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Crisis leadership literature review
Leadership in a Crisis
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I found three different e-commerce companies that have recently encountered a consumer privacy data breach. Target one of the most well-known breaches affected almost 40 million people, Evernote Corp. an online note-taking service, and LivingSocial a company which offers gift certificates for customers to use in different cities around the globe. In this paper I will be discussing what happened and how each company handled the different situations that they encountered.
Target is one of the biggest and leading companies in the retail market. “Target’s customer credit and debit card information of as many as 40 million customers was compromised it was called one of the largest breaches ever of American consumer data.” (Jamieson & Erin, 2013) “The breach captured data stored on the magnetic stripes of the cards that customer’s swipe at the cash register, according to Krebs on Security, a respected data security blog. The breach involved everything from customer names, e-mails as well as mentioned the credit card information including the CVV codes on the back of their cards. The breach occurred during the holiday season of Thanksgiving including Black Friday one of the notorious shopping holidays of the year.” (Jamieson & Erin, 2013)
According to an article on Forbes website “The Company moved quite slowly on this breach.” (Burg, 2014) Target was slow to respond to the situation which in turn made people second guess what Target’s priorities were in this incident. It shows that they were more concerned with their image rather than letting the customers know right away. “Customer service lines for the company’s own Target Redcard credit cards were in gridlock.” (Burg, 2014) This means that they weren’t evening addressing the cust...
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Jamieson, A., & Erin, M. (2013, December 19 ). Millions of Target customers' credit,debit card accounts may be hit by data breach . Retrieved from NBC News: http://www.nbcnews.com/#/business/consumer/millions-target-customers-credit-debit-card-accounts-may-be-hit-f2D11775203
Johnson, K. (2013, May 6). LivingSocial Reveals Cyber-Attack, Notifies 50 Milion, Says No Credit Data Breached. Retrieved from Bloomberg:BNA: http://www.bna.com/livingsocial-reveals-cyberattack-n17179873787/
Wagenseil, P. (2013, March 4). Evernote Breaks Own Security Rule in Data-Breach Email. Retrieved from Tech News Daily : http://www.technewsdaily.com/17138-evernote-breach-booboo.html
Westervelt, R. (2013, April 29 ). LivingSocial Data Breach Affects Millions. Retrieved from CRN: http://www.crn.com/news/security/240153803/livingsocial-data-breach-affects-millions.htm
According to Kantar Retail, most of Target’s shoppers are younger on average than its rivals, and more educated. That means it has to consistently offer something different and appealing; it emphasizes more on the latest-trend apparel, eye-catching home décor and exclusive designer merchandise than its competitors. This results in a willingness to pay a bit more for items by customers who are willing to pay a bit more. Moreover, this successful
Target has seen consistent growth since its inception, and has confidence that future growth will continue (see attached financial statements). In 2004, Target sold two of there business units, Mervyn's and Marshall Field's for approximately $4.9 billion. This allowed for extensive aggregate pretax cash that will be used for future store sites (as well as upper management bonuses). Target's Board also approved a $3 billion share repurchase program which they expect to complete in two to three years.
It is obvious that Target guests, are not seeing the truth in their mission statement Expect More, Pay Less more reasons for them to adapt the revision mission statement that will help target reach their goal by fulfilling their brand promise. Sometimes words are not enough and by implementing tools and resources to support their goal will only benefits Target in the long run. If Target stand behind their mission which is the community, diversity and environment they must continue to live by the former CEO, Bruce Dayton words which are “businesses should act in the best interest of society” (Target.com). Target must give their guests what they want and that is to Pay Less for merchandise while educating them on how to do that every
Target bank is called the Target National Bank. It is owned by the Target Corporations itself and all the receivables go into Target has approximately 1,600 million dollars worth of lines of credits from twenty five different banks, approximately half the worth of the line is used and is due back for payment June 2005, with an extension all the way up to June 2006. The other half of the payment is due June 2008. The expected long term rate of securities rate for October 31 2004 was 8.5 %.
The Target Corporation formerly known as “The Dayton Dry Goods Company” is a major retailing company that was founded in 1902 in Minneapolis, Minnesota by George Draper Dayton. It is ranked the second largest discount retailer in the United States and ranked thirty- sixth on the Fortune 500 as of 2013. The Target Corporation has been serving this nation with the best price possible goods since their expansion from “Dayton” and is continuously winning the hearts of consumers with their dedication and service. A phenomenal merchandising strategy and cross channeling has enabled this upscale discounter to serve their purpose of customer loyalty and fulfill their promise of “Expect more and Pay less”.
By the end of the fiscal year of 2013 Target had over 1,778 stores in the United States. Target’s presence is very well known throughout the US and it is one of their biggest strengths. They recorded above their top retail competitors in revenues, having a revenue of $73,301 million in 2013. Since Target is so large they have the ability to influence suppliers in prices, which in turn lowers the prices of their products for their customers. Another strength of Target is that it has developed over their years of operation a certain type of differentiation from stores such as Walmart. They do not market their products as always being the lowest price, but instead “affordable yet stylish.” They have launched designer collections, the first being in 2010 by partnering with Liberty of London. Along with designer collections they started allocating space within their store to certain boutiques to give their store that upscale look and feel. Target’s biggest opportunity laying in front of them is their food and grocery segment of the sore. Along with that they can see great increases in revenue by expanding their e-commerce site target.com. Target’s biggest threat is the ever growing online market. Products are being bought more online as time goes on. Along with online competition, Walmart and Target has seen their number of price wars on the same product. Target very rarely benefits from this type of action. Amazon has been on top of the industry in selling products online and with rising labor wages this is only hurting
Based on the video, nearly 40 million customers debit and credit cards information were stolen from customers who shopped at Target. Did the company presented in the video allow a breach of security based on the laws and ideas discussed in the text? Yes, the company presented in the video allowed a breach of security based on the laws and ideas discussed in the text. The company was very unknowledgeable of the fact that the security of their systems has been breached ignoring warnings and signs. Target failed to obey in taking actions against internet security. Their lack of worry made it not difficult for hackers to breach in Targets secluded files. I believe that when Target received the signs they should have reacted right then and there.
In 1995, Target began offering credit which was known as the Target Guest Card (Target Through the Years). This was a big step for the company in establishing customer loyalty and relations through the use of technology. By 2004, the cards were renamed REDcards and were able to create data portfolios to help Target figure out product demands and create different routes to satisfy their customers even more (Target through the Years). This was a huge step for Target and their use of technology to better their
Target business is based on big box centers and supercenters, which are not preferred by many shopper who normally like shopping in small convenience store within the neighborhood.
The data breach at Target had a massive impact on cyber security. According to Lauren Abdel-Razzaq, we live in a world where consumers don’t even think twice about paying with a credit or debit card or buying items online or with mobile devices (2014). However, data breaches have become a major threat and continue to impact companies all over the world. Companies should take information security as seriously as possible. We don’t live in a perfect world. Anything can happen at any time, even if a company has the most sophisticated security system in place. It is how a company reacts to a data breach that will make or break them.
The breach started through a contracting company called Fazio Mechanical Services, Inc. (FSM). FSM is a HVAC contractor “connected to Target’s systems to do electronic billing, contract submission, and project management.” (Goche & De Metz, 2014) The start of the data breach madness beg...
The protection of consumer privacy in e-business. The digital era has arrived. Blue Book information editorial board and Social Science Literature Publishing House (2010) pointed out that “China's e-commerce transaction volume reached 3.85 trillion yuan in 2009”. Utilisation of e-business services was also high amongst Hong Kong people.
LeRoux, Yves. "Privacy concerns in the digital world." 03 Oct 2013. Computer Weekly. 24 April 2014 .
Target is the second largest retailer and a well recognized brick and mortar discount retail store. Target faces the same issues that other retailer such Best Buy and Barnes and Noble and that is show-rooming. Show-rooming is where customers view a product in the store then search for a better price online for the exact product or comparable product. Target struggles to compete in a continuously growing online only business market such as Amazon.
Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota. It sells its products through its stores and digital channels, including Target.com, and presently operates 1,826 stores. This report will focus on the capital structure of Target Corporation, discuss Target's most recent short-term and long-term financing decisions, give an analysis of the economic, business, and competitive background in which they operate, discuss Target's international investment and financing opportunities, review Modigliani and Miller’s capital structure theory as it relates to Target Corporation, and finally offer possible outcomes that would optimize Target's financial policy and capital