Environmental Analysis: Target Corporation
The objective of this work is to complete an environmental scan and economic analysis on Target and to identify any major changes expected to affect the remote, industry, and operating environments. This work will refine the analysis of the forces and trends, utilize a macroeconomic forecast of economic indicators affecting Target in the future and analyze the noneconomic factors in the remote environment including: (1) social/cultural; (2) political; (3) technological; and (4) demographic. This work will complete a competitive analysis of the organization's position from a microeconomic perspective based on the pricing of the organization's primary product or service line, an assessment of its cost structure, and an assessment of the market in which the organization competes. Finally, this work will develop a summary of the current situation of target including its mission, business overview, current competitive position and the forces and trends in its industry. Three to six current opportunities and issues that strategic planning processes are required to address will also be identified in this study.
II. Introduction
Target is the second largest discount retailer in the United States and is an innovative and large retail stores that carries everything from household items, to clothing, shoes, jewelry, accessories, toys, sporting goods, and even food items. The mission statement of target has as its focus four core factors including: (1) providing great service; (2) having merchandise in stock; (3) a clean store; and (4) speedy checkout. Target aims to produce new ideas and to stock exclusive products. As well, target strategically locates their stores where they are accessible to both current and potential guests.
III. Environmental Scan
An environmental scan is defined as a way to "understand the external environment and the interconnections of its various sectors and to translate this understanding into the institution's planning and decision-making processes." (Choo, 2001) Environmental scanning is defined in the work of Brown and Weiner (1985) as a "kind of radar to scan the world systematically and signal the new, the unexpected, the major, and the minor." (Choo, 2001) Scanning is defined in the work of Aguilar (1967) as "the systematic collection of external information in order to: (1) lessen the randomness of information flowing into the organization; and (2) provide early warnings for managers of changing external conditions. (Aguilar, 1967 in: Choo, 2001)
Environment scanning has the objectives as follows: (1) detection of scientific, economic, social and political trends and events important to the institution; (2) definition of the potential threats, opportunities, or changes for the institution implied by those trends and events; (3) promotion of a future orientation in the thinking of management and staff; and (4) alerting management and staff to trends that are converging, diverging, speeding up, slowing down or interacting. (Morrison, 1992 in Choo, 2001) The conceptual framework for the environmental scan is aligned with the following strategies and dimensions.
Figure 1
Conceptual Framework for Environmental Scanning
Source: Choo (2001)
With this conceptual framework in mind, the following information on Target has been gathered for consideration in the environmental scan:
Situational Dimensions
Target is not a retailer on a global basis.
The majority of Targets are located within a 10-mile radius of their major competition. (Lydersen, 2006)
Organizational Strategies
Target has signed agreements with top designers to sell the designer items at prices that are affordable and under a name that has been agreed upon. The example stated is that of Victoria's Secret which produces the lingerie line of Gillian O'Malley. (Lydersen, 2006)
Target has a reputation for new product development and creativity. (Lydersen, 2006)
Gift cards can be used in the store or online (Lydersen, 2006);
There is no grocery department at Target which presents a threat to retailer including Wal-Mart whose majority of stores are now Super centers (Lydersen, 2006);
Gift cards can now be used in both the store and on the Internet, thus leading to more sales and reaching the computer literate market (Lydersen, 2006);
More and more Targets are attaching to trendy malls in different market segments. (Lydersen, 2006)
Managerial Traits
• 7% of Target's total sales are accounted for by pharmacy customers. The turnover rate for pharmacists is quite high and these individuals work 12-hour workday schedules.
• The police department in some states will depend on Target's Asset Protection systems to catch thieves and monitor fraudulent activity.
Macroeconomic Analysis
The macroeconomic analysis measures four aspects of Target's strategy including the (1) social/cultural; (2) political; (3) technological; and (4) demographic...
environmental analysis helps any organization to recognize factors that impact its performance. The factors impacting an organization's performance may be internal to the organization and they can also be external. Environmental analysis is therefore critical to an overall strategic plan. Several methods of performing environmental analysis can help organizations like the Carolina Health Care System, including the PESTLE and SWOT analyses ("What is Environmental Analysis?" n.d.). These types of
WMT v TGT II Environmental Analysis The environment shared by Wal-Mart and Target can be analyzed by answering a number of questions about the nature of the industry and its key success drivers. Both firms compete in the discount retail industry, which is a large segment of the broader retail industry. Firms in discounting typically offer a wide range of goods but compete primarily on price (Investopedia, 2011). Within the broader retailer
INTERNAL ENVIRONMENTAL ANALYSISUnited Airline Holdings: Internal Environmental AnalysisStrategic Role of Corporate Strengths/Weaknesses in the Internal Strategy Analysisa) Corporate-Level StrategiesIn basic terms, an enterprise�s corporate-level strategies refer to the approaches embraced by the top management in efforts to steer the entire organization towards success (Godfrey, 2015). Towards this end, they tend to have an impact on the entire organization. With this in mind, the corporate level strategies of United Airline Holdings
Target Store Mission Statement Social Responsibility Stakeholders Remote External Environment Economic Social Political Technological Ecological Threat of Entry Powerful Suppliers Powerful Buyers Substitute Products Jockeying for Position Strengths Weaknesses Opportunities Threats Mission Statement: The mission statement of the business provides a sense of direction as well as the overall focus on achieving what is important for the corporation. Similarly Target also states its mission in terms of providing the valuable customers value for their purchases. The business further elaborates that its mission is to provide value to its customers
. . political and law enforcement cronyism and corruption. . . And last, an surprising astonishing level of incompetence which symbolizes much of the authorized intelligence- meeting and investigative developments (Block, 1985, p.310). This lack of enforcement taking part in helping with the waste especially after a natural disaster such as a tornado will possibly allow such practices as illegal dumping to last unchecked. "The ideal answer to hazardous waste problems
" The analysis cited above continues to describe the ways in which corporate "life" (in the sense of how many different individuals and entities are vital to the running of a corporation in the current climate): Businesses today must be consumer, profit, and publicly oriented. Only a few years ago, the first two would have sufficed. But, in support of our dualistic argument regarding the marketing concept, that is -- creating exchanges
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now