Strategic Recommendation to Acquire JC Penny essay
- Strategic Alternatives & recommended Strategy: Pros/Cons
- Pause Strategy: Pros/Cons
In actuality, the company can use the pause strategy to maintain its positive marketing performance and to expand its market share. In fact, the pause strategy has both advantages and disadvantages. On the one hand, the pause strategy provides the company with an opportunity to consider the current situation in the market carefully and to take the right decision. As the company can consider the current situation, the business environment can change consistently. Therefore, the company can analyze in details the current situation and prospects and its further development to take the right decision in relation to JC Penny. On the other hand, the company may confront certain problems, while using the pause strategy because this strategy may lead to the waste of time, which may be crucial in the contemporary business environment. Today, the fast decision-making process may be crucial for the overall marketing success of the company in the market. As the company uses the pause strategy, the company may deteriorate its competitive position, while its major rivals may outpace the company taking decisions faster.
- Retrenchment: Pros/Cons
The retrenchment strategy may be quite effective but this strategy leads to the limitation of expenses of the company, consistent cost cut and, therefore, substantial problems in terms of the aggressive marketing expansion. First, the use of the retrenchment strategy allows the company to save costs. Saving costs allows the company to optimize its organizational performance and opens better prospect for the improvement of its financial performance. On the other hand, the retrenchment strategy implies that the company is likely to face substantial problems with the further market expansion. As the company saves costs, the company will get larger opportunities for increasing its revenues and improve its financial performance.
Nevertheless, the retrenchment strategy is likely to lead to the overall negative effect. In fact, cutting costs is likely to limit the market expansion opportunity for the company because the company will be limited in its financial resources to expand its business (Masterson and Picton, 2004). The market expansion is costly and the retrenchment strategy focuses on saving costs instead. If the company slows down its market expansion, the company will likely to deteriorate its marketing position. Therefore, the retrenchment strategy is not worth implementing.
- Recommended Strategies: for the acquisition of JC Penney
In such a context, the acquisition strategy is the best solution for the company. To put it more precisely, the acquisition of JC Penny opens larger opportunities for the company for the fast and effective business development and market expansion. The acquisition of JC Penny may be crucial for the company and its further development because JC Penny can increase the market share of the company consistently. In addition, the acquisition of JC Penny contributes to the development of the larger network and integration of new, well-qualified professionals, who can improve consistently the effectiveness of the organizational performance. The company will be able to use JC Penny’s distribution network and suppliers. In such a way, the company is likely to benefit from the acquisition strategy. However, the company may face the problem of the integration of organizational structures of two companies and, what is more, the problem of integration of employees. In this regard, the company should pay a particular attention to the communication of the acquisition strategy to employees of both companies.
- Implementation
In fact, the implementation of the acquisition of JC Penny should start with the development of the plan of the acquisition. The company should define accurately each step of the acquisition (Masterson and Picton 2004). Second, the company should communicate the acquisition strategy to employees of both companies. In such a way, employees should be certain in their future in the company after the acquisition. Third, the company should develop steps of the integration of organizational structures of both companies. In such a way, the company will be able to integrate JC Penny in its organizational structure successfully. In addition, the company should pay a particular attention to the organizational culture. In this regard, the company should focus on the formation of positive, healthy organizational culture. Therefore, the company should implement the strategy of acquisition of JC Penny.
- Evaluation and Control
At the same time, the implementation of the acquisition strategy needs the evaluation and control over the implementation of the plan of the acquisition. In fact, the evaluation and control is essential for the adequate and successful implementation of the acquisition strategy. The evaluation should focus on the analysis of statistical data concerning the organizational performance after the acquisition of JC Penny. Furthermore, the company should conduct qualitative study of employees’ satisfaction after the acquisition. In this regard, the company can use interviews and questionnaires to find out the level of employees’ satisfaction. Employees should provide positive feedback to the acquisition. To monitor the employees’ satisfaction and to conduct the evaluation and control over the implementation of the acquisition plan, the company should appoint control officers.
