On Target Is a for Businessmen - Book Report/Review Example

 When big businesses crumble, we can just heave a sigh of despair and asked, “Why?” With billions and billions of money generated for the past years. Then, why all of a sudden, big companies declare bankruptcy? Is it mismanagement or lack of foresight? Perhaps, many will answer, mismanagement. CEOs have wrongly made assumptions or miscalculations in their projections which led to the company's downfall. But you may ask again, isn’t it they have been used to this kind of business? Isn’t it that they have been used to business terms like stocks, investments, business plans, financial statements, and other business reports which have been part of their system for many years? How come in just a blink of an eye, every thing they have put up crashed down into pieces? In this modern day challenge of global recession, of economic downturns, this book On Target by Rowley, Laura is a must read book for businessmen and young entrepreneurs alike for them to learn some effective measures on establishing a business that will succeed and will endure for a life time. It covers topics such as distinctive differences of Target from any other retail companies; the right stuff including the merchandises on sale, store design, floor plan, and creative and visionary staff; award winning advertising and promotions; use of media celebrities, creative designers in promoting and producing products; its philanthropic activities to schools through donations coming from percentages taken from credit card holders’ charges; and challenges that the company faces in this age of globalization and worldwide recession. On Target is a very informative and inspiring book about a very successful retail company, “Target.” The first part of the book deals with how Target is different from any other retail department store like Wal-Mart. Rowley (p.17) mentions that Target is different from other retailers in terms of quality merchandises offered at cheaper prices; its team members’ motto, “Fast, Fun, and Friendly;” welcoming environment with easy to navigate racetrack floor plan, well-organized displays, very clean, very spacious and numerous cashiers to accommodate customers; image campaign through its award-winning distinctive advertising ads and promotional activities; its Target.direct website and Customer Relationship Management Systems whereby customers can access their database to check product price, features and customers’ evaluation; and of course its philanthropic activity of offering one percent for every purchase of customer using credit card. These donations from credit card holders through Target go to schools. On Merchandises, Target sells seasonal housewares and other seasonal play stuff. With this concept of selling affordable seasonal items, customers are then encouraged to buy some items even if they do not need them at home, since the next time they come to Target again, they will no longer see these items on display. So, with supplies that last, the customers will more likely buy the product. Target has this good catch of selling unique items every season and this results to increase in sales and contribute to a good image of the company that it offers fresh items. Target's team members' motto is “fast, fun, and friendly.” This also radiates the company's philosophy. They aim for fast service, and providing customers enjoyment while they are shopping and are friendly at all times. Employees are always there to answer customers' queries and to assist them in any way they can. Similar with Wal-Mart, the mall has wide space and all the merchandises are properly shelved. Different from the connotation of department stores that offer bargain which are characterized by pushy crowd, noisy environment dirt, and clutter, Target is very clean, well-lighted, spacious, quiet, and with very friendly staff. Definitely, every one of us, wishes to shop at a store that is very clean and very spacious with no clutter at all. More importantly, we more likely shop again and again to a store whose staff are all friendly and helpful, who are always available to offer their services, and who take initiative to assist us when we are looking for items that we need to buy. That precisely is the reason for Target's success. Remember the 4 P’s in marketing - product, price, place, and promotion? If the product is of quality and the price is competitive or even lower, and if the place is strategic or accessible to customers and with the right promotion, then customers will surely patronize the product. Hence, this also explains the phenomenal success of this book On Target since every businessman would like to learn effective business management or marketing strategies from the business gurus. The book also discusses what customers may be thinking of about bargain. The author has established the fact that customers nowadays are pretty much concerned about the money that they will be able to save from shopping rather than looking at extravagant items to buy. This traditional notion of whatever is expensive is durable no longer appeals to customers. Perhaps, this paradigm shift is brought about by global recession. Target's Advertising and Promotion is another aspect which the author analyzes in her book to discover the secrets of the company's success. Target is paying millions of dollars for its powerful ads particularly to introduce new products to customers. It also uses technology or e-commerce to ensure that customers are well oriented with its products, features, prices, and customers' evaluation of products. Target has also tapped Amazon.com to do e-commerce for them. Target's management believes that it's practical to network with techies and with those whose reputation for e-commerce is already known rather than to train employees to create websites for similar purpose, since giving the marketing aspect to e-commerce company will prove to be less expensive compared to creating a body who needs rigorous training in designing a web page. Rowley (p.74) also cited that Target is also one of the first retailers to use real-time customer relationship Management Systems to improve service. In their website, the main focus is to deepen customer relationship, building brand, rather than simply driving sales. It is not merely profit that they are concerned about, but also good will, being able to relate well to customers and be of service to them through their products. Aside from concentrating advertising and promotions, there is also a need to do outreach programs. It is just sharing the company's blessings. If you are familiar with Og Mandino's The Greatest Salesman in the World, the master left Hafid ten scrolls that will make him successful. One of the basic tenets of this secret to success is to share one's blessings with others. The more you share, the more blessings come upon your way. In one of the scrolls, it says there, “I will start the day with a love in my heart.” This implies that in order to succeed in life and in order for God to bless all our efforts, we need to love others, because God has loved us firs. His tremendous love for us led Him to sacrifice even His own life for us to be saved from eternal damnation. This concept of unconditional love is a love that God wishes us to emulate. As what the Bible says, In Corinthians 13: 1-8 (This defines real love.) Love is more important than all spiritual gifts exercised within the church body. Love makes our actions and gifts useful and love is available to all. Society confuses lust with love. God’s kind of love is directed outwardly toward others…not ourselves. It must be unselfish – giving love expecting nothing in return, which is not natural for us. This is God’s kind of love. The closer we get to God, the more unselfish we become in loving others. Another reason for Target’s success is the right stuff. The merchandises are originally designed by its designers though not celebrities are very creative and visionary thinkers, too. Since, original products are put on display, the company can just lower the prices since there is no tax for importation. However, when European products were introduced by Michael Francis, he actually imported many products by bulk which again were not that costly since its bulk compensates for taxes and other transportation expenses. Aside from original designs, and imported quality products, the company is also blessed with managers, leaders and employees who are really creative, imaginative, kind-hearted, warm and welcoming. John Pellegrene, for instance, the head of marketing is a visionary thinker. Michael Graves is the author of award-winning bull’s eye’s ad campaign. Michael Francis, on the other hand, encouraged many customers to come and buy Paris products as he introduced them in the store. Mark Sotnick, the media producer, and the pianist George Winston intensified the campaign for product awareness through media. From these gurus came the stronger Target which is now second to Wal- Mart in terms of customer patronage. Besides Target’s visionary and creative thinkers and designers, Target manifests its customer-friendly service which was strongly rooted to its humble beginning from Dayton’s concept of customers’ relations and quality service of a department store, which later was adopted by his grandsons and established their business, Target. On the whole, On Target, is a very good read. It does not only present facts about the company, how Target became successful considering its philosophy, advertising and promotions, use of technology, testimonies of people who really enjoy shopping at Target because of its friendly employees, challenges, its humanitarian activities, but also shares the author's insights on management, employees' training, and marketing strategies. Rowley is successful in making the readers see how effective management of people will propel any business to prosperity. Rowley’s discussion of Target in her book is very comprehensive. She was able to present the history of Target, those people contributory to its success and the management style and marketing strategies used by the company. As a student, I’ve learned that it’s really human resources that should be the top priority of every company. If the customers are treated well, paid justly and given more privileges over and above those given by the government, they will deliver well. They are going to perform at their best since they feel they are well-loved due to the company’s concern about their compensations and benefits. However, it employees are treated unjustly, that is how they will relate too to the customers. It’s like a domino effect, wherein whatever the employer does to its employees, the latter will do the same thing to customers. Hence, if an employee is shouted at, reprimanded and disrespected, then that is the kind of treatment that he or she will transfer to the customers. Therefore, if managers wish to have better performance of employees and better service to customers, they themselves should start treating their employees nicely and provide them just compensations and benefits. Another area which I wish to reflect on is the welcoming environment and good image of the store. If we want people to flock to our retail company, then we have to see to it that every thing in the store is in order, good sorting of merchandise with labels and pricing should be done. The store must be well lighted, very spacious and very neat. Who would ever wish to go to a retail store with mixed products in one shelf and dirty floor? This kind of scenario will just irritate the customers and more likely turn them off from going back to the store again and again. Thus, maintaining the store’s order, signage, neatness, and with welcoming staff who are ready to assist any time is really a must thing to do. Next, I agree with Rowley that we have to do networking with other businessmen who can help us out through their own expertise. If there is a need to do outsourcing of other merchandises or company projects like web page for data base of product inventory, then do so. We cannot just be complacent or satisfied with our manpower and resources that cannot match the skills of technical staff whose business is into web designing. Surely, the company will spend millions of money if training is to be done among employees. Outsourcing is the trend nowadays. Remember, we cannot be experts in all fields. Let us do business only on things we are capable of doing. Establishing partnership with other companies may also be beneficial in a way. It only takes two courses of action for our business to flourish, that is, building linkage and learning from gurus in the field of business. The most important thing to consider for a business to prosper aside from networking is the choice of manpower. Target has been blessed with talented people and critical and creative thinkers who have contributed to the company’s unprecedented success. So, while we are still in the process of conceptualizing a business, we have to think first of the qualifications of people that we need for specific jobs. Hiring and recruitment of employees is very significant. We have to write down specific qualifications of people that we need in the company. Not only should we consider IQ, ability and skills, but most importantly values and attitudes. Both IQ and EQ are important considerations in hiring personnel. Once we are able to select employees with high IQ and EQ, undoubtedly, the company is in the right hands. Remember, it takes good teamwork, good planning, and implementation for a business to succeed. Training is another. It’s not enough that good personnel are chosen. There’s a need too for proper training of employees based on the company’s philosophy and objectives. Orientation program and successive training should be done for new employees to be able to get the feel of the working environment and at the same time get familiarized with the company’s vision and mission. The achievement of the company’s goals can only happen if the employees are rowing in one direction. Such teamwork may only materialize once all employees have similar vision and are fully aware of how to accomplish this company’s vision or goals. As I was reading the book, I realized that no matter how successful the company is based on people’s testimonials, it is still nothing compared with the good feeling caused by your good gesture like helping a person in dire need. Target has its own humanitarian activity. Every business in this world adopts an outreach program for humanitarian reasons, for a cause. But I heard that companies use these donations and other outreach activities for the government not to exact high taxes upon them. Basically, it’s one of the major reasons, but I do hope that businessmen really participate in outreach activities by giving donations because of their noble intention of being able to help, not just because they want to trim down their taxes which the government imposes upon them. Another positive point which I admire from the management of Target is the fact that they originally design their products. The reason for that is to lower down their prices, not for everybody to flock at their retail stores as part of their income generating activity but for them to really be able to budget their money and at the same time acquire quality products. This is something that companies should think about more. They should not really work merely for profit but more so for intimate relationships with people who are not automatons like machines but humans with sensitive hearts. In this modern age of technology, it is but right to use technology at your advantage. With wives or working mothers who are always on the go for work, they do not have the luxury of time to go shopping only to find out that what they are buying are not all found in one store. So with Target.com’s data base and in coordination too with the Amazon.com that promotes their products, working moms will no longer face the hustles of going from one retail store to another, because at Target, they will get the chance of browsing products and their prices that are available at the store. I like the book that much. Aside from presenting business concepts, Rowley also presents people’s testimonials of what customers can say about Target. Common among those interviewed are the friendly staff, unique products, very neat, and very organized displays with signage and prices that are affordable. Target has broken the traditional notion of retail store which customers hate a lot such as noisy environment with people pushing each other and dirty floor area. With this rich content of book On Target, I cannot just help but be happy because now I am in the position of thinking and planning of a business that is income generating and at the same time can help contribute to society in creating jobs for the impoverished members of the community, and at the same time provide additional revenues to our government to increase their revenues which may be used for infrastructure projects, health and educational institutions. Rowley has laid down a lot of business strategies and techniques which will surely help us as we trudge on the road to success in the business industry. Yes, there a lot of challenges like that of competitors, economic setbacks, managing people, and a lot more, but these challenges should not hinder us from dreaming big – dreaming that someday, we can have a very successful thriving business that will hopefully last for a life time. If you share a similar dream with mine, then we should not be pessimistic, but instead be optimistic. Rowley is our business guru, it only takes a click of the mouse or a flip of the page for us to reach her. Let us commit to memory the basic or fundamental principles of Target that set them apart from the rest: Expect more, pay less, “fast, fun, and friendly,” welcoming environment, image campaign, philanthropy, technology, and heritage. Businessmen can actually apply these principles and for sure any of their business ventures will truly succeed. Every day, as we build castles in the air, thinking on how our business will flourish, remember Rowley and her description of Target. Internalize her management tips and her people-centered marketing approach. From there, we will never notice that our business is slowly progressing. It only requires us to be persistent, committed and consistent in enfleshing people-centered philosophy that Target has embraced throughout its years of existence. And we are assured of 100% success. We must always capitalize on our positive outlook, positive outcomes and for sure we can attract this positive energy that will bless our business efforts. Why not try it and be the next business guru? References: Bible verses that speak about our God-given ability to love. Retrieved April 28, 2009 from http://www.love-quotes-and-quotations.com/bible-verses.html Mandino, Og. The Greatest Salesman in the World. Retrieved April 28, 2009 from www.coba.panam.edu/faculty/delossantos/Mark%203376/TGSITW.ppt Rowley, Laura. On Target: How the World’s Hottest retailer Hit a Bull’s Eye. Retrieved April 28, 2009 from books.google.com.ph/books?isbn=0471250678. Read More