Beruflich Dokumente
Kultur Dokumente
Organizational Shifts
Dan O'Brien
AET 560
Introduction
The JC Penney Company is a long recognized retailer of clothing and apparel. The
company is currently in the midst of continued change, fighting for its survival in the market
place. Change efforts have returned JC Penney to profitable operations but continued change
efforts will be required for the sustainability of the company. Just as recent as this last week the
company made an announcement that 138 stores nationwide will be closing to meet JC Penneys
The popular electronic retailer Best Buy has gone through its own challenges that have
resulted in an urgent need for organizational change. An online retailing giant has entered as a
fierce competitor that has created new shopping options for just about every retail market
including electronics. This online giant offers every product that Best Buy sells and in many
cases at reduced prices. Best Buys former largest competitor, Circuit City, ceased operations in
2009 due the inability to change and compete with such external organizations (Associated Press,
2009).
ORGANIZATIONAL SHIFTS 3
Changes in consumers shopping preferences and habits have forced changes in the way
Online retailers from several competing companies have changed consumer shopping
Consumers have fully accepted online apparel purchases from Amazon and other retailers
who have an online presence. JC Penney, with a large network of store locations, is out of sync
In response to diminishing sales JC Penneys board of directors hires a CEO who has led
successful change campaigns at Target and Apple. New change efforts such as a no sale policy
and store reconfigurations were not aligned with customer expectations and proved ineffective.
Effect on Employees
The continued reorganization efforts and the actions of the current CEO have left the
employees with a positive outlook on the future of JC Penney. Stock values rose 36% in 2016,
although still half of its former value investors and employees are optimistic about the future
(Garcia, 2016). Reorganization efforts and change visions are apparent across the organization
as employees are confident in the CEO and the companys direction (Garcia, 2016).
ORGANIZATIONAL SHIFTS 4
Corporate executive scandals and affairs, poor executive spending practices, improper
maintenance of stores, low employee morale and financial loses had caught up with the lone
Best Buy had managed to outlast other electronic retailers such as Circuit City and Comp
USA but was under pressure from Amazon who sold the same products for less which much
better delivery times. Amazon had captured many of Best Buys customers with their customer
Best Buys inability to deliver products led to consumers choosing an online retailing
were utilized to deliver products in a timely manner, sometimes faster than their online
competitor (Green, 2015). Best Buy store locations where reconfigured to appeal to a broader
Effect on Employees
The hiring of a new CEO brought in cost savings and training programs that improved
customer service (Green, 2015). Employee morale would be greatly improved seeing positive
References
Associated Press, (2009) Circuit City Closes its doors for good. Retrieved from
http://www.nydailynews.com/news/money/circuit-city-closes-doors-good-article-
1.368854
Cawsey, T. F., Deszca, G., & Ingols, C. (2016). Organizational change: An action-oriented
Garcia, D. (2016). JC Penney CEO: This is our comeback strategy. CNBC.com. Retrieved from
http://www.cnbc.com/2016/02/29/jc-penney-ceothis-is-our-comeback-strategy.html
Green, T. (2015). Best Buys Turnaround Is One for the Ages. The Motley Fool. Retrieved from
https://www.fool.com/investing/general/2015/08/31/best-buys-turnaround-is-one-for-the-ages.aspx
Peterson, H. (2017). JC Penney is closing 138 stores see if your store is one of them. Business
Spector, B. (2013). Implementing organizational change: Theory into practice (3rd ed.). Upper
Tuttle, B. (2013). The 5 Big Mistakes That Led to Ron Johnsons Ouster at JC Penney. Time
ron-johnsons-ouster-at-jc-penney/
Wieczner, J. (2015). Meet the women who saved best buy. Fortune.com. Retrieved from
http://fortune.com/2015/10/25/best-buy-turnaround/