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
For the most part, Target Corporation’s performance is positive and has been consistently growing in sales. The company has increased its stock value through additional sales resulting from a deliberate
Target 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.
For example in the economic forces they work to provide higher end discounted items to keep the profits up by allowing shoppers to have quality and cost savings. In the technological forces, Target has used the increase use of mobile platforms to allow their customers to shop online and pick up in the store by saving time. With the political-legal forces Target works to provide a safe and non-discriminating environment for all customers. Environmental forces are taken in to effect by looking at better waste recycling management to decrease their carbon footprint. Target works hard to represent the values and mores of their customer base, by being actively involved within the community and addressing current social
Target Corporation is committed to conducting business lawfully and ethically. Each team member is obligated to act at all times with honesty and integrity. Target complies with international, federal, state and local laws and regulations related to our business.
Target, 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).
According to www.targetcorp.com, Target is an upscale discount retail chain that sells quality products at attractive prices, and prides itself on clean, spacious, and guest-friendly stores. Target is the second largest "general merchandise" retailer (behind Wal-Mart); selling almost anything one would need to complete the "one stop shop", especially with the addition of the SuperTarget stores. The first Target opened in Roseville, Minnesota in 1962. Since then, 1,330 stores located in forty-seven different states, which includes the 141 SuperTarget stores, have opened nationwide. Target also has twenty-two distribution centers located in nineteen states. In addition to the vast number of store locations, Target also has other businesses that include: Target.com, Target Financial Services, Associated Merchandising Corporation, and Target commercial Interiors. Through all the key businesses, Target employs nearly 300,000 people from diverse backgrounds. The current Chairman and CEO of Target is Bob Ulrich.
"Nordstrom, Inc. SWOT Analysis." Nordstrom, Inc. SWOT Analysis (2012): 1-10. Business Source Premier. Web. 14 Nov. 2013.
Founded in 1962 by George Dayton of the Dayton Corporation, the first store was opened in Roseville, Minnesota, and served as the prototype for all Target stores opened since then and changed how consumers thought about discount shopping.1 Each store was designed with the customer in mind; the founders of Target realized that the appeal of clean, organized, and well-designed stores would set them apart from all others in the industry. In every store, related departments are conveniently placed next to each other. In 2000 the company was renamed the Target Corporation and now has over 1300 stores in 47 states, including more than 140 SuperTarget stores, as well as a consumer-friendly website. Many stores now have a pharmacy and Club Wedd and Target Baby gift registries. SuperTarget stores even have a separate side devoted to groceries. The corporation also offers the Target Visa Credit Card and the Target REDcard, which is a credit card that can only be used in Target stores or through the website.
The Target corporations in plans to grow converted retail stores to retail super stores. In 2004 Target added 65 new merchandise stores and eighteen new Target Superstores all across the United States.
Target has three primary retail divisions which consist of Mervyn’s, Marshall Field’s and the Target stores. The Target stores are currently the second ranked discount retailer in America behind Wal-Mart. Target has approximately 1,778 stores located across 47 states. The retailer distinguishes itself from competitors by selling higher end, fashionable products at discounted prices.
Expanding convenience stores allows consumers to purchase their daily groceries when on their way home after work or af...
Target Corporation being a retail industry, the structure by product grouped to a functional level practices works the best. This is necessary for the other functional levels to collaborate as a single team to produce a positive customer shopping experience. Target Corporation further divided the functional level into a geographic area to exercise management tasks effectively with the given authority. Each structure of the management at the geographic level has a strategy discussion, a line of communication, growth, and progress reporting according to the corporate reporting plan. Jana Potts who manages Target Corporation store has closer to 300, 000 employees working for her and the effective can be improved if the role is broken within domestic into channels, stores into broader segments and a separate global position. The rapidly growing online channel and global expansion are necessary to support Target Corporation's strategy of internal growth and sustain it for long term sustainability. These structural changes will allow Target Corporation to connect with its employee at a functional level and bring changes faster, track and monitor the
The purpose of this presentation is to provide a comparative analysis of business activities of two well-known representatives of the US retail industry, Target and Walmart. My research is focused on a business strategy of these largest and most experienced American merchandising companies; particularly, on their activities in Canada. Based on the data collected from the various sources, I would like to detect, analyze, and demonstrate the obvious causes that have lead to a catastrophic failure of Target in its unsuccessful attempt to win a Canadian market.
1. 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.
On the Target website, it is stated that their mission is to, ”…fulfill the needs and fuel the potential of our guests. That means making Target your preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences—consistently fulfilling our Expect More. Pay Less.® brand promise” (Target Corp). It has 1,799 stores in the United States alone and has locations in India. In 2014, they made $72.6 Billion. Similar to Wal-Mart, Target sells household essentials, apparel, groceries, pet supplies. health, beauty items, home furnishing, entertainment, and electronics. Both also have their own branded items to sell at a lower price than the commercial brands, and each corporation also has a