Plan to Create Economic, Social, And Environmental Value

Plan to Create Economic, Social, And Environmental Value

Date:   /5/2023

To:       The CEO

From:   The Executive Leader

Re:       Plan to create economic, social, and environmental value

Target Corporation has been facing intense competition over the last five years. However, the company has managed to maintain a competitive advantage currently being threatened by the rise of small and large online retail stores since the COVID-19 pandemic. This memo outlines some measures the company can take to create economic, social, and environmental value. The memo will summarize the organization’s strengths and weaknesses and recommendations for converting weaknesses into strengths, a summary of the organization’s Porter’s five forces, a summary of the organization’s diamond of national advantage, and a summary of the organization as a learning organization. The memo will also provide strategic recommendations that should be considered to help Target Corporation achieve economic, social, and environmental value.

Target Corporation’s main strengths include a strong brand image, diverse product portfolio, effective omnichannel strategy, robust supply chain network, robust distribution network, and effective inventory management. The main weaknesses include a lack of proper customer data security, limited international presence, high cost of products, overreliance on brick-and-mortar strategy, and stiff competition from major retailers. The weaknesses can be converted into strengths in various ways. For instance, the lack of proper customer data security and overreliance on brick-and-mortar strategy can be converted into a strength by assuring customers that they can shop at Target Corporation stores without sharing their personal data and credit card information. Consistently, a limited international presence can be converted into a strength by improving the quality of products and services offered in the local market to gain dominance. Stiff competition can be used to improve the organization’s products and services based on the features of the products and services offered by competitors.

Target Corporation operates in an industry with a low threat of new entrants since it has gained dominance as a leading retail Store in the United States. The industry has a high buyer power because of low switching costs and many substitutes. The industry has medium power of suppliers because there are various retailers making it easier to change a supplier. The power of substitutes is high because there are many differentiated products and substitutes from small and large retailers. The rivalry among competitors in the industry is high because of the rise in small and large retailers operating online and brick-and-mortar stores.

Target Corporation should consider expanding its operations into Algeria. Based on the diamond of national advantage, Algeria is an ideal market for the organization. The retail industry in Algeria is dominated by informal vendors and small, privately owned stores. There is also a rise in shopping malls that offer space for retailers to set up their brick-and-mortar stores. The demand conditions include a high demand for grocery retail and a demand for online retail. The related and supporting industries that Target Corporation can rely on when expanding into Algeria include the manufacturing, finance and transport, and telecommunication industries. The factor endowments in Algeria include capital, labor, and land.

According to Bui (2019), a learning organization is an organization that prioritizes professional and personal growth by transferring knowledge. Target Corporation inspires and motivates its employees with a purpose and mission. The company has also invested in developing leaders and employees. The company uses its Arrow Graduate program to enhance the knowledge and skills among logistics and supply chain specialists. Target Corporation also empowers its employees by providing scholarships and tuition-free programs to pursue business-related courses (Dess & Sauerwald, 2021). Target Corporation has invested in accumulating and sharing internal knowledge by encouraging employees to exchange knowledge and information through multiple communication channels. The company also gathers and integrates external information through its website. However, the company does not challenge the status quo because most of its operations are aligned with the operations of other retailers in the United States.

Target Corporation should invest in providing products and services for underserved communities because it can offer customized products through its private-label brands, deliver products to people in rural areas because of its vast distribution network, and create a private label for elderly people to meet their needs and preferences. Target Corporation’s expansion into Algeria is ideal for the company’s continued growth and increased economic, social, and environmental value because of the rise in shopping malls across the country and the rise in internet use, which creates an opportunity for the organization to establish a strong online presence. However, expansion into Algeria requires leaders to understand the country’s culture so that the organization’s actions align with the country’s cultural beliefs and values. Leaders must also conduct market research to understand the level of competition in the country and the market niches that can enhance competitive advantage. It is also important for leaders to understand the business regulations in the country to prevent legal issues that could impact its image and competitive advantage. Target Corporation can also enhance its growth as a learning organization by creating platforms and spaces that enable employees to share information and exchange ideas that can contribute to improved economic, social, and environmental value.

References

Bui, H. T. (2019). Senge’s learning organization: Development of the learning organization model. The Oxford Handbook of the Learning Organization, 34–50. https://doi.org/10.1093/oxfordhb/9780198832355.013.8

Dess, G. G., & Sauerwald, S. (2021). Strategic management: Text & cases. Mcgraw-Hill Education.

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Write a 2- to 3-page memo to the CEO of the company you’ve been assessing throughout the course, outlining your plan to create economic, social, and environmental value. In your memo, include the following items:

Plan to Create Economic, Social, And Environmental Value

An executive summary of the memo
A summary of the organization’s strengths and weaknesses, and recommendations for converting weaknesses into strengths
A summary of your Wk 3 findings on Porter’s Five Forces
A summary of your Wk 4 findings on the Diamond of National Advantage
A summary of your Wk 5 analysis of the firm as a learning organization
Strategic recommendations based on your previous work in this course. Include the opportunity identified in Wk 2, the move into the country identified in Wk 4, and any recommended moves toward being a learning organization. Provide a rationale for each recommendation.