PESTLE Analysis of Target
Let’s look closely at how Target does its business by checking out different things that affect it from the outside. We’re going to conduct the PESTLE Analysis of Target, which checks political, economic, social, and technological factors (that’s PEST) that influence the company’s business, as well as legal and environmental factors. So, we’re going to start PESTLE Analysis of Target now.
Political Factors
Target Corporation promised to make it really easy for customers in the USA to have a great shopping experience. They said they were going to start selling stuff online to people in 200 different countries around the world. This way, they wanted to reach new customers in places like Canada, India, Mexico, China, and some countries in Europe, where they saw big opportunities. They wanted to tap into these markets to sell more of their products.
The company has built good relationships with China because they buy a lot of stuff from there. But when the United States and China started having problems with trade, it really hurt Target’s business. Target’s boss, Brian Cornell, said that the trade issues made things very uncertain and complicated for their company.
Economic Factors
Target’s money situation has been getting better over time. In 2018, they made 75,356 million dollars, which is 3.6 percent more than before. But in 2016, they made less money because they sold their pharmacy and clinic business to CVS Pharmacy, which used to bring in around 16 million dollars. In 2017, they got extra money, 36 million dollars and 343 million dollars, because of some special tax benefits from new laws.
The company puts money into short-term investments to make sure they have enough money to pay off long-term debts when they come due. Target has a hard time competing with companies like Walmart and other stores because they sell good stuff for really cheap. So, Target has to carefully check its prices to stay in the market and make money.
Social Factors
To make sure customers have a great time when they go to Target stores, Target has set up 40 places where they store and send stuff to 1,862 stores all over the U.S. They’re really happy about creating a work environment where their employees enjoy working. They always aim for the best in everything they do, and they’re proud to be a respected and responsible company worldwide.
Target really thinks that working together as a team is super important. Management inspire their employees to share their thoughts and solutions. They also want to make sure customers have a great time in their stores, so they have their employees be friendly and fun when helping customers. They also show they respect and care about people from different backgrounds by offering a wide variety of products for everyone.
Technological Factors
The CEO of Target really believes that spending money on technology now will help the company in the coming years. In the past, they put a lot of money, 7 billion dollars for changing the stores, and 1 billion dollars every year for making the stores better. They used this big amount of money to update their current stores and make them more modern. They are mainly trying to create new stores that use the latest technology well and make customers happy.
The management wants
to make their supply chain work better. They are spending money on creating a system that can handle more things and work faster. Target is also using data and analytics to figure out how to reach customers and make things more personal.
Legal Factors
In the past, Target had some problems with how they hired employees. They used criminal background checks that unfairly affected Hispanic and Black job applicants. This happened because there is data showing that a higher number of people from these minority groups, especially Hispanic and Black men, get arrested and convicted more often than others in society.
After going through some legal stuff, the company agreed to pay 3.74 million dollars and take a look at how they check people who want to work for them. Even though it made the company look bad for a while.
Environmental Factors
Target made a promise to get all of its energy from renewable sources like the wind and the sun by 2030. This is one of the things they are doing to be more eco-friendly. They will use this clean energy in their offices, distribution centers, and stores. Target is also building wind and solar projects.
They’ve also dealt with a problem by making sure they get products in a good way. They want to be sure that the companies they work with use resources well, keep their workers safe, and have fair and ethical workplaces.
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