Activity 3: Starting a Business "It is given," he said, "to few persons to transform a people in a generation. When the day of modern shopping centers arrived in the late 1950s, Penney's chain was so strong financially that it succeeded in suburbia too. Penney and wife moved to Kemmerer in 1902 and lived in the garret of a small house. Little Rock, Arkansas 72201 What language does the ad use to entice women to purchase the products? Vous tes ici : Accueil. The lesson also could be used to enhance the study of African American history or women's history. 2019Encyclopedia.com | All rights reserved. Why do you think Penney's first store was so successful? They write new content and verify and edit content received from contributors. But he now had the time to serve in broader ways. James Cash Penney. 2. Part of the building contained the Indianapolis branch of Lelia College as well as the Madam Walker Beauty Parlor. Within two years, his pay increased twelve-fold. Christianity.com is a member of the Salem Web Network of sites including: Copyright 2023, Christianity.com. I feel that I am in a business that is a credit to the womanhood of our race. Wilmington, Delaware 19801 But the elder Penney also ran a 390-acre farm where the family raised both cattle and crops. Questions for Document 1 Standard 1A- The student understands the connections among industrialization, the advent of the modern corporation, and material well-being. Perfumed delightfully. She chose Denver because her brother's widow and four children lived there. Why or why not? 20 cents per large bar. Gather up a collection of fairly recent magazines and newspapers (the students can help) and have students work in groups with at least 10 different kinds of ads. "Cheap Goods" are dear at any price. He returned to Kemmerer each year to honor his and the companys humble beginnings. J.C. Penney Biography & Christian Principles The manager was responsible for investing one-third the amount necessary and Penney provided the remaining two-thirds. Do you think they were effective? Today the building houses commercial businesses as well as the Madame Walker Theatre Center, which provides arts and cultural programs and education for children and adults. 5. U.S.A. The words "only believe" came to him. For the next 17 years, Sarah supported herself and her daughter as a washerwoman. According to James Cash Penney himself, the company slogan of "Honor, Confidence, Service, and Cooperation," was officially applied to the company philosophy, doctrine, and mission as a daily. "Individual commitment to a group effort - that is what makes a team work, a company work, a society work, a civilization work." Vince Lombardi. Jim jumped at the chance, without even asking how much he would be paid. Yet the highly motivated Penney, still vigorous and determined, borrowed money and soon regained control of his retail empire. It also began to enter Midwestern and Eastern markets. Under pressure from major Wall Street investor William Ackman, the company appointed former Target executive and Apple Store leader Ron Johnson as CEO. Don't think that because you have to go down in the wash-tub that you are any less a lady! He could foresee the day when his Golden Rule Stores, still co-operating with a larger buying syndicate of similarly named stores throughout the West, would number twenty-five, or even fifty. After working briefly in Denver as a dry goods clerk, he moved to Longmont, Colorado, where he bought a butcher shop. To serve the public, as nearly as we can, to its complete satisfaction. Because of all the advantages that will be ours, we will sell for less and never will we sacrifice quality for an unreasonably low price. //]]>. Our growth has not been chance. 50 cents per sealed box. Businessman. We will have no expensive fixtures for which we would have to go in debt; we will pay cash for all our merchandise so we can take advantage of all discounts and not have to pay interest. In that light, some might question our decision to spotlight J. C. Penney. J.C. Penney was born on a farm outside of Hamilton, Caldwell County, Missouri to James Cash Penney, Sr. and Mary Frances (ne Paxton) Penney. We will supply you with durable and comfortable wearing apparel cheaper than ever before. Perhaps, when all the dust settles, J. C. Penney the company will go on to another 115 years of life. At 17, she bore her only child, a daughter named Lelia. He died in 1971. The boy was one of twelve children, only six of whom survived to adulthood. Born as Sarah Breedlove in December 1867, in Delta, Louisiana, Madame Walker was the third child and second daughter of Minerva and Owen Breedlove. What products are advertised? l. What personality and character traits do Walker and Penney share? Kemmerer profits rose to $9,800 and then $11,250 in the next two years. When Madam Walker and her associates started to develop her beauty preparations, which are now used all over the world, they perfected their toiletries step by step. One agent wrote in 1913: "You opened up a trade for hundreds of colored women to make an honest and profitable living where they make as much in one week as a month's salary would bring from any other position that a colored woman can secure. By selling dry goods, notions, shoes, and clothing at fair prices, the Callahans Golden Rule Store in Longmont had prospered. Why would Walker have decided to establish her business and subsequently plan a commercial and social building in this area? He increasingly realized that he wanted to own his own store. You will get BIG VALUES for your money at this store. C.J. In one storekeeping job, Jim discovered the owner substituting cheap coffee into the container of a higher priced product: his father demanded that he quit. This makes a grand total of $63,049 made in my hair business in Indianapolis. When he was convinced he had the right team to continue building the company, he stepped up from president to chairman in 1917, at the age of forty-two turning the daily reins over to longtime colleague Earl Sams. But his father pointed out that those selling watermelons inside the fairgrounds had paid a concession fee, and insisted Jim stop competing unfairly. The main customer was a local hotel. At the Fourteenth Annual Convention, Madam Walker was on the schedule, explaining to the audience how she had succeeded in the business world: In the first place I found, by experience, that it pays to be honest and straightforward in all your dealings. By the 1920s, J. C. Penney was worth perhaps $40 million, over $500 million today. Now as you go forward tomorrow serving our customers, and the opportunity presents itself, tell them what I have said and tell them in such a way that they will understand we have opened a new kind of store, planned and designed to render service unprecedented in the history of merchandising. 1) two maps of cities associated with Walker and Penney; But when the economy caved in during the 1930s, Penney lost nearly everything--including his health. He had decided to abandon the name "Golden Rule," which had been adopted by some of his less scrupulous competitors. Standard 3B- The student understands how a modern capitalist economy emerged in the 1920s. Less than 5% of applicants made the grade. In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. (513) 860-8000 While every effort has been made to follow citation style rules, there may be some discrepancies. --James Cash Penney. After the research has been conducted and discussed by the class, have them compare the information they have found with the origins of both the Madam C. J. Walker Manufacturing Company and the J. C. Penney Company. In 1913, her daughter, who would later change her name to A'Lelia, persuaded Madam Walker to buy a house in Harlem as the New York base of the business. Madam C.J. 3. The man who sold him the butcher shop said he could hold onto this key customer as long as he bought the hotel manager a bottle of whiskey each week. Offering a wide variety of relatively inexpensive general merchandise, J.C. Penney stores appeared in every state in the United States. His rise to fame and fortune crashed with the stock market crash of 1929at age 56 he was $7 million in debt. 3. His $3 million life insurance policy was reportedly smaller than only those ofmovie mogul Adolph Zukor,retail kingpin Rodman Wanamaker, andchemical and auto leader Pierre Du Pont. I like the way he has started out. This inspired Jim for the rest of his life. Following the sound, he stumbled upon a chapel filled with worshiping doctors and nurses. Golden Rule prices were often 2550% below those of other merchants, but the stores always offered good, dependable quality merchandise and the latest fashions. She built a factory, hair and manicure salon, and another training school. By 1917, Walker agents were holding yearly conventions, learning new techniques and sharing experiences. Still, each manager decided what was carried in his store because he knew his customers and decided how to price each item for his market and his competition. Below is a timeline that outlines most of the peaks and valleys, mostly peaks, of this great American retail institution. I have been trying to get before you business people to tell you what I am doing. Why might this have been the case? The manager wrote headquarters pleading for them to get the landlord to deny the lease to the competitor. Someone read a Scripture passage: "Come unto me all you that are heavy laden, and I will give you rest." In 2013, Johnson, perhaps the mastermind that so many feared, was fired and Ackman left the board of directors. I tried it on my friends; it helped them. --J. C. Penney. One morning he awoke too early for breakfast and was wandering the corridors when he heard a hymn he remembered from childhood. Why or why not? While the company prospered, he lost a bundle that he had invested in banks and real estate. A thousand miles to the west, in the small town of Kemmerer in western Wyoming, stands a small building that represents the early days of another successful career. Five years later Penney bought out his partners shares and launched the beginning of what became the J.C. Penney Co. As each new store opened, Penney offered a profit-sharing plan to its manager. The rest and medical attention did him good, but there was another event that restored him spiritually. The company developed a large team of central buyers who worked hard to find the best merchandise at the lowest prices. But they need to be lived out in every aspect of life. For medical reasons he moved to Colorado in 1897 and was soon hired by local dry-goods merchants Guy Johnson and T.M. This lesson is part of the National Park Services Teaching with Historic Places (TwHP) program. With many observers not believing in the future of the company, the stock in recent months hit an all-time low of under $3 per share, valuing the company at less than one billion dollars. We open at seven, and never get closed till nine or ten oclock, work half day Sunday. Create new beauty for yourself by using Madam C. J. Walker's famous beauty preparations. "5 This was his parents' way of teaching him the value of money and self-reliance. This issue was based largely on the book The Spiritual Journey of J. C. Penney, by Dr. Orlando L. Tibbetts, published by Rutledge Books (1-800-278-8533 or www.rutledgebooks.com). His stores were all located in inexpensive locations in small communities. He was also one of the first entrepreneurs to use corporate profit sharing to encourage employees to have a stake in the company's success. He worked extremely hard and proved himself so adept at merchandising that he advanced rapidly. First day's sales were a gratifying $466.59. 1. Even the Great Depression did little to halt the Penney expansion program. He left Florida and focused on New York, where he came into the Penney office every day. What do they have in common? Penney's first stores did not bear his name but were called The Golden Rule stores. The company grew so big that a headquarters was requiredfirst in Salt Lake City, then in New York Cityto be closer to suppliers. To do all in our power to pack the customer's dollar full of value, quality, and satisfaction. But again, fate befell him: she died suddenly in 1923. U.S.A. How did he assure the customer that there were no "cheap goods" at Penney stores? That's what put him in the Michigan sanitarium in 1932. Guided by the love of his new wife and the Golden Rule principle, the inspired young businessman began a journey that would take him to undreamed of success. Penney, Fifty Years with the Golden Rule (New York: Harper & Brothers, Publishers, 1950) 55. In your answer, compare and contrast their achievements. How would you compare Penney's advertisement with contemporary ads? His intentions . He cut off the whiskey, lost the customer, and the butcher shop failed, Jim losing all his savings in the process. Penney increased his profits each year. Penney himself became known as the "Man with a Thousand Partners.". I made up my mind I would begin to sell it. Topics: The lesson could be used in American History courses in units on early 20thcentury business development. At 14, Sarah married Moses McWilliams. The city also was home to a substantial African-American community, whose main thoroughfares were lined with cafes, offices, and other thriving businesses. 2. It was all my fault." Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA). Salt Lake City, Utah 84102-1205 As a result, the church dismissed him. J.C. Penney: Merchant Prince. The couple attended church, and had their first child, a boy, in 1901. In high school, he was a mediocre student but an outstanding orator, delivering uplifting messages about patriotism, Christianity, and the merits of hard work to his fellow students. . What conditions of her childhood made Sarah Breedlove Walker understand the value of hard work? The TB that had claimed his father's life was now threatening him. James Cash Penney (1875-1971) believed that working people in isolated regions in the West deserved to have dry goods stores nearby that would offer quality products at reasonable prices. Now find the present Walker Building (built in 1927), across the street at the northwest corner of Indiana Avenue and West Street. Lathers well in hardest water, removes grease and dirt, yet will not harm a lady's skin. Document 2 was provided courtesy of the J.C. Penney Archives, Dallas, TX. More than a thousand stores were launched in the Roaring Twenties, and the growth even continued during the Depression. - James Cash Penney. He used his $500 savings and borrowed the rest of the $2000 necessary to become a one-third partner in the venture. Activity 4: Researching a Local Business Penney decided to return to the dry goods business, taking temporary employment as a clerk in Callahan and Johnson's store in Longmont. Make sure to address the following questions: What did each person do? 2) To compare and contrast Walker and Penney for similarities and differences in backgrounds and business methods. "1 Many in Kemmerer thought Penney's business would fail. How did Walker show her commitment to helping other African-American women achieve the success that would bring independence and self-respect? He underwrote Christian causes like theChristian Heraldmagazine. It is part of the J.C. Penney Historic District, which also includes Penney's first house. Sharing profits with store managers was, in Penney's own estimation, was the motivating factor for success in business. That experience soured young Jim on the organized church. In May 2020, the J.C. Penney chain announced it would close nearly one-third of its remaining 846 stores after filing for bankruptcy. Where was the first JCPenney? But he also found and developed new, younger partners, always loaning them enough to own one-third of their own stores if needed in order to make sure they had an investment in their stores and shared in any success achieved. "No matter what his position or experience in life, there is in everyone more latent than developed ability; far more unused than used power.". Penney was born in 1875 on a farm near Hamilton,. Yet this was done by the late Madam C. J. Walker.[She] made and deserved a fortune and gave much of it away generously. A man of strong Christian beliefs and upright morals, Reverend Penney later repeatedly ran for office on Populist tickets: he never won. There are reasons for everything. Buff-colored terra cotta is used for decorative details, and each doorway is embellished with brightly colored African masks. 1. Privately, he mentioned his desire to be baptized and to join a church, but he put off those commitments until 1942 and 1950. As an example of this philosophy, Penney initially called his stores the Golden Rule Stores, and made that rule part of company culture. Do unto others as you would have them do unto you. In pictures: The history of JCPenney | CNN Standard 2B- The student understands "scientific racism", race relations, and the struggle for equal rights. It took on large amounts of debt. (Prolonged applause). Another aspect of J. C. Penney himself was his ability to trust men, and to delegate. Those who drank liquor or used tobacco were out. Over time he recovered, more energized than before. 4. There he competed for customers with 21 saloons. 1) To identify the attributes that helped Walker and Penney to succeed as entrepreneurs. Completed by her daughter in 1927, the Walker Building housed her company as well as other businesses. On the same property, he opened retirement apartments made available to retired preachers and missionaries free of charge. He talked about the mistakes he made in trusting success rather than God. Sams was offered a store managers job at a competitor, compared to the sales clerk job that Penney offered him. If so, how? The strength of each member is the team." Phil Jackson. Each preparation's wide use and higher merit were always proved. As Madam Walker described: "When we began to make $10 a day, he thought that was enough, thought I ought to be satisfied. J.C. Penney, in full James Cash Penney, (born Sept. 16, 1875, Hamilton, Mo., U.S.died Feb. 12, 1971, New York, N.Y.), merchant who established one of the largest chains of department stores in the United States. But I was convinced that my hair preparation would fill a long-felt want. (704) 377-4251 To reward men and women in our organization through participation in what the business produces. Penney knew he could not control the daily operations of many stores with such wide expansion. The Salt Lake City store was for many years the most profitable. ." Though his faith was individualistic, Penney had a strong commitment to Christian principles, and he tried to incorporate these principles in his business. All rights reserved. He met that crisis by going back to work full time for the company, and eventually he recouped most of his losses. American Entrepreneurs: Madam C.J. The business ultimately helped thousands of African-American women achieve financial success. Then two significant things happened to J. C. Penney. Do you think it would have been effective? Business is therefore as much religious as it is secular." JCPenney was once a shopping giant. Can it make a comeback?