Professor Elam

Wed June 15, 2011

We don't account for human capital in this day and age of the service industry. But JC Penny stock jumped 17% in one day on the news they hired Apple's 

Ron Johnson to be the new Apple CEO. Read about the Apple Store Strategy at the hyperlink. 

JCP picks new CEO.

I will be interested in your comments on the Discussion Site. Yes I want you to read these articles as well as

Best Buy Profit Margin at One Percent.

One of our students is now a manager for Best Buy Mobil Stores which BB hopes will improve things. 

I question whether Johnson can translate a one brand image to a traditional dept store. Apple sells one brand at high prices to fiercely loyal customers. JCP and BB handle many brands and frankly attract the opposite, more price conscious customers. My question, sounds like JCP thinks it can make itself into some sort of chic boutique, gee don't they sell underwear?  Let's face it there is not male counterpart to VIctoria Secret. There is no Genius Bar for shoes. So we shall see. Years ago Sears hired the guy that was the supply chain guru for the Kuwait Invasion, did that help Sears?