JC Penney Revived: Five Lessons In Corporate Failure [SLIDE SHOW]

JC Penney made its first big splash on Wednesday in what will be a three-year effort to rebrand the 110-year-old department store chain with some distinctly 21st century initiatives.

Chief Executive Ron Johnson has said his ultimate goal is to make JC Penney "America's favorite store." His initiatives include a new pricing structure, replacing cent figures with double zeros on all price tags and turning the store into a destination via a "Town Square."

But makeovers can pay a hefty toll in the business world, and the past is strewn with good ideas gone sour. A change in direction does not always lead to success. Fortunately, some companies have the wherewithal to drop a bad idea soon enough to survive. Here are some corporate excursions gone horribly wrong.

When the consumer electronics market began slipping out of Radio Shack's hands like a greased toad, the company switched to a totally new, ultra-hip name. Radical dude, until you consider their choice: "The Shack." Most people know where to fill their consumer electronics needs. Best Buy.

Lesson: Skip naming yourself after a stoner's bungalow and increase store sizes and inventory.

America's most recognizable auto brand delivered one of the industry's most notorious failures, when it took a stab at the low-end hatchback market with 1970's Pinto. Besides being plagued by shoddy quality, the $2,000 car ended up being a veritable grenade on wheels. It was known for its unique ability to burst into flames when rear-ended. Ford knew of the problem, but decided to forgo the $13 per car cost of fixing it and assume the cost of lawsuits instead. Since then, "Pinto" has become a catchall for corporate malfeasance covering up an ultimately awful product. And chances are your dad owned one.

Lesson: If you're going to hastily produce a bad product, don't ignore that it's deadly.

Got a bunch of pesky scientists claiming your product is detrimental to... everyone? The folks at RJ Reynolds decided to eliminate concerns over second-hand smoke by getting rid of the smoke. The company introduced "Premier" in 1988, a pack of smokes that supposedly slowly killed only one person at a time. It lived a brief life, undoubtedly shortened by the fact that the cigarette was so awful, nicotine addicts made the calculated decision to hurt others before ever puffing on something that doesn't produce smoke when set on fire.

Lesson: Consumers expect your product to behave a certain way, and freak out when it doesn't.

McDonald's got tired of its reputation as a low-grade food alternative, and decided in 1996 to introduce, "Arch Deluxe." The thinking was flawless, because who could argue against gourmet fast food burgers at a bargain? The stab at the more sophisticated end of the fast food market failed spectacularly, felled by the incredibly low-brow and high-flavored McRib.

Lesson: You are what you are.

In a fit of pubescent angst, Coca Cola decided to ditch what is one of the world's most recognizable brands and flavors and introduced New Coke. The product was immediately derided by consumers in the face of an all-out media blitz, as vindictive Coca Cola drinkers felt like they were dumped for a new, hip generation key to winning the ongoing "Cola Wars."

Lesson: Don't let your rebranding leave your steady customers behind.