bus 475 week three paper review

Executive Summary

In the economic environment of today’s business world, corporate enterprise must create differentiable value to satisfy consumer needs. To accomplish this objective, an organization must develop clear Mission and Vision statements, as well as a positive alliance between innovation and strategic planning. This project will introduce hemp as an alternative in the fashion industry in a new division of the JCPenny Company. This will include a detailed SWOT analysis, mission and vision statements. Customer needs and competitive advantages will be explored. It will address industry trends as well as the commitment to social responsibility.

New product

Today’s world is changing at a rapid pace, and while we are unable predict the future, we can analyze and predict trends. Innovation is key to developing strategic management decisions. Many companies today are adopting a Go Green philosophy. Green Living is about becoming sustainable and living an eco-friendly lifestyle. JC Penney can say that the introduction of a new Hemp clothing line is a logical choice. Consumer products are the perfect place to start in the Go Green lifestyle. Hemp fabrics are well known for their earthy, natural character reflecting the biologic and mechanical processes used to produce these beautiful fabrics (Hemp basics 2015).

Mission statement

JCPenny’s foundation is built on our golden rule core value, this distinguishes us and guides our actions. Our business is conducted in a manner that is both ethically and socially responsible. We are supportive of universal human rights, while protecting the environment and benefiting society. Our mission is to provide the most affordable yet fashionable hemp product on the market. We are committed to providing our customers with high quality natural products.

Address customer needs and competitive advantage

JCPenny has been an industry leader for women’s fashions for decades. We have set ourselves apart from other retailers by expanding and developing specialized mid to high-end range of, fashion and accessories items that are the focus of a long-term development plan. The goal is to manage leading brands in this categories (JCPenny).

JCPenny is guaranteed by the history of the company, and has proven its growth and success setting the company apart from the current competition. The company is in constant development of its products to improve, grow, and meet the quickly changing needs and desires of the consumer. We lead the industry in developing new trends as proven with the success of the “Arizona” line. This division has developed, what it feels, is an advanced, superior product for its current client base, and has developed a plan to reach and grow a new niche hemp market customer base.

Create a vision

Our vision is to encourage an increased emergence in the use of hemp fiber and oil to be utilized in many various industries as a promising new resource. This will spur sustainable and viable production without adverse environmental effects. “In the last decade hemp has been widely promoted as a crop for the future. This is stimulated by new technologies which make hemp suitable for the cosmetics, textile and apparel industries” (Hemp basics 2015). In an environment in deep change, these values help us meet the challenges ahead.

The strategic role centers around these objectives: 1.To remain the market leader in promising leading edge innovation in hemp fashion merchandise. 2. To meet the demands of the adventurous consumer with exciting and appealing functional products. 3. To become the market leader in the hemp fashion industry with increased market shares.

SWOT Analysis

Strengths; 1. JCPenny has a strong international brand recognition. 2. Strong existing distribution channels. 3. Solid price positioning. 4. Low competition in the hemp market. 5. Large existing marketing channels and budget constraints. Weaknesses; 1. Consumer education/knowledge in the hemp market is low. 2. New product for the market, new business to the company. 3. Organic market is difficult. Opportunities; 1. New product development. 2. Organic market is highly desirable. Threats; 1. Reliant on foreign growers and suppliers. 2. Highly regulated industry. 3. Fairly easy market entry.

Industry Analysis/Trends

The hemp industry is expecting continual growth and seems to be on track to become the crop of the future. Market analysts project the hemp industry will flourish and yet will not expect to reach saturation level in the near future. “Enthusiasts have been promoting the use of industrial hemp for producing bioenergy for a long time. With its potentially high biomass yield and its suitability to fit into existing crop rotations, hemp could not only complement but exceed other available energy crops” (Prade, T). The positive evolution within the hemp industry can be credited to two main aspects: a) its versatility as a source of raw materials. b) Environmental benefits of hemp have been praised highly.

The Balanced scorecard is a management system that enables organizations to clarify their vision and strategy and translate them into action. It also provides an organization with feedback of both the internal business processes and external outcomes, which allows for continuous improvement of strategic performance and results (Balanced Scorecard Institute)

Guiding principles and values in the context of culture, social responsibility, and ethics.

Corporations of all sizes, are responsible for their carbon footprint. Any measures taken in the reduction those footprints are clearly positive for the company as well as society. JCPenny also practices social responsibility through donations to national and local charities. The JCPenny Company is working for a ”sustainable future by offering an entire product line of natural earth-friendly products from Hemp fiber grown and produced responsibly and locally manufactured in adherence to fair-trade practices and principles” (Hemp basics).

Social responsibility has become more mainstream as forward-thinking corporations ingrain sustainability into the foundation of their business operation to generate mutual value for business and society. "Sustainability isn't just important for people and the planet, but also is vital for business success” (Fallon, N. 2015). As consumers' awareness about global social issues continues to grow, so does the importance these customers place on corporate social responsibility when choosing where to shop.

Consumers are not the only ones who are drawn to businesses that give back. A company's social responsibility strategy is often a large part of the decision of top talented people when they are contemplating their employment choices. "The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue," (Fallon, N. 2015). By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. We must offer a feeling of belonging in the organization while we inspire a sense of loyalty, encourage job satisfaction and success among staff.

How the vision, mission, and values of the new division align with the company's mission and vision.

“Hemp has emerged as a viable commercial product that has not yet realized its full potential - despite having been in continuous use by mankind for over 6,000 years” (Hemp basics 2015). The decision to create the hemp clothing division and be a leader in the market was an easy decision, and one that will grow the company in the direction of the ever-expanding go green movement. Coupled with a contemporary and fashion-forward environment, JCPenney continues to concentrate on women, who account for 80 percent of apparel sales” (JCPenny).

How the vision, mission, and values guide the division's strategic direction

“The principles and values of the JC Penny hemp division follow the same guidelines of the company. Throughout our organization we are making progress in ensuring a common understanding of who we are, the customers we target, and our place in today's competitive landscape. We know that our business is about selling fashion at value prices. Our opportunity is to make sure that we have fashionable, high-quality merchandise at good prices. That's our history, and it is our future” (JC Penny).

Conclusion

The fact is brutally simple: the accelerated change within the business world is unavoidable. Evidence shows in current business world, customers are changing their needs and interest each day, markets are relentlessly unstable, and competitors are more aggressively capture any chance possible at new ideas. With technology advances faster and faster, and modifying the traditional strategic management that it touches, Innovation has become what shapes the current strategic management trends, and the right strategic management is the key to business success.

References

Balanced Scorecard Institute 2015. Retrieved from

http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard

Fallon, Nicole. 2015. Business News Daily Assistant Editor What is Corporate Social

Responsibility? Retrieved from http://www.businessnewsdaily.com/4679-corporate-

social-responsibility.html

Hemp basics 2015 Retrieved from http://www.hempbasics.com/

JCPenny 2015 retrieved from http://www.referenceforbusiness.com/history2/32/J-C-Penney-

Company-Inc.html#ixzz3i8y6KtWw

Prade, Thomas. 2014 Hemp - the energy and industrial crop of the future? Retrieved from

http://www.theecologist.org/blogs_and_comments/commentators/2221530/hemp_the_

energy_and_industrial_crop_of_the_future.html