Hudson Bay Case Study

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Hudson’s Bay Company Target Market As a department store, the Bay and its subsidiaries are not exclusive to a specific demographic. This being said, the HBC’s largest consumer base is made up of adult women. While the HBC’s stores do carry men’s apparel, the selection is smaller and largely less promoted. The clothing styles and prices are also geared more towards an adult audience, as compared to the cheaper and more casual products designed for teens and young adults. The home appliances sold by the Bay and Home Outfitters are also bought mainly by homeowners, which is an adult audience. Despite being more popular among an older audience, the Bay does seem to be reaching out to the younger generation in its advertising. The HBC is also …show more content…

This would mean that shareholders could buy more shares of the company, ultimately creating more capital. Since the shareholders are considered part owners of the company, they take some of the income when the company is doing well, and lose some of their investment when it is not. This means little risk for the company, as it does not need to pay interest to shareholders. However, if the business does grow, a large portion of its growth will go to its shareholders, since they own portions of the company. Also, if a business is already public and issues new shares, this causes share dilution. This means that, by having more shares available, the earnings per share when the company earns income is diluted and therefore lower. This can make stockholders uninterested, which in turn may mean that the stock price …show more content…

While the risks are higher, since interest must always be paid, there is less potential loss in the long term, and therefore more reward. If the company were to issue more stocks and then earn a large amount of income over several years, the amount kept by the company would be significantly reduced. Also, the issuing of more stocks can hurt the stock price, offsetting the original capital gained. However, the decision depends on the situation. If it is predicted that the company will largely go down in value, then it may be best to issue stocks, carrying less

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