Target Store Mission Statement Social Responsibility Stakeholders

¶ … Target Store

Mission Statement

Social Responsibility

Stakeholders

Remote External Environment

Economic

Social

Political

Technological

Ecological

Threat of Entry

Powerful Suppliers

Powerful Buyers

Substitute Products

Jockeying for Position

Strengths

Weaknesses

Opportunities

Threats

Mission Statement:

The mission statement of the business provides a sense of direction as well as the overall focus on achieving what is important for the corporation. Similarly Target also states its mission in terms of providing the valuable customers value for their purchases. The business further elaborates that its mission is to provide value to its customers through continuous innovation, and exceptional experience. Moreover the brand promises its customers to expect more from them and pay less as compared to its rivals. The mission statement is centered towards customer satisfaction and a commitment to exceed customer expectations (Target, 2013a).

B. Social Responsibility:

Target is also well-known for its initiatives concerning fulfillment of corporate social responsibility. The business is also responsible towards their communities. Target has also focused its corporate social responsibility towards education, environment, health and well-being, responsible sourcing, safety, care for its employees, and volunteer for social causes. The business has played a significant role in helping the government in education (Target, 2013b).

C. Stakeholders:

Stake holders of the Target can be categorized as internal and external entities that are associated with the business. The internal stakeholders are board of directors, target's management, employee, and workers earning their living while working for the corporation. The external stakeholders are suppliers, customer, and community at large who are recipients of the impact that the business creates while conducting its operations.

D. Remote External Environment:

The assessment of external environment of a business is necessary in order to understand the macroeconomic factors and forces that are beyond their control (Kay, 2003).

Economic:

The overall economic conditions of the market are not quite promising; particularly the retail sector is directly affected through changes in the buying power of customers. The intense competition in the industry has also impacted the economic growth of various retail organizations including Target. The economic factors also influence the corporation in terms of its revenues and sales.

Social:

The social environment of the business is observing changes in terms of increased customer awareness and availability of several options through competitors. The care of environment and increasing pressure form communities in which the business operates is also increasing over the period of time. All these changes in the environment require the business to adopt a socially responsible attitude in business.

Political:

The political environment of the corporation is stable to an extent that there are not any drastic changes occurring in the area. The suppliers of the business are located mostly in China and East Asian countries. Any change in the political situation within these countries can affect the organization. However the political situation is stable in these countries.

Technological:

Technology has played a significant role in the retail business over last ten years. The availability of products and services over internet as well as the usage of technology to support retail operations has changed several aspects of the traditional business practices in the business. The business needs to be technologically updated in order to cater its market.

Ecological:

The ecological changes in the business environment are concerning the usage of renewable energy. It also focuses on energy conservation as well as reducing the waste produced through business operations. It is also required for the business to respond to these changes and preserve the environment. The environmental pressure groups often create issues in case of a major events and it can impact the business operations.

E. How do competitive forces shape strategies for your company?

The business had to understand, analyze, and assess market forces that can influence the strategy of the organization. The businesses focus on gaining market share through various strategies and as a result the resistants' pose a threat to the strategy. The business strategy is affected through various forces impacting a change in the adopted strategy for attaining growth. These factors are articulated by Porter's five forces model. The organizations need to address these issues in order using their knowledge and available data in the market in order to formulate a strategy helpful in achieving their objectives (Harvard Business School, 2006).

Threat of Entry:

The retail industry has an open entry policy and there are not much legal constraints for a business to enter the market. However the prevailing market conditions, large investment requirements, and low profitability are not favorable conditions for the business. Therefore not a large number of organizations decide to enter the market. The threat of a new entrant in the market is minimal in Target's case.

Powerful Suppliers:

The business is a large retail chain and it has a number of suppliers providing the required products. The suppliers do not have an extensive power over Target. The business also has a strategy to take suppliers that either members of disability or minority owned associations. The suppliers have minimal power over the business.

Powerful Buyers:

The buyers of the business are significant and as a result they have increased power over the business. There are various other alternatives easily available in the market hence the business has to fully satisfy buyer needs. It is observed that the buyer's power over the business is moderate to high.

Substitute Products:

The products and services sold through Target stores have extensive substitutes in the market. However o a compete substitute of retail market is not available in the market. The business also operates an online e-commerce retail website therefore more or less it is available in the market. Therefore the substitute products are available in the market.

Jockeying for Position:

The business has an established market position however the retail industry has an overall strategy for making tactical moves that result in chaining the positions. Target is also has to keep its strategy updated in order to sustain its market position.