Target Corporation

In: Business and Management

Submitted By bonnie80
Words 627
Pages 3
Macro Environment: Target Corporation
Economic: Target’s position in the Discount Department Store Industry has been to offer inexpensive and fashionable clothing, home furnishings and decorations. Their motto has been Expect More Pay Less. They have been very successful with this strategy until the downturn of the economy when sales began to seriously decline.
Target’s latest strategy has been to open SuperTargets and remodeled many of their existing stores that have a larger focus on food and household essentials. “In early 2010 Target announced in a strategy update that it plans to spend $1 billion to renovate about 340 of its existing stores in 2010.” They will be focusing more on groceries, beauty, home, and electronic products. They also have pharmacies and Starbuck Cafes in many locations.
Social/Cultural: Target has always been seen as a trend setter in their clothing and home products. Their name is often pronounced Tar-zhay in a French accent to highlight their low cost designer clothes and products. They have achieved differentiation in the industry by branding themselves To be a successful competitor they have to focus on customer needs. They also offer a better shopping experience for the customer than their competitors. While Wal-Mart does generally offers low prices Target offers higher quality products. Target Corporation is socially aware: they don’t sell fire arms, tobacco, or toy guns. The trend is also going towards one stop shopping which they are addressing by building Super Targets and remodeling many of their stores. As the economy turns around and consumers are more upbeat they will once again see value in Tar-zhay’s designer clothes and products. The truth is that Target is just a nicer place to shop and when the economy is strong it will be a clear first choice in the industry.
Technological: Target Corp. has an e-marketing…...

Similar Documents

Case 19 Target Corporation

...Case #19 Target Corporation Synopsis and Objectives . Scovanner, Target Corporation’s CFO, is preparing his thoughts prior to the November 2006 meeting of the Capital Expenditure Committee (CEC) as he considers the pros and cons of a variety of capital-investment proposals. During that meeting he will join other Target senior executives, including the CEO, to consider the merits of 10 capital-project requests (CPR), five of which are expected to require extra attention from the committee members. Each CPR is presented to the committee with a “dashboard” that summarizes the critical inputs used to compute the net present value (NPV) and internal rate of return (IRR). The dashboards also contain data about the type of investment (new store or remodel), market size, location, customer-demographic information, as well as the sensitivity of NPV and IRR to changes in various inputs. In addition to the factors influencing the economics of the CPRs, Scovanner cites such issues as brand awareness and the corporate goal of 100 new stores per year as considerations for accepting or rejecting the projects. Thus, the CEC is tasked with balancing corporate strategy with investment opportunities and profitability. The objectives of the case are the following: • To understand the capital-budgeting-decision process for a large corporation. Each decision process should support the corporation’s business and financial objectives. The capital-investment decision is important......

Words: 571 - Pages: 3

Target Corporation Analysis

...Target Corporation Description of the company: Target Corporation operates general merchandise stores in the United States. As of January 28, 2012, the company had 1,763 stores in 49 states and the District of Columbia. The company’s segments include U.S. Retail, U.S. Credit Card, and Canadian. The U.S. Retail segment includes the company’s merchandising operations, including its integrated online business. The company offers both everyday essentials and fashionable, differentiated merchandise at discounted prices. Its online shopping site offers similar merchandise categories to those found in its stores, excluding food items and household essentials. The U.S. Credit Card segment offers credit to qualified guests through the company’s branded proprietary credit cards, the Target Visa, and the Target Card. Additionally, the company offers a branded proprietary Target Debit Card. The Canadian segment consists of leasehold interests in Canada that are purchased from Zellers, Inc. It owns leasehold interests in 189 Zellers sites. The company operates Target general merchandise stores, the majority of which offer an assortment of general merchandise and various limited food assortment than traditional supermarkets. The food assortment includes various perishables and various additional dry, dairy, and frozen items. In addition, it operates SuperTarget stores with general merchandise items and a line of food items comparable to that of traditional supermarkets.

Words: 1088 - Pages: 5

Target Corporation

...[pic] King Saud University College of Administrative Sciences Strategic Management 597 BUS Case analysis Target Corporation Professor Dr. Nadia Ayoub Submit by Ghadeer Al- Mutawa Reem Abdul Jabbar 9, January 2007 Contents Introduction Vision Statement Mission Statement Strategy Analysis State 1: The Input Stage External Factor Evaluation o Opportunities o Threats Competitive Profile Matrix Internal Factor Evaluation o Strengths o Weaknesses Summary of Financial Ratios in Target Corporation Stage 2: The Matching Stage 1) The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 2) The Strategic Position and Action Evaluation (SPACE) Matrix, 3) The Grand Strategy Matrix, 4) The Internal-External (IE) Matrix. Summary of Matrix Analysis Stage 3: The Decision Stage Quantitative Strategic Planning Model [QSPM] Recommendations Epilogue Introduction Target Corporation is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Target Corporation is the third-largest general merchandise retailer in the United States. It offers an assortment of general merchandise, including......

Words: 5883 - Pages: 24

Target Corporation

...Company Overview In the first part of our analysis, we give a brief introduction about Target Corporation and its main competitors, Costco and Wal-Mart, so that we can set some decision rules to allocate the resources. Target Corporation Brand Strategy Target Corporation has a very strong brand, and their logo is recognized by more than 97% of the United States population. One of Target’s strength is that the corporation has more than 1,750 stores in the United States, and it has store in almost all the states of United States. Another of its strength is its ability to anticipate the demands of the customers and its ability to provide high-quality and innovative products which in return make their customers become loyal of availing all their services and products. Table 1 SWOT Analysis of Target Corp. Strengths Strong brand awareness and recognition Employee retention Design and innovation Opportunities Global expansion Focus on private label products Advised Future Strategy The threat faced by all these market players is the recession faced by the US economy, and since Target only operates in the United States, they don’t have the ability to fall back on their foreign markets. So Target must begin their career to the global markets. And It’s over emphasis upon the quality of products makes its products expensive than its competitor Wal-Mart. Therefore Target must devise effective strategies to ensure high quality at economic prices. Weakness Low global presence Quality......

Words: 4236 - Pages: 17

Target Corporation

...Accounting 150 Fundamentals of Accounting Corporation Study Project (75 points possible) DATES: February 20 – Section I draft due March 27 – Section II draft due April 15 – Section III draft due May 4 – Complete paper is due Objective of the Project Study a company whose stock is traded on the New York Stock Exchange (NYSE) or National Association of Securities Dealers (NASDAQ). Use the company’s public documents and financial statements to learn business information, financial information and investor analysis of the company (e.g., stock prices and ratios.). This will include an analysis of the company’s balance sheet, income statement and statement of cash flows. Due dates are listed above. Your paper will consist of a cover page (name of company, your name, date, and course/section), table of contents and the following sections: Section I. Profile of the Company’s Operations (Minimum 3 pages-word processed in paragraph form. Some information can be presented in table or bullet point format) Research the company’s most recent 10-K and the company’s website to learn the following for Section I of your paper: • State of incorporation. (front page of 10-K) • Type of stock issued, number of shares authorized and issued. • Information about the corporation’s product lines and major competitors (10-K Part I, Item 1) • Business risks. (10-K Part I, Item 1a.) • Number of employees. • Information about the company’s competition. • Summary of the company’s SWOT analysis • Corporate......

Words: 939 - Pages: 4

Target Corporation

...TARGET: A GREAT COMPANY Executive Summary In choosing a Fortune 500 company to write about I chose Target. The reason I chose this company is because my aunt works there. Every Christmas I get either something that I have to return or I get a gift card to shop there. So when I do use my gift card I go to their website because I have to drive an hour or so to the closest Target. The report shows that Target is reaching out to the community by funding children’s education in the United States. The company’s team members donate thousands of hours to volunteering in community projects across the country. Introduction Target is one of the most respected companies today in the United States. Target is the preferred shopping destination for their customers because they deliver outstanding value, innovation, and an exceptional guest experience. They offer an assortment of general merchandise and food assortment. They offer an expanded food assortment which includes some perishables and some additional dry, dairy, and frozen items. Target should be able to find many neighborhoods or locations close to city centers that have a higher customer popularity to generate sufficient revenue to justify their costs of the land. As they continue to grow in size, it will be able to continue to make an economic scale in advertising and out sourcing to make their products more competitive (Our Stores, 2011). History Target Corporation was founded in 1902, though it wasn’t always named......

Words: 965 - Pages: 4

Target Corporation

...analysis Target Corporation Professor Contents Introduction Vision Statement Mission Statement Strategy Analysis State 1: The Input Stage External Factor Evaluation o Opportunities o Threats Competitive Profile Matrix Internal Factor Evaluation o Strengths o Weaknesses Summary of Financial Ratios in Target Corporation Stage 2: The Matching Stage 1) The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 2) The Strategic Position and Action Evaluation (SPACE) Matrix, 3) The Grand Strategy Matrix, 4) The Internal-External (IE) Matrix. Summary of Matrix Analysis Stage 3: The Decision Stage Quantitative Strategic Planning Model [QSPM] Recommendations Epilogue Introduction Target Corporation is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Target Corporation is the third-largest general merchandise retailer in the United States. It offers an assortment of general merchandise, including consumables and commodities; electronics, entertainment, sporting goods, and toys; apparel and accessories; and home furnishings and decor; as well as a line of food items. The company operates its stores under Target and SuperTarget brands. It also sells its merchandise online, as well as offers credit cards to its customers. In addition, the company runs Target......

Words: 5912 - Pages: 24

Target Corporation Financial Analysis

...ACC111 – Accounting Karl Sauer Target Corporation Financial analysis In this essay I will review and offer financial regarding the financial statements of Target Corporation, we will perform a horizontal analysis of Target Corporation’s financial ratio’s starting with the company’s working capital and current ratios from 2004 to 2006. 1. Liquidity Ratios: Target’s liquidity ratios during this time period remain fairly consistent, from 2004 to 2006 the company current ratio average 1.59, its quick ratio averaged .98 and its working capital was positive averaging $5,052,000,000 each year. Typically current ratios above 1 are considered good, especially when combined with a strong positive working capital. In Chart No. 2 below, I compared Target’s liquidity ratios against two of its top competitors; Wal-Mart and Costco, across the board Target’s liquidity ratios were higher than their competitors by 45% to 60%. 2. Productivity Ratios: Productivity rations such as Asset Turnover, Inventory turnover and days stock in inventory show the investor just how well the company is able to use it assets to generate sales and managed its inventory levels. From Chart No. 3 we can see that the trend for the company’s productivity ratios has been up from 2004 to 2006, and while that is a very positive trend for the company’s asset turnover and inventory turnover ratios, it is a negative trend for the management of their inventory. Also the day’s stock...

Words: 532 - Pages: 3


...Target Corporation The Dayton Company opened the doors of the first Target store in 1962. In 1965, the first Super Target store opened in Omaha, Nebraska, and in 2000, the parent company, Dayton Hudson, officially changed its name to Target Corporation. By 2005, Target had become a major retailing powerhouse with $52.6 billion in revenues from 1,397 stores in 47 states. For the Target, Wal-Mart and Costco are the two important competitors. 1、Wal-Mart operated store formats similar to Target, and most Target stores operated in trade areas where one or more Wal-Mart stores were located. Wal-Mart had become the dominant player in the retail industry. Much of Wal-Mart’s success was attributed to its “ everyday low price” pricing strategy. In addition to growing its top line, Wal-Mart had been successful in creating efficiency within the company and branching into products lines that offered higher margins that many of its commodity type of products. 2、Costco, on the other hand, attracted a customer base that overlapped closely with Target’s core customers. But Costco used a membership-fee format. It provided discount pricing for its members in exchange for membership fees. Over the previous five years, sales excluding membership fees had experienced compound growth of 10.4%, while membership fees had grown 14.6% making the fees significant growth source and highly significant to operating income in a low-profit-margin business. A precondition for effective capital......

Words: 984 - Pages: 4

Target Corporation

...Case 19 Target Corporation 1. Why does Target use different hurdle rates for the store and the credit cards (9% and 4%)? -----This is because they want to get or make as much revenue as they could. You find that with low credit card rate they actually get a lot of customers who sign for the credit card since the interest rates are considerably low. What process would you use to estimate these discount rates to see if they are reasonable? - I would choose the IRR, NPV and the discount payback method to estimate 2. What is Targets Capital-budgeting process? -The Capital Expenditure committee said that the budgeting process would be to annually build 100 more stores while still maintaining an appealing image to the customers. This means that the loyal satisfied base would be retained and the company improving on its operating profits of 26%. The Targets operating earnings would also see an improvement and thus be integrated with the company’s overall strategy by focusing only on customers who visited Targets stores. Is it consistent with the company business and financial objectives? The Capital budgeting method is in line with the company’s business and financial objectives 3. Which of the five CPRs did you accept? Which project attributes did you consider as part of your decision? * I chose the Whalen court Capital Project request. This is because the location had the largest percentage of college educated people compared to other projects after......

Words: 757 - Pages: 4


...Top of Form 1 Bottom of Form 1 &&&& Home page » Business and Management Target Corp. Ethics And Corporate Responsibility In: Business and Management Target Corp. Ethics And Corporate Responsibility I chose to do my research on the Target Corporation. I feel they have a reputation of service to their customers, employees and community. Target’s mission is great value, the community, diversity and the environment. Target takes 5% of its income and puts back into the community. The Reading and Education Program, The Military and Veteran Support Program and The Social Services Program are just a few of several programs Target Corporation offers to the community. Target has a great reputation to be a positive fixture in the communities they serve. I think it says a lot about a company and the way it does business. I would feel good about working for a corporation like this. The Target Corporation has good ethics and is socially responsible. Target invests in their employees and their community. Target Corporation is the 4th largest retailer in the United States and the 2nd largest discount retailer in the country just behind Wal-Mart. Target reflects its founder, George D. Dayton in the sense of persistence and hard work. Dayton’s father was a physician who could not afford to send his son to college because he would offer his services to the poor for free (Target). In 1902, George D. Dayton bought Goodfellow’s Dry Goods Company in Minneapolis, MN. Early on, his......

Words: 368 - Pages: 2

Target Corporation Term Paper

...Cost/Quality Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service, and checkout is fast because if customers aren’t happy they could buy their products from Target’s competitors, Wal-Mart. Timing and Know-How Target has always been a company that has been a step above its game. They have always known when things need to changed in their product, service, image, etc. In 2004, Target sold off Mervyn’s and Marshall Field’s chain and focused solely on Target stores. Target did that because they knew what they were focusing on and that was quality products at a low price. In 2005, to launch their fashion line, they held a fashion show in New York on a vertical runway on the side of Rockefeller Center Building. The company hired gymnasts and acrobats to showcase the Target fashion and core customers were young, active, and well-educated families. In mid 1990s Target developed its......

Words: 3322 - Pages: 14


...PART I: Overview of the Corporation: The year 2012 marks Target’s 50th anniversary. In the years since the department store evolved, Target has “watched our innovations lead to retail revolutions, and our team, guests and partners build better communities where we live and work” (1). With a mission to “make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and exceptional guest experience,” (1) Target has become known as an upscale retail store that does in deed offer trendy, high quality merchandise at discount prices. They place a lot of focus on their brand promise, “Expect More, Pay Less,” in order to ensure customer satisfaction. “Expect more of everything. More great design, more choices and more designer-created items that you won’t find anywhere else. And pay less. Its as simple as that” (1). Target Corporation is guided by their commitment to great value, the community, diversity and the environment and this is held very close to their heart. In keeping with their “Expect More, Pay Less” promise, Target distinguishes itself from competitors by offering affordable yet upscale products. History: Target Corporations, formally known as the Dayton Corporation, was founded in 1902 by George Dayton. At the time of formation, the store was known for “Dependable merchandise, fair business practices and a generous spirit of giving” (1). Dayton had recognized opportunities for growth in this market and took...

Words: 7553 - Pages: 31

Target Corporation Supply Chain Assignment

...chain and how it works by the exploration of Target Corporation’s supply chain. Target, one of the nations largest retail chains, first opened in 1962 in Minnesota as key leadership were looking for new ways to move from a family-run (The Dayton Family) department store to a mass market national chain strengthening customer relationships by appealing to value-oriented shoppers in quest of a higher-quality experience. Today, Target operates approximately 1750 stores (including nearly 240 SuperTarget stores) in 49 states with Gregg Steinhafel as their CEO. We will review the effectiveness of Target’s supply chain and analyze if it meets the necessary expectations of their demand chain. (Target, 2011) Overview of Target’s Supply Chain Target, the 2nd largest discount-retailer in the U.S. has focused on their slogan, “Expect More Pay Less” and strategizes to increase optimal value and growth for global networking, an exclusive upscale and trendy product line, and value added service that creates a distinctive niche throughout the world. This multi-billion dollar company set out to change how consumers thought about discount shopping by offering a more upscale shopping experience. In 1998, Target purchased Associated Merchandising Corporation (AMC) as part of the development of their global service network in efforts to offer products at more competitive prices and survive one of their biggest competitors, Walmart. Target and its founders have always focused on......

Words: 1460 - Pages: 6

Target Corporation

...TARGET CORPORATION Company History 1900s-1950s * Founder George Dayton opens his first store, named Goodfellows, in downtown Minneapolis, Minn., in 1902. * In 1946, The Dayton Company begins the tradition that keeps us strong today: 5 percent of profits go back to the communities we serve. * In 1956, The Dayton Company opens Southdale, the world’s first fully enclosed two-level shopping center. 1960s * In 1962, the Dayton Company enters discount merchandising with the opening of its first Target store in Roseville, Minn. * In 1967, Dayton Corporation goes public with its first offering of common stock. * In 1969, the company merges with J.L. Hudson Company and adopts the name: Dayton Hudson Corporation (DHC). 1970s * For the first time, the corporation’s revenues top $1 billion. * Dayton Hudson Corporation acquires Mervyn’s to become the seventh-largest U.S. retailer. * Target Stores becomes the corporation’s largest revenue producer by the end of the decade. 1980s * Revenues more than double to $10 billion. * In 1984, Dayton’s and Hudson’s combine to form Dayton Hudson Department Store Company, the largest independent U.S. department store. 1990s * Dayton Hudson acquires Marshall Field’s in 1990. * In 1994, Bob Ulrich becomes chairman and CEO of the corporation. * A year later, Target launches the first-ever discount store credit card (Target Guest Card), and opens its first Super Target Store. * In 1997,......

Words: 988 - Pages: 4

Season 2 Episode 4 The Fury of Firestorm | Running Man Ep.416 | Share on Google+