Target Analysis
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SWOT Analysis
Strengths
• Target is an innovative and influential retail store. Their mission statement focuses on four core roles: great guest service, clean stores, in stock merchandise, speedy checkout. These guidelines make up the culture of the fast, fun and friendly stores.
• Target focuses on new ideas and exclusive products, such as Clear Rx. This invention has grossed the company over 7% of their total sales and contributes to about 33% of the guests.
• Target is committed to having their location accessible to many of their current and potential guests
• Top designers have signed agreements with Target to sell their items at affordable prices under an agreed upon name. For example, Victoria’s Secret produces the Gillian O’Malley lingerie line.
• In some states, the police department will rely on Target’s Asset Protection systems to catch thieves and monitor fraudulent activity. Weaknesses
• Target is not global retailer, which means that they do not have a presence in countries worldwide. They should definitely look into traveling overseas, since their competitors are working internationally and boosting revenues.
• Pharmacy guests account for over 7% of their total sales. The turnover rate for Pharmacists is very high, since they are required to work 12-hour workday schedules.
• Target has a reputation for new product development and creativity.
Opportunities
• Gift cards can now be used in both the store and on the Internet, thus leading to more sales and reaching the computer literate market
• To take on competitions plans (i.e., Wal-Mart) and focus on opening stores in international markets
• New locations give Target the opportunity to be diverse in the market. More and more Targets are attaching to trendy malls in different market segments.
Threats
• Most Targets are located within a 10-mile radius of their major competition
• In some markets, Target’s prices are higher than competitors
• Target’s that do not possess a grocery department are a threat to retailers, such as Wal-Mart, who are now implementing the majority of their stores into Super centers
Balanced Scorecard
How I plan to measure
Financial Performance
• Positive Cash Flow
• To succeed financially, we will appear Target brand to our shareholders, guests, team members and the community. Target will provide timely and accurate data in an effective and efficient manner to the respective personnel. This will be a priority and management will do whatever it takes to increase sales.
Customer
• Customer Satisfaction
• Price with Competition
• To achieve the vision, Target should refer to their customers as guests. Guests should be treated as if this is their very first time shopping in the store. Guests should shop with clutter-free aisles and fast, fun and friendly team members.
• Target should do price match with their competitors
Internal Process
• Sales Performance Management
• Sales Managers need to be consistently trained on forecast accuracy, ongoing skills training and vertical management
• Managers should run the day-to-day businesses by the code of ethics with the store’s mission statement in mind.
Learning and Innovation
• Raise employee moral and productivity
• The business processes that Target must excel at is training and development of team members. This means turning opportunities into strengths and following up on corrective action data with rehabilitation methods. Target will also put more team members as mentors and tutors, to prepare the growth and progress of new associates still in their 90-day period.
4. In order to access the success of the company, the following information was gathered to determine the critical success factors of Target:
• Financial Performance
o Positive Cash Flow
• Customer
o Customer Satisfaction
o Price with Competition
• Internal Process
o Sales Performance Management
• Learning and Innovation
o Raise employee moral and productivity
I selected this particular CSF’s for Target from prior experience, interviews with executive leaders and team members and guest survey reports.
Positive Cash Flow.
Some of the busiest times of the year at Target include Back to School, Thanksgiving and Christmas.