Assignment
                    Of
    Business Strategy(Part of MT 1)
                   On
Case Study “ Culture Change at JCPenny”




Submitted To:             Submitted By
B. Basnet                Sanjay Chettri
   Faculty                   MBA –IV Sem
IUS, Gangtok             IUS, Gangtok
1.    “The purpose of organizational culture is to enable
      internal integration and external adaptation.” What
      insight you gain from this case study?

    “The purpose of organizational culture is to enable internal integration and
     external adaptation.” The above statement is true because organizational
     culture defines the values, ethics, beliefs and perception about how
     employees and internal environment perceive that industry in which they
     are operating. Organizational culture would lead to the success and failure
     of any business. To cope with the ever changing environment situations
     organization need to framed and adapt such culture, so that they would
     benefitted in the long term growth and success. In the above case of JCP
     we can see that the organizational culture was very formal and rigid in
     nature and mostly they followed the traditional kind of culture. Employees
     in JCP organization addressed their managers or seniors formally, not by
     their first names like Mike. They never call out by their own name. the
     employees was not forward thinking or innovative, they used to think that
     to reach in a senior position they has to work from a store level. But when
     Ullman joined JCP as chairman and CEO, he changed the organizational
     culture drastically. But he had faced a significantchallanges, he expected
     that the employees will dress formally and respect in a humble way, as he
     saw that it was totally different from his expectation. HR department also
     thought that employees has to compiled with rigid rules so that they can
     work properly. As Ullman joined the company he try to bring revolution
     changes in organization culture and he succeed also. He brings up many
     changes like team work, friendly relationship amongst the workers in the
     work place, acceptable rules and regulations, helping them in solving their
     complex problems, guiding them in their works etc. so to be the successful
     in the competative business world, the organization has to maintain the
     good organization culture and shared its values and beliefs to its internal
     and external stakeholders carefully. They also need to adapt the changes in
     the environment and has to work accordingly for the better profit and
     sustainable future of the organization.
2.      “ Organizational culture is created by the strategic
        leadership provided by an organization’s founder and
        top managers.” What strategic changes did Ullman
        introduced in JCP?


      “ Organizational culture is created by the strategic leadership provided by
       an organization‟s founder and top managers.” When Ullman joined JCP
       coorporation as Chairman and CEO he bringout the significant strategic
       changes in the organization. The various facts about Ullman‟s contribution
       towards JCP coopporation as follows;
     a) A poster campaign called “Just call me Mike” was started to promote the
         idea that “ First names create a friendly relationship in the workplace and
         the poster were displayed throughout the organization.
     b) Flexibility of dress code according to the employees‟ preferences.
     c) The “ Office police” team was disbanded so employees feels
         empowerment in their work.
     d) Various art works done with photos of employees and other arts related
         to company on the wall.
     e) Launching the “ Winning Togather Principles which was built up for the
         employee moral code, honor, confidence and services in their work field
         and create cultural and ethical impression about the community.
     f) Developing the in-house training and development programs for the
         employees to build their career path.
     g) Started identifying high potential employees called „Hypos‟. These
         employees were sent to the Retail Academy and it was like graduate
         school on retailing ; strategy and team development. Ullman acted as
         faculty guide to those employees.
3.    “ Adaptive culture and inert culture are the two
      distinct cultures observed in an organization”.
      According to your perception distinguish the culture
      in JCP with specific evidence.


    From the JCP case study we can say that the adaptive culture in JCP
     corporation was changing the startegy, organizational culture by creating
     the poster campaign called “Just call me Mike” , disbbanded of „ Office
     police” team, launching of the “Winning Togather Principles”(WTP),
     building up moral code for employee honor, confidence, ethics, and other
     services related to social communities. Providing in-house training and
     development programs for their employees for future growth career and
     development prespectives. In 2006, JCP started identyfying high potential
     employees called „Hypos‟ in the organization. Even that they also provide
     education for retailing; startegy and team development. Ullman himself
     acted as faculty guide in that academy. This allows the employees to create
     innovative ideas, motivate and encourage them for their better output in
     future. The bottomline of the company was also showing good in the year
     2006.

     Inert culture in JCP corporation is clearly saw that before the Ullman
     joined the organization, culture has not so good among the managers annd
     subordinates. Rules and regulations was so rigid and formal; they called
     their senior formally and there is no team coordination found in the
     workplace. They followed the traditional culture, and separate office police
     team has formed to control the cooperation in the workflow. Even HR
     department was compiled with hard and fast rules. The employees were not
     forward thinking and innovative. That is why organization perfprmance is
     waek and less productivity in the production process.

Assignment bs

  • 1.
    Assignment Of Business Strategy(Part of MT 1) On Case Study “ Culture Change at JCPenny” Submitted To: Submitted By B. Basnet Sanjay Chettri Faculty MBA –IV Sem IUS, Gangtok IUS, Gangtok
  • 2.
    1. “The purpose of organizational culture is to enable internal integration and external adaptation.” What insight you gain from this case study?  “The purpose of organizational culture is to enable internal integration and external adaptation.” The above statement is true because organizational culture defines the values, ethics, beliefs and perception about how employees and internal environment perceive that industry in which they are operating. Organizational culture would lead to the success and failure of any business. To cope with the ever changing environment situations organization need to framed and adapt such culture, so that they would benefitted in the long term growth and success. In the above case of JCP we can see that the organizational culture was very formal and rigid in nature and mostly they followed the traditional kind of culture. Employees in JCP organization addressed their managers or seniors formally, not by their first names like Mike. They never call out by their own name. the employees was not forward thinking or innovative, they used to think that to reach in a senior position they has to work from a store level. But when Ullman joined JCP as chairman and CEO, he changed the organizational culture drastically. But he had faced a significantchallanges, he expected that the employees will dress formally and respect in a humble way, as he saw that it was totally different from his expectation. HR department also thought that employees has to compiled with rigid rules so that they can work properly. As Ullman joined the company he try to bring revolution changes in organization culture and he succeed also. He brings up many changes like team work, friendly relationship amongst the workers in the work place, acceptable rules and regulations, helping them in solving their complex problems, guiding them in their works etc. so to be the successful in the competative business world, the organization has to maintain the good organization culture and shared its values and beliefs to its internal and external stakeholders carefully. They also need to adapt the changes in the environment and has to work accordingly for the better profit and sustainable future of the organization.
  • 3.
    2. “ Organizational culture is created by the strategic leadership provided by an organization’s founder and top managers.” What strategic changes did Ullman introduced in JCP?  “ Organizational culture is created by the strategic leadership provided by an organization‟s founder and top managers.” When Ullman joined JCP coorporation as Chairman and CEO he bringout the significant strategic changes in the organization. The various facts about Ullman‟s contribution towards JCP coopporation as follows; a) A poster campaign called “Just call me Mike” was started to promote the idea that “ First names create a friendly relationship in the workplace and the poster were displayed throughout the organization. b) Flexibility of dress code according to the employees‟ preferences. c) The “ Office police” team was disbanded so employees feels empowerment in their work. d) Various art works done with photos of employees and other arts related to company on the wall. e) Launching the “ Winning Togather Principles which was built up for the employee moral code, honor, confidence and services in their work field and create cultural and ethical impression about the community. f) Developing the in-house training and development programs for the employees to build their career path. g) Started identifying high potential employees called „Hypos‟. These employees were sent to the Retail Academy and it was like graduate school on retailing ; strategy and team development. Ullman acted as faculty guide to those employees.
  • 4.
    3. “ Adaptive culture and inert culture are the two distinct cultures observed in an organization”. According to your perception distinguish the culture in JCP with specific evidence.  From the JCP case study we can say that the adaptive culture in JCP corporation was changing the startegy, organizational culture by creating the poster campaign called “Just call me Mike” , disbbanded of „ Office police” team, launching of the “Winning Togather Principles”(WTP), building up moral code for employee honor, confidence, ethics, and other services related to social communities. Providing in-house training and development programs for their employees for future growth career and development prespectives. In 2006, JCP started identyfying high potential employees called „Hypos‟ in the organization. Even that they also provide education for retailing; startegy and team development. Ullman himself acted as faculty guide in that academy. This allows the employees to create innovative ideas, motivate and encourage them for their better output in future. The bottomline of the company was also showing good in the year 2006. Inert culture in JCP corporation is clearly saw that before the Ullman joined the organization, culture has not so good among the managers annd subordinates. Rules and regulations was so rigid and formal; they called their senior formally and there is no team coordination found in the workplace. They followed the traditional culture, and separate office police team has formed to control the cooperation in the workflow. Even HR department was compiled with hard and fast rules. The employees were not forward thinking and innovative. That is why organization perfprmance is waek and less productivity in the production process.