Magement and Leadership Essay Example | Topics and Well Written Essays - 1750 words

Magement and Leadership - Essay Example Gerald Storch, Target's vice chairman, explained that â€Å"the company had faced three strategic choices to tackle the increased competition in the retail market: to specialize, to become the low-cost producer, or to differentiate Target chose the third option and decided to reposition itself as a mass merchandiser of affordable chic goods† (Barwise & Meehan 2004). For Target, this means that prices are not lower than competitors such as Wal-Mart. It has been said to outperform other discount retailers in store cleanliness, environment and shorter check-out lines. While this may not be important to all customers, it means something to the market segment Target is after. This segment is younger, better educated and more affluent, according to Storch. Affordable ‘chic’ products line the shelves, while the retailer repositiond itself as a more upscale discount store. The trendy goods Target now offers require reorganization of merchandising and supply chains. As the top decision makers develop the strategy, it must be sold to managers of the various departments. In turn, those managers must be able to convey the image to regional and local managers, who actually oversee the day to day operations of stores. Though decisions such as the one Gerald Storch explained are corporate management decisions, repositioning also requires leadership. In order to convey the vision or concept of the new branding strategy, executives like Mr. Storch need to thoroughly explain and show managers the new direction Target has taken.