Target Strategic Outline

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I. Mission Statement: II. External Environmental Analysis a. Remote environment – these are the factors, which affect all businesses, and frequently, neither the business nor the industry has any control over them – examples: i. Entry barriers ii. Social iii. Political iv. Technological v. Ecological factors vi. Economic factors: The economy has a major influence over the retail industry. Target 's market has a very broad scope. When the economy affects the purchasing ability of its customer base, customers turn to less expensive commodities offered by discount retailers. b. Industry environment: i. Entry barriers A. Economies of scale: Target can compete well against county general stores, surplus and salvage stores, Army…show more content…
The average non-supervisory retail worker 's hourly wage was $9.17 and average weekly hours were 28.7. As a result of increasing technology, information technology and information services retail professionals have been called upon and now play substantial roles in the discount stores infrastructure. e. Environmental factors: In another effort to draw and retain loyal customers involved the promotion of environmental awareness. In addition to touting recyclable and environmentally friendly products, many discount stores attempted to cut back on lighting, heating, cooling, and other energy-draining expenses. They also began using recycled paper for printed advertisements and signboards. Target also sponsored Kids for Saving the Earth, a grass roots environmental organization. IV. Key Success Factors – these are the characteristics derived from the above factors, which any business must have in order to be successful in the SPECIFIC industry being considered – examples: a. Location: Target 's corporate headquarters are located in Minneapolis, Minnesota. b. Hours open c. Inventory levels d. Capital e. Technology f. Management skills g. Distribution system: More distribution centers to increase volume and improve inventories. In 2003, the company invested $3.2 to $3.4 billion, mostly in new square footage for Target stores, and the distribution infrastructure and systems to support this. A few years ago Target suffered from high out-of-stocks. This

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