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J. C. Penney Company Case Study Analysis & Solution
Harvard Business Case Studies Solutions - Assignment Help
J. C. Penney Company is a Harvard Business (HBR) Case Study on Finance & Accounting , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.
Finance & Accounting Case Study | Authors :: Kenneth Eades, David Glazer, Shachar Eyal
Case Study Description
The case examines the liquidity issues that J. C. Penney (JCP) experienced in 2012 and 2013 following a decline in sales and profits over several years. Despite once being a highly profitable and growing company, the increasing pressures of competition led to changes in strategy and in management that were insufficient to return the company to the consistent financial results it had previously enjoyed. While sales and profits waned, the cash balance also suffered, and Wall Street analysts began expressing liquidity concerns as the company wrestled with having enough cash on hand to cover daily operating needs. Students are asked to calculate a time series of quarterly liquidity and leverage ratios to illustrate the declining financial condition of the company. They are further challenged to weigh the benefits and drawbacks of raising equity versus debt as a solution for the company's lack of liquidity. To assess the amount of external capital required, students are asked to use a sources and uses analysis that provides intuition for the cash flow challenges facing the company. Set against the background of an iconic retailer, the case provides an engaging context in which to discuss the need for a major capital structure decision due to operational challenges.
[10 Steps] Case Study Analysis & Solution
Step 1 - Reading up Harvard Business Review Fundamentals on the Finance & Accounting
Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Finance & Accounting. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.
Step 2 - Reading the J. C. Penney Company HBR Case Study
My case study strategy involves -
- Marking out the protagonist and key players in the case study from the very start.
- Drawing a motivation chart of the key players and their priorities from the case study description.
- Evaluate each detail in the case study in light of the HBR case study analysis core ideas.
Step 3 - J. C. Penney Company Case Study Analysis
Step 4 - SWOT Analysis of J. C. Penney Company
- Zero down on the central problem and two to five related problems in the case study.
- Do the SWOT analysis of the J. C. Penney Company . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
- SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the J. C. Penney Company
- SWOT analysis will also provide a priority list of problem to be solved.
- You can also do a weighted SWOT analysis of J. C. Penney Company HBR case study.
Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis J. C. Penney Company
Step 6 - PESTEL, PEST / STEP Analysis of J. C. Penney Company
Another way of understanding the external environment of the firm in J. C. Penney Company is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.
Step 7 - Organizing & Prioritizing the Analysis into J. C. Penney Company Case Study Solution
Step 8 -Implementation Framework
- Detailed understanding of the case,
- Clarity of HBR case study fundamentals,
- Analyzed case details based on those fundamentals and
Implementation framework helps in weeding out non actionable recommendations, resulting in awesome J. C. Penney Company case study solution.
Step 9 - Take a Break
Step 10 - Critically Examine J. C. Penney Company case study solution
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