Business advice for Ullman
Introduction
When Johnson was sucked from the company, Mike Ullman was sure of the greatest challenges that he was likely to face on his appointment in the company. He was assured of the company’s recent reports that had put the company in registering a substantial drop in the profits. What Johnson had done was that he had tried to tamper with company’s procedures all in the name of betterment of its services. In his plan, he had considered that in business it involved of taking risks regardless the level or the magnitude of the risk in the whole business organization. JCPenny Company had been known in the production of products that were major competitors in the target and the Wal-Mart. The aim of Johnson in trying to take the risks, resulted to a failure rather that the expected success. This resulted in him losing his job as a CEO of JCPenny.
It is established that people the company’s management structure was in place and was one of its kind in that it involved all the employees in making various decisions. However on this particular moment when Johnson wanted to take some strategic measures the management did not approve of his planned measures (Gilson, 155). The steps and the measures that Johnson took resulted to the company almost indefinite closure. However the shareholders of the company were kind enough to put measure in order to prevent the closure of the business. They applied for loans in the banks that at the end they revived the company. The shareholders have a strong confidence in mike because of his achievements in his previous jobs. They were confident that mike was going to revive the unfortunate circumstances that had befallen on the JCPenny Company. They were sure that he was going to revive the company economic status and within a short period of time they were sure that the company was going to register a significant amount of profits.
Mike ought to be careful with the strategies he decides to take because they can lead to the company’s bankruptcy if they back fires. The main challenge that faced JCPenny Company was the regulation of the price strategies that resulted to the ultimate down fall of the company. Mike had to work out a strategy that would regulate the company’s prices back to normal without hurting the economy of the company. The other challenge that faced JCPenny Company was the new sales structure that had been established by the former CEO. The sales structure was unfriendly to the consumers this resulted to the people losing interest on their products. Mike Ullman on his appointment was forced to change the whole sales structure to enforce the sales of the company. I would propose that mike should use other innovative ways of marketing like stealth marketing. The other thing that he is supposed to do is to put a manager in charge of sales that would be directly answerable to him. This will enhance accountability and the sales team would do a magnificent job.
The advantages of the above solutions are that the JCPenny Company was going to register magnificent results after successful implementation. The other advantage is that the company was going to venture into the international marketing through the establishment of the new sales marketing structure. However, the company is going to be faced to numerous challenges (Donaldson, 92). One of the main challenges was the fact that the company was going to need extra finances to hire new employees and enhance production. The other challenge would be the stiff competition from various companies that produce the same products. During the time JCPenny company was going through transition most its competitors got the chance to convince the clients that they had the best products and gaining back the trust from their consumers proved substantially hard.
The criterion used to analyze the above problems was from the long term to the short term strategies. This is because there are those strategies that were evident since the inception of knew strategies by the former CEO. Some of the strategies that were used affected the company directly while the others affected it indirectly. The criterion used was according to the magnitude that it influenced the company. The company expects new revenue from the above strategies that would result in the company registering increased profits. After the implementation of the proposed strategies JCPenny is supposed to enjoy the benefits (Hildebrandt, 122). One of the benefits is that the employees are likely to have an increment in their salaries after the strategies work. The government on the other hand should put friendly measures that promote the execution of duties ion companies such as JCPenny. This is because the government has put strong incentives and measures that almost make business operations extremely hard. The legal laws that govern the business operations should be enhanced in order to protect the entrepreneurs from crimes that are rampant in the society today. The government also imposes huge tax levies on business operation that almost make most entrepreneurs to withdraw from starting up businesses.
I strongly recommend that the new CEO should first conduct a research study on the market before implementing the proposed strategies. This is to eliminate the possibility of the strategies failing that would later result to the company losing a substantial amount of revenue. The other thing that the CEO should take into consideration is the hiring of well trained and qualified employees that would help them to execute their duties with dignity and equality. The other thing that mike should consider the area of marketing that acts as the backbone of the company (Alkhafaji, 189). The company should come up with ways of attracting and retaining their consumers. This can be done by offering discounts and aftersales services. Customer treatment also plays a big role in the achievement of the company goals. Consumers just need an enjoyable treatment and this will ease the purchase of good in the JCPenny Company.
Conclusion
The implementation of the above strategies is going to take a significant amount of time because it requires a period of not less than one year. This period though requires a patience and company’s management support in order to achieve the vision. However once the implantation period is over, the company can be sure to enjoy the fruits. Mike is up to the task and with the conviction he has from shareholders the people in the company have high expectation in his delivery of services. It is estimated that mike has the capability of lifting and taking it to higher levels than any other CEO. The whole world is watching mike as he lifts back the fallen multimillion companies.
Work cited
Donaldson, Gordon. Corporate Restructuring: Managing the Change Process from Within. Boston, Mass: Harvard Business School Press, 1994. Print.
Hildebrandt, Arne. Empirical Evidence on Shareholder Value Effects of Corporate Restructuring. München: GRIN Verlag GmbH, 2007. Internet resource.
Alkhafaji, Abbass F. Corporate Transformation and Restructuring: A Strategic Approach. Westport, Conn [u.a.: Quorum Books, 2001. Print
Gilson, Stuart C, and Edward I. Altman. Creating Value Through Corporate Restructuring: Case Studies for Bankruptcies, Buyouts, and Breakups. Hoboken, N.J: Wiley, 2010. Print.
