Ron Johnson, the former CEO of JC Penney, was fired after 17 months on the job when the many changes he made throughout the company resulted in a drastic drop in profits.What major external environmental factor pressured the board of directors to let him go?

Question

Quizplus · Accepted Answer

Shareholders are a major external environmental factor that would pressure the board of directors to let go of a CEO who caused a drastic drop in profits. Shareholders invest their money in the company with the expectation of a return on their investment, and when profits decrease, they may become dissatisfied and demand changes in leadership. This pressure could lead the board of directors to make the decision to fire a CEO.

Ron Johnson, the Former CEO of JC Penney, Was Fired