Business Essay

862 Words4 Pages
1. What microenvironmental factors have affected Target’s performance over the past few years? Microenvironmental factors that affected them would include Company, competitors, media, and intermediaries. Target itself, is a discount retail store, but is known to carry designer wears. Since Target is known for style, fashionable and slightly higher priced clothing and appliances, and in the end, they hurt themselves. Target should have done a lot better of a job in providing customer value and satisfaction then Wal-Mart or others. Customers would have stayed loyal if valued and satisfied. Wal-Mart had a huge microenvironment affect as a competitor is the low cost store, which lures customers in and would normally get most of the attention, through the consumers assuming that they have a cheaper and better buys. As Wal-Mart did 5 percent better in quarterly posting of profits and Target’s sales and profits were shooting down, the Media spreading this through news, features, and editorial opinions had a large affect to Target’s performance. 2. What macroenviormental factors have affected Target’s performance over the past few years? Definitely, the economical factor over the last few years was rough as the economy was in a recession and inflation. As Target was at a decline of 10 percent in sales and falling, eventually it got so bad that the investors lost 85 percent of their investments including William Ackman, who lost 1.7 billion in the company. They saw and observed how Wal-Mart’s sales and profits were not dropping but rising, they quickly learned and adapted. Therefore, they strived and pursued to increase their sales through the advertising of their “Pay Less” strategy. By 2010, sales rose 5 percent with profits at a 54 percent increase. The political factor was that there was a political instability, which in return affects the company and it’s

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