Corporate Governance - Executive Structure

The executive officers of Target Corporation are split by operational area, such as, Marketing, Development, HR, and Merchandising. Other officers are split further into specific areas within each operational area. The Board of Directors consists of only the President and CEO from within the corporation, all other directors are from other companies/organizations. The executive structure of Target Corporation is strong, the board is also independent. I would conclude that Target Corporation has good corporate governance.

Information found at:

http://investors.target.com/phoenix.zhtml?c=65828&p=irol-govHighlights

Cooperative Strategy

Target partners with many different companies and designers to put out product lines exclusive to their stores. I would say that Target has a Corporate-Level Cooperative Strategy. Target's Cooperative Strategy is the Synergistic Strategic Alliance. I think that this is the cooperative strategy that Target uses because Target creates partnership across multiple areas of their product base. Target uses its partnerships to create diverse products and economies of scope.

International Presence

I have already talked about Target expanding to Canada, so I know they have some international presence. As I looked further into Target globally, I found that Target is in India. Operations in India began in 2005. Target began in India providing technology solutions and developing systems for the retail domain. TargetIndia now supports all of the business units of the Target retail operations.

Information about TargetIndia found at:

http://india.target.com/site/en/corporate/page.jsp?contentId=PRD03-004529

Corporate Strategy

Target uses a single-business diversification strategy. They are not really a diversified company, but it works for them. The single-business strategy has been successful for Target.

CityTarget

Target is taking advantage of a great opportunity by opening up a new type of store, a smaller format, in Chicago. This new type of store will be called CityTarget. These stores will offer a different variety of products in a smaller store located in the heart of urban areas. CityTarget will offer one stop shopping for fresh foods, apartment essentials, and fashion collections. The Chicago store is set to open in 2012 in the Sullivan Center on State Street.

This is a great new growth strategy for Target. It is also a great opportunity to expand the brand.

The information in this post was found on the Target website.
http://pressroom.target.com/pr/news/target-to-open-small-format-store-chicago.aspx

Business Level Strategy

Target is using the Integrated Cost Leadership/Differentiation Strategy. I come to this conclusion by analyzing the brand promise and using the textbook for reference. The "Expect More." part of the brand promise leads to a differentiation strategy, giving the customers something different than similar companies. The "Pay Less." part of the brand promise leads to a cost leadership strategy because it creates a value for customers who want to save. The business level strategy of Target is the integrated cost leadership/differentiation strategy because of the unique way it has set up the brand to use both the differentiation strategy and the cost leadership strategy.

A Little History and the Brand Promise!

Do you recognize this logo? You should, it beat out Nike, Apple, McDonalds and CBS in Fortune Magazines 2008 "Company Logo Smackdown"

What is behind the logo? The first Target store opened in 1962 in Roseville, MN. Target began as a discount store chain under the Dayton Company. In 1975 Target became the number 1 revenue producer of the Dayton-Hudson Corporation. In 1994 Target Revealed its brand promise "Expect More Pay Less." In 1999 target.com was launched and the bullseye dog made his first appearance in advertisements. In 2000 the Dayton-Hudson Corporation was renamed Target Corporation. Most recently Target is expanding fresh food offering to stores nationwide.

Target's Mission is "To make Target the preferred shopping destination for guests by delivering outstanding value, continuous innovation, and an exceptional guest experience by consistently fulfilling the Expect More. Pay Less. brand promise."

So how does the company go about fulfill this brand promise? They focus on design, that's right design. Target designs their stores to be easy and intuitive to shop, placing related departments next to each other and a center aisle to help guests quickly reach what they need. They also reach back to their department store roots to focus on aesthetics in displays to help their guests have a better shopping experience. Target also takes design to a different level with their innovative product lines, they talk about design as something that is helping to fulfill a need or simplifying life. This has been demonstrated with their ClearRX prescription packaging and Itso storage and organization products. Target continuously works on design and innovation to give their guests the brand promise of Expect More. Pay Less.