CalPERS vs. JC Penney Overview CalPERS investment program began on February 22, 2000 when they included JC Penney on their annual Focus List. CalPERS further exclaimed that due to declining sales and a deteriorating customer base they had lost confidence in Penney’s management. Subsequent to the release of their focus list JC Penney made numerous strategic decisions to revitalize and boost the value of the company. Penney forced their current CEO James Oesterreicher to retire. Next instead of promoting from within, they searched for new blood and hired former Barney’s CEO Allen Questrom.
As things seemed as an all time low for BP in 1992 by the mid 1990’s BP got a new CEO who started to make changes starting with a new aggressive growth strategy. BP merged with its two biggest competitors in the oil company industry as well as repositioning itself. As BP’s revenue was going up and up from their growth and going into alternative energy, by 2007 BP had a new CEO Tony Hayward who made the decision to put a halt on growth and said he was going to “focus like a laser on safety issues, put the brakes on growth.” In doing so Hayward shrunk the alternative energy division by cutting down on the staff and four levels of management. With this BP revenues increased making the company one of the six largest non-state owned oil companies in the world. But with the decision Hayward has made with cutting down on growth, problems involving the organizational structure came into play.
However, by November of 2001 Enron’s stock had plunged to $1.00 per share. On December 2nd of that year Enron claimed bankruptcy and laid off thousands of employees. Not only did the company claim bankruptcy, but Lay, Skilling, and Fastow were facing numerous legal charges. Ultimately, Lay would die of a heart attack prior to being sentenced and Skilling would be sentenced to serve more than 20 years in prison. Fastow ended up serving as a witness for the prosecutor in the case against Enron and received a reduced sentence of only ten years.
By early 1987, problems at Enron emerged. Despite the evidence of potential financial misconduct by top execs at Enron’s oil trading unit in Valhalla, N.Y., Lay allowed the execs to continue at the company. Months later, those same execs were found to have committed other improper acts that opened the company up to as much as a billion dollars in losses. As a result, the office doors in Valhalla were closed. Although this pales in comparison to the scandal 15 years later it does have eerie similarities.
In 1982, the amount of the new global strategy was launched when Wisse Dekker became CEO. Under the impetus of the new policy, the plants which were lack of efficiency was closed in order to focus on its core business. Philip purchased Grundig and Westinghouse Electric business in North America. To stimulate profits, the CEO continued Van’s innovation. Unfortunately, the sales were still declining.
How difficult a challenge did Welch face in 1981. How effectively did he take charge? According to the Harvard business case “GE's Two Decade Transformation Case Analysis”, Jack Welch assumed as CEO of General Electric year of 1981, he had the task of stimulating the competiveness and prolific capability of the corporation. The United States economy was in a time of recession due to the high interest rates and a strong dollar exacerbated the problem, so it results in the highest unemployment rates since the time of the United States depression. CEO Welch comprehend that GE needed to make some changes in restructuration of the company and this involved the modernization and reorganization of operations, reducing the organization, and decrease of payrolls and strict efficiency measures.
Its customer service ratings significantly lag those of competitors such as Lowe’s. In addition, Chief Executive Officer Frank Blake must heal wounds remaining from the cultural upheaval wrought by his predecessor Robert Nardelli. Seven years ago, the company had assigned HR managers to each store to work as business partners with store managers. Now, its leaders have concluded that an HR presence is a luxury they can no longer afford. How could Home Depot expect to address its human capital issues by decimating the HR ranks, eliminating the professionals trained to focus on them?
Analysis The Haier approach has seen the company dubbed as a “platform company” for its decentralized structure. Instead of following a top-down organizational flowchart, the company which has 80,000 employees is subdivided into self-organizing internal units. Each unit has the power to vote out ineffective leaders. New projects are staffed via an internal talent pool, wherein employees are evaluated based on their interests, credentials, and past achievements. 1- Getting rid of middle management & Self-managed teams Haier’s CEO’s decision to eliminate the middle management in the company, although radical, was done in an effort to minimize bureaucracy and management control on the innovation process.
In 1990 the company suffered a £20 million loss and was forced to completely restructure and a new management team was brought in headed by Michael O’Leary who made major changes to the airline. Ryanair restructured itself and became a low-fares, no –frills carrier. After the next few years Ryan air significantly slashed its fares further and managed to open up many new routes. Today, Ryan Air has destinations in 26 countries with 950 routes. Also the headquartered in Dublin, employs about 4,200 people, operates with a fleet size of 120 Boeing 737-800, carries approximately 35 Mio passengers a year and had a turnover of 1,692.5 Mio in 2006 with a net profitability of about 10% (Mayor, 2007).
Several years later, Kozlowski lobbied to the board members over a large acquisition that Fort felt was too risky. Having dollar signs in their eyes, the board sided with Kozlowski. Fort resigned as the CEO but remained on the board of directors for many years after. Kozlowski became the new CEO of Tyco, continuing their ongoing expansion and take-overs. He was rewarded by the board with an increased salary to 2.1 million and stock.