A PLUS WRITER
kat421
wk_revision.pptxTARGET CORPORATION
Expansion into Global Markets
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Target Corporation Growth Plan
Target Corporation seeks to open up new stores in other countries.
Asian countries are a main target due to the market’s viability.
Singapore is specifically a country of interest since the business here is prime.
Hong Kong is another considerable Asian state.
The proposed plan demonstrates how Target Corporation’s current position with 10.7% domestic market share will be further expanded by expanding internationally into Singapore. Singapore was chosen after careful filtering of several international regions while analyzing the potential growth for such markets, economic and political stability as well as many cultural and benchmarking industry performance considerations. Although Hong Kong and Singapore were close final contenders, the ease of doing business made Singapore the prime choice for the first venture into overseas expansion.
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Singapore’s Economic Characteristics
Singapore is the most viable choice for bringing Target Brands into a new international market.
In addition to passing all of the minimum qualification filters, Singapore has a rapidly developing economy and has embraced much of the western influence.
The culture is viewed as advanced, progressive and the urban environment demonstrates a lot of potential for the Target Brand which is aligned with modern innovation and fashion forwardness.
Although there is some competition in regards to Hypermarkets in the area, Targets ability to adapt with its new Urban and City Target initiatives, especially in high density markets, could prove successful in Singapore and would be well suited for differentiation in comparison. Sustainability is a major corporate consideration for Target Brands and Singapore’s advanced efforts to fall in line with many green initiatives is also a benefit to avoid any negative PR issues when branching into this new market. Target remains heavily involved with community and practicing ethical business decisions. Singapore ranks number 1 in regards to lack of political corruption and is a market image Target would feel comfortable finding alignment with.
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Singapore’s Economic Characteristics
Singapore’s general business economy may not be an emerging market.
Singapore has a highly developed and advanced economy in regards to technical and civil engineered infrastructures.
Singapore was established under British rule almost 200 years ago and the English language is the primary language for the nation.
The country is better suited for competitors looking to push commodities at the lowest prices, but it is one of the fastest and technologically evolving markets in the world and their customers expect more. The multinationals and expats embrace the western culture and Singapore has a very young demographic with some of the highest per capita average incomes in any advanced nation. Since the Singaporeans already know English, it is easier for Target Corporations to advertise and communicate with their customers. Almost all signs and advertising are in English which will make streamline the marketing activities for Target.
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Retail Sales in Singapore
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Ethical Issues Confronting Target Corporation due to Expansion
Ethical concerns for the company include;
Paying the taxes
Employee employment ratio
Corruption
Respecting the basic human rights
Target Corporation has to pay the government taxes as a requirement in Singapore. Target would risk losing their business license in the country if they failed to pay their taxes. Secondly, the company needs to employee Singaporeans even in top positions. There is an employment ratio of the Singaporeans against the people from America. Also, corruption is a grievous case in Singapore hence Target should not indulge in such practices. Finally, they are to observe the basic human rights. The rule is important especially in the company’s view of the employees. They should work in a safe environment, within the specified hours and be paid their wages in time.
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The Management of Ethics and CSR in Singapore
The company needs both high level management vision and support, and buy-in at all levels of the company.
Employees at all levels will be encouraged to contribute their time, energy and ideas.
They also need to define the working conditions based on the ethical requirements in the country.
A CSR leadership team would include representatives from the board of directors and top management or owners, as well as volunteers from various units within the firm that are affected by or involved in CSR issues. Other representatives could be senior personnel from human resources, environmental services, health and safety, community relations, legal affairs, finance, marketing and communications. Front-line staff in these areas and any other personnel who may become key players involved in implementing the CSR approach the firm eventually develops should also be on the team. Also, as the work of the team progresses and a better understanding of the implications of CSR emerge for the firm, it is quite possible that the membership of the team will change. However, the ethical concern to pay the employees handsomely may affect the corporation’s pricing on goods as they work to meet the salary budget.
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References
Bortolotti, B. (2014). Trends and challenges in sovereign investment: the SWF discount. Paris Nanterre Workshop on Sovereign Investment, October.
Nguyen, B., Chen, C. H. S., Wu, M. S. S., & Melewar, T. C. (2015). Ethical marketing in Singapore, Malaysia, and Thailand. Ethical and Social Marketing in Asia. Oxford: Chandos Publishing, 55-74.
Wild, J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education Limited.
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