s operations getting streamlined. Secondly, the color coding of employees for firing is not being practiced nowadays. This means that the employees are motivated and settled, which a sign of a good management style. Additionally, the current company CEO is getting involved in the operations of the company. Unlike the previous CEO, Mike Ullman is interested and spending time to oversee smooth running of the company’s activities.

Senior management’s role in preparing the organization to shift from a catalog-based retailer to an Internet retailer

The company’s senior management’s role in preparing the organization to shift from a catalog-based retailer to an Internet retailer can be seen through the decisions which have been taken. The senior management has been able to make decisions approving the use of internet in retail business of the company. The other thing that the senior management has been able is hiring employees who are able to carry out internet business management with efficiency. Additionally, the senior management has been able to make approvals of various proposals supporting internet retail business in the company. The senior management of the company has also been able to avail the necessary resources required in running internet retail business of the company.

 The nature of the transition: Seamless

The transition of J.C Penney from a catalog-based retailer to an Internet retailer was seamless. It can be seen how the company changed gradually from catalog retailing to internet retailing. The use of the first online platform Viewtron videotex service was not problematic. This gave the company an opportunity to use other online retail platforms such as the company’s Internet store. The company took each step at a time and there seems to be no major challenges in the shift. This was able to make the company well prepared when it comes to cyber crime. For example, when there were rumors of a computer hacker in the industry in the August 2009, J.C Penney was not affected.
Evaluation of the management’s decision to use celebrities as key merchandise vendors and spokespersons

The management of the company came up with a decision to use celebrities as key merchandise vendors and spokespersons. This was aimed at making more people hear about the company’s products. This would make the market’s knowledge of the company’s products better. While coming up with the decision, the management was aiming at using the popularity of the celebrities as a god tool for making sure that the attention of the consumers is turned towards what J.C Penney is offering.

This decision had a positive impact on the organization. This led to an increase in the sales revenue of the company. This is because the celebrities made makes more people get attracted to what the company is offering. This increases the sales made over a given time period. Cindy Crawford is one of the celebrities who have been used by the company in the process of improving the company’s popularity in the market.

An innovative idea that could have a positive impact on both the employees and customers of the company

The idea of involving employees and customers in the design process of the company could have a positive impact on both the employees and customers. To achieve this, it would be necessary to create an online platform where interaction would take place. Each employee and customer would be given a chance to open an own account on the company website. Through the own accounts, the customers and employees will be able to give their ideas on how to go about several things in the design process of company. This would lead to creating of things which have factored in the interests of the employees as well as the customers. With this type of involvement taking place, the employees would be willing to work harder and stay with the company since their interests are put forward. The customers would also be willing to pledge their loyalty since their concepts are integrated in the company’s products and services. This would in turn enable the employees to get better pay since the profitability of the company would increase reasonably. On the other hand, the customers would get products and services which fit their level of expectation. According to Jones and Hill (2009), the satisfaction of customers is an important thing in success of a business.

Prediction of J.C Penney’s ability to adapt to the changing needs of customers and the market

I believe that J.C Penney will be able to adapt to the changing needs of customers and the market with ease. One of the reasons is the fact that the current CEO is seen to be interested in delivering what the customers require. This is seen through several actions such as the decision to create a new dress code. This means that the customer will be able to locate the store attendant with ease and get the necessary assistance. Secondly, Mike Ullman is overhauling the stores to the settings which fit the customers’ needs perfectly. Secondly, the company will be able to adapt since it has been able to embrace the online business concept which has become one of the greatest ideas in the market. The current set of customers is focusing on making purchases more comfortably from their places of convenience. This is usually through the use of internet based platforms and means. Since J.C Penney has been able to incorporate online platforms in its business model, it will be very easy to succeed in wooing more customers to the products and services of the company. The thing that needs to be done so as to fully take care of the current needs of customers and market is ensuring that technologically the company is set. In the business circles, it is always important to ensure that the players match or surpass their competitors in the market when it comes to crucial aspects of business (Johnson, Whittington & Scholes, 2011). This means that getting the best technological systems and resources would prove beneficial to the company.

Conclusion

It is important to have proper management in an organization. This is because the roles of the management will be carried out in the right way. For example, we can see how the management of J.C Penny assisted in the process of shifting from catalog retailing to internet one. The popularity of a business should also be considered by the management. All the available avenues should be utilized to ensure that the business gets the necessary popularity. The use of celebrities is one of the ways of managing popularity. Innovation is another thing which should be involved in the managerial level of a company.

References

Johnson, G., Whittington, R. & Scholes, K. (2011). Exploring corporate strategy, 9th ed., Harlow: Pearson Education Limited.

Jones, R. & Hill, W. (2009). Strategic Management Essentials. 2nd ed. Southwestern: Cengage Learning.

Wetherly, P. & Otter, D. (2008). The business environment. Oxford: Oxford University Press.

 

 

 

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