In terms of its properties, Jim's iron magnet was no longer magnetic when he dropped it because it underwent a physical change - demagnetization.
Physical changes are changes that only affect the physical properties of a substance and are easily reversible. They occur by physical means and do not affect any of the chemical properties of a substance. This is what makes them easily reversible because they are reversed by physical means. From the example in the question, Jim's magnet, although losing its magnetic properties is still made of iron.
Magnetization and demagnetization are physical properties because they produce no new substance and are easily reversible. One can make magnet can lose its magnetic properties by hitting it, as in the case of Jim's magnet. When it fell down, it suffered a major hit, which made it non - magnetic.
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