target analysis group 3. organizational life cycle target has followed the typical organizational...
TRANSCRIPT
![Page 1: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/1.jpg)
Target AnalysisGroup 3
![Page 2: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/2.jpg)
Organizational Life Cycle
• Target has followed the typical organizational life cycle
• First actual store opened in 1962 in Minnesota• Became a publicly traded company in 1970 and began
to follow a more bureaucratic leadership format• By the mid-1980s, Target had over 100 stores and was
seeing over sales of over $1 billion a year. • They then began to follow a more divisional structure,
as they were maturing and becoming one of the largest discount retailers in the country
![Page 3: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/3.jpg)
Organizational Life Cycle
• As Target grew into a major corporation, with over 5000 stores by the 1990s, it was important for them to keep control over themselves and stay organized
• Thanks to leadership having a large amount of communication and well-organized coordination, Target is now the second largest discount retailer in the U.S., behind Wal-Mart
![Page 4: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/4.jpg)
Organizational Chart
• Target has adopted a typical organizational chart
• Like most large corporations, Target has a hierarchal organization chart
• This is a top-down organized corporation with the CEO/Chairman overseeing multiple Vice Presidents who oversee other executives
![Page 5: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/5.jpg)
Company Situational Analysis
• As the 2nd largest retailer in the U.S., Target is in a strong position
• They have been hurt by the economy over the past decade and have had to close a limited amount of stores
• Their main competitors are Wal-Mart and other retailers such as Sears
• Targets main strengths include their brand recognition and upscale discounted product offerings
• Their weaknesses include competitors such as Wal-Mart offering similar products at cheaper prices
![Page 6: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/6.jpg)
Company Culture
• Team Effort• Employees are valued
– Turnover rates low• Supportive of Employees• Rules are strictly followed, fairly• Great opportunity for advancement• Constantly growing
![Page 7: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/7.jpg)
Strategic Changes
• Recently expanded to Canada• New clothing lines
– Famous designers• Online Shopping
– Delivered right to the customer’s door• Changing their industry
![Page 8: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/8.jpg)
Objectives of Strategies
• Competitive Scope– Multinational
• Strategic Intent– Constantly growing– Trying to provide a higher quality shopping
experience• Market Share Objective
– Opening more stores– Reaching a wider range of customers
![Page 9: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/9.jpg)
Objectives of Strategies Cntd.
• Competitive Position– Maintaining but growing at a manageable pace
• Strategic Posture– Not overly aggressive risk takers, but are taking
some to continue growth• Competitive Strategy
– Separate themselves from other companies in their industry
– They are gaining a good reputation
![Page 10: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/10.jpg)
Age distribution
• Average age of shopper 40• 57% of customers are college graduates
![Page 11: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/11.jpg)
Geographic Distribution
• 1,778 storefronts
![Page 12: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/12.jpg)
Income Distribution
• Average income of shopper is 64k
![Page 14: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/14.jpg)
Managerial Factors
• Corporate Responsibility
• Environmental Assessment
• Growth in new market
![Page 15: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/15.jpg)
Competitive Factors
• Product Strength
• Customer Loyalty
• Company Innovation
![Page 16: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/16.jpg)
Financial Factors
• Return on Equity
• Ability to Compete on Prices
• Market Share
![Page 17: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/17.jpg)
Technical Factors
• Technology Used in Products
• Manufacturing Skills
• Production Effectiveness and Delivery Schedules
![Page 18: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/18.jpg)
Blue Ocean Strategy
• How Target has made a Blue Ocean
• Core Principals
![Page 19: Target Analysis Group 3. Organizational Life Cycle Target has followed the typical organizational life cycle First actual store opened in 1962 in Minnesota](https://reader035.vdocuments.net/reader035/viewer/2022062407/56649f4c5503460f94c6d16e/html5/thumbnails/19.jpg)
Great by Choice
• 10X Leadership
• 20 Mile March