Surname 1

Student Name

Professor’s Name

Course

Date

Table of Contents
Introduction....................................................................................................................................2
Critical Competitive Capabilities and Priorities of The Operations Function........................3
Analysis Of a Specific Process or Function.................................................................................4
Quality........................................................................................................................................4
Assessing Target-brands.........................................................................................................5
Investigations Into General Merchandise and Removals.....................................................6
Inventory....................................................................................................................................6
Lean System...............................................................................................................................7
Recommendations..........................................................................................................................8
Redesigned Website and E-Commerce Methodology............................................................9
Temporary Locations for Brand Development.....................................................................10
Incremental Growth of Physical Stores.................................................................................10
Conclusion....................................................................................................................................11
Works Cited.................................................................................................................................12
 Surname 2

TARGET

Introduction
In 2021, the government of the country decided that Target was an indispensable

company in its fight against COVID-19. This recognition resulted from the facility's capacity to

provide so many of the things that American families required in order to weather the epidemic,

including food, medicine, cleaning supplies, materials, and equipment for child care, as well as

work and school that could be done at home. Our group will investigate what it is that the

company does, how it does it, and how it could do it more effectively. In this portion of the

process, we will focus on a specific division or area of the business in order to carry out in-depth

research and analysis. In addition, to identify the methods that the company has utilized to

strengthen its competitive capabilities (cost, flexibility, time, and quality) and to offer particular

courses of action that will lead to additional gains in productivity and quality.

Target is a retail company that also operates as a wholesaler, and it sells a diverse range

of products, including those related to personal care and cosmetics, fashion, food, and household

goods. Cashiering, customer care, and order fulfillment are just some of the services that Target

offers its customers ("Target Corporate"). Brooke is the manager of MIS, and his background is

in management. He attended TCNJ for his education. In terms of revenue, it is the seventh

largest retailer in the United States, and it is included in the S&P 500 Index. In 1962, the

Dayton's Company of Minneapolis became the parent company of Target, which at the time was

a bargain department store. According to the information provided by the corporation in 2022,

Target presently employs a total of 450,000 employees, representing a 10.02 percent growth

from 2021's figure. In the year 2021, there were a total of 409,000 employees on record ("Target

Corporate"). Target caters to a wide variety of customer demographics, including women,

children, teenagers, young adults without families, and families with small children. Customers
 Surname 3

are often well-educated families living active lifestyles with incomes ranging from moderate to

better than average. The age of 40 is the median.

Target has expanded significantly throughout its history to become one of the largest

retailers in the world. The majority of Target's stores are located in the United States of America

and Canada, making it the third largest retailer in the world. When it comes to the incorporation

of newly emerging technology, the management of this company has maintained a steady and

reliable approach. Target Corporation is among many retail companies that have shown an

interest in making use of new technology to enhance how they provide customer service. The

following pie chart provides a visual representation of some of this company's rivals, along with

the percentage of the market that each of them covers.

In today's cutthroat business environment, companies have begun to see the need to form

strategic alliances. This company has placed a strong emphasis in its international corporate

strategy on the development of strategic partnerships with its various suppliers, including

Samsung, Sony, and a great many others. This alliance results in the formation of a partnership

in which the fate of this company is intertwined with that of its suppliers. In this approach, the

suppliers will make every effort to cultivate a constructive working atmosphere in the hopes that

this company will be successful, which will be to everyone's benefit.

Critical Competitive Capabilities and Priorities of The Operations Function

Target employs a differentiation technique known as "offering things to every kind of

individual at a considerable or even average price" (Andreoli 2). Although they are not as

inexpensive as Walmart, they are nevertheless considered to be in the same category as the retail

giant. Target ensures its continued success by assuring its customers that they will have a

pleasant time shopping there. They are unable to compete with the low prices that Walmart can
 Surname 4

offer, so instead, they focus on providing a pleasant environment that is welcoming to children

and families.

This makes going to their store a more pleasurable experience than shopping at one of

their rivals' stores. Target has developed a brand identity that communicates to customers

precisely what they may anticipate upon entering the store. Target is known for its effective

marketing strategies. Any retail brand looking to gain competitive advantage must first and

foremost establish and maintain a successful marketing campaign. Target is estimated to have

spent approximately $1.65 billion on advertising in a single year (2019), which included

spending money on both digital and more traditional forms of promotion (Andreoli 3). In

addition, the store is portrayed as being of higher quality and receiving organic attention as a

result of its migration into populous regions.

Additionally, the positioning approach employed by Target is remarkable. Target has

reduced its market focus to concentrate on the young families that make up its core consumer

base. Target is not making an effort to cater to the needs of every customer. For example,

Walmart has increased the variety of products it sells in order to compete with Amazon's

extensive catalog. Instead, the corporation is narrowing its attention to its primary clientele,

which consists of young families. Target plans to offer an assortment that is specifically designed

to meet the demands of this demographic at a low price and that is distinguished and

complemented by a wide selection of private label goods, particularly in the discretionary

fashion and home categories.

Analysis Of a Specific Process or Function

Quality
Target Corporation places a high focus on satisfying its visitors' basic expectation that the

products they purchase will be risk-free. Testing at or above legal criteria is one of how Target
 Surname 5

guarantees that the regulatory, safety, and quality standards of its brand of products, Target, are

met. It requires that its suppliers and factories implement industry standards in order to guarantee

the clients' satisfaction with the products' reliability and quality.

Assessing Target-brands
The risk-based product safety and quality approach that the corporation uses is

implemented at every stage of the product lifecycle, beginning with product development and

continuing through the product's existence as a Target brand item (Shastri). Before any customer

can acquire a product, the organization mandates that it must first pass tests of quality and safety

that a third-party organization has conducted.

It is anticipated of the suppliers of Target Corporation that they will utilize best practices,

which include production and quality processes that are well defined and well-documented, as

well as staff training and record keeping. The organization can analyze its suppliers' and

factories' capabilities to produce consistent, safe, and high-quality results thanks to its Vendor

Qualification Assessment method for imported products and its Factory Assessment Processes.

Target demands the industry-standard Good Manufacturing Practices (GMP) audit as a minimum

condition for production facilities in specific highly regulated product categories.

Target employs a risk-based methodology for the management of production, and the

company may require a Production Readiness Meeting, which will involve an employee of

Target or a third-party agent visiting the factory and validating the production planning

information (Shastri). This will include approval samples, as well as the production plan and

quality plan, as well as any internal testing and inspections.

The company has designed a risk-based, multi-stage Product Testing Program in order to

guarantee that products are tested throughout the entirety of the production run. Analytical tests,

performance tests on longevity or operability, label validation, and flammability standards are
 Surname 6

some examples of the types of tests that are included in Target's program. These tests come from

unbiased, third-party laboratories and are designed to validate that safety and regulatory

requirements have been met.

Investigations Into General Merchandise and Removals

Suppose Target becomes aware of an issue with one of its goods. In that case, the

company immediately launches an investigation and, if necessary, removes the product from its

retail locations, including its online storefront. If a product is recalled, the company takes

precautions to ensure that it is not sold in any capacity by placing a lock on the item number both

in-store and online. Target will also get in touch with any customer who bought a recalled

product. The organization has a quality management system that has been developed to a high

level.

Inventory
LIFO stands for the "last in, first out" inventory accounting system, which is utilized by

Target as well as other retail businesses, including one of Target's most significant competitors,

Wal-Mart. LIFO, or market cost, is used to determine the value of the inventory when it is being

estimated for accounting statement purposes. This is done in order to guarantee that the estimates

are as conservative as is humanly practical. Considering that LIFO assigns a larger value to

Target's Cost of Goods Sold (COGS) than the other inventory accounting techniques (FIFO and

Average Cost), using LIFO results in a lower Net Income than employing any of the other

methods.

Because inventory is typically one of the retail industry's major current assets, it is vitally

crucial that investors have the impression that these figures have not been artificially inflated.

This is the core rationale behind the widespread adoption of LIFO. When a consumer purchases

at Target, barcodes are scanned, and the information about the product is entered immediately
 Surname 7

into Target's master database. This ensures that Target's inventory figures are always accurate.

Because of this, it is simple for them to employ the perpetual accounting approach, which

enables them to focus more of their staff on providing excellent service to their customers. The

vast majority of retail organizations believe that using bar codes to keep track of inventory

quickly is both accurate and effective.

In addition to this, Target negotiates contracts with its vendors and suppliers that allow

the company to defer payment for the product until after it has been sold. The earnings and costs

of the items that are subject to those contracts are consolidated under the Consolidated Statement

of Financial Position rather than being recognized as inventory in the outlets that are under those

contracts. Therefore, it may be said that Target sells items on its shelves that do not belong to the

firm and does not have any impact on the company's inventory counts. Shareholders and venture

capitalists can see that the inventory numbers that are provided on the balance sheet do not

provide an accurate reflection of the entire sum of products that the company has ready to sell at

any given time. When it comes to finishing its inventories, Target adheres to a specific criterion.

Lean System
A lean system is a methodical strategy for identifying and eliminating waste and non-

value-added operations through staff development and continuous optimization of all products

and services. Target uses a similar approach in its operations through the Six Sigma approach.

Target has remained committed to expanding and incorporating Six Sigma throughout the

organization. Finance and Accounting, Information Technology, Distribution/Logistics/Supply

Chain Management, and Property Management have all adopted Six Sigma. In reality, the 2004

Corporate Responsibility Report highlighted an eco-friendly Six Sigma project that discovered

variables impacting recycle rates, improved them, and expanded the project to other stores and

delivery sites. In retail, where projects at the shop level can be implemented and savings/income
 Surname 8

have the potential to be doubled by the number of locations in the chain, leverage is especially

significant.

Target Corporation has been and will continue to be very focused on implementing

supply chain innovations that will increase its overall in-stock rates and decrease its lead times,

hence improving its speed to market. The organization has spent the entire year concentrating on

projects such as transitions and rain checks. Using Six Sigma tools and methodology to examine

and monitor its company more closely and to ensure that it is implementing good, lasting process

improvements, Target has seen significant improvements in both of these areas. Overall, it is

about speed to market, in-stocks, and examining all parts of its supply chain to become more

efficient and consistently produce superior in-stocks. Target has also added enhancements to its

checkout procedure to expedite guest payments and transactions. The company intends to assist

visitors in rapidly locating the items they seek and remains committed to enhancing its speed at

the checkout by decreasing the amount of time spent in line and delegating every fourth teller to

offer another express lane.

Recommendations
As discussed, Target is an established wholesale company and has recorded impressive

successes in its business operations. Moreover, the company has extensive quality, inventory,

and lean system strategies that have boosted its development. However, Target still has the

potential to become the best retail company globally. Consequently, the recommendations

discussed below can increase Target's chances of becoming a reputable business internationally.

Target experimented with international expansion prior to its 2013 entry into the Canadian

market (Capell). Consumers reacted enthusiastically to the news that the Canadian affiliate,

located in Mississauga, Ontario, in or around Toronto, would buy store leases for former Zellers

locations from Hudson's Bay. In 2013, the corporation had over 130 locations throughout
 Surname 9

Canada. However, its presence north of the border failed, and just two years later, the company

chose to relinquish its Canadian ambitions. Target's expansion was initially questioned, mainly

due to its intent to launch so many stores in such a short period. Since leaving Canada in 2015,

the company has turned its focus from foreign expansion to other objectives. Nonetheless, Target

can still expand not only in Canada but also in other countries across the world.

Redesigned Website and E-Commerce Methodology

Target's website is a significant potential revenue stream. In 2015, Target invested a

substantial amount of capital in its e-commerce operations. While the website is operational and

somewhat accessible abroad, it is not what a global consumer would expect from a large

American shop. However, Target needs more than simply a website to expand abroad and

strengthen its business. It must create an international network of warehouses and distribution

facilities. Currently, a Canadian ordering from Target would have their purchases transported

from a Target distribution center in the United States, incurring substantial shipping expenses

and import duties.

By building distribution facilities in Canada, the United Kingdom, and Japan,

commodities created in multinational factories may circumvent the United States and enter the

destination country directly from the factory. This is not only less expensive for the consumer,

but it is also faster, both in terms of shipping periods and inventory holding time. Empty store

shelves were a significant issue for Canadian buyers (Capell). The identical concept applies to

international online shoppers. Once distribution centers are in place, Target must customize its

website for each regional market and display only products that are available to clients in that

location. By having a specialized Target Canada website, for example, Canadian buyers may

purchase whatever they see online and have it shipped from a Canadian warehouse quickly,

affordably, and duty-free.

 Surname 10

Temporary Locations for Brand Development

Once Target's e-commerce platforms are entirely functional and user-friendly, the

company will be able to enter new areas physically. Either department store retail space or pop-

up storefronts in multiple shopping areas will be necessary for the retailer. The objective is to

maintain the company's reputation and build brand recognition, not to open as rapidly as

possible, as the company did in Canada in 2013.

Target's Canadian trial demonstrates that it is tough to entice disappointed customers

back into the store. A modest roaming store in the United Kingdom, for instance, may familiarize

the public with Target and its brands. People already familiar with Target would come to the

temporary store to purchase in-person items. At the same time, those unfamiliar with Target

would be able to view the brands and shop online (Capell). Target's product demand can increase

gradually by delivering excellent service and well-stocked shelves. The store's rising popularity

would prompt the business to consider additional expansion and opening permanent locations.

Incremental Growth of Physical Stores

Permanent stores would follow, but not to the extent that Target envisioned in Canada. A

comeback to Canada would necessitate stores resembling the smaller and more productive

locations. Therefore, they must be small, highly stocked, and located in large urban centers.

Target may have been able to gradually open large suburban stores in Canada, but given the rise

of online stores, maintaining the same number of stores as before would be excessive.

In Europe and Asia, Target may only be able to afford smaller locations. Target finds big-

box retailing to be prohibitively expensive in high-cost cities. Given that Target will have an

outstanding e-commerce platform by the time it opens shops, a significant portion of its earnings

can come from online outlets with shipment or in-store pickup (Capell). The corporation can

implement a system in smaller stores that allows customers to try on products and place orders
 Surname 11

for home delivery. A system designed for this reason could also serve to ensure that consumers

who intend to make a purchase are never turned away owing to insufficient stock. A low-cost

addition that all shops should implement is the provision of alternate methods for obtaining items

that serve as a failsafe in the event of inventory management issues while utilizing the existing

delivery infrastructure.

Conclusion
Target Corporation is a reputable wholesale company in the United States and has made

significant successes over the years. In 2021, for instance, the authorities of the nation

determined that Target was crucial in the fight against COVID-19. This distinction stemmed

from the facility's abilities to provide so many of the items American families needed to survive

the pandemic, including food, medicine, cleaning supplies, child care materials and equipment,

and home-based job and school. Target’s successes have resulted from its detailed and direct

operational strategies. Target Corporation places a high focus on satisfying its visitors' basic

expectation that the products they purchase will be risk-free. Secondly, the company utilizes

LIFO in its inventory management to determine the value of the inventory when it is being

estimated for accounting statement purposes. Finally, Target uses a lean system approach in its

operations through the Six Sigma initiative. Target has remained committed to expanding and

incorporating Six Sigma throughout the organization, which has helped in identifying and

eliminating waste and non-value-added operations through staff development and continuous

optimization of all products and services. However, the company has the potential to expand into

the global market. This can be achieved through the following recommendations; a redesigned

website and e-commerce methodology, development of temporary locations for brand

development, and incremental growth of physical stores.

 Surname 12

Works Cited
Andreoli, Briana. "Strategic Analysis of Target Corporation". Sacred Heart University, vol 1, no.

29, 2018, pp. 1-5., https://digitalcommons.sacredheart.edu/acadfest/2018/all/29. Accessed

18 July 2022.

Capell, Andee. "Strategic Audit: Target Corporation". University Of Nebraska - Lincoln, 2019.

Shastri, Aditya. "SWOT Analysis of Target Corporation - 2022 Update". IIDE, 2022,

https://iide.co/case-studies/swot-analysis-of-target-corporation/.

"Target Corporate". Target Corporate, 2022, https://corporate.target.com/.