Strategic planning frameworks and implementation approaches

Target Online

The objective for creating an online Target story is to provide an ongoing service to a public that is increasingly pressed for time and the need for efficiency in managing that time. The public mandate to deliver goods and services provided by current retail Target stores is a strong one. By allowing the consumer the capability to purchase product online and then have that product delivered on the same day would give Target a niche that no other company is currently addressing.

Target's purpose is clear, and that is to establish an autonomous online store that will provide a service that is not being addressed in order to achieve a profitability that might not otherwise be achieved. Adding additional profitability to Target's current balance sheet would enhance the desirability of the company's stock while also providing for more jobs and the benefits to the communities and citizens that such jobs offer.

In preparation for such an endeavor the following steps should be adhered to; 1). Prepare a report documenting the viability of such a venture. This step can be accomplished by using either the in-house marketing group, or by outsourcing to a firm that specializes in demographics. The report should include a number of factors. Chief among those factors should be the buy-in attitude(s) of the current retail store managers, as well as the district and regional directors. Secondly, the report should take a close look at the viability of delivering the ordered products on a same-day delivery schedule. This service is the key to whether the entire venture will be profitable. The report should describe in some detail what method should be employed to make same-day delivery a reality.

At the same time, the report should also document how the current staffing of retail stores will have to be augmented by additional personnel to achieve our objective. Other considerations the report should address includes; either the cost of purchasing a fleet of vehicles (initially one per geographical area) or contracting with a delivery firm to handle the delivery aspect of the venture. Being held hostage to another firm's schedule might not be the best route to take, but could assist Target in establishing a footprint in the marketplace without the expenditure of the large amount of capital that it would take to purchase and maintain a fleet of trucks. If the report concluded that it would be more cost effective to hire an outside firm then the concern would be how quickly the venture would become profitable enough to justify the expenditures.

The second step it would take to prepare for this endeavor would be to hire the right people to accomplish the company's goal. The first individual hired would of necessity be someone who could understand the overall picture and how to accomplish the set goals and objectives. That person would be given the authority and title of Director of the Online Delivery Department and would oversee the entire operation.

Immediately under that individual would be four regional directors who would ensure that the rollout of the venture to each individual retail store in their geographical area takes place in a timely and efficient manner. It is imperative therefore that the individuals hired for this position be ready and willing to interact with the specific store managers.

It would also mean that the regional directors would work individually and collectively with the managers of each store to ensure that an adequate amount of employees were hired to process the orders received. Since the orders will be generated online the process of disseminating those orders to the affected retail stores will also have to be addressed. Addressing dissemination will best be handled by hiring a technology expert who would be mantled with the responsibility of adding to a same-day delivery option our current online store website. The individual hired for that position would have to work closely with Target's current technology department, and most likely could already be handled by employees currently working for Target.

Labor personnel will also have to employed to handle the physical loading, unloading and transportation of the product. Laborers, employed by Target, could have these duties added to their current responsibilities, if doing so could be accomplished in a seemly manner. It is presumed that these personnel will bear the brunt of the added pressure of daily deadlines so care must be taken to ensure that enough personnel are hired and trained to understand and cope with those pressures.

Thirdly, a step should be taken to implement an action plan that will take into consideration any problems or hinderances towards reaching the objective, address those concerns and provide solutions to them. This document provides many of the steps and the preparatory information necessary to formulate that action plan.

The action plan should define the steps necessary for accomplishing the objective and should include deadlines for achieving those steps. As this formula is followed it ensures the success of the venture. For example, the action plan details who should be hired, how the product will be moved through the system, who is responsible for each and every step along the way, and how to evaluate whether the venture is achieving its stated objectives.

Reaching the stated objective can also be achieved by having early wins in the venture's process. Early wins for this venture would include a national rollout by geographic area. Choosing the correct area to implement the first foray is therefore very important. The area chosen for this honor must meet certain marketing conventions and demographics. The marketing department should be able to provide the venture with the data showing a number of considerations. Those considerations should include; the amount of disposable income, the professional status of the geographical citizenry, and whether the area contains consumers who are inclined to purchase online. Of importance (of course) is whether the factor of having same-day delivery is a priority to the consumers, or not.

After choosing the geographical area and retail stores in that area who will participate in the initial rollout of the program, it is of extreme importance that any consumer, and employee feedback is documented and considered before further rollouts are initiated. A consistent and regular feedback program should be in place as each new geographical area is added to the program.

Success should build on success, so addressing the perceived (or real) problems with the program is a high priority and should become a regular feature of the online program.

Perhaps the most important aspect of this entire venture is the communication necessary to ensure the success of this program. This communication should flow from the hourly worker to his/her immediate supervisor. The information should travel the chain of command to the Director of Online Delivery Department who will then report to the President, as well as to the Board of Directors. Regular and consistent reports of all aspects of the program should be compiled and expedited in a timely manner to all concerned parties. An open-door policy should be adhered to in order to facilitate the dissemination of such information.