1 Case Study: Ron Johnson at J.C. Penney Name Institution Course Professor’s Name Date of Delivery 2 What Ron Johnson Did Poorly Although Ron Johnson had been successful at Target and Apple, his performance at J.C. Penney turned-out to be dismal. The stakeholders had expected him to revive the firm, especially because it was making losses amounting to millions of dollars. Indeed, Johnson was hired almost immediately after J.C. Penney declared a quarterly loss of $143 million. He initiated such drastic changes as the end of commissions for the company’s sales clerks, the traditional pricing model, and several other concepts which J.C. Penney had nurtured for years (Narayandas, Margolis, & Raffaelli, 2017). The changes caused the loss of some of the core clients, and that is because some individuals prefer sticking to a system that they are used to. Johnson and his team did also fail to attract new clients, and this made it impossible for the organization to expand its market share and increase its revenue. The ideas which Johnson implemented were hardly tested, and Johnson’s over-reliance on intuition meant that J.C. Penney ignored possible alternatives (Narayandas et al., 2017). In essence, it is highly likely that much better solutions were missed. Moreover, the new leadership team was making decisions on the basis of incomplete information, and they allowed their own prejudice to overrule the facts on the ground. What Ron Johnson Did Well Johnson was brought on bo ...
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