MARK804: Detailed Macro-Environmental Analysis of Target Corporation

This report provides a macro-environmental analysis of Target Corporation, examining the political, social, economic, legal, technological, and environmental factors impacting the company. The analysis covers political factors such as taxation and trade restrictions, social factors includin...Read More

MARK804

Contents
Introduction...........................................................................................................................................2
Macro environmental analysis...............................................................................................................2
Conclusion.............................................................................................................................................4

Introduction
Target Corporation was established by George Dayton, which is headquartered in Minnesota.
The company has been renamed in 2000 with total employees of 341000. The company has
earned a total revenue of 69.495 billion dollars (Target Corporation, 2019). This description
is based on macro environment analysis, which will include social factors, technological
factors, legal factors, political factors, economic factors, and environmental factors (Tarighi,
Sajjadi, Hamidi, and Khabiri, 2017).
Macro environmental analysis
Political factors
Political factors act an important role while determining the factors, which can affect
profitability of Target Corporation. The company associates with policymaking, which is
beyond political activities. The company contributes to the company`s success at state and
national level (Saridakis, Lai, Mohammed, and Hansen, 2018). The organisation has been
affected by taxation, costs, trade restriction, and tariffs, especially when expanding over US.
Changes and alteration overtime with rules and share of retail stocks in healthcare bill. In
case of changes, political aspects can have impact due to regulations in retail industry that can
change beyond established limitation that will affect business adversely (Tarighi, Sajjadi,
Hamidi, and Khabiri, 2017).
Social factors
The company takes pride in fostering positive organisation as other supplies deficiency
department. Target ranges its hands to public while providing a portion of it to the individuals
(Bismark, Kofi, Frank, and Eric, 2018). Target offers a wide variety of goods, services and
treat them customers in such a way that they can support its shoppers by giving online access
to the catalogue. The company provides quite diverse products for its ethnicities. People often

adore its selection of hairstyle products by availing selection for Africa American hair. There
is a great influence of cheap labour from immigrants and Hispanic population, which will
affect American workers, as they will pay for the workers, as they are relatively cheaper
(Bismark, Kofi, Frank, and Eric, 2018).
Economic factors
Consumers have been hunting to grab best deals of products. Competitors including Walmart
steadily match price and low merchandise prices. In order to save aligning with the changing
demand, the company will have to analyse the prices so that it can stay competitive. The
American economy affects Target. The price of fuel has been increasing in the global
marketplace due to upsurge in prices in fuel Target Corporation and find some way to
decrease the cost of distribution. Another factor will effect external situation if Target is US
economic development and its rapid measured development or high rated growth will affect
economy either positively or negatively (Bismark, Kofi, Frank, and Eric, 2018).
Legal factors
Target suffers from the product recollections and its liabilities where they are safe fears for
the customers. They are quite resolute regarding the reduction and contamination of drugs
from production and pharmacy. Target should abide by several regulations and laws in order
to conduct business including labour laws, privacy laws, employment laws, and
environmental factors.
Target bargains fresh and organic for health aware customers. It needs the producers to
survey detailed laws, regulations, and values to conserve pollution. Target has been strong-
minded to minimise the waste in electric, materials, and merchandise. Target is quite
dedicated to resources to cut down to cut down the operating waste at least at the end of 2015

with 15 percent. Target will set up 500 solar panels on the buildings until 2020. Recently, 15
to 20 percent of the energy where target uses solar powered.
Technological factors
Target tries to remain technically active through social media savvy. They often talk to
customers with the help of social media platform such as instagram, tumblr, Facebook,
Linkedin, and twitter. The company have several Facebook accounts, twitter for news, guest
services, and trends. Review, user`s content and their product image act as an social proof
showcasing the excellence assurance of target goods. The company offers high-class
contracts to the customers with the help of email, website, and printing. The company is a
great instance of retail chain with use of internet in order to attach with the operators until
they hand out online.
Environmental factors
The company achieves to commit to produce sustainable products with groundbreaking
packaging and climate rule in order to decrease the ecological footprint. This factor indicates
that the company have initiated the program known as greener. The main purpose is to
minimise energy costing, disposable waste, and recycling.
Conclusion
From the above discussion, it is seen that target faces few challenges in complying with
political and environmental factors. The organisation faces backlashing over any political
candidate when forced them to recreate policies so that target will minimise its waste. Target
will aid in governing the price of medicines in market which in arrival it will aid the
customers and company. Organizations like Target will employ these employees rather than
locals. Increase in population of retiree, where the organisation will employ numerous
employees, so that they can obtain more employees.

References
Bismark, O., Kofi, O.A., Frank, A.G. and Eric, H., 2018. Utilizing Mckinsey 7s Model,
SWOT Analysis, PESTLE and Balance Scorecard to Foster Efficient Implementation of
Organizational Strategy. Evidence from The Community Hospital Group-Ghana
Limited. International Journal of Research in Business, Economics and Management, pp.94-
113.
Saridakis, G., Lai, Y., Mohammed, A.M. and Hansen, J.M., 2018. Industry characteristics,
stages of E-commerce communications, and entrepreneurs and SMEs revenue
growth. Technological Forecasting and Social Change, 128, pp.56-66.
Target corporation, (2019) Annual reports. Available on: https://corporate.target.com/annual-
reports/2018 [Accessed on: 15/09/19]
Tarighi, R., Sajjadi, S.N., Hamidi, M. and Khabiri, M., 2017. Factors Affecting the
Development of the Electronic Marketing Capacity of Professional Sports
Federations. Annals of Applied Sport Science, 5(2), pp.87-96.