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Old 13th April 2013, 01:07 PM   #1
AngelBiz
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Default Lessons From JC Penney Failure For Small Business

By now, most in the business community have heard about the ouster of Ron Johnson as CEO of JC Penney after only 17 months on the job. This was a stunning reversal of fortune for Ron Johnson who was regarded as retail Guru based on his accomplishments in transforming Target to “Cheap Chick” retailer and hugely successful launch of Apple Stores. When he was hired at JC Penney he was viewed as a savior who would rescue JC Penney from the downfall it was experiencing for several years.

However, things have not turned out to be that way. In 17 months JC Penney has been in complete turmoil. Sales in 2012 declined 25% compared to prior year representing a staggering $4.3 Billion in lost sales. In 2012 it recorded loss of $1 Billion. No other company has seen such a precipitous loss of value in this short time. So, what went wrong and what lessons can small business owner learn from this?

Read more - http://www.smallbizviewpoints.com/20...mall-business/

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Old 15th April 2013, 01:58 PM   #2
carpetnj
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Originally Posted by AngelBiz View Post
By now, most in the business community have heard about the ouster of Ron Johnson as CEO of JC Penney after only 17 months on the job. This was a stunning reversal of fortune for Ron Johnson who was regarded as retail Guru based on his accomplishments in transforming Target to “Cheap Chick” retailer and hugely successful launch of Apple Stores. When he was hired at JC Penney he was viewed as a savior who would rescue JC Penney from the downfall it was experiencing for several years.

However, things have not turned out to be that way. In 17 months JC Penney has been in complete turmoil. Sales in 2012 declined 25% compared to prior year representing a staggering $4.3 Billion in lost sales. In 2012 it recorded loss of $1 Billion. No other company has seen such a precipitous loss of value in this short time. So, what went wrong and what lessons can small business owner learn from this?

Read more - http://www.smallbizviewpoints.com/20...mall-business/
One thing that can be learned is that business does play a factor in business. Ron Johnson was successful at Target because he was at the right place at the right time.

Sometimes, even if you are a "guru", you cannot turn around a company that is already a sinking ship.

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Old 15th April 2013, 06:39 PM   #3
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Interesting post, and I agree carpetnj -

Saw a lot of this in my internet days and corporate marketing days... they bring in the so-called superstar CEO and expect him to work miracles. And sometimes they mess with the basics so much (trying to fix too much too fast) that you mess up what was actually working!

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Old 15th April 2013, 09:10 PM   #4
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Interesting post, and I agree carpetnj -

Saw a lot of this in my internet days and corporate marketing days... they bring in the so-called superstar CEO and expect him to work miracles. And sometimes they mess with the basics so much (trying to fix too much too fast) that you mess up what was actually working!
Daine - Couldn't agree more. I never believe in bringing in superstar CEO. Most of the time it has ended in a disaster for the company.

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Old 15th April 2013, 11:25 PM   #5
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Hiring a super famous CEO doesn't guarantee great success in business. Even stable companies are prone to risks and other threats.

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Old 18th April 2013, 05:06 AM   #6
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The reality is that the success or failure of such a huge business does not come down to a super CEO.

Just the same way that a coach of a footy team can not take all of the credit for a successful or unsuccessful year.

Its a team effort and there are many factors at play.

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