The effect of the particular external factors or forces might have extreme consequences for the specific department or divisions, also the analysis better helps companies in clarifying the needed or required changes, thus identifying the potential options (Norton, 2008). It identifies the issues or gap between the current and desired type of the organization, and thus requires to be stated in order for the management to look for change. In 2016, JCPenney was in the midst of a multi-year turnaround after coming dangerously close to bankruptcy. It is a strategic tool that is used to avoid or minimize the risk of losing the competitive edge that the organization has and to ensure the profitability of the products in the long run. 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The support team will be in communication with you through out and would keep you updated about all the development. Not only this, it also indicates that an organization has a lot unproductive assets for instance inventory, receivables, equipment and plant for its current sales’ level. The Jcpenney Back In Business economic factors or forces involves interest rates, inflation, and growth of economy, cost of living, working hours, wage rate and exchange rates. Many condition imposed by the suppliers generally include the increase in price while compromising the quality and quantity. According to Elie Ofek, K. Shelette Stewart, Christine Snively of JCPenney: Back in Business case study, Jcpenney Ellison can use this trend to expand in adjacent areas Competition, Crisis management, Human resource management. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Jcpenney Ellison. It is significant to consider these factors. Many times these options are already in hand with the management or re-developed from the scratch through strong brain storming. Threats are the factors that prevent the organization from the actualization of an activity. The straightforward calculation related the common share current market price to the most recent available EPS on the yearly basis. As it can be difficult to group the companies having similar business lines and to call it an industry. Under the evaluation of alternatives the pros and cons of the alternatives developed above are gauged based on the benefits they offer to the organization and also the strengths the carry that may help the oragnation in overcoming the problem. The sales implications for the selling and purchasing power, economies of scale and amount of market share. This is important, as it allows the reader and stakeholders to understand the proven facts, and the pasts results such recommendation has harvested, leading to more acceptability and also the determination of the plan that may be in need to be  adopted so to avoid the delays and resistance in the organization, while implementing the change. Jcpenney Back In Business Porter five forces reflects the competitive environment of an industry. Such analysis of the compatibilities or capacities is important, as it allows the organization to develop the sustainable competitive edge over it. Value of firm:this is the most common concept recognizing the components of capital structure of an organization debt and equity are tends to be values separately in the market. it is not appropriate setting an average as an objective. The return on equity likely measures the profit amount that had generated by assets. It emphasizes more on external factors and ignore the specific factors that are more specially related with the firm. Therefore, being the use of the financial ratios would provide assistance thereby leading to the overloaded information. In addition to this it does not provide any solution or alternatives decisions. Moreover, under the particular section, the decision criteria is also developed. BCG analysis should comprise not only growth share of industry & Jcpenney Ellison business unit but also Jcpenney Ellison - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. It has to come from the data provided within the case study rather than data from outside world. Profitability:the financial analyst generally assess profitability of an organization since it is the ability allow organization sustaining growth and earing income in both long term and short term. Moreover it also delineates the impact of such changing factors on the users, and other stakeholders. The company holds its vision closely as it allows them to orientate its innovation in terms of choices regarding the investment and strategies. Therefore Porter framework due to its limitation is too inert to be depending upon outside the short term to medium, term objectives. Value drivers: in recent time, the approach that has been significantly gaining the increased recognition is identifying the key elements standing out as vital in shareholders value creation of the specific organization. The substitute products are dangerous as the companies are under constant threat of being replaced. The inventory amount can be monitored by analyzing day’s inventory ratio. Once all the factors mentioned in the JCPenney: Back in Business case study are organized based on SWOT analysis, just remove the non essential factors. - Age and life-cycle segmentation of Jcpenney Ellison shows that the company still hasn’t able to penetrate the millennial market. If the number of buyer are limited or each of the buyer purchases large quantity relative to the size of the suppliers. - High customer loyalty & repeat purchase among existing customers – Jcpenney Ellison old customers are still loyal to the firm even though it has limited success with millennial. It can be a skill, a resource, image, market leadership, relation with buyer or supplier or any other advantage relative to its competitors that fulfill the needs of the market by providing the organization with a comparative advantage. The ration lay under profitability are discussed below; Return on assets (ROA): it is one of the most commonly and widely used performance measure of an organization. Combining these factors, it last greater and inevitable impact on organization. This in turn might defeating the prime reason of the pestle analysis. We have a trustworthy online payment system. Notably, Jcpenney Back In Business technology is one of the most important way of being competitive in the highly competitive market arena. What are external factors that are impacting the business environment (PESTEL Analysis) The products in the industry are standardized or are undifferentiated. Apart from this, while developing the problem statement, it is important for the     Problem statement to be clear and concise. Etc. It is a situation that arises as a result of the changes that took place in the immediate or distant environment, preventing the organization from maintaining its existence and superiority in the growing competition and are disadvantageous for the organization. The political factors may involves environment regulations, employment laws, tariffs, tax policy, trade restrictions, political stability and reforms. The external factors are dynamic and can be change at a rapid pace. And will it make the organization sustained in the changing market situation. These factors are important to be mentioned in the recommendation, in order to make itr strong and firm and allow the stakeholders/reader to connect the problem and solution, leading to better understanding. In addition, it offers clear view what are the factors that are valuable and inimitable o can be easily imitated in the long-term, thus preparing the organization to either use the valuable factor to delight the customer and develop a sustained competitive edge, or enhance its value and oragnation strengths to develop a strong competitive edge in the market, which is important to develop and maintain in order for the organization  to remain profitable and allow the maintenance of market share in the long-term (Hille, 2015). It is the process that is widely used for identifying the financial weaknesses and strengths of the corporations, this can be done by building the relationship between items of the profit & loss account and balance sheet. Also, while selecting a particular course of action/alternative, it is important to ask” whether the option will resolve the problem directly, or will an additional efforts will be required to address the problem. Overtime, the changes might be occur in less than one day, therefore the companies should make it tricky in order to predict how and why these forces might influence the future or present of the certain project. Learn More; Get Started; Disclaimer: The below article is for sample formatting of case solution only. Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a competition between the participants in the industry on the basis of price and quantity.