preview

Acquiring Target Corporation

analytical Essay
1295 words
1295 words
bookmark

ACQUIRING TARGET CORPORATION INTRODUCTION The current economic recession has taken a toll on corporations. Those who survive stay within their financial means, are innovative in retaining and attracting customers, and use technology to distinguish themselves from their competitors. Target Corporation is a company that possesses all of these characteristics. While some companies have cut payroll or ceased to exist, Target Corporation has survived in the economic recession and is positioned to gain further market share as economic conditions continue to improve. The purpose of this report is to analyze Target Corporation’s financial statements, determine the future growth potential of the company, and make a recommendation for or against the acquisition of the company. POTENTIAL FOR GROWTH Although many competing companies are projecting insignificant profit growth over the next few years, Target Corporation is projecting profit growth in the near future. Target expects 2012 annual sales to increase by four to five percent (Target Corporation, 2011). When combined with their continued emphasis on technology, customer rewards, and customer relations, the future of Target Corporation looks bright. Making Use of Technology Target Corporation recognizes the importance of technology in reaching its customers. In 2011 the company launched a completely redesigned website that focuses on ease of use. Target also has an industry leading mobile application that allows the company to reach its customers regardless of where they are located. In fact, Mobile Commerce Daily named Target the “2010 Mobile Retailer of the Year” (Target Corporation, 2011). It is in this sector that Target’s potential for growth is the highe... ... middle of paper ... ...ved March 11, 2012, from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031794 Microsoft Network. (2012, March 8). Target Corp. Retrieved from MSN.Money: http://investing.money.msn.com/investments/ Moore, P. (n.d.) Target to add PFresh grocery concept at 350 stores. Business News – The Business Journals. Retrieved March 13, 2012, from http://www.bizjournals.com/twincities/stories/2009/11/16/daily32.html Target Acquisition. (2011, January 13). Target Pressroom. Retrieved March 13, 2012, from http://pressroom.target.com/pr/news/target-corporation-to-acquire-real-estate.aspx Target Corporation. (2011, March 11). Target 2010 Annual Report. Retrieved March 9, 2012, from http://investors.target.com Target Corporation. (2012, February 23). Target Reports Fourth Quarter and Fiscal 2011 Earnings. Retrieved March 5, 2012, from http://investors.target.com

In this essay, the author

  • Explains that target corporation recognizes the importance of technology in reaching its customers. in 2011, the company launched a completely redesigned website that focuses on ease of use.
  • Explains that target corporation is readying to rollout merchandise from newly formed partnerships between target and a diverse group of companies. the shops of target is designed to increase the foot traffic of retail stores and online shopping by collaborating with companies with local and national name recognition.
  • Explains that target corporation prides itself on being a discount retailer, so it has built-in advantages over other retailers. target's two closest competitors, wal-mart and costco, carry lower quality products.
  • Explains that target corporation has launched their pfresh concept countrywide in direct competition with wal-mart.
  • Opines that target corporation must stay one-step ahead of its customers to sustain their growth projections.
  • Recommends that target corporation be acquired, as their continued growth through the economic recession and slow recovery exemplifies that they are resilient and can adapt to all future obstacles.
  • Explains target innovations' a focus on form and function, retrieved from http://sites.target.com/site/en/company/page.
  • Explains that target will add pfresh grocery concept at 350 stores. business news – the business journals.
  • Analyzes target corporation's financial statements, determine the future growth potential of the company, and make a recommendation for or against its acquisition.
  • Opines that target corporation is projecting profit growth in the near future. target expects 2012 annual sales to increase by four to five percent.
  • Explains target corporation's acquisition of up to 220 retail sites formerly owned by zeller’s in canada. target also operates a technology unit in bangalore, india that supports u.s. locations.
  • Explains that target corporation's expansion into canada is a large investment by the company. to overcome these risks, target has diversified its retail stores by leveraging sales across several market segments.
  • Analyzes target's sales growth for the past two years, with a 4% average in revenues for 2010 and 2011 compared to their 0.8% growth in 2009 following the announcement of an economic recession.
  • Summarizes target corporation's 2010 annual report and target reports fourth quarter and fiscal 2011 earnings.
Get Access