Introduction
J C Penney Company is a commercial entity that operates a variety of departmental stores, mostly in the American market. The company operates from Plano, Texas. From this operational locus, the company effectively coordinates its operations in all states where it has operations. In addition, the company operates several departmental Stores in Puerto Rico (Plunkett, 2007).
Through its departmental stores and other related establishments, the company endeavours to achieve and consolidate its operations within the market. This creates additional advantage over competitors in the market. The company ensures that its stores are strategically located in areas that guarantee productivity and sustenance of competitive edge with regard to market functions and operations (Plunkett, 2007).
Towards the end of the 20th century, the management of J C Penney Company acknowledged the growing popularity of shopping malls. Consequently, it embraced the trend and eventually incorporated it as part of its operational regimen. In recent years, the company has increasingly responded to consumer demands and articulations by initiating products and services that fulfil emergent needs of its customers (Plunkett, 2007).
Through innovative and creative approach to commerce, the company has effectively shifted from traditional business practices that do not recognize modern operational thresholds in business. In 1998, the company began efforts to realign its operations in catalogue and distribution services through various changes at all stores and departmental establishments.
These efforts have seen the company through various turbulent stages of its national and regional operations (Plunkett, 2007). The management of J C Penney Company has indeed played an integral role in building and restructuring the company to its current standing and stature in the market.
Discussion
The incorporation of J C Penney Company is a tale of exploits by its founder, James Cash Penney. Upon completing his high school studies, he undertook various duties and responsibilities at a local store in Hamilton. Penny later moved to Colorado owing to health concerns. In Colorado, he worked for various department stores where he assisted in creation and incorporation of new stores (Plunkett, 2007).
He later acquired full control of the stores through purchase of a substantial stake in the commercial establishments. In 1909, he relocated all operations to Salt Lake City in Utah. Infrastructural developments necessitated the shift from Colorado to Utah. Within a period of three years, Penney had 34 commercial establishments in various states across the United States.
Later on, all department stores enjoined under the banner of J C Penney Company. This consolidation aimed at creating a formidable operational threshold that would effectively counter various forces in the market (Plunkett, 2007).
In the course of its development and growth, J C Penny Company has weathered various storms that were fundamental in its propagation as a commercial entity. For instance, it has undergone various alignments through change of management and corporate acquisitions. In 1913, the company co-opted William Henry McManus as a statutory director and co-founder (Hitt, 2005).
This geared towards creation and consolidation of superior service through dynamic and progressive management practices. In the end, the management gamble paid off as the company doubled its operations across the market. Another monumental step in its growth was the relocation to Newyork in 1914.
This move sought to simplify procurement procedures, financial services, and infrastructural support services. This created a favourable ground for growth and development of the company’s portfolio and dominance within the market (Hitt, 2005).
Management is an integral component in daily operations of commercial entities. Devoid of proper and supportive management practices, businesses cannot deliver on their mandate and expectations. Since its inception, J C Penney Company has had a complete metamorphosis with regard to management and running of business undertakings. In early days of operation, the company undertook a conservative approach to management (Hitt, 2005).
This approach ensured clear understanding of recurrent needs within the market. The management approach guaranteed success and profitability in a competitive corporate environment. Despite various challenges and shortcomings within the market, J C Penney grew into a successful business entity.
Early success of the company emanated from sound managerial practices that anchored on strategic alignments within the market. Through sound management, J C Penny made several acquisitions that heralded a bright future with regard to growth and expansion (Hitt, 2005).
Due to technological advancements, J C Penney Company had to realign its operations with current realities and challenges. The company had to alter its structural framework in order to support its operations in a highly dynamic and modernized economic and commercial landscape. Over several decades, the company initiated organizational changes that ameliorated its ability to launch and propagate new and innovative products.
Towards the end of the 20th century, the company inaugurated its internet outfit that preoccupied with online retail and merchandising (Hitt, 2005). This approach increased its hegemony in commerce because of the ability to reach a wide and diverse range of clientele. However, these efforts led to closure and termination of several stores that could not sustain profitability in a competitive market (Hitt, 2005).
Later on, the company terminated its drug store services in a bid to reinvent itself. Through its online outfit, J C Penney developed a profit regime that heralded unprecedented success and growth in a volatile market. By all standards, the company continues to record success due to its style of management.
The management team strives to ensure growth, expansion, and profitability through innovative management practices. Therefore, it is evident that the company is under good management that not only grows it but also ensures dominance and propagation in a competitive domain (Lehman, 2008).
As earlier mentioned, it is important for organizations to cultivate a culture of proper and sustainable management in order to support and enhance growth, expansion, and profitability. This creates room for incorporation of new and innovative ideas that catapult the organization to greater corporate success.
In case of J C Penny Company, top management team have continually played a pivotal role in introducing and sustaining new and innovative concepts that ultimately enhance productivity (Lehman, 2008). The shift from catalogue to internet retail trading was monumental and crucial in various ways. The company had to invoke several structural adjustments with regard to operations and undertakings within the market.
This shift required intense and concerted participation by the top management team. The team offered guidance in every step throughout the implementation process (Lehman, 2008). The team supported such endeavours through enactment of policy guidelines that sought to validate and expedite the transition.
The process was successful and helpful in converting the company into a competitive commercial entity. However, numerous hiccups threatened to derail the process. Such challenges provided a favourable opportunity for innovation and expansion (Lehman, 2008).
In modern society, celebrities hold great relevance in terms of influence and public opinion. Various organizations utilize such influence as a tool for marketing their goods and services. J C Penney Company uses celebrities in marketing products that ultimately record success in the market.
By using celebrities in product endorsements, the company realizes their inherent potential in influencing and swaying public opinion (Hare, 2004). This effectively raises the profile of company products and other related services. This is an effective way of promoting products and services in the market. People tend to associate the products with the celebrities who endorse such products.
Innovation is a very critical aspect in success of organizations as they pursue productivity and profitability. Through innovation, organizations position themselves in strategic areas of competence and operation within their respective markets. For J C Penney Company, one innovative idea would be introduction of wider and intensive delivery networks to support availability of goods in the market (Hare, 2004).
Through such delivery networks, the company would intensify its services to respective market segments. This idea would materialize through incorporation of all relevant stakeholders in the process of implementing the changes.
J C Penny Company is very prepared with regard to adapting to modern changes in the market. Ability to meet customer needs is a very important aspect in business. The company has a clear and informed understanding of all areas that concern service to its customers. This guarantees customer satisfaction in all areas of operation within its market (Hare, 2004).
Conclusion
J C Penney Company continues to record positive results in all areas of operation within its market scope. The ultimate success and productivity of this company depends on factors such as innovativeness and proper management skills. Without proper management, it is difficult for the company to record any meaningful success in commercial undertakings. Despite various challenges and shortcomings within the market, J C Penney grew into a successful business entity (Hare, 2004).
Early success of the company emanated from sound managerial practices that anchored on strategic alignments within the market. Through sound management, J C Penney made several acquisitions that heralded a bright future with regard to growth and expansion. Indeed, J C Penny Company is a formidable force in the world of retail business around the world.
References
Hare, B. (2004). Celebration of Fools: An Inside Look at the Rise and Fall of J C Penney. London: Cengage Learning.
Hitt, M. (2005). Understanding Business Strategy: Concepts and Cases. London: CENGAGE.
Lehman, M. (2008). Century 21 Accounting. London: Oxford University Press.
Plunkett, J. (2007). Retail Industry Giants: J C Penney. Newyork: Taylor & Francis.