Target is widely recognized for its chain stores that offer high discounts. It meets the needs of value-oriented consumers who seek high-quality goods. The first store for Target Company was opened at Roseville, Minnesota in 1962. The business experts indicated that Target Company had ventured in a risky business. The store expanded into a company after some time. Target Company transformed their operation successfully from a store to the world largest chain of retail stores by maximizing their opportunities in the industry.
Target’s Mission and Vision Statement
The mission statement for Target Company is to meet the needs and increase the capability of their clients. It means that the customer should prefer shopping at Target Company. The clients need to contribute to innovations in the company. As a result, they will fulfill the goals of Target Company. The corporation wants to make sure that the customers receive high-quality products from their stores. Target Company intends to inform the customers that they work hard towards proving quality products at low prices. The vision of Target is to establish a connection within and outside the company (Target, 2018). Target Company has developed after aligning its operations with the mission and vision.
Delegate your assignment to our experts and they will do the rest.
Target’s Goals
Target Company has formed many goals that they have to achieve. The goals of the company have motivated people to contribute to their success. Target set goals for the work surroundings, the welfare of the employees, voluntary work, and education. The company seeks to increase organic food discounts by 25% in 2019. Target has achieved the goal of increasing food discounts. In 2015, Target Company increased their energy star approvals by 76%. The company wants to reduce their waste by 15% (Target, 2018). Further, Target is working towards the reduction of the emission of greenhouse gases by 20%. The company has not achieved the goals for the team members. The education goals on increasing support and TCOE (Take Charge of Education) have not been met. The company has succeeded in expanded the voluntary hours which amount to 700,000 hours in a year (Target, 2018). The company has improved its efficiency through achieving its goals.
Target’s Tactical Plans
Target Company has planned to open around 15 stores by 2015. The company wanted to open unique stores such as six general stalls, one shop in the city, and eight shops in different locations (Target Announces Annual Growth Plans 2015, 2015). The purpose of opening new stores was to improve access to their products. The stores could offer unique experiences to the consumers by displaying the products. Consequently, the company’s brand could be established in the market.
Four Functions of Management
The first function of the management is planning. It is the crucial function of the managers. Plans are essential to assist the company to achieve the goals. The employees of Target Company refer to the plans to achieve the goals. The company depends on a complex supply chain for the efficiency of operations. Target Company has to make a plan on expanding to new markets. Recently, the company has ventured in foreign markets such as Canada and India (Target, 2018). The company has to conduct an in-depth analysis and make plans for them to succeed in foreign markets. After carrying out an analysis, the company can design a management plan for expanding to new markets.
The second function of managers is organizing. Managers are responsible for utilizing the organization’s resources to improve efficiency. The managers of Target Company have to balance the human and technical resources. They can easily track the employees and resources in the company due to the development of technology. The managers use the barcodes to track the company inventory. They also use the time management software to track the working hours of the employees. The time management software assists the managers to make sure that the stores are in operation (Target, 2018). The organizing function of the managers assists the company to perform efficiently.
The third function of the managers is leading. Target Company encourages diversity in the work environment. The leaders have to embrace diversity to be an example to the employees. All the employees have to collaborate to achieve the company’s goals. The managers of Target Corporation must make sure that employees uphold ethics (Target, 2018). The leading function of managers has assisted Target Company to achieve its goals.
The final function of the management is controlling. The managers make sure that the operations of the company run smoothly. They control the activities of the organization for the employees to achieve the goals on time. Target encountered challenges in 2013 on the data breach. The company formed customer data practices to avoid any cases in the future (Arkin, 2018). Through the controlling function, the company achieves its goals.
Target’s SWOT
Strengths
The main strength of Target Company is that it is the leading chain store in the world. The company has established its chain stores in various parts of the world. Their brand is internationally recognized. Customers prefer the products of Target Company because they meet their needs by providing high-quality products. The company serves a vast market because it carries out its operations in different parts of the world. Target Company has established good relationships with their customers by providing quality services and products at affordable prices. The company offers various products under one roof (Target, 2018). The customers can purchase furniture, groceries, and clothes.
Weaknesses
Target Company has not succeeded in their online operations as compared to their competitors. Amazon Company has successfully established their online operations. Target Corporation has not diversified its operations as compared to the large retails companies in the industry. There can be changes in shopping patterns that affect the income of the company. Target Company can be prone to economic changes in the economy which influence the margins and its stability in the industry. The main competitors of the company offer additional services to attract customers. For instance, Walmart and Kroger offer filling as well as financial services to the clients (Target, 2018). The customers of Target Company have to go the companies to access the services.
Opportunities
In 2015, the company’s website crashed due to traffic. Target hosted a promotion on the products of Lilly Pulitzer. It was a chance for Target Company to demonstrate that they can promote designer products at affordable rates as compared to the substitute companies. The other opportunity for the company is the reduction in the income of middle-class individuals. It can increase that market share of Target Company. People who earn average income will access stores that offer products at a discount. Target Company has the potential to meet the needs of the youths in urban areas (Target, 2018). The young generation will shop in Target Company because they depend on their parent income.
Threats
Target Company is facing stiff competition from other retailers that have established online stores. The competing companies offer their products at a relatively low price as compared to Target. Over the past years, Walmart Company has developed an online grocery store. Walmart customers can buy groceries in online stores. Many people prefer online stores because they save time on accessing the physical stores. The online stores offer delivery-to-door-step services. Secondly, Target Company has set product prices that are similar to those of Amazon and Walmart for them to retain their customers. Amazon has an established online store (Target, 2018). Target Company has to establish a good online presence to remain competitive in the market.
Target’s BCG Matrix
The American pharmaceutical sector might expand by 6.4% by 2023. The pharmaceutical industry is increasing at a high rate, but Target Company has a small share. The toy industry is expected to decline, and Target Company has a large share. From 2009 to 2014 the growth rate for the apparels was 2%. The total sales for Target Company in 2009 were $ 6.7 billion (Target, 2018). It represents 4% of the of the market share of the toy industry. The market in the toy industry is uneven. The United States has an established grocery industry. The grocery sales for Target Company in 2017 were $ 15.69 billion. It represents 1.8% of the market share (Target, 2018). The company needs to improve their grocery and pharmaceutical stores for its sustainability in the market.
Target’s Environmental Scan
The prices of Target Company are higher as compared to the competitors. Target Company has not embraced social and cultural practices of various backgrounds. The company needs to expand to foreign markets to enhance diversity. Most of the company’s stores are located ten miles away from competing companies. Some of the retail stores have a grocery section that can be a threat to retailers. Target Company s widely recognized for its innovation and creativity (Target, 2018). The company has promotion contracts with well-known designers who increase their customer base around the world.
References
Arkin, D. (2014, January 12). Target CEO promises to make ’significant changes’ after a massive data breach. Retrieved from http://usnews.nbcnews.com/_news/2014/01/12/22279267-target-ceo-promises-to-make-significant-changes-after-huge-data-breach?lite
Target Purpose, Beliefs & Stories Behind Them | Target Corporate. (2016). Retrieved from https://corporate.target.com/about/purpose-beliefs
Target Announces Store Growth Plans for 2015. (2015, February 2). Retrieved from https://corporate.target.com/press/releases/2015/02/target-announces-store-growth-plans-for-2015
