...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 Clinics...
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...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, Target...
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...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 Target...
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...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...
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...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 obsession...
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...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. Target.com offers...
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...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 own...
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...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 carefully...
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... The two selected companies for this analysis are; Target Company and Wal-Mart Company. These are the leading global retail stores that are known for their irresistible retail force in the business industry. Wal-Mart Company is known to serve more than 200 million times each week all the esteemed clients of the corporation. The organization endeavors to order the operations of the company to be in line with the legal requirements of the state. This is undertaken through the strategic set company goals that direct the operations of the company. The corporate statement registrations of the Wal-Mart company shares are constantly undertaken to safeguard the finances of the company in the market industry. Target Company which is an American retail company has placed its operations to be the second largest company in the retail industry in America. The operations of the company were licensed to Wesfarmers at the acceptance of the company bulls eye trademark. Wal-Mart Corporation has placed all its operations in diverse areas of the United States and the global realm. The company accounts for more than 700 discount stores that have increased the profit margin of the organization. The different stores are the reason behind the huge employee number that has reached a figure of close to 2.1 million personnel. There are more than 9,600 retail units undertaking the Wal-Mart company operations in more than 28 nations. The Target Company on...
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... B. Target Markets 4 C. Current Marketing Objectives and Performance 5 III. SWOT Analysis 6 A. Strengths 6 B. Weaknesses 7 C. Opportunities 8 D. Threats 8 E. Matching Strengths to Opportunities/Converting Weaknesses and Threats 9 IV. Marketing Objectives 9 V. Marketing Strategies 10 A. Target Market(s) 10 B. Marketing Mix 11 VI. Marketing Implementation 13 B. Activities, Responsibility, and Timetables for Completion. 14 VII. Evaluation and Control 15 A. Performance Standards and Financial Controls 15 B. Monitoring Procedures 16 Target Corporation Marketing Plan I. Executive Summary Target is an upscale retail store offering trendy, high quality merchandise at discount prices. Their slogan is “Expect More-Pay Less”. Target Corporation operates Target.com, an online, electronic retail store, as well as Super Target, which offers a full line grocery store in addition to the Target retail operation. The company’s other key business include Target Financial Services, which encompass the Target Red and Target Visa card business. Target Corporation, originally called the Dayton Corporation, was formed in 1902 by George Dayton. The company recorded revenues of $59,490 million during the fiscal year ending January 2007. Target Corporation prides itself on its corporate responsibility which includes charitable contributions and being an environmentally friendly corporation. This, in fact, is one of Target Corporations’ many...
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...Types of Control Mechanisms Target uses four major control mechanisms to help manage their organization. The four control mechanisms include Expect More. Pay Less., communication, power, and trust. The control mechanisms are a force that helps exert control within the corporation. The controls impact the company differently and how Target handles the business, and the retail area. Target uses the Expect More. Pay Less as their mission so that shoppers find that the store is their preferred shopping destination. Target does this by showing that they can deliver exceptional guest experience, continual innovation, and outstanding value. The company also provides convenience and value by responding to their customers by offering fresh food, in the general merchandise stores. The stores offer the basic essential that include fresh produce, fresh meat, dairy, and frozen food assortments. Communication is also a very important control mechanism that helps Target provide good service to their customers. Marketing is also an important communication for the Target Corporation. Target planned their marketing to each of those who liked upscale discounting, quality of products, and their price competitiveness. They also used the “cheep-chic” strategy that helped them become a major brand and a consumer-shopping destination. They also use clever eye-catching marketing have partnered with high-profile design-oriented suppliers. The power of Target has grown since its beginning...
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...Retail Giants: JCPenney vs. Target Kelly Greenwood October 2, 2011 Columbia College JCPenney: History In business since April 1902, when James Cash Penney opened “The Golden Rule, a dry good and clothing store in Kemmerer, Wyoming. Although the name of the store was changed to JCPenney, in 1907, the company’s “Golden Rule” philosophy (do unto others as you would have them do unto you) remains unchanged. In 1927, JCPenney was listed on the NY Stock Exchange. Currently, JCPenney operates 1,108 department stores thoughout the U.S. and Puerto Rico, providing 112 million square feet of selling space. JCPenney offers private, exclusive and national brands. Its private brands are “developed, designed and sourced in-house, generating nearly 50 percent of the Company’s annual revenue.” (JCPenney, 2011) JCPenney has partnered with Sephora, Call It Spring™, MNG by Mango® and Modern Bride® to create a boutique style shopping experience within the JCPenney store. JCPenney “sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating.” (Yahoo Finance, 2011) It hosts one of the largest apparel and home furnishings e-commerce sites, posting revenues in excess of $1.5 billion in 2010. JCPenney posted approximately $17.8 billion in total revenues in 2010. “JCPenney has a balance of both mall-based and off-mall stores. Productivity...
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...History of J.C. Penney and Target By Rebecca Raschke J.C. Penney James Cash Penney and two partners opened the Golden Rule dry-goods store in 1902 in Kemmerer, Wyoming. The following two years they opened another two stores in other parts of Wyoming. In 1907, Penney bought out his two partners and took on new ones. By that time Penney had 34 stores and had $2 million in sales. The firm was incorporated in 1913 as the J.C. Penney Company Corporation. The company moved headquarters to New York City the following year and in 1915 stores had opened in Mississippi and Wisconsin. In 1917 Penney became chairman of the board and had opened 175 stores and Earl Sams became president of the company. As Penney became wealthier so did his charity. In 1923 he founded Penney Farms in Northern Florida for struggling farmers. In 1925 J.C. Penney Foundation was established and the company had grown to 674 stores and over $91 million in sales. In 1927 J.C. Penney became a publicly traded corporation listed in the New York Stock Exchange. In 1929 J.C. Penney increased its stores to 1,392. When the Great Depression hit the company coped by cutting back on inventory and by purchasing everything on a bargain so the savings could be passed onto the customers. Penney was so well established that people turned to J.C. Penney for their basic items and that is how the company made it through the hard times and even increased sales during the depression. By 1936 sales rose to $250 million and stores...
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...other. Unless and until the companies do not offer the exquisite and top class quality, they’ll not be able to attract and satisfy the customers. The companies and organizations need to emphasize on strategic plans, strategic objectives, and process improvement plans along with sufficient tools and techniques required for all this. For this purpose management must come up with various strategies to improve their quality and enhance their customer satisfaction. A lot of strategic management in regard to quality control and customer satisfaction is required if a company wants to gain and retain the customers. Target Corporation Target is a well known store in United States and is popular in regard to the outstanding and exclusive products it offers. The mission statement of the company highlights customer satisfaction and making it certain that Target stores are the most appropriate and accepted store for the customers who seek style and trend. The store offers a wide range of exclusive, creative and innovative products made by various designers at very reasonable prices. This is how they tend to gain and retain customer satisfaction. The company commits to expect more and pay less brand promise. This has given...
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...SKILL BUILDER ONE – COMPANY ANALYSIS TARGET Strategic Business Units SBUs (Segments) Until January 15, 2015 Target Corporation operated under two business segments: the US and Canada. In the US segment, the company encompasses its US merchandising operations, including stores and online businesses. Compared to the traditional supermarkets, Target general merchandise stores and CityTarget stores offer an assortment of general merchandise and limited food assortments. Super Target stores sell general merchandise items and a full line of food items. The US segment also offers credit card servicing activities and certain centralized operating and corporate activities that are not in the Canadian segment. Target also exclusively owns many brands, some including C9 by Champion, Chefmate, Cherokee, Converse One Star, and Genuine Kids from OshKosh, among others. Revenue for Target is also earned through Target Café, Target Clinic, Target Pharmacy and Target Photo. Target Canada has recently announced that they will be liquidating their Canadian stores. Target Corporation Chairman and CEO, Brian Cornell, carefully reviewed the Canadian performance and considered the implications of all options but could not find a realists scenario that would get Target Canada to remain profitable until at least 2021. Target has announced they will be exiting the Canadian market and focusing on growth and building further momentum in the US business. Target Canada currently operates 133 stores which...
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