Read the case "Target: From ‘Expect More' to ‘Pay Less'" on pages 103 to 105 of the textbook and prepare answers to the questions below. Do not answer the questions at the end of the case in the textbook.

1. What microenvironmental factors have affected Target's performance over the past few years?

2. What microenvironmental factors have affected Target's performance during that period?

3. By focusing on the "Pay less" part of its slogan, has Target pursued the best strategy? Why or why not?

4. What alternative strategy might Target have followed in responding to the first signs of declining revenues and profits?

5. Given Target's current situation, what recommendations would you make to Steinhafel for his company's future?