Strategic Management for Target in Australian Retail Industry

Business Environment 1
Strategic Management

Business environment 2
Executive Summary
Strategic management is defined as the continuous planning, monitoring, analysis, and
assessment of all the required areas, because it is important for the organization in terms of
meeting its goals and objectives. Strategic management mainly involves the formulation and
implementation of the major goals and also the initiatives taken by the top management on
behalf of the owners, and this is mainly based on the consideration of resources and also the
evaluation of the internal and external environment in which business of the organization is
conducted.
Structure of this report includes the market size & trends, financial and corporate performance,
strategic options, final recommended strategy, implementation of the final strategy, and
monitoring and controlling of the future performance. At the end, brief conclusion is there which
concludes all the important aspects of this paper.

Business environment 3
Markets Trends & Analysis
Retail industry in Australia is mainly segmented by the product such as food retail/grocery,
apparel, footwear, beauty products, durable goods, furniture & furnishings. Further, it is
segmented by the retail stores which mainly include the hypermarkets & supermarkets,
convenience stores, etc. It must be noted that, complete size of the retail market of Australia is
$122 USD in the year 2013 (Mordor Intelligence, 2017.
Target is the departmental store which is mainly supported by the strong brand heritage, and
characterized by fashion, basics, and quality at the best prices. It mainly operates in the clothing
home ware and general apparels in the retail industry of Australia. The main aim of this
departmental store is to provide both quality and fashion at the reasonable prices (Wesfarmers,
2018.
Following are the industry statistics and market size for the Target in context of retail industry of
Australia-
Growth Revenue Businesses Employment
Annual
Figures
$557.8bn 182145 1933977
Current Growth
2012-2017
1.1% -2.1% -0.1%
Forecast Growth
2017-2022
1.1% -0.4% 0.5% (IBIS World,
2018
The industry of the clothing retailing faced number of challenges from last five years, and these
challenges mainly incudes the spending related to the cautious customers, intense competition,
and rising cost of rent. It is expected that revenue of this industry shows the growth at an
annualized 2.0% over the five years through 2018-19 that is total $16.7 billion. This mainly
happens because of the bricks and mortar retailer’s expansion in terms of the online sales
channels. It is anticipated that industry revenue will grow by 0.1% in 2018-19 because of the
weak income disposable growth. Difficult trading environment is created for the Target from last
five years, and this mainly happened because of the negative customer sentiments and online
only retailers (IBIS World, 2018. Following is the industry statistics of the clothing retailing
market-
Revenue Annual growth from
2014-2019
Employment Business
$ 17 billion 2.0% 109957 11380