Q: Write a conclusion for the following case study.

When Old Is New and New Is Old ate in 2011, JCPenney made a dramatic move, ousting CEO fyron Ullman and bringing in Ron Johnson. Johnson was ceived as a change agent who could reinvent the company as a new, hip place to shop, just as he had transformed the Apple Store from a run-of-the-mill mall store to an enter- tainment destination. His vision was clear, stating, "In the nited States, the department store has a chance to regain its status as the leader in style, the leader in excitement. It will be period of true innovation for this company Johnson pro- posed offering new products and interesting product lines, such as Martha Stewart and Joe Fresh, to lure in high-end customers. He also envisioned Crenney as a destination, where shoppers would look forward to spending time brows- ing the store, similar to the excitement one often finds in an In April 2013, JCPenney's board reinstated former CEO Ullman, whose number one priority was reconnecting with the company's former customer base. Matthew Boss, an analyst at JPMorgan Chase, reports, "He talked about having the right prod- uct, but more importantly having the price and the value per- ception, something that he believes was lost over the past year." This means returning to the company's prior pricing strategy of marking up prices, then offering heavy discounts and abundant coupons and other promotional offers. Ullman planned to begin a slow process of analyzing the company's environment and ad- justing the company's strategy to increase sales and profitabil- ity. Many were optimistic that Ullman would be able to restore Penney as a stronger, more diverse company. However, over the next two years, the stock price continued to tumble and investors became concerned. Two years later, Ullman is stepping down, with Marvin Ellison stepping into the CEO position as of August 2015. Ellison joined the company as president in late 2014, with prior experience at both Home Depot and Target. Does Ellison have the secret to turning around JCPenney? Only time will tell. Apple Store. Unfortunately for JCPenney, Johnson's new vision was a near complete failure. Penney's loyal customer base was unhappy with the new store and pricing strategies. The company failed to attract new customers and sales fell by 25 percent in one year. Even the major shareholder who championed Johnson's recruit- ment, Bill Ackman, realized that the company had made a new fatal error, lamenting, "One of the biggest mistakes was perhaps too much change too quickly without adequate testing on what the impact would be." Notre Dame marketing Professor Carol Phillips points out that the company failed to understand the buyer with its new value pricing, no sale strategy. "JCP's CEO Ron Johnson was ... clueless about what makes shopping fun for women. It's the thrill of the hunt, not the buying." The new strategy was a mismatch with the company's existing manag- ers, product lines, pricing strategies, and customer base. Sadly, the company moved too quickly without carefully analyzing the steps needed to implement the new vision. According to Virgin America CEO David Cush, "Don't destroy your old rev- enue model before you have proved your new revenue model. That's the box that JCPenney has put themselves in."26 QUESTIONS FOR DISCUSSION 5-29. As CEOs, both Ullman and Johnson were involved in each of the four management functions. Briefly describe the types of decisions that the CEO of JCPenney must make as they relate to each of the four functions. 5-30. The text describes a variety of skills that are essential to management. Which two skills do you think will be most important for new CEO Ellison? 5-31. Do you think that Ron Johnson changed the mission of JCPenney or just implemented new strategies? Be sure to support your conclusion. 5-32. What do you think were Ron Johnson's biggest mistakes? 5-33. Do you think that Ellison will be successful in rescuing JCPenney, or is it too late