Acquiring Target Corporation
analytical Essay
1295 words
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.
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- Targetexplanatory essayIn the eighties Target was able to introduce electronic scanning with the checkout to become more efficient in all of their stores by expediting distribution center delivery processes. The nineties brought big successes for Target as they acquired Marshall Field's and opened their first Target Greatland in 1990. In 1995 with the introduction of their new credit card they also opened their first SuperTarget in Omaha, Nebraska. The new millennium brought about major change for the company as they changed their name in 2000 from the Dayton Hudson Corporation to Target Corporation. In 2004 they sold Marshall Field's and Mervyn's to solely concentrate on Target . ...
In this essay, the author
- Explains that target corporation is an upscale discounter providing high quality, on-trend merchandise at attractive prices in a clean, spacious and guest friendly store.
- Explains that the eighties and nineties brought big successes for target as they acquired marshall field's and opened their first target greatland in 1990. the new millennium brought about major changes for the company.
- Explains that target's mission statement is based on four key elements they believe are essential to their business: consistently delighting customers, creating an efficient workforce, generating consistent growth for shareholders, and investing back in the communities.
- Explains that target is constantly looking for better prices to fulfill their credo of "expect more. pay less."
- Explains that target is a participant in project equality, which promotes diversity and equality in the workplace. target employs 300,000 employees nationally.
- Explains that target's strategy of constant growth for shareholders is driven by trend and creating innovative products and strong communities. target declared a quarterly dividend of 10 cents per common share on january 12, 2006.
- Explains that target is a firm believer in community building and it shows through their extensive community programs.
- Explains that trendstarget is the number two ranked retailer in the u.s. behind only wal-mart, costco wholesale, and kmart.
- Explains target's largest mass opening in their history as they opened sixty new stores ranging from california to virginia. target is following suit by opening supertargets, which contain everything from clothing to groceries.
- Explains that target continues to grow year after year and will probably end up like mcdonalds, one on every corner.
- Explains that target has dedicated considerable resources to delivering superior guest service, such as in-stock reliability and an environment that is energetic, trendy, organized, and enjoyable.
- Opines that target will continue to grow, innovate, and elevate what people expect from their target visit to stay ahead of the competition.
- Explains that target wants to expand their selection of competitively priced consumables and commodities and maintain their focus on internal product design, development, and sourcing activities that generate quality and trendy merchandise.
- Explains that leadershiptarget's current chairman and chief executive officer is robert j. ulrich, the son of a 3m executive.
- Explains that the president of target corp is gregg steinhafel; douglas scovanner is the cfo and executive vice-president. financial services, hr, stores, property development, and technology have their own executive vice-presidents.
- Analyzes how target's annual report is presented in an investor friendly manor, with more explanations in the financial statements than you usually see.
1898 wordsRead More - Target Corporation Organizational Structureexplanatory essayTarget Corporation's strategic structure plans are continuing staffing the organization and assemble a well-talented management team. Also, continue recruiting and retaining employees with the needed experience. Another option is to acquire, develop and strengthen resources and capabilities in performing critical value chain activities to match changing market conditions and customer expectations. Target Corporation needs to explore multidivisional or matrix organization structure to facilitate strategy execution, delegate authority, and managing external relationships (Thompson, Peteraf, Gamble and Strickland, 2016).
In this essay, the author
- Explains how target corporation's organizational structure varies depending on the type of industry. the retail industry uses a functional level structure to support its output.
- Opines that target corporation's strategic structure plans are to continue staffing and assemble a well-talented management team, and acquire, develop and strengthen resources and capabilities in performing critical value chain activities.
- Explains that target corporation needs to recruit, train, and retaining world-class employees during the hiring process.
- Describes target corporation's organizational structure as a functional structure that supports strategy execution organized along with its functional lines.
1233 wordsRead More - Swot Analysis Target: SWOT Analysis Of Targetargumentative essayTarget has not changed its business model to adapt to the modern-day changes in the retail business. Compared to its rivals, Walmart is planning to open more than 200 small stores as compared to just eight small stores within a year.
In this essay, the author
- Explains that walmart can expand its markets to new and emerging markets, which can increase its revenues, attract more customers, and improve its brand image. aggressive competition from other discount retailers like target creates a great threat to the company.
- Explains that target is the third leading discount store in the us after walmart and costco. target has performed poorly in other regions that it has expanded including canada where it reported a loss amounting to $5.4 billion.
- Explains that the company has a well-known and established brand name which is highly appreciated by its customers.
- Explains that walmart is liked by customers and does not incite the aggression and bitterness normally faced by walmart.
- Compares target's ability to create enjoyable shopping experiences for its customers with its rivals.
- Compares target's ability to present its brand as fashionable and attractive to young customers.
- Explains that the company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty.
- Compares target's middle-class brand to its rivals, which attracts customers who find other stores like walmart unpleasant.
- Explains that target business is based on big box centers and supercenters, which are not preferred by many shopper who normally like shopping in small convenience stores within the neighborhood.
- Explains target hasn't changed its business model to adapt to the modern-day changes in the retail business. walmart plans to open more than 200 small stores, compared to just eight.
- Opines that target hasn't penetrated the online shopping business as compared to its competitors walmart and amazon.
- Explains that target has not diversified in the retail industry, which makes the company vulnerable to changing shopping patterns and economic downturns.
- Explains target has not tapped into businesses such as financial services and fuel filling stations, unlike walmart.
- Explains that target has an opportunity to expand its sales through online marketing of fashion products. ecommerce resents a great opportunity for target as compared to its rivals
- Explains that the decline in incomes for middle-class customers presents opportunities for increasing customer base for target as people with less money are most likely going to shop at discount retail shops.
- Explains that target is an urban brand because it has the ability to appeal to young customers who live in urban regions in the us.
- Explains that target has the opportunity to expand its sales as compared to walmart since it is best suited in attracting millennial shoppers who have an urban lifestyle.
- Explains that a decline in incomes in the us implies that most americans have less buying power which could significantly affect the company profits.
- Opines that the competition from other rivals such as amazon and walmart could affect the company's profitability that these rival companies offer low prices and convenience of shopping from home.
- Analyzes walmart's aggressive business moves in the regions where target operates, which could significantly affect target’s profits.
801 wordsRead More - Stock Analysis of Target Corporationanalytical essayTarget, the nation's #2 discount chain, now operates more than 1,500 Target and Super Target stores in 47 states, as well as an online business called Target.com. Target and its larger grocery-carrying stores, Super Target, have carved out a niche by offering more upscale, fashion-forward merchandise than rivals Wal-Mart and Kmart. After years of struggling to turn around its Marshall Fields and Mervyns departments stores divisions, the discounter sold them both in 2004. Target also owns apparel supplier The Associated Merchandising Corp. and issues Target Visa and its proprietary Target Card (www.Answers.com/topic/target-corporation).
In this essay, the author
- Opines that third quarter financial results were disappointing. comparable-store sales decreased from 4.6% to 3.7%, amounting to a 0.9% net decrease.
- Evaluates target's liquidity by two different measures: current ratio and quick ratio.
- Explains that target has stronger cash flows, higher operating margins, and larger asset base than the competitor averages. target's historically superior financial reports indicate its efficiency in providing larger roa and roe.
- Explains that determining a true value for expected market return was difficult in that it seems to be an opinion. since the 2000yr crash, the number has seemed to shrink.
- Explains that target, the nation's #2 discount chain, operates more than 1,500 target and super target stores in 47 states, as well as an online business called target.com.
- Explains that the dupont model is an excellent evaluation tool because it considers three critical elements of financial condition: operating management, asset management and capital structure management.
1001 wordsRead More - Target EFE Case Studyanalytical essayThe EFE shows that Target has opportunities with increasing Internet shopping and in the ease of shopping. The most important factor affecting the industry is the increase in on-line shopping. Target’s web site is easily accessible for online shopping services and for that reason they received an above average rating of 3. The other important factor that is affecting the industry of retail is the trend to their super centers. Their response to this is poor as there are only operating a few Super Targets which is why they received a low score of 1. Target is just below average in their efforts to pursue strategies that capitalize on external opportunities and minimize threats which is why their final score is
In this essay, the author
- Analyzes how the efe shows that target has opportunities with increasing internet shopping and in the ease of shopping. their response to this is poor as there are only operating a few super targets.
122 wordsRead More - The Brand Personality of Target Corporationexplanatory essay1. The Discount Department Store. Target prefers to be called as the latter instead of just department store. Expect more, pay less. With this tagline, the customers expect to purchase more items and pay the least amount possible. Not like other retail industries like its competitor Kmart and Wal-Mart, Target maintains retail value in terms of product offerings. They are known in their designer’s items in clothes, exclusive beauty products, categorized and functional goods, and seasonal offerings. It also sells the greatest number of gift cards among its rival business.
In this essay, the author
- Explains that target offer great items but affordable in prices. items present within the business are proven to be acceptable in standards and quality but never demands a high payment.
- Explains that target corp.'s website, www.target.com, caters to the needs of people who do not have time to visit the traditional market. the emerging culture in online marketing is perfected by the management.
- Explains that customers prioritize the benefits of a product or service's features, as well as the ongoing worth of the relationship with the company. they may also emotionally identify with company actions, goals, and values.
- Explains that diversity serves as the business' core corporate value. target corp. promotes diversity which is reflective in their operations and its human resources.
- Explains that target corp. is one of the most philanthropic companies in the united states. it donates 5% of its pre-tax operating profit while giving $2 million dollars a week to the community it operates in.
- Explains that target corp. is a brand that will continue to compete with the trends of the global retailing industry.
- Explains that brand is a symbolic manifestation of all the information connected with the company, product, or service.
1039 wordsRead More - 1analytical essayWhen it comes to macroeconomics relationship with the demand of products produced by Target, there are several that appear most important. Target provides many products for consumers in America, such as kitchen appliances, clothing, and electronics. When we look at how macroeconomics affects this, we must look at consumer income, wage rates, and price point of products sold by Target. The best way to understand these variables is in terms of historical data, which will be presented in a graph. These variables are also a good source in order to see how successful Target is doing and has done in previous years.
In this essay, the author
- Explains how macroeconomics affects the demand of target's products. target provides many products for consumers, such as kitchen appliances, clothing, and electronics.
- Explains that the median income of target shoppers is $60,000, which is higher than wal-mart's $42,000 to $45,000. the wage rate is also important to consider for target’s demand of products.
- Explains that the first graph is a comparison of median income levels of consumers for wal-mart and target.
- Explains that this graph shows how much is spent on the top areas of target products, in order to give a better idea of where consumers spend their money.
- Analyzes how the final graph deals with the average wage rates for target employees (this does not include management) and the minimum wage in the united states.
- Explains the purpose of these three charts is to show, visually, how target is able to handle macroeconomic variables and how well they operate each year. target's overall sales have been consistent from year to year due to consistent sales tactics from both target corporation and individual management.
- Analyzes how target's understanding of macroeconomic variables helps them maintain a successful annual sales total, and remain in business.
612 wordsRead More - Target Industry Analysis Essayanalytical essayTarget Corporation is one of the largest discounted retail stores. Target offers everyday essentials, attires, food amongst other differentiated merchandise at everyday low prices. In addition, it offers in-store amenities, including Target Café, Target Photo, Target Optical, Portrait Studio, Starbucks, and other food service offerings. In 1902 Target (TGT) was founded and incorporated in Minneapolis, Minnesota.
In this essay, the author
- Explains that target corporation is one of the largest discounted retail stores. it offers everyday essentials, attires and food at everyday low prices.
- Explains the scope of the analysis, which is to determine target's stock valuation by evaluating the technical analysis and multiples.
- Explains that analysistarget's price trend is a sideways/horizontal trend as there is no straightforward and steady direction of up or down. the simple moving average (sma) 20,50, 200 was used to indicate the shifts and reversals for short term prices.
- Analyzes the six technical indicators reviewed to confirm or conflict the price trend. relative strength index correlates with the chart showing a peak in march to april 2015 of bullish control.
517 wordsRead More - Walmart And Costco's Career Investoring Modelexplanatory essayTarget being 1 of the United States top 3 retail stores have the opportunity to far exceed 'Walmart and Costco with their career mentoring model in place. They have successfully embarked on a startup program with partner TechStars, their agenda is to focus on entrepreneur and intrapreneurs whom have an startup idea which will benefit Targets brands. The purpose is to begin to capture ideas and vision from other sources. With regards to opportunities they must seek a position in foreign countries, expanding to other countries the United States have not targeted in turn you gain the market, diverse segment of customers and employees. Speaking about opportunity, focusing on a private label, with the stability and respect the name has generated
In this essay, the author
- Explains that target has the opportunity to surpass walmart and costco with their career mentoring model in place. they have embarked on a startup program with partner techstars.
- Explains that external threats, such as taxes, imposing regulations, increased cost variables within the organization, and legal concerns, could cost the company an enormous loss in revenue.
- Explains that the retail industry has become a target segment for teenagers for such positions as fashion designers, marketing mentorships, data analyst, package designers and array of executive positions. giving the consumer an experience with transparency and sustainability will thrive.
- Explains that the retail industry is on the cutting edge of innovation to acquire the customer attention. technology, discovering channels in marketing to explore the possible opportunities amongst a variety of the economic landscape.
368 wordsRead More - Target Millennials Case Studycomparative essayTarget Corporation current target market is Middle to high-income consumers, baby boomers, home goods, and stylish apparel consumers.
In this essay, the author
- Proposes that target should consider millennials as a target market because they are both influencers and trendsetters.
- Explains that target corp. can easily reach millennials by having a high social media presence for about 62 percent of them.
- Explains consumer-buying power is the customer's capacity to purchase specific quantities of goods or services. millennials have a high buying power and are willing to spend their money.
- Concludes that grocery consumers are a real target market for target corporation, because they shop at target, not because of the grocery, but mainly because their household stuff.
389 wordsRead More