1. Allen Questrom joined JC Penney in 2000 as CEO to rescue the struggling department store chain. 2. He focused on improving the supply chain, revamping the brand image, closing unprofitable operations, and regaining lost customers. 3. By 2004, Questrom helped achieve significant growth and profitability increases through initiatives like focusing on middle-income customers, competitive pricing, and centralizing buying decisions.

1. PRESENTED BY:
ZAHID MEHRAJ
LOVELY PROFESSIONAL UNIVERSITY
BBA-MBA

2. JC Penney Chief Breathes New
Life into an American icon
 Jc Penney is the series of American mid rang department
stores situated in plano,texas and north part of Dallas.
The company operates 1,150 department stores in all 50
U.S states and Puerto rico. Jc Penney also operates sales
merchant office national wide in many small markets.

3.  QUESTORM:
Chairman and chief executive officer Allen Questorm
{2000-2004} was the first outsides who assumed the top
position at jc Penney in the company’s one hundred plus
history when he
joined jc Penney in September
from barneys newyork.

4. PROBLEMS FACED:
Ø SOL.
Ø IN EFFICIENT SUPPLY CHAIN:
 Improvement in new products.
 Supply should be according to demand.
 There should be increased number of stores in middle
market, were there is bulk of customer
 Employing more continuous moves.
 Improving trailer utilization and partnering with carriers
to secure capacity.

5. Ø Stodgy brand name:
Ø SOL.
1. Launching new updated products.
2. He should think about customer satisfaction.
3. Introduce rate cutting so that the customers are
able to purchase them.
4. Planning of such offers focusing on products in
demand.

6. Ø Money losing drug store operation:
Ø SOL.
As drug store is going through a huge lose so, he has to
close the drug store immegately and focus on another
business. where from he can get more profit.

7. Ø LOST CUSTOMERS:
Ø TO RETAIN BACK TO ITS ROOT:
Ø START SMALL AND EMPHASIZE HUMAN TOUCH:
Ø BE FLEXIBLE:

8. Q1.Which managerial function is Questrom trying out of
planning to carry out?
v PLANNING:
o To get Back penny’s roots.
o centralizing the buying decisions focus on running the
stores.
v Organizing:
o He set in motion a five year plan to rescue the embattled
retailer that focused on improving marketing
merchandising profitability and hiring.
o He introduced division of work.

9. v Staffing:
o Questrom believed in hiring the right person for job, even
when his personal inclination on the other side.
o Tried to increase the percentage of outside talent to
about 20% in order to keep new ideas flowing into the
company.
o Hired by identifying the work force and invertering the
people.
v Leading:
o Focus on customers.

10. v CONTROLLING:
o Measure and corrupt individual and organizational
performance to tenure the events.
o He said “we have to be aware of what’s happing in
the fashion world and bring that to middle America
at great values”.

11. Q2.Which managerial roles are Questrom carrying out of
planning to carry out?
 As an interpersonal roles: motivated subordinates,
selection and training of employees, seek behind own
personal issues.
 As an disturbance handler: took care of organization
correcting on going issues.
 As a resource allocator: decided the expenditures of the
organization physical, financial, etc……

12. Q.3As a personal adviser to Questrom,suggest what need to
be done to improve Penney’s market share of the
department store business?
o Introduce new products.
o To emphasize on decision making.
o There should be efficient supply accordingly.
o The brand name should not be stodgy {typical}.

13. Q4..To what extend do you think participating in a
marching band would help a person develop the discipline
to be successful as a manager?
ü Yes, because in marching band there is a team work.

14. Q5.Based on whatever current information you can locate
how successful has Questorm been in helping make Penney
more profitable?
o He put forth a team work method.
o He believed first to set the objective and make the
people understand and execute them.
o He focused on middle class market.
o He offered competitive prices to shopper’s i.e. cutting
costs
o He added new offices in new York and los Angeles to put
Penney closer to the biggest concentration of vendors.
o He suggested his company as a new company when he
closed44 of Penney’s 1000 stores and lying of about 5000
staff.

15. q
SWOT ANALYSIS:
Ø
STRENGTHS:
ü
They put initiative for customers first.
ü
Wide product and service offerings.
ü
There brand is reachable to customers.
ü
Efficient supply chain.
ü
Has a strong distribution network.
ü
It has more than 50 years of experience in
direct sourcing.

16. Ø WEEKNESS:
§ Excess inventory was not able to be sold quickly.
§ No Reliance on seasonal trade.
§ Variable assortment.
§ Weak offerings.
§ Not the best merchandising standards.
§ Rising costs put pressure on customers.

17. Ø OPPORTUNITIES:
1.Focus on expansion.
2.Launching new products.
3.Put emphasis on online investments and purchase.
4.To attract a huge piece of the market by appealing to
middle income families by creating affordable and
updated fashions for both the home and the individual.

18.  THREATS:
1. Rising labor cost.
2. New store openings.
3. Rising competition.

19.  CONCLUSION:
 Questrom can be designated as a “ MASTER OF CHANGE”
 Helped JC PENNEY to retain its position in all the possible
way.
 Showed for any good manager of a company is to get the
present cadre of people to refocus.
 Retained the market value which got declined about $3
billion from a peak of $20 billion in 2002
 By the strategy as Questrom said to start” making money
again”.
 By 2004 made huge success by achieving their goal of
creating a profitable enterprise ….
 Which was a one- year sale growth of 45 percent, with a
net income

20. like the characters of some play managers too after
perform different roles bound by their position one cannot
help but remember the famous line; “a world is stage and
men and women mere players”