Target

Question 1

Target used a cost leadership / differentiation strategy

Answer 1

true

Question 2

High degree of social responsibility

Answer 2

true

Question 3

List challenges with Target’s business model

Answer 3

1. Cost Leadership / Differentiation strategy is tough to implement
2. Introduction of grocery sales expanded focus
3. Rapid growth of firm, total assets and sales
4. Assumed control of website from Amazon, and expanded into Canada nearly at the same time

Question 4

List areas of social irresponsibility

Answer 4

1. Racial discrimination suits
2. Lead tainted toys
3. Stopped offering healthcare once Affordable Care Act passed
4. Scaled back tuition reimbursement program
5. Funded fewer social events for employees

Question 5

How was target culpable in the data breach?

Answer 5

1. Target’s recently installed malware detection software identified and
   communicated the threat to Target staff twice. The staff failed to act both times.
2. The firm had disabled settings that could have allowed the software to disable the
   attacks automatically.
3. Target’s antivirus system flagged the attack. Again, the firm failed to act.
4. The firm responded once notified by the U.S. Federal Government.
5. Target did not notify its customers for nearly a week.

Question 6

It is possible to be socially responsible and socially irresponsible at the same time

Answer 6

True

Question 7

Why can increasing complexity be dangerous to firms?

Answer 7

1. Rapid expansion + high volume sales could increase negligence
2. Rapid expansion can also increase risk of ethical problems