Follow-up on JC Penney: Will their mea culpa commercial work?

By Annie Burnham

Last month, I posted a blog on the firing of former JC Penney CEO, Ron Johnson, due to his failure to turn around the company’s plummeting sales. Johnson created problems by pushing away loyal customers and ignoring their needs. JC Penney has existed for 111 years and has a large customer base. Johnson treated JC Penney customers like he treated Apple’s customers, despite the differences between the companies and their customers. The failure to recognize those differences coupled with the sudden and vast number of changes helped lead to Johnsons failures as CEO.

Former CEO, Ron Johnson
Photo: courtesy of Apple

Mike Ullman, the old JC Penney CEO reinstated as interim leader, wasted no time in sending out a plea to former JC Penney shoppers. The struggling retailer released a 30–second commercial asking customers for forgiveness:

“It’s no secret. Recently, JC Penney changed. Some changes you liked, and some you didn’t. But what matters with mistakes is what we learn. We learned a very simple thing: to listen to you. To hear what you need to make your life more beautiful. Come back to JC Penney. We heard you. Now, we’d love to see you.” The spot ends with the full JC Penney name, and the lines “Come back to see us” and “We’re listening on Facebook.”

While the commercial has garnered some attention for JC Penney, experts have differing opinions about what its outcome might be. Daniel Gross, writer for The Daily Beast, said that the firing of a CEO in such a short amount of time is an emerging trend. The speed at which changes in technology, social media, the market, and investing take place contributes to shorter tenures for CEOs.

“Over the past five years, an average of nearly 1,300 CEOs have resigned, retired, or been fired each year,” said John Challenger, CEO of Challenger, Gray, & Christmas, a Chicago-based executive coaching firm. “Patient money is nonexistent in the age of immediacy in which we live. JC Penney provides a case study of what happens when impatient money meets a turnaround that is likely to take time.”

Some critics say that there is no hope for JC Penney. According to Douglas A. McIntyre, a writer for the blog 24/7 Wall St, “JC Penney would not only have to reach millions of them with its new message. It also would have to compel these consumers to come back to an experience they abandoned because they did not like it.”

Whether customers return or not doesn’t seem to have deterred Goldman Sachs from approving a $1.75 billion loan for JC Penney this past week. One problem JC Penney now faces with the broadcast of this commercial is to live up to what it has promised. Gaining back its consumers and developing brand loyalty isn’t going to happen just because of an apology in the form of a 30- second TV commercial. Shoppers need to see changes that they like. So, what does the future hold for retailers —particularly JC Penney? Only time will tell.

How have you responded to JC Penney’s recent changes? Is the apology enough to bring customers back? Be sure to leave comments below.

What to do while you’re living in your parents’ basement

By Tim Pate

What NOT to do as a job-seeker

Graduation is looming, and you don’t have a job in line yet. No need to fret; you’re not alone. Plenty of college students spend a little time unemployed before finding that elusive position. Graduates who find success in their job search aggressively seek opportunities and make the connections that others miss. So instead of becoming a master video-gamer during your time off, here are some tips for finding that job as quickly as possible. You and your parents will thank me.

1. Improve your social media presence.

Facebook and Twitter have been fun channels through which we have interacted with friends throughout college, but now it’s time to use these platforms and more to your advantage. First, clean up your personal sites: take down your party pics, commit yourself to clean and sophisticated language, use a professional photograph for your profiles, and sculpt your biographies so that they reflect the best version of yourself.

Then start posting content that is relevant to your interests and the career you want to pursue. Employers want to see that you actually care about your career – demonstrate your passion over social media.

Once you’ve done that, think about exploring other social media sites and learn how they can further serve you in your job hunt. Use LinkedIn as an online resume. Post pictures relevant to your career goals on Pinterest. Showcase your photography on Instagram. Keep a blog that documents your job-seeking activities. Do whatever you think might help you stand out in the eye of a recruiter.

2. Continue self-educating.

Just because you’re done with college does not mean you’ve finished learning. No matter how great your education, remember there is a world of information waiting to be discovered. Read industry magazines and blogs (and share and comment – see advice above!). You can also read up on fields that are only peripherally related to your focus – you may end up diversifying your knowledge and skills.

Another great way to learn and stay fresh on what you learned at Colorado State University is to pass your knowledge along. Offer to tutor students studying what you studied and you’ll retain that information. Tutoring also gives you experience to add to your resume, thereby making you a more desirable candidate for recruiters.

3. Freelance or volunteer – it’s all about networking!

You can also add experience by doing freelance work or volunteering in your desired industry. Say, for example, you’re a marketing graduate but you haven’t found a full-time marketing gig. Who’s to say that new restaurant in your hometown couldn’t use some discounted marketing work? There’s no harm in offering to work a freelance job, and you might even make a few dollars while you’re at it.

More importantly, you continue to build that ever-important “Experience” section of your resume. Doing freelance work shows initiative to employers. You may even make a connection through your freelance work that leads to the full-time job of your dreams.

4. Make applying a full-time job.

As I said at the beginning of this post, jobs come to those who work for them. If you are not actively and determinedly reaching out to employers, they won’t notice you. While some people are lucky enough to find a job with the first company to which they apply, it takes others dozens of applications and interviews before opportunity knocks. Don’t get discouraged. Your hard work and your investment in an education are on your side. Being patient can be hard, but complacency won’t make the time pass any faster. Go find the job you want and don’t stop proving why you deserve it.

Remember that the College of Business has resources to help you find your first job. The Career Management Center is a great place to find job postings and other tools to help you showcase yourself for employers.

How is your job search going, graduating seniors? What are you doing to prepare for the real world? Do you have any advice for underclassmen that you wish someone would have told you? Share your thoughts in the comments below. 

The AP Twitter Hack: Technological glitches and their effects on business

By Annie Burnham

There is now no question about the effect that social media has on business. This week the US saw firsthand that Twitter can create chaos for the economy. Tuesday, around 1 p.m. EST, the Associated Press Twitter account was hacked and sent out a tweet that said, “Breaking: Two Explosions in the White House and Barack Obama is injured.” The tweet remained up for almost three minutes and was retweeted more than 1850 times.

Drop in the DOW in Tuesday
Image Credit: CNN Money

The Syrian Electronic Army, the group claiming responsibility for the @AP hack, is also suspected of hacking @60minutes and @CBSDenver. We have heard more and more about Twitter accounts being hacked and causing mayhem in the last few months. What long-term impacts will this have on business use of the social media site?

These most recent hacks bring to light several questions. The first one is why hasn’t Twitter found a way to beef up security for Twitter accounts – especially of prominent organizations in society? One must also ask what potential threats do fake tweets pose for the economy? We saw the DOW drop 144 points in seconds, all based on a fake tweet!

One article from The Telegraph in the UK commented on the fact that this issue isn’t with the account getting hacked so much as it is about humanity as a whole relying too much on technology. The computers that run the stock exchange move so fast that stock brokers cannot possibly keep up with the constantly changing pace. Another major concern is that if something is online, it can be hacked. In 2010, during the “flash crash,” a rogue algorithm wiped one trillion dollars from the stock shares.

With the constant developments in social media, companies are going to have to be more careful with monitoring their accounts. This occurrence on Tuesday has left businesses wondering if the business world has become too dependent on social media.

Jeff Hancock, a professor of communication and of computer and information science at Cornell University, says the AP Twitter hack is the latest evidence that social media has grown up.

Wall Street Stock Exchange
Image Credit: US Defense Department

USA Today interviewed Hancock about the drop in the market this week after the Twitter hack. “Our trust of social media has reached new levels. It’s amazing that things like social media have gone from something the ‘kids do’ to affecting how the market operates,” said Hancock. “This response also highlights that humans have a built in [sic] truth bias to believe what others say. Although there is a lot of suspicion about the Internet in general, the truth bias is alive and well with social media.”

Ben Hilzer on the Business of Theater and the Theatrics of Business

by Tim Pate

As you may have gleaned from this blog, I’m quite proud of the College of Business, from which I am earning a minor in business administration. However, I am also delighted to be a part of the College of Liberal Arts, where I am earning my degree in Journalism and Technical Communication. Both Colleges have incredible academic programs, and they each host activities and events that enhance the college experience for their students.

Ben Hilzer
Image credit: Ben Hilzer

Enter Ben Hilzer, a junior accounting and finance student in the College of Business, who lives at the intersection of these two colleges. In addition to being a fervent business student, Hilzer is also a self-proclaimed thespian and played the character “Jake” in Colorado State University’s production of “Evil Dead: The Musical.” I saw the R-rated show on opening night and laughed myself to tears. Hilzer’s character is a tobacco-spittin’ hillbilly with surprisingly good singing abilities, and he was one of the highlights of the show.

Hilzer’s Twitter feed is an eclectic combination of his thoughts on business, theater, sports, and music. He displays such enthusiasm for these areas of his life; I knew his perspective would be an interesting one for this blog. So, I caught up with Hilzer a couple days ago to talk about his unique dedication to business and the arts. Here is our exchange:

TP: What has being in Evil Dead taught you about business, and vice versa?

BH: Being in “Evil Dead: The Musical,” as well as theater in general, has shown me the distinct overlap between business and theater. Most notably, the importance of your personal brand. In business, we try to develop our personal brand for job interviews and career building; similarly in theater, your personal brand is crucial for auditions and development for your acting career.

TP: Tell me a little about what you do to build your personal brand. 

BH: To build my personal brand I like to keep a strong online presence, most notably with Twitter and LinkedIn. I comment on finance and business aspects while also staying true to my arts/entertainment passion; I like to stay up to date with news. I also attend networking events CSU and the COB put on so I can constantly promote my personal brand: a passionate, always growing student.

TP: How do you balance the two things you are pursuing?

BH: I balance the two things by allocating my time during the day to my studies and the rest to theater. There is also never a bad time in between classes to memorize lines or learn a song. Acting and performing is such an amazing escape but still remains practical in business.

TP: Can you tell us a little about the audition process and how it compares to a job interview? 

BH: The audition process begins with a monologue in front of directors for every show for the semester. The directors then call you back specifically for their show to see where you can fit (for Evil Dead, we had to perform a song as well). After that, the directors post a cast list and rehearsals begin. The audition process relates to a job interview in the regard that both are trying to prove to someone why you will fit in and benefit their team (or show).  Whether that is with outstanding leadership in business or your characterization and ability to take direction in acting, both have the sole purpose of showing someone you can benefit them.

TP: What was your favorite part about performing in Evil Dead?

Image credit: Colorado State University

BH: My favorite part about performing in Evil Dead was playing such a zany character and being a part of such an amazing production. The special effects, props, projections, sounds, lights, they’re all amazing and something I have never seen before. It truly is an amazing show to watch and be a part of.

TP: What do you want to do when you graduate? 

BH: When I graduate, I would like to be associated with the arts/entertainment in some way.  I am studying accounting and finance, so integrating the two would be ideal; however, I am all about opportunities.

Hilzer is also a vocalist and pianist for the band Three Plus Me, which plays in various locations around Fort Collins, as well as a member of the Dean’s Student Leadership Council in the College of Business (as though he wasn’t already involved enough).

This weekend marks the final showings of “Evil Dead: The Musical,” and I highly recommend that you attend (unless you don’t do well with blood, that is). The production starts at 7:30 p.m. Thursday, Friday, Saturday, and Sunday at the University Center for the Arts. Tickets are available online.

Be bold – sit in the “splash zone,” and watch what a business student can do on the stage.

Ron Johnson’s Mistake: The Importance of Market Research

By Annie Burnham

On Monday, April 8, JC Penney fired its CEO, Ron Johnson, and rehired previous CEO, Mike Ullman. Johnson was hired in an effort to improve the corporation’s profits after the 2008 recession; unfortunately, Johnson tried to make too many changes too quickly. Now, with 700 stores in the middle of a costly remodel, the (once again) new CEO Ullman has his work cut out for him.

The news that JC Penney was letting go of Ron Johnson came as no surprise to many. According to one source, the industry had started taking bets on when he would be ousted. “His Q4 2012 was probably the worst quarterly performance ever in the history of major retail,” wrote Business Insider, Jim Edwards.

image credit
http://www.jcpenney.com

“One of the big mistakes was perhaps too much change too quickly without adequate testing on what the impact would be,” Ackman said at a Reuters conference last week.

Mark Ellwood, a retail expert and author of the upcoming book “Bargain Fever”, compared Johnson to Marie Antoinette. “He always seemed slightly embarrassed that he was dealing in middle market product,” Ellwood said. “His attitude when he gave a rare interview was very much along the lines of ‘let me tell them what’s good for them,’ rather than ‘tell me what you want as a customer and let me see how I can achieve that.”

Business 2 Community stated that market research should underpin everything your business does, something the College of Business prides itself on. The research skills that are taught in the classroom compliment the outstanding work done for organizations by our faculty and graduates.

If Johnson had used the same types of research techniques and strategies that CSU COB students are taught, he would have been able to make better-informed decisions. Johnson may have avoided financial loss and disdain for his leadership by testing the market to see if the idea works with JC Penney’s consumer base.

Johnson created one of his problems by pushing away loyal customers and ignoring their needs. JC Penney has been around for 111 years and has a large customer base. Johnson treated JC Penney customers like he treated Apple’s customers, despite the differences between the companies and their customers. The failure to recognize those differences coupled with the sudden and vast number of changes helped lead to Johnsons failures as CEO.

Had Johnson spent more time getting to know the customer base, testing his plan to remodel stores, and not doing away with the coupon sales that drove much of JC Penney’s revenue, he might still be CEO of JC Penney, slowly transforming another retailer into a Wall Street superpower. Let this be a lesson to you readers – doing your homework pays off in the long run.

 

Business Day 2013

By Tim Pate

I have to confess a secret – I’m not technically a business student. I’m actually a journalism student pursuing a business minor. (Perhaps this isn’t so much a secret; after all, it says so right in my biography.) Though I’m not a true business student in the strictest of terms, I am still immensely excited to attend Business Day 2013 on Wednesday, April 3 in the Lory Student Center Theatre.

This year’s theme is “Defying All Odds,” and the College of Business has enlisted some excellent speakers to motivate students of all backgrounds to conquer their personal obstacles. Whether or not you are a business student, the speakers at Business Day 2013 are sure to present material to which you can relate.

Take, for example, Aron Ralston, who will be presenting the final speech of the day. Ralston is a Colorado outdoorsman and motivational speaker, author of Between a Rock and a Hard Place, and the subject of the movie “127 Hours.” Ralston famously amputated his own arm in order to escape death in the Blue John Canyon of Utah after an 800-pound boulder pinned his arm against a canyon wall. Movie buffs and thrill-seekers alike should enjoy this presentation.

Another adventurer will join Ralston in the lineup of speakers for Business Day 2013 – Luiz Benitez. Benitez has summited Mount Everest six times, including a 2001 expedition with blind athlete Erik Weihenmayer. He also conducts an annual “Leadership and Change Management through Mountaineering” seminar in Ecuador and Chile for the University of Pennsylvania‘s Wharton School of Business, and he will share these incredible experiences with us.

If you want to learn about how business leaders and innovators have tackled problems, I suggest attending speeches by Dave and Gail Liniger, co-founders of RE/MAX; Chris Hutchins, sourcing partner with Google Ventures; and/or Hikmet Ersek, president and CEO of The Western Union Company.

The Linigers will discuss Dave’s battle with a septic staph infection that nearly took his life and how Gail managed to support Dave while continuing to lead RE/MAX.

Hutchins, a business graduate of Colorado State University, is the founder of LaidOffCamp, an initiative to help the unemployed learn new skills for the evolving job market in order to face their own challenges, and will discuss these experiences during his presentation.

Ersek will explain in his speech how in less than three years as CEO he was able to help The Western Union Company increase its retail money transfer business to more than 510,000 worldwide agent locations, expand into electronic and mobile channels, add a global cross-border business, and broaden its financial services product line to include stored value cards/e-wallets.

I chose to seek a business minor in addition to my degree in journalism because I knew that business knowledge would benefit me no matter what field I entered after college. I believe that same philosophy applies to Business Day, where I will get the chance to hear inspirational and reputable speakers share their knowledge. We all face challenges, and we all handle them differently. Maybe one of these speakers will say just the right thing to help you – or me – overcome current hindrances.

Below is a full schedule of events for Business Day 2013:

9:00 a.m. – Chris Hutchins, LSC Theatre

10:00 a.m. – Hikmet Ersek, LSC Theatre

11:00 a.m. – Dave and Gail Liniger, LSC Theatre

12:00 p.m. – Luis Benitez, LSC Theatre

2:00 p.m. – Aron Ralston, LSC Theatre

For more information, please visit http://biz.colostate.edu/newsEvents/Pages/eventDetails/businessDay13.aspx.

The Effects of the New Gun-Control Laws on Colorado’s Hunting Industry

By Annie Burnham

Hunters are protesting the recent gun-control laws passed by the Colorado legislature, according to the Washington Times. People from all over the country come to Colorado each year to take advantage of the hunting in the fall, but in light of recent gun-control legislation, hundreds of reservations are being cancelled by hunters.

Hunter in tree.
Image Credit: Wikicommons

Colorado’s hunting industry brings in $1.8 billion in profits each year, but due to the looming boycott, small hunting lodge towns and other hunting industry companies will suffer dramatically this year.

Michael Bane, a Colorado resident and executive producer for the Outdoor Channel, is supporting the boycott efforts and even encouraged boycotters this week. “You are crazy to come to Colorado,” said Bane on his Wednesday talk show on Down Range Radio. “It’s not worth the risk. Spend your money where your culture is. Colorado doesn’t want you here.”

Republican state senator Greg Brophy emphasized the impact this will have on the economy in Colorado. “Gun control proponents failed to take into account the outrage the bills would provoke, particularly in a western state with a strong history and culture of gun ownership,” said Brophy. “The timing is also bad, given that hunters are now placing their names in the lottery for hunting tags in the fall.”

The state has already suffered from losing gun accessories manufacturer Magpul Industries Corporations recently. The financial implications will continue to surface in anticipation of July 1 when the bills go into effect.

Officer teaches hunting safety techniques.
Image Credit: Wiki Commons

State Park officials have tried to reassure hunters that the new restrictions will not impact them or hunting elk, one of the main reasons people hunt in Colorado. Though the Parks and Recreation Department has assured hunters will not suffer any legal issues, Bane warns hunters to stay away.

“[Colorado] is now issuing statements, like, ‘No, really, hunters, we won’t arrest you. We’re not going to arrest you, unless we do,’” Bane said. “No matter what the Division of Parks and Wildlife says, those murky areas they refer to can cost you everything you ever wanted and all your rights for owning firearms forever and ever and ever. It’s not worth the risk.”

Denver Post writer, Scott Willoughby, covered some of the benefits of boycotters sticking to their guns, so to speak. “If those jaded sportsmen from out of state and right here at home really do follow through with their threats to never spend another penny on hunting and fishing in Colorado, well, the hunting and fishing just got a lot better for those who do participate.”

Students and alumni: What do you think of the call for boycotts by hunters? Are these efforts sending a message to law-makers in Colorado, or are they hurting businesses that cater to hunters? Let us know what you think.