Essay on The Failure of Ron Johnson as CEO of J.C. Penney

Essay on The Failure of Ron Johnson as CEO of J.C. Penney

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Introduction: Brief Professional Biography
Ron Johnson was born October 15, 1959, and grew up in Minnesota as the son of an executive
of General Mills. He received his Masters of Business Administration from Harvard School of
Business and his Bachelor of Arts in Economics from Stanford University. As Vice President
of Merchandising at Target, Johnson brought about a more upscale feel to the company with the
introduction of new lines to the company. He was Senior Vice President of Retail Operations at
Apple from 2000 to 2011, where he led a team that created the sleek, fun and functional Apple
retail stores that can be found today. Most recently he was hired by J.C. Penney in November
2011 as CEO, where he received a tremendous amount of attention. Unfortunately his actions
hurt the company generating negative publicity for him and J.C. Penney thus held his position
for only slightly longer than a year. This paper will discuss Ron Johnson’s personality, decision
making processes, leadership skills, and possible biases and how these aspects affected the
companies that he worked for.
Early Career
After earning his MBA in Business from Harvard, Johnson turned down a high paying position
at Goldman Sachs to take a position at Mervyns. This is why he took a low paying job with
plenty of room for growth and turned down a high paying job with less room for growth.
Johnson quickly climbed the ranks at Mervyns before taking a Job at Target. (CNN Money,
2011)
While at Target Johnson held many different managing positions, but it wasn’t until he held the
position as head of housewares that he made his biggest impact on Target. Here he designed
a low cost house ware product line. After this risky move Johnson started getti...


... middle of paper ...


...ube. Web site
http://www.youtube.com/watch?v=kzMIiQN7cVQ
Reingold,Jennifer. (2012, March). Retail’s new radical. CNNMoney.com.
http://management.fortune.cnn.com/2012/03/07/jc-penney-ron-johnson
Sawyer, Keith. (2013, April). Why Ron Johnson’s Apple magic failed J.C. Penney. Market
Watch. http://www.marketwatch.com/story/why-ron-johnsons-apple-magic-failed-jcpenney-
2013-04-10
Shrugged, A. Johnson, Ron.(2013). YouTube. Web site:
http://www.youtube.com/watch?v=uN1rxbk8a0o
Tuttle, Brad (2013, April). The 5 Big Mistakes That Led to Ron Johnson’s Ouster at J.C. Penney.
TIME. Retrieved from http://business.time.com/2013/04/09/the-5-big-mistakes-that-ledto-
ron-johnsons-ouster-at-jc-penney/
Useem, Jerry. (2011,August). How apple became the best retailer in america.CNNMoney.com.
http://tech.fortune.cnn.com/2011/08/26/how-apple-became-the-best-retailer-in-america

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