The core motive of any business organization is to make a profit. At the embryonic stages of an enterprise, the founders strategizes on how best the company/organization will best fit in the market full of competitors and emerge as the customers’ choice. This will depend with a number of factors that must stand out clearly and uniquely reveal the company as the best in whatever products or services inclined to it. The positioning of the products or services in the market is not just enough to help develop a concrete foundation of consumer loyalty (Smith et al. 2006). In considering a life-long relationship between the clients and the company, the company has to promise the customer a need to stick to it for a better future. Moreover, the employees must be motivated by the company’s direction of advancement and maintain their loyalty. These factors cannot be achieved unless there is a well designed organizational mission and vision. Other than the material motivational tactics that a company employs, the core values and the factors that define the organization plays a significant role in directing employees towards the achievement of the organizations goals.
A mission statement may explain what an organization does, how a certain organization operates and or may describe the core values of the organization. These arenas are vital in displaying the image of the organization in the public and also among the stakeholders. It is through the mission statement that the reason for existence of the organization, scope of duties, values and market terms are delineated (Smith et al, 2006). An organization’s mission helps the company to develop means on how to make a profit. These means may be ethically and morally engraved, but in cases of conflicts, most companies will consider making a profit as more important than the moral aspect. In 1997, Bart came up with a biological analogy of the mission to human life. In his argument, he compared institutional mission statement to sex drive. This is a force that inspires an institution passionately leading to beneficial activities within, and without the organization’s environment. The imperativeness of a mission statement in an institution is depicted by virtues of coming up with a well coined mission statement are inscribed in almost every other academic literature on management (Smith et al. 2006).
A vision is a dream that help the organization to remain focused and always target higher levels. A strong organizational vision directs the employees toward the objectives of the institution and maintains them along postulated channel. This culminates escalated gains throughout the tenure despite the number of competitors in the market. Therefore, it is worthwhile to invest adequately in determining a motivational vision that is flexible to facilitate adoption of technological advancements, leadership and market in the business world.
Wal-Mart mission statement
The company has a mission statement which is easily comprehended. Wal-mart mission statement “We save people money so that they can live better” seem so cultivating to customers. The mission is further enforced in the purpose statement of the company which was devised by the founder Sam Walton. The purpose statement “If we work together, we’ll lower the cost, of living for everyone we’ll give the world an opportunity to see what it is like to save and have a better life” is a move that target to convince the stakeholders the benefit of collaboration. Other than the supportive purpose statement for the company, the company enforces a culture that enhances cooperation in undertaking duties extolled to each party. The culture is promoted by values that respect individuals, reinforces the need to serve customers diligently and motivate the spirit of excellence. On top of these values, the company has policies such as an open door policy, sundown and ten foot rules. These ensure that the matters concerning the employees and customers are passionately solved without delays. To ensure that the company maintains a close tract of it customers in the basic levels, the company has a grass roots process. The process captures opinions and ideas from sales floor and front lines.
The Wal-Mart mission statement poses some of the good qualities of an effective mission statement. The statement has the potential to arouse positive feeling about the company and ability to motivate people to be part of the company that can “reduce expenses” so that to achieve a decent life. In many cases, people believe that a decent life is attained after investing and spending a lot. Thus, the company mission brings a new aspect of life that attracts customers in a great deal. Therefore, the company further engender the notion that the firm is successful, is worthy of time, support, and investment.
Scrutiny into the mission reveals deficit in the component of message in the statement. First, the mission fails to delineate who are its’ customers, the extent to which the company target to compete, the importance of the employees and the main distinctive feature between the company and its competitors. The mission comments on the consumer aspect alone but fails to recognize the imperativeness of the stakeholders in the company. Apart from the principles, policies and that values that support the mission, there is a vague idea on the promises of the mission. Moreover, the mission lack the simplest idea on how the company aims will achieve a reduction in cost to foster gracious living.
Target Inc mission statement:
Target Company mission statement states "To make Target Inc the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less. Brand Promise” (www.target.com). The company goes further to give the principles that support the mission. The principles, which the company refers to as commitments, comprises of commitment to great value, the community, diversity and the environment (www.target.com).
Target Company mission statement is comparatively comprehensible, and facts guided compared to that of Wal-Mart Inc. The mission has a broad scope capturing a wider market for company’s products and services. Moreover, the statement gives a feasible picture on how it operates to ensure that the mission is achieved. The statement also reconciles interest targeting a large scale of stakeholders. The statement also offers the impression of successful, directed and future stable company; thus, proofing the customers and stakeholders time, support and investment. The inclusion of “continuous innovation” in the statement give the statement an added advantage identifying it as a dynamic, technologically fit and one with concern for survival, growth and profitability. The values accrued to this statement also boost the trust of the customers since they recognize the key areas of social responsibilities.
A common aspect revealed by the two mission statements of the two different companies is that they both aim at reducing the cost of their product. Target Company suggest to customers that they stand a chance to expect a lot at friendly prices while at Wal-Mart promises the customers of save their money for a better living. The two statements also shares common deficit of an effective mission statement of failing to describe their products and services. None of the mission explains the scope of products and services that customers expect from the companies. In this connection, an appropriate recommendation on enhancing the mission statement is to include a hint of their services and products.
Wal-Mart vision statement is “To be the worldwide leader in retail”, While that of Target Company is “To provide a Fast, Fun, and Friendly environment for our guests”. The two statement aims at being the exceptional companies within their operational scales. However, Target company seems to move toward green economy while Wal-Mart Inc is motivated to increases its’ market scales. The visions share a common objective but the operations of the two companies are different.
Social responsibility of Target Company
The concept of social responsibility may be taken to imply that people and organizations must are be inclined to behave ethically and with consciousness toward social, cultural, economic and environmental concerns. Motivation towards social responsibility helps stakeholders (society, organizations and governments) to develop a positive impression on advancement, entrepreneurship and society with a positive contribution to fundamental gains. The rule enforces on the need to conduct activities in a fair manner to the surrounding. In promoting the spirit of social responsibility, the International Organization for Standardization reinforces the need to be interested with the mode of goods and services production beyond the interest of how the products or services helps the individual. Environmentally harmful production, child labor, dangerous working environments and other conditions violating the human rights codes are some of the avenues that are addressed in social responsibility. Institutions, companies and organizations with the dream of successful futures and a concrete customer loyalty are deemed to be lightened on the importance of the act in accordance with norms of right and wrong (Naomi, 2012).
Target Company involves in a number of responses to social responsibilities, which have played a significant effect in increasing the customers’ loyalty. The activities also have enhanced the company’s brand image making it one of the most successful business institutions in the world. The company is characterized by a long-standing custom of empowering individuals and societies through innovative programs and collaboration strategies. The strategies date back in 1946 where the company has been contributed 5 percent of total annual earnings for social responsibility programs (Richard, 2011). The money is used to support families and communities in need at different levels. The company has been successful and made a profound profile giving. It is estimated that Target Company offers more than $3 million, every week of the year, to communities in areas where the company operates its’ businesses. The total cash is pulled from the company and an organization within the company which is committed to helping.
The major areas that the Target Company focuses on social responsibility activities include; arts, team member programs, education and enforcing safety of families and communities. In the education sector, Target Company invests in funding those activities that promote the philosophy of education. Programs that promote the development of love of reading are given much emphasis; thus, promoting the desire to learn especially among children. Programs funded by the company include; those of campaigning for early childhood reading by functions such as Book Festivals and United Through Reading; grants and scholarships programs such as United Negro College Fund and Hispanic Scholarship Fund, and lastly the promotion of classroom environment for conducive reading environment. Other than education sector, the company has strategies that enforce safe families and communities through promoting non violence family setups, collaborating with American Red Cross, The Salvation Army, and America Second Harvest among other to promote disaster preparedness programs. In addition, the team member involvement program involves creating the need to offer a helping hand in the society, among community members and in the families. This program captures thousands of individuals comprising of Target team members, retirees, family members and friends (Richard, 2011).
These activities are remarkably vital in improving the development in a society. The involvement of the company in these programs is a crucial step to promoting social responsibility among individuals, organizations and government. Therefore, the activities are highly appropriate and will consistent with the company’s values and mission.
SWOT for Target Company
One of the strengths of the Target Inc is the fact that it provides One-stop-shopping services. This offer customers a chance to complete their shopping (grocery, pharmacy, apparel, 1 hour photo, Starbucks, Pizza Hut and other convenient features) at once, saving them from ample stoppages (Gowda, B et al. 2007). In this manner, the company offers a magnificent advantage which promotes customers to prefer it over others. The convenience factor of providing a one-stop shopping experience has enabled Target to lure customers into the store for multiple needs. More so, the company has a vast human resource of over 355,000 as per the year 2011. This is a core factor in the company's success story. The enormous employees ensure that the company serves their customers at a faster rate reducing queen and satisfying their clients.
The company has suffered tremendously in its’ effort to shed off the notion where most of the client associate it lack of being conscious of fashion trends, especially in terms of clothing. The ever changing trends in the clothing industry have remained a serious challenge in Target Company operations. The company is also faced by the problem of emphasizing the quality of the products; thus, escalating its prices above those of the close competitors such as the Wal-Mart.
The Company online stores posse a strong growth opportunity that can be capitalized on to upgrade the income of the company. Target should utilize its already established resources and take advantage of the on-line potential and improve it beyond the scales of competitors. In addition, Target Inc should consider tapping the unharnessed market opportunities in the overseas. This can be done by expanding the market to other countries other than US.
Competition remains a crucial threat to the future of Target Company. There are a number of organizations that share the market with Target Company. The extensive establishment of these companies proof to be a considerable threat to consistently maintaining the customers loyal to Target’s products and services. The close competitors include Wal-Mart, Best Buy, Linens Things, Home Depot, departmental stores, convenience stores, and drug stores (Gowda, B et al. 2007). Another threat identified to have effects on Target Company is the economic crisis. Economic crisis results to inflation destabilizing the market through affecting the prices of the products and services. Customer will prefer cheap products and services from Target Inc competitors, such as Wal-mart company, to quality ones. This creates difficulties for Target Inc to maintain the scope of customers which can lead to reduced income.