Target Organizational Structure

Purpose, Belief, and Brand Promise: Target’s purpose and beliefs can be expressed through its brand promise that was first unveiled in 1994. Expect More. Pay Less.® is the brand promise and reflects the unique retail experience offered at Target and is a reflection of the commitment it has to the community and offering guests value, quality, and

Wal-Mart’s is one of Target’s biggest competitors, but other retailers are also trying to compete, such as Sears, Dollar General, and Amazon. Although Target caters more to a more upscale clientele, it still carriers many of the same items as Wal-Mart. Target is not able to compete internationally with Wal-Mart since all of stores are in the U.S. but by 2014, they will have about 150 stores

Target Corporation (NYSE:TGT) is the leading large-format general merchandise and discount retailer in the U.S., challenging Wal-Mart in electronics, toys and apparel while also seeking to differentiate with higher-end fashions and products for an upscale audience. As of the close of their latest fiscal year (FY2011), Target operated approximately 1,760 stores encompassing 233,000 square feet in 49 states and the District of Columbia. The company is divided into the retail and credit card divisions and moves the majority of its products through a highly integrated network of 37 different distribution centers, which include four food distribution centers. Target is one of the most well-entrenched large format retailers in the U.S., has the ability to manage their pricing strategies at a level of accuracy and precision that is comparable to Wal-Mart (Henderson, 2001). Unlike Wal-Mart, Target concentrates on a value-based message that concentrates on quality and price differentiation to sustain their gross margins while Wal-Mart concentrates on supply chain efficiency and a continual reduction of supplier and transaction costs (Krishnamurthi, 2001).

The aim of this paper is to highlight the strategic position of the company with an overview of its internal and external environment. The study of its strategy, design and other forces, one can easily gauge why and how target has managed to become the retail giant it is today.

Target sells its products from the high end of the market to the low end depending on the type of product in question. In regards to Electronics items where the caption rate is small, they price their items at the high end to ensure they meet their margins. However, in regards to Target’s name brand items, they price those at the low end, keeping the company as a discounted retailer. Target also sells designer items that range from mid to high range of the market. In 2013 Targets CEO Gregg Steinhafel adopted the philosophy “a penny saved is a penny earned”. He further mentioned that they company would be a penny higher in price than their competitors Wal-Mart (Davis, M 2013). Steinhafel stated that “We want to be a penny

Working at Target, teamwork and collaboration is the expectation of their team members and leaders. For each work centers is joint directly or indirectly among other work centers. Additionally, Target believes in diversity and has a non-bias hiring process; hence, with team members come from different background and 100-250 employees, getting the right person to the right place and on the same page becomes difficult. As a strategy, Target divided the store into three sectors. The administration team, your sales floor team, your operational team; within these team there are sub teams and each of those sub team has a leaders and assistant leaders. By doing so, Target is able to drive the “divide and conquer” strategy.

Maybe the biggest difference in the two Companies would be marketing campaigns. Wal-Mart markets towards the lowest income families. Wal-Mart markets by showing low prices, or how they are lowering prices. Target markets towards the middle class, and it shows that they have the goods that you want, instead of prices.

Target sells a wide variety of general merchandise and food through the store and with the use modern technology. Target’s broad-spectrum

The company is geographically located in most major united states locations. It employs a hierarchal organizational design. One of the contributing factors to its success is the company’s success in providing a dining experience for its customers that excel in choices, price, customer service, and serving size. The company is known world-wide for its delicious cheesecakes with the key factor being the variety.

Wal-Mart and Target are both discount BIG BOX retailers which have made the most of their strengths and have drawn upon the differences in their customer bases, product mix and business strategy. Even though both

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Nearly everyone is at least somewhat familiar with Target stores; the famous bullseye logo is identifiable all across the United States. With the motto "Expect More, Pay Less", the company suggests that customers can expect more of everything, at more reasonable prices.1 Target's commitment to the consumer, as well as it's employment consideration and management style led Fortune Magazine to name it as one of the Most Admired Companies in 2005.

To accomplish the aforementioned vision statement, Target has come up with many different ways to fulfill their goals. Target has been trying to delighting their customers for years. They are constantly looking for better prices to fulfill their credo of, "Expect More. Pay Less."

The most potential customers for Target Corporation at its retail outlets and online incarnation are mothers shopping for their children. This segment of the target market belongs to the upper income group of the society which can easily afford to pay a high price for quality products and services. But at the same time, these mothers look for the most convenient and cost-efficient shopping channel. Target recognizes the importance of providing the highest quality of products along with the best customer services to its potential customers. To match the exact needs of this segment, Target Corporation must focus its core competencies on the Vision of George Dayton; Expect More, Pay Less.

As at 2015, Target 's North American distribution infrastructure consists 42 distribution centers totaling 55.5 Million square feet consisting of the following different facility types: regional general merchandised distribution centers, import / redistribution centers, perishables food distribution centers, E-Commerce fulfillment centers and returns processing facilities. Like many retailers, Target sources a significant volume of import merchandise from different countries around the world (approximately 500,000 containers of merchandise produced in countries like China, Indonesia, Vietnam, India, and Thailand). The import