EXTERNAL/INTERNAL FACTORS
External/Internal Factors Paper
External/Internal Factors Paper
In 1962, the Dayton Corporation opened Target, a discount chain store in Minnesota. Through the years, Target has grown considerably so that in January 2000, the Dayton Hudson Corporation changed to Target Corporation. The Target Corporation Annual Report 2007 states that 118 new stores opened in 2007, 33 of them being SuperTarget stores. Nearly 1,600 stores are operating in 47 states, with plans to have 2,000 stores by 2010. Target is currently ranked as the fifth largest retailer following Wal-Mart, Home Depot, Kroger, and Costco (Stores, 2007). Target could not be successful if it did not deal with external and internal factors that can help or hinder the four functions of management.
Internal and external factors can have quite an effect on the four functions of management. For example, Target has been involved in merging or acquiring other companies. Employees have the risk of department restructuring or lay-offs. New plans and strategies will need to put in place as well as organizing the resources, or additional employees, acquired from a merger. Occasionally executives or top managers may suddenly resign, which can also cause problems if the person left under suspicious circumstances. The remaining managers will have to adjust for possible increased workloads, or managing a new department.
External factors that may have profound effect on Target could be the economy. With increased prices for gas, dairy, and other items, consumers may spend less, and often look for the best price. Competition from other retail stores also has an effect. The management of Target will need to devise new strategies to stay competitive and lure consumers into spe ...