Comparing Corporate Cultures:Nordstrom vs. JCPenney

Ashley Chung

Gabrielle Ellis

Ryenne Glover

Danielle Li

Ashley Sohn

It could be seen how leadership plays a vital role in fostering successful corporate culture & open communication; thus, Nordstrom is the brand with the more reputable and established name.

A FLOURISHING COMPANY

A company that’s flourishing

$61 to $73

Expanding (stores,

outlets, online)

Continual growth in business & reputation

Inverted Pyramid Structure

Customers

Sales & Support People / Basic Employees

Department Managers

Merchandise, Store, Regional

Managers

Executive Team + Board

of Directors

CEO

• Blake Nordstrom

• President since Aug. 2000

• Started off as an associate

• Focused on expansion, technology, and profits

Strategies Implemented

Tracking inventory

Speedier cash registers

Improving technology

Plans to expand branch stores in Canada

Stellar Customer Service

Micah Solomon:“When the purchase was ruined,

Nordstrom immediately replaced it.”

Frontline managers+

Built on simple gestures

Effective Training

• Continually updates the process

• Customer Interaction• New opportunities• Exceeding

customers’ expectations

Empowerment of Employees

• Free the employees

• Treat them how customers would ideally be treated• Can sell merchandise from any department in store• Promotes goal setting + Responsibility

“Keeping the focus on the customer made it easier to set aside silos and work together on

creating the best experience possible, whether they’re in a

store or on the web. It’s a valuable lesson in staying true to your

company’s missions.”

Jamie Nordstrom:

A STRUGGLING COMPANY

A company that’s struggling

- $985 million

Half market value

vanished

Staggering losses in stocks and assets.

CEOs: a constant revolving

Mike Ullman

Ron Johnson

Ron Johnson -

“Simplifying its [JCP’s] business model” with “fewer layers of management and wider spans of control.”

Johnson’s Unsuccessfulness due to:

Leadership style

Power distance

Lack of communication

Weak Leader-Member Relations

• Color-code• Secret

Broadcasts

Lack of Communication

“There are no more memos or written directives anymore. Last one I saw was almost eight months ago. Everything gets communicated verbally and without too much detail.”

-Home Office Executive

Downward & Upward

lacking

Rumors & Gossip

increased

Socialization / Values

• Johnson: “We were founded 110 years ago on the Golden Rule.”

• Supported decision to partner with Ellen DeGeneres

HOWEVER…

Corporate Culture

No protocol or process

Directions change

frequently

Culture slowly

dissolving

Overall, company has become…

NEGATIVE,Impacting employees & customer experience

Why?

Lack of stability

Company downfall

Summary.

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