1. Target Analysis Group 3

2. 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

3. 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

4. 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

5. Company Situational Analysis As the 2 nd 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

6. Company Culture Team Effort Employees are valued – Turnover rates low Supportive of Employees Rules are strictly followed, fairly Great opportunity for advancement Constantly growing

7. Strategic Changes Recently expanded to Canada New clothing lines – Famous designers Online Shopping – Delivered right to the customer’s door Changing their industry

8. 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

9. 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

10. Age distribution Average age of shopper 40 57% of customers are college graduates

11. Geographic Distribution 1,778 storefronts

12. Income Distribution Average income of shopper is 64k

13. Target vs. Competition

14. Corporate Responsibility Environmental Assessment Growth in new market

15. Product Strength Customer Loyalty Company Innovation

16. Return on Equity Ability to Compete on Prices Market Share

17. Technology Used in Products Manufacturing Skills Production Effectiveness and Delivery Schedules

18. Blue Ocean Strategy How Target has made a Blue Ocean Core Principals

19. Great by Choice 10X Leadership 20 Mile March