Target is an upscale discounter that provides high-quality, on-trend merchandise at attractive prices in clean, spacious and guest-friendly stores. Target Corporation is the nation's #2 discount chain. The company operates about 1,745 Target and SuperTarget stores in 49 states, as well as an online business called Target.com. After a reversal in fortune that coincided with the onset of the deep recession in the US, Target is growing its grocery business, remodeling stores, and looking to grow outside the US. Its current Price/Earnings ratio is positive and its current Gross Profit Margin is over 30%.
•“Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.® brand promise.”
•The objectives of the Target Corporation are to provide their customers with excellent service and high quality products at affordable prices. “Cheap chick strategy. •To gain competitive advantage over its competitors by committing to growth and delivering superior return to their shareholders. •To cater employee development through excellent human resource development. •“At Target, diversity is much more than a goal or campaign. It’s a core value we integrate into every area of our business — from our suppliers, to our teams, to the shopping experience in our stores. We foster an inclusive culture that allows our high-performing and diverse team to drive innovation.” Gregg Steinhafel, CEO.
•Target's Cheap Chic Strategy: Target decided to reposition itself as a mass merchandiser of affordable chic goods. •Target's success was attributable to two key factors: the right kind of differentiation and distinctive marketing communications.
•Limiting payroll expenses so stores are thinly staffed.
•Employing inexpensive and yet attractive merchandising techniques. •High-quality merchandise at low margins due to cutting expenses.
A. Board of Directors
“The duty of the board of directors of Target Corporation is to act on behalf of shareholders and oversee management. The company believes there is a direct correlation between the quality of the company's board of directors and the overall performance of the corporation.” (Target.com)
The Chairman of the Board may, but is not required to, also hold the office of the Chief Executive Officer. The offices of CEO and Chairman of the Board are separately evaluated by the independent members of the Board of Directors each year. The Board of Directors consists of 12 members, all from outside companies, such as McDonald’s Corporation and Wells Fargo, among others, except for the Chairman, President and Chief Executive Officer of Target, Gregg Steinhafel. The Board has the following Committees: Audit, Finance, Nominating and Governance, Compensation, and Corporate Responsibility. B. Top Management
Target’s vision is composed of team members providing exquisite service to the guests and giving back to the community and the environment, whilst promoting diversity internally and externally.
Target Corp. promotes diversity which is reflective in their operations as well as its human resources. Their markets are totally different individuals who need various products/services for their personal consumption taking in their minds the need to satisfy themselves. Diversity in their workforce makes them unique form others. They utilize the idea of diversity into a competitive advantage.
III. External Environment: Opportunities and Threats
A. Societal Environment
•The economy has a major influence over the retail industry. Target's market has a very broad scope. When the economy affects the purchasing ability of its...