Market Performance of Target Corporation - Essay Example

This led to the renaming of the Dayton Corporation into the Target Corporation in 1990 (Target Corporation, 2013). Target Company’s discount department stores and hypermarkets deal with a collection of food and general merchandise in their retail business, including perishables, dry, and frozen items. Target has grown into the second-largest discount retailer in the United States and has taken the retail market by storm since its inception.

Target Company has been able to grow rapidly due to its business and operational strategies, innovations, strong brand recognition and awareness, in addition to employee retention. The company has invested in unexplored and high-potential market fields, such as perishables and frozen food items, focusing on private label products, in addition to strategizing on the expansion of their business units into the global markets. With the expansion into rapidly growing global markets, such as China, Target Company has been able to withstand the fierce market competition and the economic slowdown in the United States. Target Company is listed on the New York Stock Exchange (NYSE) as TGT (Target Corporation, 2013).

Target Corporation has an outstanding and well-stated corporate responsibility of improving the lives of its team members and the communities around which they conduct business (Cheeseman, 43). This is ensured through the donation of 5% of the Corporation’s profit, which is about $4 million per week, to the communities within their businesses. The team members and/or employees of Target Corporation also receive decent wages as compensation for their hard work and commitment to helping the company achieve its goals and objectives. The Corporation has also established service programs for eligible team members to cater to their health and well-being, and for their spouses and other dependents (Target Corporation, 2013).

Target Corporation’s social responsibility is enhanced through the maximization of its profits, innovation, and brand recognition, in addition to the extensive investment into the global markets (Cheeseman, 43). This is evident in the respective Company’s 10-k forms and has ensured the maximization of profit for the corporation and the shareholders at large. It is also reflected in the growth of Target Corporation shares on the New York Stock Exchange. This has subsequently ensured the maximization of profits to the shareholders through the rise in dividends, from 1.07% to 1.66% in 2013. The rapid growth of Target Corporation has led to an increase in profits through the growth and recognition of its brand, which has in turn ensured the growth of the company's shares on the NYSE (Target Corporation, 2013).

Target Corporation also holds high business ethics, despite the fierce market competition from other similar companies, such as Walmart Stores (Target Corporation, 2013). Though the company is in the retail industry and offers discount sales, it upholds healthy completion through the maintenance of reasonable and lower prices. Consequently, this is likely to increase the client's confidence and lead to more product sales (Cheeseman, 35). The moral minimum is therefore upheld, whereby the corporation makes extensive sales and profit but still upholds healthy prices that do not harm other competitors. Target Corporation is also compliant with customer protection laws and other business ethics and laws, which protect both the consumers and other competitors (Cheeseman, 36).

Target Company has set a code of ethics for its senior financial officers and management, as well as its employees, which helps it to control the workforce and maintain high business ethics (Cheeseman, 38). The Company also upholds its ethics to its shareholders through a fair share of interests and dividends gained through its profits, and in the stock exchange. Target Corporation is considerate of other players in the market, others than its shareholders, including the communities, employees, suppliers, creditors, and their customers. This has seen it donate part of its profit to the communities, give their customers fair prices, and reward the efforts of its workforce. The company has upheld corporate citizenship through the establishment of service programs for eligible team members and employees to cater to their health and well-being.

On a scale of 1-5, the company cannot be rated as excellent since it has the potential to explore the market and innovate to be able to conquer the first market position in the retail industry, which is currently held by Walmart. Target Corporation is very good in the market, considering the fierce market competition and economic trends in the United States. It has gone a milestone in upholding business ethics, countering the fierce market competition, delivering excellent corporate social responsibility, and at the same time growing rapidly in the terms of profits has seen it grow its net income from $2.49 billion in 2010 to $2.99 in 2013 (Target Corporation, 2013).

In conclusion, Target Corporation has done a credible job in delivering a high-level corporate social responsibility and maintaining high business ethics (Cheeseman, 43). However, it still has the potential to diversify its products and innovate, in addition to more expansion into the global markets, to be able to topple Walmart as the market leader in the United States retail industry (Target Corporation, 2013).