Running head: ASGN #7 - DIVERSITY PLAN PROJECT – TARGET 1

Forrest Andra

Christina Beckett

Janet Graham

Michele Kelley (Team Leader)

Kevin Most

Jared White

BUS 330 – Managing Diversity in the Workplace

Assignment #7 - Diversity Plan Project:

Target Bullseye Rewards Program

December 3, 2012

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 2

Abstract

A Fortune 500 company, Target Corporation is currently celebrating 50 years in business and is a

component of the U.S. Retail, U.S. Credit Card, and Canadian industry segment with 1769 stores

in 49 states and the District of Columbia. In 2013, Target plans to enter the Canadian retail

market where it will open its first 60 Canadian stores in the early half of the year, and more than

twice the number of Canadian stores to open by the end of the year (Target, 2011 Annual Report,

p. 4). This paper is a Diversity Plan that outlines a new “guest” (customer) loyalty program at

Target Corporation called the “Target Bullseye Rewards Program” which is aimed to benefit

loyal guests, grow sales, and increase guest loyalty through the earning of points for every dollar

spent at each of Target’s retail locations and via the company’s website. Reward points earned

will only be with the use of the Target VISA Credit Card. In addition, Target will donate one

percent of the Target VISA Credit Card sales to go to the Shriners Hospitals for Children – a new

charity program which is the basis for the development of this Diversity Plan. The Target

Bullseye Rewards which will feature Bullseye Bucks will be inclusive to Target’s current

REDcard Rewards Program.

Key words: diversity, Shriners Hospital for Children

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 3

Diversity Plan Project:

Target Bullseye Rewards Program

NOTE: This is an outline of The Plan in Gibson’s Chapter 3 text (2012) with the page numbers

listed and the number of pages for each element; however, we are supposed to do a condensed

version of this plan focusing on being concise (see syllabus p. 9). This is a rough beginning to

get us going…also, I’m not sure if we need the abstract, but I don’t think it will hurt. I have

links in the references for your use. Not all are references listed are cited in this paper.

Topic (to be emailed to instructor 11/27/12

(Kevin) – Research Shriners Hospitals for Children – find out if there are corporate sponsors and

if so, who are they – how much are they donating and what are they doing for them?; also learn

what’s going on with proposed SHC to be located in Kentucky – type of treatments, why are they

locating there, etc.;

(Michele) 1) Executive Summary p. 4; 1-2 pgs. - do last!!! – All elements of the plan - Concept,

mission statement, company description, strategy, programs, finances, & implementation

Concept – Diversity plan for the new “Target Bullseye Rewards Program” which will

donate one percent of guest purchases to the Shriners Hospitals for Children whenever a Target

guest uses their Target VISA credit Card. This new charity segment provides children with

quality, specialized medical care, regardless of the patient or family’s ability to pay, in the areas

of orthopedics, severe burns, and spinal cord injuries in communities within a network of 22

hospitals located throughout the United States, Canada, and Mexico.

Mission & Values Statement – (need to find diversity mission & vision statement -

websites) Target’s success begins with the fulfillment of its mission statement: “Our

mission is to make Target your preferred shopping destination in all channels by delivering

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 4

outstanding value, continuous innovation and exceptional guest experiences by

consistently fulfilling our Expect More. Pay Less. ® brand promise” (Target, About Target,

2012). Additionally, the values of the company is stated as “what we believe in” and is

expressed as “design for all”, “great guest service”, “more for your money”, “a fun and

rewarding place to work”, “celebrating diversity and inclusion”, and a “legacy of giving

and service” (Target, About Target, 2012).

(Michele) 2) History & Company Description – p. 44; 1-2 pgs. - Vision statement, industry

description, key contributors, assets, financing, company growth, & name

Vision Statement: Although the company does not specifically state a vision statement, the

mission statement incorporates the “image of the organization in the future” (Bamford &

West, 2010, p. 62). The vision of the Target Bullseye Rewards is the value creation that

will transcend into increased customer loyalty without dropping prices at times of the year

other than the holiday season when price matching is necessary to compete for sales when

consumer spending is high. With Target using a similar points system for its rewards

program as Nordstrom, it will help bolster the image of Target through identifying with

Nordstrom’s positive customer experience and trendy designer styles, but differentiating

with the “buy more, play less” branding known at Target. The more money spent, the

more that gets donated to SHC.

Industry: A fortune 500 company, Target Corporation is a component of the U.S. Retail,

U.S. Credit Card, and Canadian market segment with 1769 stores in 49 states and the

District of Columbia. Target Corporation is currently celebrating 50 years in business in

the following industry segments: U.S. Retail, U.S. Credit Card, and Canadian. In the U.S.

Retail Segment, Target competes with a variety of retailers including “traditional and off-

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 5

price general merchandise retailers, apparel retailers, internet retailers, wholesale clubs,

category specific retailers, drug stores, supermarkets and other forms of retail commerce in

the U.S.” (Target, 2011 Annual Report, p. 4). In the U.S. Credit Card segment, the

company’s “primary mission is to deliver financial products and services that drive sales

and deepen guest relationships at Target…Our ability to positively differentiate the value

of our financial products primarily through our rewards programs, terms, credit line

management, and guest service determines our competitive position among credit card

issuers” (Target, 2011 Annual Report, p. 4).

Key Contributors – (stakeholder)

(Michele) 3) SWOT – p. 44; 1-3 pgs.- Strengths, weaknesses, opportunities, threats, analysis,

market overview, industry and market changes

Strengths

Tax deductible Customer loyalty Giving option of donating money to

education Value-added benefits (value creation)

Weaknesses

Rewards for Target store andTarget online purchases only

Target VISA Credit Card users only Choice of school may be

discriminatory – not needy enough for the 1% percent education contribution

Cannot contribute to other charity organizations of choice

Opportunities

Helping the Shriners Hospital for Children

Helping children education Increasing customer loyalty Promoting Target’s social

responsibility efforts Sponsorship advertising &

recognition for giving

Threats

Competition with other major credit cards

Guests with low credit scores may not qualify for the Target VISA Credit Card

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 6

SWOT Analysis:

o Customers are getting more value for their money and they get to be a part of

giving to the community.

o Charitable Tax Deduction (Target)

Market Overview: A significant portion of Target’s total sales come from stores located

in California, Texas, Florida, Minnesota and Illinois. The median age of the Target guest

is 40 years old with a median household income of $64,000. Approximately 43 percent

have children living at home; about 57 percent have completed college (Target, Investor

Corporate Overview, 2012).

Industry and market changes:

(Jared) 4) Strategy – p. 45; 2-4 pgs. – Competitive focus, technological focus, employee focus,

market focus, strategy focus, operations focus

(Jared) 5) Program Description – p. 46; 3-4 pgs. – Marketing, management, diversity, &

business

(Forrest) 6) Financial Description – p. 46-48; 3-4 pgs. - Preparation, P&L, Identity, Balance

Sheet, Statement of Cash Flows, Pro Forma

(Christina) 7) Implementation – p. 49; 1-3 pgs. – Action Plans, objectives, tactics, policy

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 7

(Janet) 8) Assessment – p. 50; 1-2 pgs. – Competitive, customer service, quality, integration,

introduction, strategic to tactical, & measurable

(Michele or Kevin?) 9) Summary (conclusion) -

References

Bamford, C. E., & West III, G. P. (2010). Strategic management: Value creation, sustainability,

and performance. Mason, OH: South-West Cengage Learning.

Gibson, Jr., A. B. (2012). Motivatetheworld.com. Bridging global boundaries – A 21st century

approach to business components and process. Folsom, CA: GAME Company.

Nordstrom (2012). Form 10-K, 2012. Seattle, WA. Retrieved from EdgarOnline, via Yahoo

Finance, at: http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?

FilingID=8490614-904-398077&type=sect&dcn=0001193125-12-119641

SHC (2012). Shriners Hospitals for Children. Support our hospitals. Retrieved from

http://support.shrinershospitals.org/site/PageServer?pagename=HowYouCanHelp_v2

SHC (2011). Shriners Hospitals for Children. KPMG: Independent audit report.  Retrieved from

http://support.shrinershospitals.org/site/DocServer/2011_Audited_Financials_SHC.pdf?

docID=4681

Target (2012). About Target. Mission and values. Target.com. Retrieved from

https://corporate.target.com/about/mission-values

Target (2012). Form 10-K, 2012. Minneapolis, MN. Retrieved from EdgarOnline, via Yahoo

Finance, at: http://yahoo.brand.edgar-online.com/EFX_dll/EDGARpro.dll?

ASGN #7 - DIVERSITY PLAN PROJECT - TARGET 8

FetchFilingHtmlSection1?SectionID=8486203-1001-

354705&SessionID=cjE3FWRLX23U4T7

Target (2011). Investors. Target 2011 Annual Report. Retrieved from

https://corporate.target.com/annual-reports/2011/images/company/annual_report_2011/

documents/Target_2011_Annual_Report.pdf

Target (2012). Investor Corporate Overview. Financial summary. Target Corporation. Retrieved

from http://investors.target.com/phoenix.zhtml?c=65828&p=irol-homeprofile

Target (2012). Target Corporate. The shopping experience. Retrieved from

https://corporate.target.com/about/shopping-experience/

Wal-Mart (2012). Walmart Credit Cards. Financial Services. Retrieved from

https://www2.onlinecreditcenter6.com/consumergen2/login.do?

accountType=generic&clientId=walmart&langId=en&subActionId=1000