abhishreshthaa
Abhijeet S
Pest Analysis On Target Corporation : Target Corporation (simply known as Target) is an American retailing company that was founded in Minneapolis, Minnesota in 1902 as the Dayton Dry Goods Company. In 1962, the company opened its first Target store in nearby Roseville. Target grew and eventually became the largest division of Dayton Hudson Corporation, culminating in the company changing its name to Target Corporation in 2000. As of May 2010[update], the company has opened stores in every state except Vermont, operating as Target or SuperTarget.
Target is the second largest discount retailer in the United States, behind Walmart.[6][7] The company is ranked at number 30 on the Fortune 500 as of 2010[update], and is a component of the Standard & Poor's 500 index. The company licenses its bullseye trademark to Wesfarmers, owners of the separate Target Australia chain.
Political: In the political aspect, changes and transformation in overtime regulations and the share of the retail stores in the healthcare bill. It has a huge effect on Target Corporation negatively or positively. In the case of the regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes. The healthcare bill, on the other hand, will have positive effects on Target Corporation because the bill will aid in controlling the prices of the medicines in the market which in return will help the consumers, as well as the company.
Economic: The increase on the price of fuel in the international market, and because of the increase of prices in fuel Target Corporation must find ways to reduce the cost of delivery by the fleets as well as aid in saving the environment. In the long run the measures that Target Corporation will employ would be beneficial to the organisation because it cuts down the company’s expenditures. Another factor that would affect the external environment of Target is the US economic growth; the rapid or slow growth may have a positive or negative impact on the business. If the growth is fast then consumers will have higher purchasing power, on the other hand, if the economy is very slow then it will also have an effect on the attitude towards purchasing products. Another is the low-cost destinations sourcing; it will either affect the economy positively or negatively. Positive, in the sense wherein the company will have more consumers because of the cheaper products offered. On the other hand, the local suppliers would be affected because the company prefers outsourced products.
Sociological: The influx of cheap labour from the Hispanic population and other immigrants, this would affect the American workers because the pay for these workers is relatively cheaper therefore companies like Target Corporation would rather employ these workers than the locals. Another factor is the rise of the population of the retiree, companies such as Target Corporation wherein it has numerous employees will have a hard time obtaining more employees, the retirement of employees is rapidly getting higher while the replacement does not increase.
Technological: The utilisation of new software and technology for faster production and marketing, which is more helpful and useful because it makes the job of the employees and management easier and error free.
Target is the second largest discount retailer in the United States, behind Walmart.[6][7] The company is ranked at number 30 on the Fortune 500 as of 2010[update], and is a component of the Standard & Poor's 500 index. The company licenses its bullseye trademark to Wesfarmers, owners of the separate Target Australia chain.
Political: In the political aspect, changes and transformation in overtime regulations and the share of the retail stores in the healthcare bill. It has a huge effect on Target Corporation negatively or positively. In the case of the regulations in the retail industry it has negative impacts because the regulations in the retail industry could easily be changed beyond the established limit and will affect the business adversely, in addition companies such as target will obtain higher costs in expenses due to the changes. The healthcare bill, on the other hand, will have positive effects on Target Corporation because the bill will aid in controlling the prices of the medicines in the market which in return will help the consumers, as well as the company.
Economic: The increase on the price of fuel in the international market, and because of the increase of prices in fuel Target Corporation must find ways to reduce the cost of delivery by the fleets as well as aid in saving the environment. In the long run the measures that Target Corporation will employ would be beneficial to the organisation because it cuts down the company’s expenditures. Another factor that would affect the external environment of Target is the US economic growth; the rapid or slow growth may have a positive or negative impact on the business. If the growth is fast then consumers will have higher purchasing power, on the other hand, if the economy is very slow then it will also have an effect on the attitude towards purchasing products. Another is the low-cost destinations sourcing; it will either affect the economy positively or negatively. Positive, in the sense wherein the company will have more consumers because of the cheaper products offered. On the other hand, the local suppliers would be affected because the company prefers outsourced products.
Sociological: The influx of cheap labour from the Hispanic population and other immigrants, this would affect the American workers because the pay for these workers is relatively cheaper therefore companies like Target Corporation would rather employ these workers than the locals. Another factor is the rise of the population of the retiree, companies such as Target Corporation wherein it has numerous employees will have a hard time obtaining more employees, the retirement of employees is rapidly getting higher while the replacement does not increase.
Technological: The utilisation of new software and technology for faster production and marketing, which is more helpful and useful because it makes the job of the employees and management easier and error free.
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