Strategic Management Assessment of Target Corporation

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Strategic Management Assessment of Target Corporation
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1STRATEGIC MANAGEMENT ASSESSMENT OF TARGET CORPORATION
Executive Summary
The current business objectives of Target are to offer all its target consumers with exceptional
deals, high-quality owned brand products, and innovative partnerships along with exceptional
marketing efforts for making its business offering a high quality service. The objective of the
report is to analyze the current strategic situation of the selected company Target along with
evaluating its external as well as internal environment within which it operates its business.
Target Corporation attempts to be highly tech and social media savvy where it actively
communicates and builds connection with its target consumers through social media platforms
and informs them about latest news, trends along with consumer services. Most of its
competitors such as Amazon are much better established online business than Target
Corporation. Target Corporation can consider integrating various parts of its international
business along with considering integrating domestic with international business. In attaining
competitive advantages and increased market reach in the international a marketplace, the retail
company can consider implementing product standardization strategy through considering the
impact of cross border cultural differences in its international market operations.

2STRATEGIC MANAGEMENT ASSESSMENT OF TARGET CORPORATION
Table of Contents
1. Introduction..................................................................................................................................3
2. Current Situation..........................................................................................................................3
2.1. Past Corporate Performance Indexes....................................................................................3
2.2. Strategic Posture...................................................................................................................5
3. Corporate Governance.................................................................................................................5
3.1. Board of Directors................................................................................................................5
2.2. Top Management..................................................................................................................6
4. External Environment..................................................................................................................6
4.1. Societal Environment............................................................................................................6
4.2. Task Environment (Industry Analysis).................................................................................7
5. Internal Environment...................................................................................................................9
5.1. Corporate Structure...............................................................................................................9
5.2. Corporate Culture...............................................................................................................10
5.3. Corporate Resources...........................................................................................................11
6. Analysis of Strategic Factors.....................................................................................................12
6.1. Key Integral and External Strategic Factors (SWOT)........................................................12
6.2. Review of Mission and Objectives.....................................................................................12
7. Alternatives and Recommendations..........................................................................................13
7.1. Strategic Alternatives..........................................................................................................13
7.2. Recommended Strategy......................................................................................................14
8. Implementation..........................................................................................................................14
9. Evaluation and Control..............................................................................................................15
10. Conclusion...............................................................................................................................16
References......................................................................................................................................18

3STRATEGIC MANAGEMENT ASSESSMENT OF TARGET CORPORATION
1. Introduction
Target is positioned as the eighth largest general merchandise retailer based in US that is
involved in selling products by means of its online stores as well as digital channels. The retail
company is involved in offering edited food assortments and other house essentials. The
company recently has more than 1802 stores within US and has also successfully expanded its
online business operations. The company also generates revenue from its in-store amenities as
well as its licensed departments where the major competitors of the company are Amazon, Best
Buy and Costco (Target 2018 Annual Report | Target Corporate., 2019).
The objective of the report is to analyze the current strategic situation of the selected
company Target along with evaluating its external as well as internal environment within which
it operates its business. The report will also consider evaluation of the strategic factors along
with reviewing its mission and objectives in attaining strategic competitive advantages. Based on
such analysis recommendations will be developed for Target along with discussing its
implementation, evaluation and control plan.
2. Current Situation
2.1. Past Corporate Performance Indexes
From analyzing the annual report of Target Corporation it has been evidenced that overall
revenue of the company has indicated an increasing trend over the years from the year 2013 to
2018. The figure below also indicates that the operating income, net earnings and diluted
earnings per share has increased over the years from the year 2013 to 2018. Over the past five
years the average growth rate of the company was around 5% and the net change in cash flow of
the company has indicated improvement in the operating income (Target 2018 Annual Report |
Target Corporate., 2019). Moreover, the company’s price to earnings ratio is also on the high
side at 18.10 that makes Target Corporation a good stock market investment. With maintaining
an exceptional business growth Target Corporation has exceeded analyzers expectations for its
revenue and earnings and considering such results it is observed that sales of the company
increased by 5.3% from the previous year.