Target Management Audit - Case Study Example

Target Management Audit Introduction Among the various retailers in US, Target is the second largest. It has been able to expand its business acrossto various parts of US. The company has around 1700 stores in US. The company is continuously looking\g to expand its business across in other parts of world as well. It is making sincere attempts to open stores in different locations in different countries making sure it can explore maximum market available in the global market. It has huge amount of competition from other retailers who have successfully build a good market reputation like Wal-Mart, Tesco etc. it has got huge variety of products in its stores where all the items of the best brands are been kept and it is made sure that they are able to maintain a good quality for each product and also provide a good quality service to the customers. In this study the internal process of the company is been studied and analyzed to see how the company has become such a huge and successful brand in the global market. Section 1: Company culture/strategy Target has a mission to provide the customers a shopping place in all channels by providing good quality value and have continuous innovation in their operations process to fulfill the needs and demands of the customers and also to provide more than expected to the customers. It has a very diverse culture in its business process from the members to the suppliers. It makes sure that people from diverse culture come in and work for the company giving their innovative ideas for the growth of the company. Target has around 361,000 dedicated and talented employees working as a team across in all the stores around the world. To make sure that the employees feel good by working in the company a good supportive, full of fun workplace culture in the organizations. This allows the company to have a good flow of information among the levels of management and also makes all the employees feel very much involved to the overall business process of the company. The over-all well being of the employees is taken into consideration and a good amount is been invested over the training and development of the employees to make sure that they can have a constant improvement in their skills and also work in more efficient manner. The company develops a good diverse culture in the organization bringing people from different cultures together working as a team. This has allowed the company to get a good amount of profit and has given a good competitive edge to the company over the competitors. The company has been able to expand its business in various countries because of the diverse culture that it has. As this allows the company to understand the culture of various countries and also the preferences of the customers in more easy way. The culture in the company is the main reason for the company achieving such huge success. The biggest advantage the company gets is its method of adapting to the changing demands of the marketplace. The company has been able to have a sustainable growth rate because of its flexible process and also the way the team members work as a single unit and adapt themselves to the changes that are been implemented. The work culture in the company does motivate the employees to work in more efficient way and increase their percentage of productivity by a good percentage. The work culture in the company does help the company to make crucial decisions and most of them are innovative and creative as many ideas keep coming from the employees and the best of the idea which can help the company to expand is been implemented. Thus the company has been able to become successful and also expand its business in the global market by having as good and diverse work culture in its organizations. Section 2: Management Target has got a good top management headed by Gregg Steinhafel. The management has always made sure that the employees are been involved in the overall process in a better way so that they can work with more interest. This has also allowed the company to get huge number of innovative and creative ideas from the employees for the improvement process. The goals and the objectives set by the management for the company has been followed by all the employees and each of them work together as a single unit to make sure that they are able to achieve the set goals and objectives. The employees are been motivated by their management based on their performance and on annual basis the best employee is been awarded and been recognized in front of the whole unit. This not only motivates and encourages the employee but also motivates other to strive hard to get that recognition. Thus the entire unit is highly motivated and thus the efficiency of the work done by them is very high and also the productivity of the employees is high (Target, 2014). The decisions that are been implemented in the business process by the management is been easily accepted and the management makes sure that there is no conflict by involving each employee in the decision making. This enables the company to be very flexible and also make the changes or adapt to the changes in the external environment in an easy manner without much of conflict. Management of the company has been able to make sure that the set goals and the objectives are been achieved and the company’s operations are been run in the right direction without any deviation from the right path. The diverse culture in the organization is been made to work as a unit by making sure that the right person is been recruited for the right place. Top management makes sure that the right candidate is been selected who can jell easily with the work culture in the company and not harm the company’s process in any way. A good control over the entire process is been kept by the management making sure that the employees work as a single unit and towards a single direction of achieving the exact goals and objectives that are been set. Thus the management culture in Target is been maintained in such a way that the employees are highly motivated which helps in increasing their efficiency and productivity (Pickett, 2005). The management is been very flexible to the changes and the decisions that are been made based on the changes for achieving the set goals are not been restricted by anyone as all the members are been involved in making the decision which is very much crucial for the growth and expansion of the company. Section 3: Operations The organizational structure of the company is very flat. The diagram for the organizational structure been followed in Target is been shown below. (Source: Target, 2012) Every member of the organizational structure is been involved in each and every business process to make sure that they get the best innovative and creative ideas for a particular process. Every employee is been made to understand their roles and responsibilities in an exact manner so that they can work in an efficient way and also help the company grow without any confusion in their roles and responsibilities. The organizational structure does help the company to maintain a good diverse culture in its overall process and also adapt to the changes very easily. Another key reason for the success of the company is having an effective inventory management. The company does keeps a good view over its inventory control making sure that there is neither any shortage in stock now\r do they need to keep overstock of goods. Various techniques are been used by Target to forecast the demand and also plan various methods for replenishment of the stock. The company maintains good relations with the suppliers and also with the vendors to make sure they get a good supply of the goods at a constant rate based on the demand. The inventory levels for various items are been carefully planned based on various factors like seasonal changes etc. These factors do help the company to maintain a good level of inventory and utilize its resources also in a proper way. The inventory cost, store management cost etc. are been reduced by implementing such process. It does take care of the fact that the distribution channel used by the company is specific enough to make sure that they get the right network for getting the materials in good quality and also n the right time (Pickett, 2011). All the stores under Target are able to get the materials in the right time and also in the right amount to get the goods in best of quality. The human resource team of the company also does work very efficiently by making sure that they get the best person and also in the right place. The HR team is also responsible of motivating and also for performance management of the employees to know the exact performance of each and every employee. This has enabled the company to enhance its performance level by a good percentage. The company has also got a continuous growth in its business by coming up with new innovative products to attract more customers and meet the customer’s satisfaction level. This has provided the company a good level; of competitive advantage over the other competitors as it has been able to continuously been able to come up with creative and innovative products creating more value for the customers (Coderre, 2009). Target group did acquire many companies to expand its business like it acquired DermStore Beauty Group to expand its business in the category of beauty products. Section 4: Conclusions Thus looking at the performance of Target in different aspects it can be seen that the company does operate very efficiently. The company is been able to achieve the customer’s satisfaction by bringing continuous innovations in its business process. It has been able to expand its business by having a diverse culture in its business process and by making sure that all the employees work as a single unit and as a team. The management of the company makes the right decisions in the right time and also motivates the employees in a huge way making sure they work with lots of motivation towards achieving the maximum efficiency and also with high productivity. It can be suggested to the company to conduct a quality functional deployment to understand the exact needs and demands of the customers based on which it can provide the service to the customers. This will benefit the company more as it will be able to achieve the more customer satisfaction by providing the customers the exact thing that they are looking for. References Coderre, D. (2009). Internal Audit: Efficiency Through Automation. London: John Wiley & Sons. Pickett, K. (2005). The Essential Handbook of Internal Auditing. London: John Wiley & Sons. Pickett, K. (2011). The Essential Guide to Internal Auditing. London: John Wiley & Sons. Target. (2012). 2012 annual report. Retrieved From:< https://corporate.target.com/_media/TargetCorp/annualreports/content/download/pdf/Annual-Report.pdf?ext=.pdf> Target. (2014). Mission & values. Retrieved From:< https://corporate.target.com/about/mission-values> Read More