Essay: Target corporation analysis

Introduction
As everyone knows in today’s world, business plays a key role in society. In this instance, researchers have been able to measure the impact that Target Corporation has in society. Target Corporation “is one of the largest discount retailers in the United States” (Nolen, 2014). Everyone knows Target for its iconic logo of the red bullseye logo symbolizing the destination for consumers whether it would be convenience or retail shopping. None the less, Target Corporation’s headquarters is located in Minneapolis, Minnesota (Target Brands, Inc., 2017); although not only has Target branded its franchise throughout the country, but they have been able to expand their brand throughout the entire world. In this research paper, there will be information in regards about Target Corporation’s history, corporate vision and mission, logistics, sustainability, microenvironment, impact on society, triple bottom line, and public’s perception can be found. Information presented throughout this research was found in Target Brands. Inc.’s website, unless otherwise specified in the reference notes. Also, throughout the research paper there will be some opinions where the corporation may improve on as well as recommendations for better efficiency.
History
Target Corporation history began in 1902, when George Draper Dayton created the company “Dayton Dry Goods Company”, a local store that specialized in departmentalization in Minneapolis, Minnesota. After undergoing changes within the store’s name twice, and while attempting to emphasize the importance of customer relations, in 1962, the company finally adopted the name of “Target”. “Transforming the organization from a family-run department-store chain into one of the nation’s largest discount-store chains” (Target Brands, Inc., 2017), was said to be the hallmark of the changing company. After changing the name this is where the company truly began to shine. The famous icon that has existed throughout the existence of Target is a bullseye. The reason behind this famous icon represents the corporation’s new initiative for a successful company in retail shopping and the services offered, commitment, prices, and general experience offered to the community (Target Brands, Inc., 2017). Furthermore, Target corporation is still trying to maintain its objectives by being “on target,” therefore the logo. By the year 1993, Target started expanding their franchise within the U.S., opening “11 stores in the Chicago metropolitan area” (Target Brands, Inc., 2017) consecutively. By 1994, Target created its corporate mission to “Expect More, Pay Less” (Target Brands, Inc., 2017). It is also important to note that Target has been corporately responsible by contributing to charitable actions such as celebrating “Earth Day” by promoting the plantation of new pine trees, donating tools to educators to inspire students in the process of learning, and providing funds for research to the St. Jude Children’s Research Hospital (Target Brands, Inc., 2017).
Corporate Mission
According to Target Brands, Inc. (2017), Target’s mission is to comply with their brand promise, “Expect More, Pay Less,” at any given time. In this promise, it ensures that customers will have an enjoyable experience throughout their duration at Target. Along with their brand promise, Target looks for ways to give the best value to their customers, and a way that they achieve it is by offering price matching at their stores and an extra 5% discount to those customers who pay with their target credit card (Target Brands, Inc., 2017).
Corporate Vision
Target is also categorized by being a strong believer in diversity and inclusion and the importance of giving back to the community. Therefore, Target’s vision has always been setting the company towards the road of inclusiveness and engagement in the community. For example, Target is known for hiring people from different culture backgrounds into their stores. The company believes that people from different cultural backgrounds has different viewpoints as well as different opinions that benefits Target in multiple aspects. Furthermore, Target is also recognized by its charitable activities. This company, since the beginning, adopted the charitable tradition The Dayton Company had, which was donating “5 percent of [its] profits to the community” (Target Brands, Inc., 2017). Target’s vision behind this admirable act is that by donating this percentage of its profits to the communities in need, the company will have a win-win situation. That is, the company will collaborate in “fighting hunger, aiding disaster preparedness and relief efforts, supporting the arts, and putting more kids in the path to high school graduation” (Target Brands, Inc., 2017), and in return, the communities will help Target to become a solid business (Target Brands, Inc., 2017).
Company’s Stakeholders
Target Corporation has different variations of stakeholders throughout the corporation. The stakeholders consist of the following stakeholders: Civil Society Organizations, Guest, Investors, Policy Makers & Influencers, Team Members, and Vendors.
Civil Society Organizations
Civil Society Organizations are people who volunteer their time for the corporation. This has been show whenever Target tries to be involved with the community via volunteerism. A prime example of this is when Target collaborated with the World Wildlife Fund (WWF) when the stakeholders believed it is important to help the environment by reducing the percentage of waste lands, water usage, and greenhouse gas emissions.
The company also wants to make sure that because of the excessive amount of building constructions, there would not be adverse effects in climate change. Another example of the Civil Society Organizations within Target is when Target teamed up with the Science Based Target Initiative, which is a group of companies who are adopting a more environmental friendly manner of manufacturing their products by transitioning to a low-carbon economy (Science Based Targets, 2017). Until this year, the Science Based Target Initiative has been able to get 324 companies to participate in this initiative and 84 companies have already advanced with this procedure (Based Targets, 2017). Target Corporation collaborate with organizations such as World Wildlife Fund (WWF) in programs aligned with our environmental commitments. Target also work with issue experts from these organizations to develop specific action plans and goals. In partnership with WWF, they developed a holistic freshwater stewardship approach that will address how we can improve water quality, optimize water efficiency and increase access to clean water for people and nature. Some of our other environmental partners include Energy Star, The Recycling Partnership, and Fishwise.
The stakes that the stakeholder entails are huge compared to some other stakeholders. The civil society organization is the construct of Corporate Social Responsibility (CSR), and without a reputable CSR Target would not be a company to look forward to.
Some issues and challenges that the Civil Society Organizations brings up during their stakeholder’s meeting is of climate change, greenhouse gas emissions (GHGs), product safety, product formulation, and supply chain workers’ well-being. Throughout the years these points have been the most prevalent, and Target Corporation has been doing a great job with tending to these critical points.
Investors
Investor is a person that allocates capital with the expectation of a future financial return. Some different types of investors within Target Corporation such as equity investors, debt securities investors, token investors, and currency investors.
Target Corporation interacts with their investors by having annual meeting where the discuss the overall productivity of the corporation. They also engage their investors by visiting the community where multiple Targets are located at and have financial community meetings where they discuss how expenses will be dealt when customers incur their money at Target. This in return gives the community knowledge of how their money is being spent when they shop at Target. Alongside from that, the investors get regular calling from Target Corporation as well as in person meetings so that they have that interaction.
The stakes that these stakeholder entails are the biggest stakes compared to other stakeholders. As the name suggests it, investors “invest” their money to make Target grow as well as in return make a profit from their investment. If the company is not doing well then, the investors do not make a profit towards their investment which could ultimately mean they leave the corporation as an investor.
Some concerns that investors bring up is corporate governance, financial governance, human capital, as well as waste management. Waste management are the activities and actions required to manage waste from its inception to its final disposal. In Target, this is a huge problem due to the fact that they are a large corporation, and the margin of error is pretty huge due to their size.
Team Members
Team Members are the employees of Target Corporation ranging from associates to the CEO of the company. It may seem weird to classify employee (team members) as a stakeholder, but they are considered one of the most affected by everyone else due to the fact that this is their job.
The way that they are engaged within Target Corporation is by sending them emails through their executives (CEO, CFO, COO), HR communication, Inclusion Acumen, and participating in volunteerism (which ties into Civil Society Organization).
One of the main challenges is for Target to be more diversified in the company. Through learning events, seminars and leadership roundtables, Target work with their partners to drive their diversity and inclusion strategy, and forge connections across the country. These ongoing relationships help create a thriving, innovative environment, and a great place to work for the team members. Some of our other diversity and inclusion partners include Catalyst, CEO Action for Diversity & Inclusion, Glsen, Hispanic Association on Corporate Responsibility, Leadership Education for Asian Pacifics, USO, and the Executive Leadership Council.
A major advantage for Target is that this company takes its greatest stakeholders and create partnerships with them. The reason that this is essential is because Target takes the initiative to advance its stance and opportunities for its stakeholders through a close relationship with them. Target takes into close consideration all of their stakeholders’ perspectives and positions, making sure that Target is beneficial and in great standing with them.
Social
Target creates a yearly calendar that is based off of the goals that they want to achieve as a company year by year in regard to their performance in society. Target is diligently on task providing aid to the community by having “[its] team members give hundreds of thousands of hours volunteering in their communities every year” (Target Brands, Inc.). The company statements reflect that they are always available and willing to help the communities in need.
Economic
There’s a very high competition with companies like Target, Walmart, HEB etc. Therefore, in order to make Target different from other retailers, they are partnered up with brands like Martet Pantry, Up & Up, Target Home, Merona and Mossimo (Target Brands, Inc.). These brands are actually higher than national brands in the margin and is estimated that in 2011 one-third of sales will be affected in a positive way. Also, Target is committed to keep improving their technology section of the store in order to make customers happy and keeping up to date with the retail competitors.
Political
Target is politically engaged in Target Citizens Political Action Committee (PAC) which aims to make contributions to federal candidates and organizations through a bipartisan manner (Target Brands, Inc.).  The PAC is a useful source for Target since it helps make contributions in regard to the alignment of policies to Target’s business objectives. The PAC is held by volunteers within the company made up of team leaders, executives, staff members and so forth. In 2016, the PAC contributions chart states that there were 49% democrats, 49% republicans and 2% bipartisan contributions within the year (Target Brands, Inc.). By having political candidates involved, Target creates a connection with the current campaign participants. This provides Target a fresh perspective regarding their future retail sales and what the company could do in order to promote successful business through changing policies. In the 2016 presidential elections, Target contributed an equal amount of $50,000 to both the democratic and republican parties (Target Brands, Inc.).
Technological
As technology continues to dominate business, Target must consistently update the way the company uses these advancements. Target’s merchandise is available online for the customers’ convenience, keeping up with emerging e-commerce. Target is also active on social media to ensure the company receive the crucial feedback necessary to adapt to customers’ wants and needs, creating a great customer service profile.
Society
Target’s greatest and primary impact on society was the creation of The Dayton Foundation in 1918. The company initially invested one million in the foundation to promote wealth fare. This institution was later renamed the Target foundation in 2000 (Target Brands, Inc.). Recently, in 2014, Target worked with the Major League Baseball (MLB) to celebrate national teachers and to try to inspire young kids to pursue an education. Furthermore, Target marked its 20th year anniversary with St. Jude Children’s hospital. The company wanted to celebrate this landmark by giving back to the community; therefore, its team celebrated the anniversary with young patients that were fighting cancer and other difficult health conditions. Target sponsored activities and events that made the kids and staff have an enjoyable time (Target Brands, Inc.). Since 1918 until our most recent years, Target has been involved in giving back to the community, and plays an important role in social responsibilities.  One of Target’s contributions to society that stands out is their initiative in providing school supplies for kids in need. On August 2015, Target donated one billion dollars to help provide kids with essential school supplies. Target’s motive for this action was to help bring awareness to the importance of education as the “dropout crisis” emerged (Target Brands, Inc.).
Recommendations for Improvement
To conclude this paper, recommendations for Target’s improvement are going to be given. In recent years, this company has done well as a good corporate citizen. However, one flaw that its leaders made was refraining from informing millions of customers who were affected by its security breach. Therefore, a recommendation for Target is to be more transparent with its stakeholders and react quickly to important matters such as the security breach incident. It is also recommended that Target refrain from giving false assurances, knowing that a positive result may not be certain. Target’s response to its security breach was too little, too late, and, as a result, their profits saw a decline and continue to experience a decline until this day. In the future, we would like Target to respond in an honest and timely manner. This will surely create a better sense of trust and responsibility for the company.
Another recommendation for Target would be to create a public commercial or announcement in which they demonstrate all of the volunteer and commitment that they have towards the communities. Target is already great at being a good corporate citizen and is involved in many non-profit organizations and philanthropic actions. Demonstrating this to the community would cause a positive reaction and a probable increase in their profits. They are still viewed with a black mark due to the data breach, but by showing what Target has done for years, and continues to do now, is place its customers and communities first.
Conclusion
Overall, Target is a great retail store that cares about the community as well as its employees. The company ensures that its stores offer a comfortable and enjoyable environment for its customers. Their decorations across the store promote a sense of comfort while using its products to promote and influence guests to purchase the company’s items. Target has been a great example of an active social responsible company. Despite this, Target has experienced continual profit decline and has diligently worked to create a new business model to counteract this issue. However, the company is on path to increase its profits and has all the essentials to do so. Target’s only defect is that it has lacked transparency with their customers throughout the years, especially after the data breach of 2013. As a result, it is recommended that Target makes its social investments and actions public to the consumer’s eye. Through this, Target could reconstruct its image in society.