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Strategic Analysis of Target Corporation Essay

Corrective Measures

The firm is involved in a law suit in which it has been accused of disposing off hazardous waste illegally. In a law suit that was ruled in 2011, a California judge ruled that the firm is liable for illegal disposal of hazardous waste since 2002 and should pay a penalty of $22.5 million while at the same time undertaking corrective measures concerning waste disposal. The firm took the corrective measures positively.

In addition to corrective measures, Target Corporation is environmental friendly since it is concerned with conservation of the environment. To this end, the firm has undertaken measures to reduce carbon emission as well as minimize energy consumed. For instance, it has adopted energy efficient LED lights and motion sensors in the refrigerators in a bid to protect the environment (Target Inc., “lawsuit”, 2011).

Corporate Governance

Corporate Governance Structure

Target has strong corporate governance practices that are embedded in the original corporate guidelines that were set by the company’s founders, 50 years ago. At the top of the firm is the board of directors that understands that corporate governance practices must evolve continuously in order to balance the ever changing interests of the company’s stakeholders such as the management, the Board and the consumers among others (Target Inc., “Business Conduct”, 2013).

The board of directors is independent and the candidates for the board seats are selected with regard to the success they have achieved in their fields of specialization.

The tenure directors retire based on age and a maximum period of serving in the board. This is accompanied by a separate period of five years for retired directors. It is the duty of the board to conduct annual review of the firm’s management and succession planning (Target Inc., “Corporate Governance Guidelines”, 2011).

The board of directors of Target Corporation is helped by the management team of the firm that is headed by the company’s chief executive officer. The top executives in management are offered ownership of stock in the firm while part of compensation is in terms of long term equity awards. In addition, the executives are subjected to incentive compensation that is based on the achievement of set goals.

Concerning corporate responsibility, Target Corporation has adopted policies in which it is involved in the community’s welfare. Through its initiatives, the firm participates in giving back to the community and serving the community in various ways. For instance, the firm gives 5% of its profits annually to the community. According to Target Corporation (2006), this is about $4 million weekly. In addition, Target supports a strong, healthy and safe community that constantly consumes its products (Target Inc., “Issues Advocacy”, 2013).

Policies and Procedures

Policies of an organization could be determined through set procedures on performance of the operations of the firm. The firm is involved in civic activities in the country. The company has policies of uniting the country in all its activities.

To enhance this, members of the firms have been engaged in various civic activities such as stepping up for national service where the members went and served in their respective communities (Target Inc., “Corporate Political Contribution”, 2013). 10,000 volunteers participated in the UNITE America in Service event that was held on 19 January 2013. They packed 100,000 care kits to benefit members of the U.S. forces.

In another event, Target Corporation worked together with the U.S. Department of Justice to host a symposium that supported the cooperation of public and private companies in enhancing public safety (Target Inc., “Civic Activity”, 2013).

Politically, Target has a policy that allows its management to use funds set aside by the management as political contributions especially if the management feels that the funds will help advance company issues and therefore enhance meeting of the company’s goals.

Based on this, Target has contributed funds for political purposes in its financial periods. It has also established TargetCitizens PAC contributions in which it receives voluntary contribution towards this purpose. This is always good for the company as it enables the firm to be politically connected, which is essential for business operations of the firm.

Sustainability Initiatives

With respect to sustainability, Target Corporation has established various policies that ensure that the firm conserves the environment. Target Corporation has established sustainable living through its manufactured products and services offered. First, the firm minimizes the energy consumed by utilizing equipment that consumes less energy such as LED lights and motion sensors in the refrigerators.

Target promotes healthy communities through its health programs. This is followed by production of sustainable products such as the seafood assortment that are wholly consumed and if they are disposed, they decompose thereby causing no threat to the environment. Wastes are recycled to ensure there is no harm to the environment while efficiency in operations ensures that quality products are manufactured. The production process utilizes clean energy that is environmental friendly (Environment, 2013).

Community Programs

Various community programs Supported by Target involve community giving, support of veterans, civic activities and engaging in training and development (Community Event, 2013). In addition, the corporation is targeting to increase the number of customers by providing cheap products and services to the customers in their residing places.

Examples are the Target family matinee, Target free Sundays and Target free second Tuesdays. The firm sells its products in such activities at a low price that only meets production cost while capitalizing on increased awareness. These activities enhance customer loyalty since Target shows that is caring concerning customers’ needs.


Target Inc., “”. (2013). Business Conduct Guide. Web.

Target Inc., “Civic Activity”. (2013). Discover Target. Web.

Target Inc., “Community Event”. (2013). Corporate Responsibility. Web.

Target Inc., “Corporate Governance Guidelines”. (2011). Corporate Governance. Web.

Target Inc., “Corporate Political Contribution”. (2013). . Web.

Target Inc., “Environment”. (2013). Environmental Sustainability: Our Commitment. Web.

Target Inc., “”. (2013). Corporate Responsibility: Issues Advocacy. Web.

Target Corporation. (2006). . Web.

Target Lawsuit. (2011). Company Settles California Lawsuit over Illegal Waste Disposal. Huff Post Los Angeles. Web.

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IvyPanda. "Strategic Analysis of Target Corporation." January 24, 2020. https://ivypanda.com/essays/strategic-analysis-of-target-corporation/.


IvyPanda. 2020. "Strategic Analysis of Target Corporation." January 24, 2020. https://ivypanda.com/essays/strategic-analysis-of-target-corporation/.


IvyPanda. (2020) 'Strategic Analysis of Target Corporation'. 24 January.

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