By having such a sound corporate structure the Target Corporation keeps itself from making mistakes based on quick judgments that might harm the Corporation in the future. There is something to be said for not being the number one retailer and for not always being the leader in the field (Beam & David, 1999)
Businesses can have the best and most important merchandise in the world, but it does not matter if there are no customers. The Target Corporation knows how to bring in these customers by treating them properly, carrying the merchandise that they want, and providing that slightly more upscale image than that of Wal-Mart (Biesada, 2004)
Its revenue for this year is nearing $50 million (Target, 2004c). All of this makes the Target Corporation one of the fastest growing retailers in the country and there are plans to offer paid vacations and health care benefits to employees that work part time (Cameron, 2001)
The Corporation may not be the first to create new ideas, but they follow along quickly and because they are not in exactly direct competition with Wal-Mart and Kmart this following along in the footsteps of what works well for other stores seems to be working for them in a way that is good for their employees, their customers, and their stockholders as well. This follow-up approach will not earn them the number one retailer spot, but they have enough business from new and repeat customers to keep them running quite smoothly and efficiently (Coulter, 1998)
, and therefore they choose many of the stores that belong to the Target Corporation. It would seem that the Target Corporation has spent a great deal of time researching this issue because the Corporation is careful to ensure that its stores are upscale enough to bring in those that are not comfortable with Wal-Mart and Kmart but also not so upscale that those people without a lot of money are too intimidated to shop there (Pratt & Spencer, 2000)
On the other hand, mall displays, outdoor advertising (billboards, banners, direct selling, etc.), and transit advertising are effective in urban areas only (Clow & Baack, 2009)
ii. Key Message: Through an integrated marketing communication plan, Target Corporation will identify the essential ideas which it needs to communicate to the potential audience (Mullin & Cummins, 2008)
These firms can be paid attractive commissions as well as offered long-term contractual relationships with the company for their useful services. All these activities will ultimately contribute in the achievement of sales objectives defined in the integrated marketing communication plan (Smith & Taylor, 2004)
Moreover, Target purchases its products directly from the manufacturers which enable it to charge very competitive prices from the final customers. With the help of different kinds of promotional offers and price-cut strategy, it is able to target all the income groups and social classes of the society (Target Corporation, 2013)
Target Corporation can develop a sales force and take the services of business development firms that will support its sales promotional activities. The sales force will be responsible to create awareness about various product offerings by Target Corporation to its most potential customers in the local areas (Tuckwell, 2011)
Human resources plays a significant role in helping the organization to achieve maximum competitive advantage through the people that they hire. Organizational structure has a significant impact on knowledge transfer and value creation within the organization (Mahesh & Suresh, 2009)
In reality, prices were lower than Wal-Mart on comparative items, but customers did not perceive it that way. Therefore, a new marketing campaign was developed that featured lower pricing (Reingold, 2008)
Having the right policies and strategies in place allows them to achieve this goal. Human capabilities and core competencies dramatically affect organizational structure and future strategic planning (Wen-Chang, Chien-Hung, & Ying-Chien, 2011)
(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
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
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
How Should These Changes Affecting Target Corporation be managed? In the present day, as companies make every effort to be prosperous and fruitful in the markets and industries they operate in, it is the extent of effectiveness and productivity of the top management and leadership team in the corporation that normally determines whether or not the business is able to achieve its objectives and changes. The interaction and management of the recipients of change is an important aspect and can be done using different models, processes, and techniques (Jick and Peiperl, 2003)
The executive team of Target Corporation ought to be aligned and dedicated to the direction of change, gain an understanding of the organizational culture and the changes intended to be introduced. For instance, with the executive team of the company committing to technological changes, this will prompt employees to also embrace and commit to these changes as well (Jones et al
The corporation plans on re-branding itself by getting in touch with advancements in technology and joining the digital era in its business operations. In addition, the company has to recapture its brand away from the data breach that it experienced, and ensure that its status is rebuilt (Malcom, 2014)
For instance, Walgreens offers competition in the pharmaceutical area, and Best Buy offers competition in the field of electronics and also groceries. These forces for change cause the company to consider an organizational change, in the sense that its products and services are top notch and it wishes to ensure that the consumers do not opt for close substitutes from other retail companies (Tongue et al