Time Zone Traversers

David Kries
Target Corporation Jordan Tucker
Brittany Owens
Kyle Schalich
Emily Bermes

A Strategic Analysis

OGL 355: Leading

Organization Innovation
Dr. B
November 28, 2019
Arizona State University
Agenda

Organizational Structure/Leadership

Environmental Analysis

SWOT Analysis

Competitive Advantage

Going Global

Recommendations
Introduction: Target Corporation

Mission:
To make Target the preferred shopping destination for our guests by delivering outstanding
value, continuous innovation and exceptional guest experience by consistently fulfilling our
Expect More. Pay Less. Brand Promise.

Vision:
Guided commitments to great value, the community, diversity, and the environment.
 Chairman & CEO

EVP, EVP, Chief EVP & Chief EVP & EVP & EVP & Chief EVP, Chief
EVP, Chief
President of Information Strategy and Chief Chief External Human
Legal and EVP & COO
Risk Officer
Food and and Digital Innovation Financial Marketing Engagement Resources
Beverage Officer Officer Officer Officer
Officer Officer
Senior VP, Senior VP,
Risk and Senior VP, Senior VP, Chef Data Media and Stores
Food and
Chief
Government Pay and and Guest Human
Beverage, Creative Communications
Affairs Benefits Analytics Engagement Resources
Supply Chain Officer
Officer

Chief Chief
Financial
Infrastructure Information Accounting Senior VP, Senior VP, Senior VP,
Digital Planning Treasurer
and Operation and Security Officer and Marketing Marketing Marketing
and Analysis
Officer Controller

(on next
slide)

Organizational Structure
 EVP & COO

Grocery,
Fresh Merchan Product
Chief Merchan Merchan Global Inventory Merchan
Chief Womens Food and dising, Design Target
Supply dising dising Management Home Operatio dising,
Stores Home Global Apparel Beverage and Propertie
Chain Capabilit Essential ns Hardline
Officer Sourcing Develop s
Officer ies s& s
Beauty ment

Merchan Owned
dising, Hardline Target Network Brand
Apparel s India Planning Sourcing
and and Dev.
Accesso
ries
Organizational Structure

Organizational Structure Cont.

Executive Leadership
Brian Cornell, Board Chairman and CEO
Michael McNamara, Executive Vice President and Chief Information Officer
Michael Fiddelke, Executive Vice President and Chief Financial Officer
John Mulligan, Executive Vice President and Chief Operating Officer
Rick Gomez, Executive Vice President and Chief Marketing and Digital Officer
Minsok Pak, Executive Vice President and Chief Strategy and Information Officer
Melissa Kremer, Executive Vice President and Chief Human Resources Officer
Janna Potts, Executive Vice President and Chief Stores Officer
Don Liu, Executive Vice President and Chief Legal Risk Officer
Laysha Ward, Executive Vice President and Chief External Engagement Officer
Stephanie Lundquist, Executive Vice President and President of Food and
Beverage
Leadership
Board of Directors
Roxanne Austin, President, Austin Investment Advisors
Douglas Baker Jr., Chairman and Chief Executive Officer, Ecolab Inc.
George Barrett, Former Chairman and Chief Executive Officer, Cardinal Health, Inc.
Brian Cornell, Chairman of the Board and the Chief Executive Officer, Target Corporation
Calvin Darden, Chairman, Darden Putnam Energy & Logistics, LLC
Henrique De Castro, Former Chief Operating Officer, Yahoo! Inc.
Robert Edwards, Former President and Chief Executive Officer, AB Acquisition LLC
(Albertsons/Safeway)
Melanie Healey, Former Group President North America, the Proctor and Gamble
Company
Donald Knauss, Former Executive Chairman, the Clorox Company
Monica Lozano, President and Chief Executive Officer, The College Futures Foundation
Mary Minnick, Partner, Lion Capital LLP
Kenneth Salazar, Partner, WilmerHale
Dimitri Stockton, Former Senior Vice President and Special Advisor to the Chairman,
General Electric Company
Environmental Analysis

Threat of New Entrants Bargaining Power of Buyers

Low to Moderate Moderate

● National retail corporations ● Range of products and prices

● Mergers ● Larger customer base
● Subsidiaries of current ● Collection of curated
competition products
Environmental Analysis

Bargaining Power of Suppliers Threat of Substitute Products

Moderate- High
Low
● Similar products at other retail
● Wide variety of products stores
● Greater number of suppliers ○ Similar products offered at
● Target exclusives lower cost
● Value and convenience of other
products.
Environmental Analysis

Industry Rivalry Target Market

High ● 75% of the U.S. population lives within

10 miles of Target. 1
● Several Competitors ● 58% to 62% of Target’s shoppers are
between the age of 18 and 442
● Industry Innovation
S.W.O.T. Analysis
Strengths Weaknesses
❖ Great job on advertising their price ❖ New to online sales, must compete with
cuts and sales, price matching established companies
❖ Target app for digital savings ❖ Data security
❖ Partnerships with brands to get ❖ Higher price point than competitors
exclusive items ❖ Not in rural markets where WalMarts
❖ Brand recognition dominate

Opportunities Threats
❖ Online shopping
❖ ❖ Competitors are usually close by in
Grocery
❖ Delivery service proximity, i.e. WalMart, KMart,
❖ Partner with gas companies for gas Amazon, and Costco
❖ Growth in Farm to Table market
point rewards programs like grocery
❖ The US economy
stores do
Competitive Advantage

Partnerships

❖ Offers high fashion designs at low prices

❖ Makes products accessible
❖ Exclusive items only sold in store or online
❖ Boosts sales
❖ Draws in consumers over their competing
stores
Going Global

● Expand into Canada through Greenfield ventures

● Carefully examine potential political and economical issues

● Understand Key Cultural Differences

● Strategies for inclusion

● Attitudes to build trust

Recommendations Expand to
Open rural
markets in markets
Canada
using U.S.
model

Grocery
home
Partner with
delivery
gas
services
companies to
offer
discounts at
the pump
● Brand recognition and exclusive partnerships have lead to sustained growth

● Revitalized digital marketplace is directly competing with online and

brick and mortar retailers

● Continued growth will be found in online, grocery, partnership investments

● Strong leadership that challenges the status quo has lead to calculated risk

taking that has so far been successful

● Look for opportunities to revisit the Canadian market using strategies that have shown success in the

United States and in other international ventures

Conclusion
 References

all about Target: Target Corporation fact sheet. (n.d.). Retrieved from https://corporate.target.com/about.

Kuang, C. (2019, September 25). Who are Target's Main Competitors? (TGT). Retrieved from

https://www.investopedia.com/ask/answers/051915/who-are-targets-tgt-main-competitors.asp.

Foster, C. (2019, August 1). A bullseye View. behind the scenes at Target. Retrieved November 28, 2019, from
https://corporate.target.com/press/releases/2019/08/target-celebrates-20-years-of-designer-partnership.

purpose & history: Target Corporation. (n.d.). Retrieved from https://corporate.target.com/about/purpose-history.

PYMNTS. (2016, November 3). Meeting The Average Target Shopper. Retrieved from

PYMNTS.com:https://www.pymnts.com/news/retail/2016/average-target-shopper-customer-demographics/
 References

Target Annual Report. (2018). Retrieved from

https://corporate.target.com/_media/TargetCorp/annualreports/2018/pdfs/

2018-Target-Annual-Report.pdf.

Target Brands. (2019). All about Target: Target corporation fact sheet. Retrieved November 27, 2019, from
https://corporate.target.com/about.

Target corporation (TGT) company profile & facts. (2019, November 27). Retrieved November 27, 2019,
from https://finance.yahoo.com/quote/TGT/profile/.

Target Corporation Porter Five Forces Analysis, Porter 5 forces analysis. (n.d.). Retrieved from

http://fernfortuniversity.com/term-papers/porter5/analysis/3196-target-corporation.php.
 References

Wahba, P. (2019, June 27). Target has a new CEO: Will he re-energize the retailer? Retrieved from

https://fortune.com/longform/target-new-ceo/.

White, S. K. (2018, February 21). What is transformational leadership? A model for sparking innovation. Retrieved from

https://www.cio.com/article/3257184/what-is-transformational-leadership-a-model-for-motivating-innovation.html