TO: CEO
FROM: BUSINESS CONSULTANT
RE: FORMS OF BUSINESS
DATE: 25 TH MAY, 2019
Financial and Retail Services
Through its national bank and its bank for businesses, the chain store conglomerate has been able to provide its consumers with credit cards christened the Target REDcard. The financial services sector is also mandated with the responsibility of ensuring that the Gift Cards issued by the department stores balances (Target.com, 2019). Moreover, the chain store giant successfully initiated a debit card, that was subsequently given a different name; the Target Debit Card. With this service, customers are able to save up to $40 in cash back if they use it to withdraw money from their present checking accounts (Target.com, 2019). Additionally, with the debit card, guests are able to save 5% off every purchase that they make from the store.
|
ADVANTAGES |
DISADVANTAGES |
| Customers get to save money from the purchases they make, unlike when they would have purchased the same products using different financial services. | There is the potential of the customers overspending as they are given offers that allow them to save money from purchases. |
| The department store managed to capitalize on its existing market, thus, form every purchase made through the financial institution, the store profits from bank charges and also from the purchase. | With the rise in cybercrime, there’s a high probability of the clients losing their money as they are exposed to net banking frauds, theft of credit card, and passwords stolen among others. |
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Target Sourcing Services
Through the sourcing services, the giant store has been able to import goods to the US after locating them from various areas around the globe. Through its 7 concessionaires, 27 offices of full-service, and 48 offices that control quality distributed internationally, the global sourcing organization is able to import goods like towels, garments, bedding, and furniture (Suh, Kim, & Park, 2019). Through its engineers, the sourcing subsidiary of Target Corporation is able to assess the factories that it transacts with for quality approval.
|
ADVANTAGES |
DISADVANTAGES |
| By sourcing for the goods they Target is assured of efficiency in the delivery of the goods. | There could be hidden costs due to the difference in the time zones and areas where the merchandise is procured. |
| As the engineers are able to assess the quality of the goods being supplied, the chain store is assured of quality products. | There is also exposure to political and financial threats due to investments made in emerging countries. |
Distribution Centers
The chain store giant has 39 distribution centers that support the growth of its stores, and they are located all across the US. The distribution centers are mandated to supply all items except from items such as soda and greeting cards that are vendor supplied, directly to Target Corporation’s stores (Suh, Kim, & Park, 2019). Even though the giant store has distribution centers, it does not employ their services in the supply of groceries; rather, it works directly with the companies that it has entered into a partnership.
|
ADVANTAGES |
DISADVANTAGES |
| The department store has been able to track the goods from the supplier to the distribution center and the stores, and thus, has improved on efficiency in its supply chain management. | The distribution centers need a varied approach to the management if compared to warehouses. Since the goods are not kept as on-hand inventory, several complexities are developed. |
| Target stores are assured of the uniform availability of goods in all its stores. | It is hard to manage the stock accuracy as no stock is kept on hand or the availability of limited stock. |
References
Suh, Y., Kim, E., & Park, M. C., (2019). Inter-type differences in store personality between department stores, hypermarkets, and mobile commerce. International Journal of Mobile Communications, 17(1), 60-81.
Target.com. (2019). Target : Expect More. Pay Less. Retrieved May 25, 2019, from https://www.target.com/
