Case Study of Management Failure of Target

Running head: CASE STUDY OF MANAGEMENT FAILURE OF TARGET
CASE STUDY OF MANAGEMENT FAILURE OF TARGET
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CASE STUDY OF MANAGEMENT FAILURE OF TARGET
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Table of Contents
Introduction................................................................................................................................2
Description of the situation........................................................................................................3
Background for the case study...................................................................................................4
Providing a follow up.................................................................................................................7
Conclusion..................................................................................................................................8
Reference list............................................................................................................................10

CASE STUDY OF MANAGEMENT FAILURE OF TARGET
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Introduction
Mismatch in the management is one of many factors that leads to the collapse of any
company. Mismatch of management occurs mainly due to lack of potential knowledge of the
managers regarding overall market scenario and operation opportunity that are lying with the
company. Target Company in Canada in recent years faced the tough situation of
management failure. The Target Company when established was one of the notable
companies in the retail industry. However, the faulty management of the company in the form
of operations failure and resource distribution led to the debacle of the company. This case
study will look deeply into the reasons that has led to the failure of the Target Company in
the retail industry. The Target Company was initially located in Minnesota but the decision to
expand in Canada was one of the biggest reason behind the failure of the company.

CASE STUDY OF MANAGEMENT FAILURE OF TARGET
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Description of the situation
This section of the case study will aim to highlight the problem the Target Company
faced while making decisions to expand their business. Not only highlighting the problems
will be main aim of this case study but the case study will also highlight the solutions to these
problems that could have been taken by the Target Company. It has been seen that the Target
Company failed to identify the opportunities that are lying within the states. The company
failed to identify the tastes and preference of peoples living in Canada regarding the
consumption of retail products. Now they thought that the consumer preference in both USA
and Canada is more or less same in nature. Another factor that was highly highlighted behind
the failure is the emptiness of the shelves in the store.
According to many customers, the company failed to bring in well-judged inventories
as either the store had numbers of those products that are mainly not demanded by the
customers. Even the store was not having huge number of necessary items. The main
characteristics of Canadian customers are that they prefer to visit shop a number of times but
they are not at all accustomed with one stop shopping concepts. The major fault that had
happened with the Target Company is faulty strategy. In most of the shops that has been
opened in Canada were having 15% higher price compared to other companies operating in
Canada. The decision of taking over Zellers that the management of Target Company took
was not sufficient to minimise the losses that were being faced by the company. Instead of
many business forecasters stated that the decision of joint operation with Zellers would have
been a better options.
The Target Company lost around $1 billion as sales fell short than expected
(reuters.com, 2019). Even, the lack of important goods in the selves of the company made the
customers to choose different retail companies like Walmart. Now through this study, it will