Strategic Planning
Target Corporation is the leading retailer providing on-trend and high-quality merchandise to consumers at attractive prices in guest friendly, clean and spacious store. Target Corporation opened their first store in Roseville in 1962 (About Target, 2015). The company has gone through some ownership, management, and personnel changes but still committed to providing guest with a one-stop experience by delivering outstanding value and differentiated merchandise with its brand promise of Expect More, Pay Less (Rooney, 2012). Ultimately, the primary strategic planning goal of Target Corporation is to carter for their consumer's need and makes shopping process more enjoyable, and affordable.
Target corporation managers use strategic planning to identify courses of action and choose appropriate organizational goals (Target, 2015). The company believes that their target role in retail entails knowing what customers need and want and delivering high-quality products at a reasonable price. Also, target brands allow their guest to shop merely because they know they are getting a unique product of high quality (Rooney, 2012). Target Corporation ensures that shopping is enjoyable, affordable and accessible by ensuring that its team members receive a list of setups and breakdown. Besides, these plans show Target Corporation employees what sections of the store should be changed to serve guest wants and need better (About Target, 2015). For example, Target Corporation employee will receive a report when spring is approaching showing how to replace existing items with spring items and a breakdown of the display.
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Target Corporation key strength include brand. Target Corporation brand name with bull's eye and the red color is famous, and this has made the company to become a powerhouse with merchandised and on-trend designs which attracts younger consumers (Rooney, 2012). Furthermore, Target Corporation continues to bring new merchandised and designers to attract loyal consumers as well as young consumers with there Up and Up brand. Also, outstanding customer service is strength that Target Corporation has (Shop with confidence, 2015). For instance, answering any questions asked by customers, greeting customers and guest when they are shopping in Target Corporation stores and helping the consumers with their cartwheel app to keep them ahead of their competitors.
On the other hand, Target Corporation weakness revolves around their low quality, low-cost merchandise, and Walmart. Despite having about 1,800 stores, Target Corporation competitor Walmart has over 4,100 stores in the US. Besides, Target Corporation also has the image for high prices than Walmart. Moreover, Target Corporation has closed number stores in Canada due to limited international visibility.
Conversely, Target Corporation opportunities are endless. The company has the capability of continuing to expand its relationship with designers hence attracting younger consumers. This serves as a huge marketing advantage since the company has the image better quality merchandise over its competitors (About Target, 2015). The company also plans to expand internationally, through online and website retail store. Target Corporation employees are always at the front line whenever the guest enters the store.
Company Strategies
Target Corporation strategies include continuing working with various designers to offer inventive and new merchandise to its consumers (Target, 2015). The company is also working on developing new plans to hinder another security threat. Additionally, gaining trust from consumers is another company plan that Target Corporation wants to achieve. The company management also has a strategy of creating smaller stores to win to gain entry to more neighborhoods and locations and increases more consumers. The company strategy is also to focus on expanding specific products and specific departments and get away from merchandise mentality.
Target Corporation main company strategy is to take care of its data breach result that occurred in the fall of 2013 (Burg, 2014). The security breach is still in the mind of some of its consumers whenever they shop at Target Corporation. This has been reflected in the sales. The company failed to handle the security breach in a customer friendly way (Burg, 2014). The company is working hard to clear the security firewall to prevent the possibility of another security breach. This will enable the company to gain back customer trust.
Another company strategy that Target Corporation is addressing is increasing ease of online shopping and growing trend of smaller stores (Shop with confidence, 2015). The company already has an excellent user-friendly website as well as various benefits from its red card offering 5% discounts and free shipping. Besides, the issue remains wit mortar-and-brick building. Target Corporation is concentrating on what made it one of the leading retailers who are its home goods and fashion. The company is eager and ready to listen and address what their customer's say to stay ahead of the competition.
OPERATIONS MANAGEMENT
Company operations
Target Corporation has efficient supply chain management because the company operates in nearly 2,000 retail stores currently. Target Corporation retail stores are sourced through thousands of vendors (Target, 2015). Additionally, Target Corporation merchandise finds its way to these stores through 22 regional distribution centers in the US. Target strategy regarding imports is to distribute most of them though much small distributions centers on the West and East coast and then transport the goods via rail or truck to the distribution centers. The company has also hired outside consultants to revamp its distribution system and to introduce electronic inventory to replace manual operations (Target, 2015).
Target Corporation employees working in supply chain management before the conversion relied on manual faxes for sourcing function purposes. Now, Target Corporation has a new system which links trading porters in a centralized online system allowing the company to concentrate on shipments and their doors in the early stages of the comp0any supply chain (About Target, 2015). This has enabled Target Corporation to take advantage of re-route transportation and multiple transportation options when needed and schedule shipments in full trucks. This has also allowed the company to continue providing its consumers with differentiated products at affordable price.
Information System and Technology
Target Corporation has signed an agreement with Microsoft. This will enable the company to store inventory sale point's information which is retrieved from the cash register in a virtual storage cloud. Additionally, the data will help Target Corporation support its inventory and marketing managers as well as rely on fewer expenses to track consumer demand. The company is investing in new store technology to make shopping even better for its consumers (Shop with confidence, 2015). Recently, Target Corporation has come up with a host of powerful technology to make it more convenient and more accessible for consumers to shop. Besides, technology is crucial in making sure that the company delivers more of its products both online and in stores. The company is also excited to upgrade its stores ready for their guests.
Target Corporation store team members are now able to assist her guests to buy online. Due to improved technology, Target Corporation guests are now able to place an online order to find the item they want. The company has developed a new app called checkout that can be used by team members to take guest payment via credit card readers attached. This application combines the best technology and supply chain enabling Target Corporation to expand online assortments to help customers find whatever they are looking for.
References
About Target, (2015). Corporate fact sheet. Retrieved from http://pressroom.target.com/corporate
Burg, N., (2014, January 17). Five lessons for every business from Target’s data breach. Retrieved from http://www.forbes.com/sites/sungardas/2014/01/17/five-lessons-forevery-business-from-targets-data-breach/
Rooney, J. (2012). Behind The Brand: A Tour Of Target With New CMO Jeff Jones. Forbes.Com, 6. Retrieved from http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/detail/detail? sid=21fee1ec-dde8-47f6-a637- TARGET 9 824759d88593%40sessionmgr113&vid=2&hid=121&bdata=JnNpdGU9ZWRzLWxpdm U%3d#AN=77918688&db=bsh
Shop with confidence, (2015). Retrieved from https://corporate.target.com/about/shoppingexperience/shop-with-confidence
Target (2015). What we believe in. Retrieved from https://corporate.target.com/about/missionvalues
