Target Company

Target Company

TargetCompany

TargetCompany

Historyof the Company

Foundedin 1902, Target Corporation is the second-largest retailing companyin United States. Its headquarters are located in Minneapolis,Minnesota. In 1902, George Draper Dayton started Goodfellow Dry GoodsCompany, but later changed its name to Dayton Dry Goods and DaytonCompany in 1903 and 1911 respectively (Target.com,2015).Much later in 1962, the company opened its first Target Store inRoseville, Minn. It merged with other best department stores todifferentiate itself. By the end of the year, Target had opened otherstores in Crystal, St. Louis, and Duluth, Minn. In 1969, the companymerged with J.L Hudson Company to form Dayton-Hudson Corporation. Italso opened distribution centre in Fridley, Minn, to store and shiptrailer loads of products. By 1970, the Target was among the leadingproducers of revenue, with annual sales of one million dollars. In2000, Dayton Hudson Corporation was renamed as Target Corporation,the brand name that it uses until today. By 2001, Target had morethan one thousands over all over forty-seven states of America.Today, Target Corporation has about two thousands stores in NorthAmerica and over one hundred stores in Canada.

MissionStatement

Thecompany mission is to become preferred shopping destination in allchannels, and to deliver an outstanding value, continuous innovation,and give its guests exceptional experiences (Target.com,2015).The mission is customer-oriented rather product oriented.

Competitors

Targetcorporation main competitors are Wal-Mart Stores, Kmart Corporation,Costo Wholesale Corporation, among other companies.

Numberof Employees

Currently,the company has three hundred and forty-seven employees worldwide.

FinancialData Sheet

Inthe year 2014, Target Corporation had revenue of US$72.618 billion,which was 1.88% increase from previous year from US$71,279 billion.In 2014, the net income was US$ -1.636 billion which was decrease of20.5% from US$1,971 in 2013 (CSIMarket.com,2015).Further Target Corporation had earning per share of $3.83, which wasa decrease of 8.8% from $4.20 in 2013. The annual dividend in 2014was $1.990 billion compared to US$ 1.65 in 2013. This was is 1.7%increase.

CEO of the Company

The current CEO of Target Corporation is Mr. Brian C. Cornell, who is also the board chairperson. He is responsible for the corporation global businesses including all the stores in North America and Target.com that has thousands team members and millions guests. Cornell joined Target in 2014 after escalating leaderships in different companies. Cornell makes $28,164,024 as a total compensation. He receives $595,000 as salary, $48,390 as bonus, $27,354,887 as stock award, and $165,747 as other types of compensation.

Career Opportunities

According to Gilbert (2015), a team is the greatest asset. To motivate its employees, the corporation give them insurance coverage, competitive pay and career mentoring perks. Some of the career areas in Target Corporation include administrative support, engineering, pharmacy, communication, information technology, advertising, marketing, store management, among others.

Code of Ethic/Social Responsibility

Target Corporation conducts its business lawfully and ethically. All members are obligated to act with honesty and integrity at all times. In addition, they should know all policies of the corporation and comply with them. On the other hand, Target Corporation social responsibilities are based on environment, education, community work, and healthy living (Target.com, 2015). So far, Target has achieved the following:

  • Convinced its employees to participate in the retirement plan

  • Donated over three million dollars to schools

  • Ranked second on the Greenpeace seafood scorecard (ensured fresh and frozen seafood are sustainable and traceable)

  • Diverted over one hundred million plastic bags from landfills and counting

  • Recycled over four thousand tonnes of plastic bags

In future, Target Corporation aims to achieve the following in

  1. Environment

  • Improve energy efficiency by 15% to 20% of its transportation logistics both inbound and outbound

  • Cut water consumption

  • Reduce greenhouse gas emissions

  • Earn energy star rating (Energy Star certifications)

  • Increased organic food offerings

  • Improve owned-brand packaging sustainability

  1. Team member well being

  • Increase health assessments

  • Increase biometric health screenings

  • Increase use of financial tools

  • Increase breast cancer, cervical cancer, and colon cancer screenings

  • Increase diabetes testing compliance

  1. Education centre

  • Double education support

  • Increase Take Charge of Education (TCOE) giving

  1. Volunteerism

  • Increase volunteer hours

Stock Market Performance

For the first quarter for 2015, Target Corporation recorded total revenue increase of 0.4% compared to its competitors. In addition, the revenue growth for the same quarter was 1.52% below its competitor’s average. Further, the company reported a lower profitability than its competitors did with a net margin of 3.71% (CSIMarket.com, 2015).

Product/Service Information

The company deals with products such as clothing, jewellery, shoes, beauty and health products, electronics, cell phones, toys, bedding, house wares, pet supplies, hardware supplies, automotive supplies, food, among others (Gilbert, 2015). Target.com (2015) states that among its products, 40% are home and apparel items while 20% are consumable good like food, beauty, and health items. The company deals with competition by offering more upscale, as well as trend-forward merchandise at lower price. It offers high-quality merchandise at low price margin compared to other stores. Most products from Target Corporation are from different designers and have different brands names. Some items have private label such as True Tech, which is featured in electronics and Re Design, which is featured in domestics.

Where are the Products Manufactured?

Target Corporation has a sourcing team that purchases their products from all over the world. The team evaluate the products and adjust other factors such as speed to market, production quality, capacity, and pricing. They also label all the products with the name of manufacture country.

How are the Products Distributed?

More than sixteen thousands Target team members act as a bridge between stores and distributors, and they distribute products across all Target stores (Target.com, 2015). The company has regional distribution centres, food distribution centres, import warehouses, and fulfilment centres. All these centres have their assigned products that they distribute to all stores.

References

CSIMarket.com. (2015). List of TGT`s Competitors and Stock Performance. Retrieved September 28, 2015, from http://csimarket.com/stocks/competitionNO2.php?code=TGT

Gilbert, S. (2015). The story of Target. Mankato, MN: Creative Education.

Target.com. (2015). Healthy Products &amp Services for a Healthy You | Target Corporate. Retrieved September 28, 2015, from https://corporate.target.com/corporate-responsibility/health-well-being/healthy-products