Faltering Target Still Aiming High

American retail giant Target has been undergoing tough times as of late, with flat same-store sales and its share price down 14% this year.

These problems are caused by various troubles, including the threat of growing competition in the fast-fashion arena from stores such as Kohl’s and JCPenney. It has also become increasingly apparent that Target’s wages and employee benefits are eerily similar to its less-trendy, oft-criticized rival Wal-Mart. And Target has been hurt by its e-commerce blunders, including broken hyperlinks on the launch day of its revamped site and the recent crash from the overwhelming demand for its Missoni line, mistakes which are incredibly disappointing from, and damaging to, such a large retailer.

However, Target has high hopes; it aims to boost its revenue by 48% to $100 billion by 2017 with strategites including improving its e-commerce and Canadian expansion. It plans to open around 130 stores in Canada in 2013, and expansion into Canada may be a smart move due to the lack of competitors here like Kohl’s and JCPenney. But Target should also rectify problems in its treatment of employees – if not for ethics in and of itself, then to polish its fading image, before its name is as tarnished as Wal-Mart’s.

New Amazon Kindle a Threat to the IPad

Amazon’s upcoming version of its e-book reader Kindle, a tablet computer which will run the Android operating system, may be ready to challenge the Apple iPad.

The Amazon Kindle 3, the predecessor of the upcoming Kindle

Research In Motion and Hewlett-Packard have previously failed to dethrone the iPad with their PlayBook and TouchPad respectively. But the Kindle has its advantages, such a large audience to market to at the Amazon store and Amazon’s existing relationships with media and publishing companies, which will make it easy for users to access e-books and media. The Kindle is speculated to be priced barely above the cost of production, perhaps allowing it to fill a niche for cheaper tablets. And even if the hardware itself is not profitable, Amazon can gain revenue through the sale of e-books and media.

In addition, Apple’s distribution network in China has been unable to keep up with demand; Apple is lagging far behind its goals in opening stores in China. Some say that this may be an opening for Android tablets and smartphones.

However, the Kindle will need to be carefully positioned to make it clear to customers that it is no longer only an e-book reader; otherwise it may fall victim of the free-ride trap.

Hershey Kissing Goodbye to Ethical Standards in Labour

A recent article from EHS Today highlights some of the controversy surrounding Hershey Co. and its social irresponsibility.

Fair trade organizations Green America, Global Exchange and the International Labor Rights Forum have published a report criticizing Hershey for using forced, trafficked, and child labour in its production of chocolate, and claim that Hershey has fallen behind its competitors in improving their ethical standards.

Meanwhile, Hershey Corporate Social Responsibility Report  funded various initiatives such as CocoaLink, which provides information to cocoa farmers to help improve their livelihoods and ameliorate the problems of poor labour conditions, and ECHOES, which provides education in practical issues to young people in West Africa.

“It’s increasingly clear that consumers care where the products they buy are from and how they were made,” said Elizabeth O’Connell from Green America. Thus, if there is truth in the report condemning Hershey, this idea should serve as extra incentive to Hershey to make more genuine efforts to improve the labour situation rather than fund tertiary social programs. This is where the interests of both customers and corporation may lie in the same direction, the importance of which has been so greatly stressed by R. Edward Freeman.