Module 5: Executive Presentation

Sun Devil Strategic Managers

OGL 355: Leading Organizational
Innovation and Change
Bill Erwin
June 18, 2022
Arizona State University
 Agenda
● Introduction
● Organizational Structure
● Leadership
● Environmental Analysis
● SWOT
● Competitive Advantage
● Recommendations
● Conclusion
● References
Introduction
❏ Target is a general merchandise retailer
located in all 50 United States and the
District of Columbia

❏ 7th largest retailer in the world

❏ Almost 2,000 stores

❏ 400,000 plus employees (team members)

❏ Sustainable growth during the pandemic

❏ Record breaking sales in 2020

Organization Structure
The organization structure is what defines exactly how a company activities are allocated,
and how work flows through an organization. (SHRM, 2022). On a corporate level, there
are areas of Target’s organizational structure that would be considered both mechanistic
and organic. (Jean and Stanley). In this particular context, the mechanistic structure makes
reference to the fluid and consistent responsibilities at all Target stores at the corporate
level.
Leadership

Brian Cornell - Chief Christina Hennington - Mark Schindele - Chief Brett Craig - Chief
Executive Officer Chief Growth Officer Stores Officer Information Officer
● Environmental Analysis

Target Market - The largest demographic that shops at Target are made up of white women with children who are
between 35 and 44 years old that have either a 4-year degree or some college (Reuter, 2022).

Competitive Advantage Strategies to Maintain Target Market - Some of

the strategies Target utilizes are focusing on customer satisfaction, focusing on employee satisfaction by raising base pay and benefits,
smaller stores in busier locations, curbside pickup, focus on attracting younger demographic and name brand products, Target Circle
program, and introducing sustainable products.

Porter’s Five Forces - Changes in the environment might include but are not limited to: an increase or decrease in
interest rates, inflation, labor, new threats in the industry, material surplus or constraints, natural disasters, or even a global pandemic.
 SWOT Analysis

Strengths Weaknesses

● Positive financial position ● Low profit margins

● Positive customer shopping experience
● Target Circle Loyalty Program
● The amount of locations.
● Brand recognition.
● Employee benefits.
● Lack of focus on E-Commerce
● Lack of amenities
● International presence
● Perception of higher prices
● Lack of product diversity
·

Opportunities Threats

● Increase market presence ● Rising costs

● Increase sustainability ● Uncertain times
● Improve digital interfaces (website & app) ● Increased competition
● Improve diversity, equity and inclusion ● Technology risks/data breaches.
● Expand private label brands
● Increase number of locations
Competitive Advantage

● What is it?

● Points-of-View for Competitive Strategies

● Assertions and Rationale

Competitive Advantage

Definition
Coulter (2012) explains that a competitive advantage is when an
organization “has something competitors don’t, do something better than
other competitors do, or simply does something others can’t” (p. 29).
Competitive Advantage

Points of View
Industrial Organization Resource-Based View Guerilla View
View

● Focuses on external ● Focuses on internal forces ● Focuses on “attacking”

forces ○ Brand competitors to gain
○ Competitors ○ Intellectual market share
○ New Entrants property ○ Small, rapid attacks
○ Economy ○ Proprietary ○ Inconsistent in
○ Customers software nature
○ Vendors ○ Financial resources ○ Designed to
○ Substitute ○ Human Resources confuse
products
Competitive Advantage

Assertions
● Target should leverage its internal resources
○ Brand Name
○ Mascots
○ Private-Label Brands
○ Customer Loyalty
○ Data Mining
○ Employee Satisfaction
○ Strategic positioning of storefronts
○ Partnerships (Disney, Starbucks, etc.)
Recommendations

● Target could expand internationally

● Target could expand its grocery store area to include

more organic foods and produce to appeal to

millennial shoppers.

● Target could expand its e-concessions with name

brand partnerships to increase e-commerce

● Customer loyalty

● Expansion of brand name

partnerships

● Private-label brands

● Employee Satisfaction

● Strategic positioning for

future and existing
storefronts including urban
areas
Works Cited
Cision PR Newswire. (2020, January 7). Gen Z and millennial consumers naturally favor organic foods and beverages, reports
packaged facts. PR Newswire. Retrieved June 17, 2022, from https://www.prnewswire.com/news-releases/gen-z-and-millennial-
consumers-naturally-favor-organic-foods-and-beverages-reports-packaged-facts-300982951.html

Coulter, M. K. (2013). Strategic Management inAction (6th Ed.). Pearson.

Gruber, B. (2021). Target vs. Walmart: Which Is Best? Reader’s Digest. Retrieved May 28, 2022.
https://www.rd.com/article/target-vs-walmart /

Jean M Phillips, Stanley M Gully. Organizational Behavior: Tools for Success 1st Edition (c). New York: Cengage, 2012.

Nguyen, K. A. (2021, December 14). What are top 10 ecommerce sites in USA - updated 2022. Magenest. Retrieved June 2,
2022, from https://magenest.com/en/top-ecommerce-sites-in-usa/

PixarFan (n.d.). Target Corporate Logo [Digital Image]. Pixar Fandom.

https://static.wikia.nocookie.net/pixar/images/2/2c/Target_Corp-logo.png/revision/latest?cb=20110626211904

PNG Egg (n.d.). Target with Multiple Arrows in Bullseye [Digital Art]. https://www.pngegg.com/en/png-berve
Works Cited Continued

Target Corporation. (2022, March 1). A Bullseye View. behind the scenes at Target. Target Corporate. Retrieved May 31,
2022, from https://corporate.target.com/press/releases/2022/03/target-announces-investments-to-drive-long-term-gr

Target Corporation. (n.d.) A Bullseyes View: Our Leadership. Target Corporate. Retrieved June 16, 2022 from
https://corporate.target.com/about/purpose-history/leadership

Target (2018). Target Mascot with Christmas Tree [Photograph]. Target News and Features.
https://corporate.target.com/article/2018/11/holiday-marketing

Zboraj, M. (2022, February 28). Target positions itself as benefits leader with up to $24 starting wage. Progressive Grocer.
Retrieved June 3, 2022, from https://progressivegrocer.com/target-positions-itself-benefits-leader-24-starting-wage