Apple Inc. (AAPL), J.C. Penney Company, Inc. (JCP): What Ron Johnson’s Ousting Should Teach You

It could be that Johnson didn’t have enough time to pursue his strategy. Nobody came to Apple Inc. (NASDAQ:AAPL)’s “Genius Bar” in the first few years of its existence. But the difference is that Apple Inc. (NASDAQ:AAPL) could take the time to build up its retail arm. J.C. Penney Company, Inc. (NYSE:JCP)’s dire situation meant that any manager would have to act quickly. When even one of the most promising CEOs couldn’t help, it’s likely the business that’s at fault. As much as management is key to business, the business has to be able to be managed for profit.

As Buffett says, “When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”

J.C. Penney Company, Inc. (NYSE:JCP) has been a train wreck whose comeback always seems just around the next earnings corner. If you’re wondering whether J.C. Penney is a buy today, you’re invited to claim a copy of The Motley Fool’s must-read report on the company. Learn everything you need to know about JCP’s turnaround — or lack thereof. Simply click here now for instant access.

The article What Ron Johnson’s Ousting Should Teach You originally appeared on Fool.com and is written by Dan Newman.

Fool contributor Dan Newman has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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