Strategic Leadership: JCP Case Study Analysis Report

This report provides a strategic leadership analysis of J.C. Penney (JCP), examining its operations through a value-chain analysis and assessing the core competencies it lacks. The analysis focuses on the decisions made by CEO Johnson, including changes to pricing, marketing, and store design, and evaluates their impact on the company's performance. The report highlights the importance of decision-making, commercial awareness, and the ability to manage change as crucial competencies. It also discusses the significance of effective communication with customers and the need for thorough market research before implementing significant changes. The report concludes by evaluating the CEO's strategies and their effectiveness in shaping consumer perceptions and driving business growth, referencing the case study and provided articles.

Running Head: Strategic Leadership
STRATEGIC LEADERSHIP

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4. Use the value-chain analysis to determine the parts of JCP’s operations that create value
and those that do not.
Primary activities
● Inbound logistics
Transformation of store with new designs to provide a better experience of shopping to
customers has taken place under the supervision of Johnson, the CEO of JCP. Trendy
products have been gathered in the warehouses and displayed at stores to attract maximum
customers towards this company.
● Operations
Johnson has changed the pricing strategy of this company and they have started selling
products at a fair price. The new CEO has stopped discounts, coupons and constant
purchasing criteria at JCP. This decision has not created value and they lose many
customers. On the other hand, serving the experience of mini-mall at JCP has created values
and it is successfully attracting more customers towards Penny.
● Outbound logistics
Repacking and distribution to retail stores from warehouses can be included within
outbound logistics. This approach is helping in offering products as per latest trends to
customers.
● Sales and marketing
JCP sell their products directly to the end customers and gain maximum benefit from their
sales. Their mini-mall at JCP stores and improved marketing is influencing customers to
spend more hours at this place and it is increasing the rate of sales.
● Service
JCP is offering trendy products to their customers and they record review of customers for
future improvement. This approach of this company is helping them to provide the best
quality goods and services to customers (Serrat, 2017).

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Support activities
● Infrastructure of firm
Stores of this firm have been redesigned with mini-malls within these stores. Trendy
products of top brands including Levi's, Liz Claiborne have been displayed at the stores as
per market demand.
● HR management
Employees of JCP follow the instruction of the CEO to help him to achieve business goals.
Support from employees is helping this organization to execute plans of the new CEO and
this is helpful in achieving business goals.
● Technology
Technological department of this company is efficient enough and they have provided their
best effort in redesigning of JCP’s stores. As mentioned by Rosemann & vom Brocke
(2015), this approach can create values as well.
● Procurement
JCP has researched on the latest trends and they are acquiring raw material as per the
findings of this research. This approach is helping JCP to deliver trendy as well as the best
quality products to their customers at a fair price.

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5. What are the core competences JCP lacks in order to perform successfully the strategy?
Which is your assessment of the decisions taken by CEO Johnson?
Decision making, commercial awareness and ability to manage change are main core
competencies that were missing in the case of JCP. As opined by McMurrian & Matulich
(2016), lack of these core competencies can prevent organization from managing their
performances. In this case, the CEO first changed the pricing and marketing strategy of this
firm. However, he has failed to drive customers to cope up with this change. Customers
were not satisfied with the new pricing strategy and the marketing strategy has failed to
draw the attention of customers. Lack of decision making has been noticed in this case. The
second focus of the CEO on store development was effective and it could be done before
changing the marketing and pricing strategy. As mentioned by Greer, Lusch & Vargo
(2016), another core competency of communication was missing in case of JCP. They have
failed to communicate with their customers regarding their new decisions and this gap has
led them to face repetitive financial loss. Different core competencies are required like
adaptability. This can help to increase the power of this organization to get adapted in harsh
market situations. Proper leadership and performance of employees can help them to get
adapted in the market.
After evaluating the case study, it has been found that the CEO of this company has focused
on price, stores, and merchandise. However, his approach to shaping the perception of
consumers towards pricing has failed. He could explain the new pricing to their customers
to get their cooperation. Lack of effective communication between the management of this
company and customers has led them to face repetitive loss. On the other hand, the CEO has
removed taboo words from the marketing and this decision has failed to draw the attention
of customers. It takes time to change perceptions of target customer group. However, in this
case, the CEO of JCP wanted the outcome within minimum time and he has not researched
the preferences of customers. He could invest more time and budget on market research
before implementing those changes. The last change made by this person was effective for
the growth of the company. Critics have said that this area could be developed before and
the CEO has missed that point. Changes in stores could be done before changing pricing and
merchandise.

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Reference list
Greer, C. R., Lusch, R. F., & Vargo, S. L. (2016). A service perspective. Organizational
dynamics, 1(45), 28-38. Retrieved from:
http://plaza.sdlogic.net/uploads/3/4/0/3/34033484/greer_lusch_vargo_od_2016_onli
ne.pdf
McMurrian, R. C., & Matulich, E. (2016). Building customer value and profitability with
business ethics. Journal of Business & Economics Research (JBER), 14(3), 83-90.
Retrieved from:
https://clutejournals.com/index.php/JBER/article/download/9748/9837
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122).
Springer, Berlin, Heidelberg. Retrieved from:
https://link.springer.com/chapter/10.1007/978-3-642-45100-3_5
Serrat, O. (2017). Business model innovation. In Knowledge Solutions (pp. 499-507).
Springer, Singapore. Retrieved from: https://www.oapen.org/download?
type=document&docid=1001955#page=490