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Target is a retail company in America. It has its headquarters in Minneapolis, Minnesota. It is one of the largest retailing companies in the US as it ranks second to Wal-Mart retailers. Target traces its origin to 1902 when George Dayton set it up under the initial name Dayton Dry Goods Company. Target has experienced tremendous growth and has expanded into other countries such as Canada. Target is focused on outstanding achievements and emphasizes values relating to environmental protection. In addition, it takes into consideration employees concerns with a view to motivating them for better performance.
The organizational design at Target is well formulated. The company has set up various levels of operations that are vital to ensuring efficiency is achieved. The leadership positions are clearly defined and each person assigned a responsibility. This has promoted effective performance of duties because of the need for accountability. According to research, Target’s organizational design has improved communication within the company ensuring that various concerns are addresses on time to avoid negativities in operations. The structure is designed in a manner that positions everyone so that there is focused decision-making and unity in the achievement of goals.
Under the Porter’s five model managers ensure that product differentiation is achieved through continued innovations, to counter the looming threat from substitute commodities. They ensure that the packaging is at a higher level compared to the emerging substitute commodities. Research asserts that product differentiation is adopted to deal with the rising threat of competitors. Differentiated products will attract more customers due to increased loyalty.
According to research, the company has cut down the prices of some commodities with the aim of benefiting customers. This is ethically done under the codes of conduct governing industrial operation. This low cost of products would strategically position the company thus, protecting it from the threat of emerging competition. Stakeholders such as suppliers are paid in advance, to ensure that they are motivated to supply more commodities at a discount. The prompt payment ensures that suppliers remain loyal to the company and do not shift supplies to competitors.
The external environment has various effects on the business. Competitors improve the company’s ability to innovate and come up with new marketing strategies for survival. They present the company with an opportunity to realize its weaknesses and hence look for better ways of performance. Competitors also reduce the sales level of the business because of the similar gods they offer in the market.
Government laws on minimum employee wages lead to increased expenditure by the business. The company has to adhere to these laws to ensure that employees do not take industrial actions that would affect performance. According to research, adverse economic conditions such as inflation would lead to an increase in the cost of supplies and general operating expenses. Positive economic conditions such as a boom enable the company to innovate more because of the availability of adequate opportunities.
The major problem the company is dealing with is the threat of competitors. Research asserts that there are many retail companies coming up strongly into the market. Target Company perceives this a major problem because it could lead to loss of some customers to the strong competitors. Therefore, the company has set in place suitable marketing strategies that would ensure customer needs are addressed, and more customers are attracted to the business.
The organization design poses several challenges to the company. For instance, it slows down the speed at which decisions are made and implemented. According to research, the organization design has to be adhered to in the process of decision-making. Satisfactory consultations have to be done between all the parties, to ensure that sound decisions are adopted. The numerous consultations required slow down the process leading to loss of vital opportunities. For instance, the company has taken a lot of time on deciding whether to increase supplies by attracting more suppliers. The lengthy consultations involved led to loss of some suppliers to competitors.
The organization design at times acts as an obstacle to effective communication. Employees are not able to present their grievances directly to the management, as they have to follow the strict design. Supervisors would at times not address all the issues as desired by employees hence negating effective communication.
Currently, the company uses divisional structures. The structure focuses on different divisions in the organization. For instance, the company has set in place geographical structures that have helped identify the various subsidiaries and companies in other area. According to research, the company has developed product structures that enable employees to be divided according to the product lines they are engaged in. Authority in the organization is best on the hierarchy. Individuals at the highest levels bear greater authority compared to the ones at lower hierarchical levels. Therefore, authority is exerted from the highest individuals in the organizations design. Research asserts that the adoption of a matrix structure would work better for the company because it incorporates desirable qualities of the traditions and divisional structures. There would be efficiency in the entire operations of the company.
The company is in its growth stages. Research asserts that the company is searching for more investment opportunities and has prospects of expanding its operations to a higher level. In line with this, the company is getting into investments that boost its growth stage. The mission statement is, “to make ‘Target’ the preferred shopping destination for guests by delivering outstanding value, continuous innovations, and exceptional experiences to guests.” The company promotes values that emphasize on environmental conservation for a better business environment. In addition, it emphasizes on values relating to community welfare. Thus, it takes part in community improvement projects that boost the quality of living for most individuals. The culture of the company has always been to deal fairly with competitors while delivering valuable services to its customers.
Employees are considered as one of the core resources for the success of the company. The company ensures that employees earn fair wages according to the work they do. Research intimates that employees are given the opportunity to contribute to the decision-making process thus ensuring that the principle of employee participation in the organization is achieved.
Presently, the company is facing innovations in the market. The identifiable innovation is E-Commerce. The business is facing marketing changes that are leading to trading via the internet instead of sticking to the traditional modes of trading. The market is changing into an automatic trading center. According to research, the company has adopted computers as technological devices that help in quickening transaction recording and calculation of figures relating to sales. Computers are working, perfectly well, because the speed at which transactions are carried out has tremendously increased. Moreover, the company responds to change proactively. This is with the aim of accommodating everyone in the process of change and avoids unnecessary resistance.
I would recommend that the company continue with the proactive response to change. This would help in ensuring that change is taken in gradually, and forces of resistance are dealt with. Research intimates that innovations and creativity are part of the company. The innovations and creativity are taking place with the aim of achieving a competitive age and advantage over competitors.
Target is not experiencing any conflicts presently. The stakeholders are working hand in hand with each other to ensure that the organization performs at its best level. The power and control of the company is manifested in the management, but there is a high level of democracy to ensure objectives are achieved. The lack of conflicts presents the company as a nice place for any potential employees to work. This is because of the manner in which issues are addressed.
In order to move the organization from good to great, I would encourage that all stakeholders be catered for in a fair manner. In addition, the company should continuously innovate to deal with competitors. I would advise the company to continue with investments and move to more countries around the globe. Through all these, the company would move from good to great.