Corporate Parenting Strategies Utilized at Target Company and Their Appropriateness
Target Corporation is a large discount store retailer that operates in different parts (in about 1800 locations) of the United States of America. It is involved in the production and sale of different products such as electronics, health and beauty products, jewellery, books, house wares and furniture among others. The size of the company calls for extremely effective management and corporate strategies to ensure that everything is done appropriately and that success is achieved at particular locations and thus overall success for the entire company (Reuters, 2017). This piece of work will examine the corporate parenting strategies utilized at Target Company and their appropriateness.
Some of the corporate parenting strategies implemented at Target Company include; functional leadership, synergy creation and strategic guidance. All these strategies use different approaches but they are all aimed at the parent organization assisting the other branches and enhancing their success and in so doing, contributing to an organization’s overall success.
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Management is a broad aspect and different parties have to play their roles effectively for overall success to be achieved. The corporate level executives at Target Company are in one way or the other involved in the above mentioned strategies as well as supporting the organization’s overall strategic direction. For example, they are involved in different management functions when it comes to the company’s operations and processes. These include planning, organizing, coordinating and controlling. From the parent organizations, some of these functions could be done and directed to the other locations. They have for instance used the proprietary credit and debit cards strategy to promote customer loyalty and enhance sales (Vault, 2017).
Functional leadership is a strategy that has been implemented at Target Company. It entails adding value to an organization’s portfolio through aspects such as shared corporate resources, functional excellence and central services among others (Pidun et al., 2011).Corporate functions such as innovation, capital investment management and strategy development are emphasized.
Another strategy is synergy creation. It focuses on gaining major advantages from synergies in areas such as marketing and sales across different organization units. Internal collaboration help attain maximum advantage through a well thought business portfolio. On the other hand, strategic guidance revolves around strategic advantage. The target company is involved in adding value by coming up with advanced strategic insight and experience as well as outlining an explicit strategic direction for the business operations (Kruehler, Pidun&Rubner, 2012). These strategies have their own share of benefits and drawbacks and it is therefore advisable for an organization to utilize them when applicable in order to maximize on their advantages while at the same time handling their limitations effectively.
The strategies are appropriate for the company to succeed. This is more so because they are associated with great benefits for the organization. They specifically promote parenting advantage which is a form of competitive advantage. It guides strategic analysis and thus offers a means for assessing better alternative plans of actions. Parenting advantage through the implementation of corporate parenting strategies is essential at any organization’s corporate level. It acts as a gauge to measure different organizational processes and procedures and thus making appropriate decisions. All these work together towards allowing an organization to venture in better market opportunities and achieve higher corporate performance (Kahneman, Lovallo&Sibony, 2011). Different strategies are appropriate for different situations and thus, various factors should be considered in making a choice.Order Unique Answer Now