Joseph Zynda
MSU Broad Company Research Assignment
7-31-2006
Company: Target Corporation
Corporate Overview
1. Target is a publicly traded company on the New York Stock Exchange as TGT.
2. Between 2003 and 2005, total annual revenues increased $10,595.00. Sales were
also reported increasing by $213,000.00 in May 2006. In its 2005 annual report,
Target attributes its growth to the appeal of its “Expect More, Pay Less” brand
and the balance between differentiation and value strategies which the brand
represents. Target also launched several new product lines in 2005, including
ClearRx prescriptions, Choxie gourmet chocolates, and the Go International
clothing line.
3. Target’s sources of income include large-scale merchandise discount stores;
REDcard, its credit card; and Target.com, its comparatively small online
commerce site. Corporate divisions within the company include administrative
support, advertising, asset protection, property management, supply chain
management, accounting, financial services, human resources, law, IT,
merchandising, pharmaceuticals, product development, sourcing, strategy, and
internet.
4. Target’s biggest areas of market share (10% or more) tend to be in the West
(Arizona, California, Nebraska, Nevada), and the Midwest (Illinois, Iowa,
Minnesota, North Dakota, Wisconsin). Its lowest areas of market share (2% or
less) tend to be in the south (Alabama, Arkansas, Kentucky, Mississippi).
5. MBA career opportunities are divided among corporate, store operation, and
supply chain distribution. The corporate headquarters is located in Minneapolis
Minnesota.
Corporate Strategy
6. In July 2006, Target opened a new distribution center in Rialto, CA, after the state
lowered taxes and workers’ compensation cost. Target planned to initially employ
500 team members, with several hundred more to be added in the future. In a time
of global outsourcing, this move is great public relations because it creates the
image that Target brings jobs to the United States. It also allows for the possibility
of additional human resources personnel to coordinate the hiring and placement of
these 500+ employees.
The same could be said for the company’s wave of recent store openings. The
chain recently opened 29 new stores across the United States. More stores mean
more accessibility for customers and additional access to new markets. They also
require HR work to ensure good employee relations, diversity, and compensation.
New markets might require additional staffing to research these new commerce
areas and develop campaigns to best market the company.
Target recently announced an extension of their e-commerce agreement with
Amazon Enterprise Solutions, which provides technology solutions to Target’s
online order fulfillment and guest services. By maintaining continuity in its online
operations, the company indicates that its online front is doing well enough that it
needs no great shake-up.
In May 2006, Target announced a sweepstakes for children where contestants
could win a Kids Reading Clubhouse designed by storybook artist J. Otto Seibold
along with Target gift cards. The contest was to compliment Target’s parent/child
book club web site and its Ready Set Read! campaign. Besides creating the
potential for new awareness and revenues with a contest, the contest-ascompliment approach can improve awareness of Target’s reading campaign and
improve its image as a company with a social conscience.
Finally, Target released a discount music sampler CD in partnership with the Def
Jam label in support of Black Music Month. The Black Music Month sampler
featured music from many of Def Jam’s rap, R&B, and pop artists. Releases in
this discount pattern, might call for new marketing plans to sell more units to
compensate for the low price. Unlike some of its other recent discount
compilations, this one does not seem to be directed as a charity revenue tool, so
potential revenue must compensate for the loss of potential goodwill.
7. In October 2005, Vice Chairman Gerald Storch resigned from his position to
become the new CEO of Toys R Us. This staffing change does not indicate a
failure on Target’s behalf, only an individual opportunity that comes with a
position vacancy.
2005 also saw the retirement of Managing Partner Michele Hooper and the
addition of Mary Minnick, President of Marketing, Strategy, and Innovation for
Coca-Cola. The Hooper retirement does not have a dramatic impact on the
company, but the Minnick addition indicates a possible change of marketing
strategy that might incorporate elements of Coke’s past marketing campaigns.
New staffing needs might come with new marketing and HR plans, so a hiring
opportunity could be found here.
In June and July 2004 Target sold the Mervyn’s and Marshall Field’s department
store chains. This downsizing of operations indicates a streamlining strategy that
allows Target to focus on its discount store line, its primary strength. However,
from a job seeking perspective, this could be troublesome because Target now has
fewer products to market and fewer staff to manage and might have a need for
smaller staff divisions in these areas.
8. According to its 2005 annual report, Target’s main strategy is a three-pronged
approach: improvement in design to create new purchase incentives, opening of
new stores to enter new markets, and community involvement to enhance
goodwill and improve consumer awareness. Its past selling of its Mervyn’s and
Marshall Field’s divisions indicates that the company is willing to streamline its
efforts to minimize loss and improve focus to take on its discount competition.
Career
9. For incoming recent graduates, Target places direct hires into small teams to
improve cohesion and development. Individual career path information was
unavailable at this time.
10. As of this time I was unable to locate any rotational programs hiring in the
company.
11. Target employs about eleven Broad alumni. Exact details about their career paths
in the company are unknown as of this time.
12. Target offers foreign assignments from its U.S.-tied corporate office in Bangalore,
India. One can apply for positions from the company web site. Career paths in
Business Services, IT, Operations, and Project Management might parallel those
of its U.S. operations.
13. Information on the percentage of time employees spend traveling is unavailable at
this time.
Hiring Process
14. Target recruits graduate and MBA students online through its website, career
placement websites such as Monster and eRecruting; and college recruitment
fairs.
15. According to Target’s website, the company sponsors a number of recruitment
fairs on college campuses across all 50 states. Schools range in tiers from
community colleges to private schools, but Target’s primary audience for most of
these fairs is undergraduates.
16. Target’s most recent MSU MBA graduate hire was Joseph James Merrild in 2003.
He is located in Michigan.
17. According to the Broad alumni connection database, there are eleven Broad
alumni working in some division of Target, though their personal information is
restricted to the Career Center.
18. Regarding academic concentrations, certain majors are going to be more likely to
hire in because of the common knowledge found in both a concentration and a
particular position, though relevant job experience can help level this playing
field.
19. For most corporate positions, Target seeks candidates with at least a four year
college degree and two or more years of relevant experience. This presents a
problem for gateway MBA students, so hopefully the experience gained through
education can help compensate. Most corporate positions call for individuals with
strong analytical, communications, computing and problem solving skills.
20. According to Target recruiter Anna Rivard, candidates can expect to hear back
from the company in usually one week’s time.
21. The second interview takes place at Target’s corporate headquarters in
Minneapolis. Target flies in qualifying candidates.
22. Passing candidates are usually given offers following the second interview in the
fly-out stage.