Target Corporation Business Analysis

Target Corporation was founded in 1902 by George D. Dayton originally called “Dayton Dry Goods Company”. By 1962, Dayton opened its first discount store in Roseville, Minnesota by the name of Target (Target.com). Since 1946, Target has been giving 5% back to the communities, which today equals more than $4 million a week (corporate.target.com). Target has a reputation of being an upscale store that sell more stylish designed products at an affordable price. Target is often referred to as “Tar-zhay”. Target does not have a vision statement but their mission statement is, “to make Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences- consistently fulfilling

our Expect More, Pay Less brand promise” (Target.com). However, Target current mission statement is lacking true definition. It is missing everything Target stand for. In our book under A Vision That Inspires, Paul Argenti, stated that a “corporate vision is a common thread that all employees, and ideally all other constituencies can also relate to and repeat to others” (p.76, 2016). Target refer to their customers as guests but fails to include them in their mission statement. Target need to adapt a vision statement that coexist with their mission statement so that all constituency can believe and identify with. There should be consistency in a vision and mission statement with no room for disbelief. Below are two recommendations that Target should consider as their new mission and vision statement:
Mission Statement: To make Target the preferred shopping choice for our guests by delivering outstanding value, continuous innovation and exceptional guest experience by: making sure our shelves are stock with what they need, making sure our employees have the best customer service training to assist our guests needs, and to add excitement to your shopping experience.
Vision Statement: To fulfill the Expect More, Pay Less brand promise, which is Expect More choices, products that is only exclusive at Target and Pay Less on items by applying for Target REDcard and using the Target Cartwheel app.
For Target, frequently shoppers they can save 5% on restricted items by applying for a REDcard account which comes in two forms either a prepaid Debit Card or a Credit Card (Target.com). They both offer identical benefits and have the same cost structure to some extent. The more Target guests buy the bigger their savings with the REDcard Debit. In addition, to the 5% discount when using the REDcard to purchase items on Target.com it qualifies guests to free standard shipping within the United States and an extra 30 days for returns on most items. Excluding the non-refundable items, items with fixed return date, and mobile purchases (Target.com). The great advantage about the REDcard Debit is there are no monthly fees and no fees on cash reloads at Target stores.
Target Cartwheel, coupons with a twist it involves no clipping but tremendous savings. For Target guests that have a smartphone go to your Play Store download the free app and begin saving immediately. Out of 5 stars the app rate is 4.2 stars, have over seventy thousand downloads and plenty of reviews. If guests do not have a smartphone but have access to a computer, then print off the barcode and hand them to the cashier prior to checking out. The opportunity for savings can be anywhere from 5-50% off merchandise at the click of a button either way.
Target’s stock price sank more than 13 percent which has been the lowest drop since August 31,1998 when the company stock dropped more than 16 percent (Gunstafson, 2017).

It is obvious that Target guests, are not seeing the truth in their mission statement Expect More, Pay Less more reasons for them to adapt the revision mission statement that will help target reach their goal by fulfilling their brand promise. Sometimes words are not enough and by implementing tools and resources to support their goal will only benefits Target in the long run. If Target stand behind their mission which is the community, diversity and environment they must continue to live by the former CEO, Bruce Dayton words which are “businesses should act in the best interest of society” (Target.com). Target must give their guests what they want and that is to Pay Less for merchandise while educating them on how to do that every

day.
Per Krystina Gustafson at CNBC, Target CEO Brian Cornell stated, “Target is ready to win share not surrender.

They have a plan over the next two years to invest $1 billion in operating profit annually which will include slashing prices on merchandise and another $7 billion on renovating approximately 600 stores” (2017). However, Target investors seem to be on the fence about this plan because the retailer grocery business remain in critical condition from taking a loss from their expansion plan. In 2013 Target decided to go internationally and opened 133 stores in Canada. Just a little over 2 years CEO Brian Cornell, made the executive decision to close all the stores due to lack of profit, distribution issues , therefore not able to keep the shelves stock which left Target in $1 billion debt (Pete Evans, 2015). To compete Target must be willing to fight against their competitors and not their guests if they want to remain in business despite their bad business decision. There is nothing wrong with taking a page from Fantasia Barrino, “Sometime you have to lose to win again”. Target can do this without compromising their principles. Offering competitive prices is the right decision for their guests to keep them coming

back.
Target Corporate Responsibility Reports for November and December Sales has dropped in four categories: Electronics and Entertainment declined in the high single digit range and Food and Essentials both declined in the low single digit range (corporate.target.com). These are the four areas that Target should start with competing prices with their competitors.
Target CEO Brian Cornell knew they needed help with marketing therefore he recruited Rick Gomez to Chief Marketing Officer who has a background in analytical, strategic and collaboration approach. Gomez, primary goal is to drive traffic, sales, guest loyalty and brand equity (Gustafson, 2017). Also, Cornell recruited Preston Mosier (formely of Amazon) on board as President of Fulfillment Operations.
As far as the community and guests they will see what kind of impact reducing prices have on Target giving back 5% to the community. As of today, Target manages to give back approximately $4 million dollars a week. By reducing prices on some items this will have an impact on how much Targets usually gives back then again it might contribute to Target giving away more than they typically do.