TARGET

Buying and Merchandising Operations Research

DeAsiah Brooks, Justin Larkins, Amber Childs
Bedford High School
481 Northfield Rd.
Bedford, OH 44146
March 2016
1

TableOfContents:

1.

EXECUTIVESUMMARY_______________________________________________3

2.

INTRODUCTION______________________________________________________4

2.1.

Descriptionofthebusinessororganization_______________________________________5

2.2.

Descriptionofthecommunity_________________________________________________6

2.3.

Overviewofthebusinessororganizationscurrentcultureandemployeeengagementstrategies

3.

RESEARCHMETHODSUSEDINTHESTUDY
3.1.

Descriptionandrationaleofresearchmethodologiesselectedtoconductresearchstudy______7

3.2.

Processusedtoconducttheselectedresearchmethods_______________________________8

4.

FINDINGSANDCONCLUSIONOFTHESTUDY
4.1.

Findingsoftheresearchstudy__________________________________________________10

4.2.

Conclusionsbasedonthefindings______________________________________________12

5.

PROPOSEDSTRATEGICPLAN
5.1.

Objectivesandrationaleoftheproposedplan_____________________________________14

5.2.

Proposedactivitiesandtimelines_______________________________________________15

5.3.

Proposedmetricsorkeyperformanceindicatorstomeasureplaneffectiveness_____________18

6.

PROPOSEDBUDGET_____________________________________________________________19

7.

BIBLIOGRAPHY_________________________________________________________________20

8.

APPENDIX_____________________________________________________________________21

1. EXECUTIVESUMMARY
OurgrouphascreatedfourdifferentactivitiesforTargetinBainbridgeinordertoincrease
employeerelationships,managerbehaviors,andbringvaluetoemployeeslives.Thesethree
thingsallhelpincreaseemployeeengagementintheworkplace.Thefouractivitiesinclude:
Activity

Importance

1. RedTeamsIncreasesemployee
relationships

RedTeamsallowsemployeestosustain
longlastingrelationshipswhilealso
addingvaluetotheirwork

2. HolidaysatTarget

HolidaysatTargetincreasesemployee
engagement,touchesonmanager
perceptionamongemployees,andadds
valuetoemployeelives

3. Annualshiftswap

Increasesemployeeengagementand
connectsworkerswithmanagers

4. Targetteammeeting

Increasesemployeeknowledgeof
companywhichaddstohowmuch
employeesvaluetheirjobs

ProposedBudget:
Activity

Cost

EmployeeIncentives

$20,000

HolidaysatTarget

$40,000

MandatoryMeeting

$3,500

TotalCost

$63,500

2.

INTRODUCTION
2.1.

Descriptionofthebusinessororganization

Daytondrygoodscompanywasfoundedin1902byGeorgeDaytonandwasrenamed
DaytonCompanynearlyadecadelatertobetterreflectthevastamountofgoodsand
servicessold.TheDaytonCompanyestablishesthepracticeofgiving5percentofpretax
profitsbacktothecommunityin1946.Indoingso,itbecomesthesecondAmerican
companytoestablishapresetamountofannualgiving.In1962whenthecompany
createdachainofretailstoresStewartWiddessandhisteambeganthesearchofanew
name,thusthebeginningofTarget.OnMay1,1962Targethasitsfirstgrandopeningin
Roseville,Minn.TargetisnowthesecondlargestdiscountretailerintheUnitedStates.
By2001,Targethaschainstoreslocatedthroughoutfortysevenstates.In2005,Target
exceeds$50billioninannualsalesforthefirsttime.Targetspurposeistofulfillthe
needsandfuelthepotentialofguestsbydeliveringoutstandingvalue,continuous
innovationandexceptionalexperienceconsistentlyfulfillingtheirExpectMore.Pay
Less.brandpromise.TargetscompetitorsareWalmart,Walgreens,Staples,GameStop,
BabiesRUs,andDicksSportingGoods.Targethasavastamountofproductsincluding
butnotlimitedto:foodandproduce,electronics,beautyandcosmetics,shoes,
sportswear,clothing,bath,bedding,appliances,furniture.jewelryandaccessories,and
toys.ThisresearchprojectwillfocusontheTargetlocatedinBainbridge,OH.

2.2.

Descriptionofthecommunity

ThisresearchprojectisbasedonthegeographicregionofGeaugaCounty,OH.Geauga
Countyhasapopulationof93,972.GeaugaCountyismadeupofBainbridge,Chardon,
Aurora,andseveralothersurroundingcities.AsshowninthegraphbelowGeauga
Countyconsistsof96%white,2%
black,1%hispanic,and1%other.There
isaveryequaldividebetweengender
with52%ofthepopulationconsistingof
femaleswhiletheother48%aremales.
Theaveragemedianhouseholdincome
inGeaugaCountyis$66,428while
Ohiosis$48,081.Comparedtotherest
ofthecountryGeaugaCountyscostof
livingis4.9%higherthantheU.S.average.Themedianhomecostis$182,600.

2.3.

Overviewofthebusinessororganizationscurrentcultureandemployee
engagementstrategies

Targethiresfromages15andup.Sixtypercentofemployeesareeitherinsecondaryor
postsecondaryschool.Mostemployeesarebetweentheagesof17and40.Bainbridge
Targetemploys143teammembers.Thereisacalendarinthebreakroomthatdisplays
allemployeesbirthdaysandanniversaries.Thebreakroomisappropriatelydecoratedfor
everyholidayseasonandthereareusuallygames,puzzles,andtriviasheetsthat
employeescancompleteduringtheirbreaks.Targetsuppliesfoodtoemployeesonall
holidaysandonotherselectdaysthroughouttheyears.Theyalsohavepaycheck
pancakeswherethereispancakesforemployeesoneverypaydayfriday.
Nonbreakroomengagementstrategiesincludegivingemployeesstorecreditorother
incentiveseachtimetheygetaguesttosignupforaRedCard.Targetscoresworkers
basedontheirspeed,pleasantness,customerfeedback,andavariationofother
measurableachievements.Targetemployeesearncompetitivepay,healthinsurance,paid
timeoff,vacationdays,401k,lifeinsurance,andmanyotherbenefits.Allemployeesget
10%ofallmerchandisesoldintarget.Targethasseveraldifferent
departmentswhichinclude:PizzaHut,StarBucks,
pharmacy,frontlines,backlines,andproduce.
Throughouttheyeartargetteammemberswill
havehuddleswherethemanagerorLODdiscusses
tacticsthatshouldbeused,newstrategiesand
goals,oracknowledgesworkwelldone.

3.

RESEARCHMETHODSUSEDINTHESTUDY
3.1.

Descriptionandrationaleofresearchmethodologiesselectedto
conducttheresearchstudy

Weutilizedseveraldifferentresearchstrategiesinordertounderstandwhatmeasures
wouldmosteffectivelyincreasetheamountofengagementamongemployeesatTargetin
Bainbridge,OH.

ResearchMethod

Rationale

1.ManagerInterview

Gainanoverallperspectiveofhowour
companyaimstokeepemployees
engaged(PrimaryData)

2.EmployeeSurvey
Sample1

Gaininsightoncurrentemployee
engagement

3.CustomerSurvey

Understandcustomer'sassessmentof
employeeengagement

4.EmployeeSurvey
Sample2

Gainviewofemployeeinterestandview
ofcompany

5.InternetResearch
EmployeeInterestTactics

Assesshowotherstrytoengage
employeesandunderstandwhytheyare
notengaged

6.InternetResearch
EmployeeRelations

Understandthecommonrelationship
betweencoworkersinretail

7.InternetResearch
TargetCorporateResponsibility

UnderstandTargetsideologiesand
currentgoalplans

8.FocusGroup
1&2

Testproposedplanwithcurrent
employees(10peopleeach)

3.2.

Processusedtoconducttheselectedresearchmethods

1. ManagerInterview
WeconductedaninterviewwithTargetsstoremanagerLoriCarsononJanuary28,2016.This
interviewallowedustogainfurtherknowledgeonTargetscurrentideologiesoncustomer
engagementandrelations.Thisgaveusabetterideaofhowmuchmoneyiscurrentlyspenton
tryingtokeepemployeesengaged.
2. EmployeeSurveySample1
Weconductedasurveyfrom67outofthe143employees.Theresultsofthesurveysallowedus
tomeasurehowemployeesfeelaboutworkandcompanyengagement.Thishelpsunderstand
howmuchmoreshouldbeinvestedintoengagingemployees.Italsohelpsusunderstandhow
employeesperceivethesatisfactionoftheirguests.Thisfurtherhelpsusunderstandhow
engagedemployeesarebutalsoprovidesawaytomeasurethesuccessofourproposedideas.
3. CustomerSurvey
WewentthroughouttheBainbridgestoreandgaveseveralcustomersanoralinterview.We
interviewedtwelvedifferentguests.Theseoneononeinterviewsallowedustogaugethe
thoughtsofeverydaycustomersandunderstandthevibetheyreceivedfromemployees.The
surveyprovidedcustomersperspectiveofemployeeengagementandinterestintheirjobs.Our

customersurveysalsoprovidedanotherwaytomeasurethesuccessofthenewlyimplemented
ideas.

4. EmployeeSurveySample2
Oursecondsurveypresentedtoemployeesyielded20results.Theseresultsdemonstrate
employeesviewofTargetasawhole.Italsoallowsemployeestoprovidesuggestionsthatwill
boostemployeeengagementandtheiroverallsatisfactionofbeingaTargetemployee.These
resultswillaidintheprocessofdecidingwhichtacticswillbemostsuccessfulinachievingthe
goaldefinedbyourproposedplan.
5. InternetResearchEmployeeInterestTactics
Thissecondarydataallowedustounderstandcommontacticsusedbycompaniestokeeptheir
employeesengaged.Italsoallowsustounderstandhowmuchcompaniesarewillingtospendto
ensurethatmoreoftheirworkersarepositivelyengaged.Wegainedabetterunderstandingof
thepurposeofthetacticsthatLori,thestoremanager,informedusthatTargetalreadyuses.
6. InternetResearchEmployeeRelations
Ourresearchoftrendsinemployeerelationsgaveusaideaofhowtoimproverelationships
betweencoworkers.Thisisimportantbecausewebelievethatifyouhadgoodrelationshipswith
yourpeersyouwillenjoyyourjobmorethusbeingmoreengaged.Werelatedthisinformationto
theresponseswereceivedfromouremployeesurveysanddiscoveredadirectcorrelationthat
willallowustounderstandhowtoeffectivelybreakthebarriersbetweencoworkersandalso
workersandmanagement.

7. InternetResearchTargetCorporateResponsibilities
ThisresearchallowedustoensurethatourproposedideascoincideswithTargetscurrent
ideologiesandgoals.ItprovidedfurtherinsightintowhatTargetcompaniesshouldbedoing
fromcorporatesview.Researchingthisinformationallowedustoimproveourproposed
activitiesbyintertwiningthemwithcurrentTargetpoliciesandgoals.

8. FocusGroup1&2
Weconductedafocusgroupswithtwodifferentgroupsofcustomersaskingthesamequestions.
Weaskedtheiropinionsonsomeofthestrategieswecreatedtohelpusengageemployeesand
createbetterrelationshipsthroughoutthecompany.Thisallowedustogetanotheropiniontoour
ideasandunderstandwaysthatourideascanbeimproved.Wealsogainedseveralnewideas
fromtheresponseswereceived.Thisgaveusanideaofhowmanyemployeesfoundourideas
effective,whichallowsustosetgoalsforhowlongitshouldtakebeforeweseeand
improvementduetoournewlyimplementedideasandalsowhatareasweshouldexpect
improvementin.

4.

FINDINGSANDCONCLUSIONSOFTHESTUDY
4.1.

Findingsoftheresearchstudy

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Theinterviewconductedwiththemanagerofthestore,LoriCarson,demonstratedareas
ofemployeedisengagementandopportunitiesforimprovement.Thisallowedustoform
aplanthatnotonlyfurtherengagedworkersbutalsoincreasedproductivityinspecific
areas.Ouremployeesurveysinformedusonwhattheemployeesfeelshouldbechanged
inordertogetthemengagedintheirworkandthecompanyasawhole.Surveysgivento
Targetguestsgaveanotherperspectiveofwhatareascustomersbelievedworkerswere
disengagedin.Allofthisdataputtogetherallowsustoformaplanthatsatisfiesall.We
haveaccessedthepainsofmanagers,employees,andalsocustomers.Knowingwhat
eachgroupfeelscanbeimprovedallowsusnottoonlyincreaseproductionbyengaging
moreworkersbutitalsoallowsustoengagecustomersaswell.
OurinternetresearchallowedustounderstandwhyGallopsreportissadlyvery
accurate.TheInternetresearchdemonstratedbothpositiveandnegativepolicies
companiesareutilizingforemployeeengagement.ReviewingGallupsreporthelpedus
createamuchmorereasonableandattainablegoalastohowmanyemployeesweshould
expecttobeengaged.Thereportalsoexplainedthatdisengagementissignificantlytied
withtheactionsofmangers.Wealsogainedadeeperunderstandingofwaysmany
companiesengagetheircompaniesandhowmuchtheyspendonit.
Inthepast,everyoneknewalltheircoworkersandhadoutsiderelationshipswithmost
ofthem.Intoday'ssocietyveryfewpeopleinteractwiththeircoworkersbeyond
companydoors.Severalstatisticsshowthatpeoplewhohavecloseandappropriate
relationshipswiththeircoworkersaremoreengagedwhentheyareatwork.

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Conductingafocusgroupgaveinsightintowhatcurrentemployeesandmanagers
positivelyrespondedto.Manyemployeesarewillingtodomoreaslongasitdeems
valuabletothem.Infact,reportedly18ofthe20employeeswhoparticipatedinourfocus
groupsaidthattheylikewhentheyareassigneddifferenttasksandareallowedtodo
somethingotherthantheirdesignateddailytasks.

4.2.

Conclusionsbasedonthefindings

ResearchMethod

Conclusions

1. ManagerInterview

Targethasseveraltacticsto
increaseemployeeengagement
currentlyenacted
Targetissettinggoalsandalso
measuringaresultsandreporting
itbacktoemployees

2.EmployeeSurvey
Sample1

Employeesunderstandthespecific
goalstheyareexpectedtomeet
however,thereisnoclearrationale
ofexplaininggoals
Employeesunderstandsiftheyare
engagedornot

3.CustomerSurvey

Customerscantellwhich
employeesareengagedandwhich
arenot
Customerperceptionofemployees
affectstheirexperienceand
ultimatelyTargetsamountof
profits

4.EmployeeSurvey
Sample2

Employeestakepleasureinbeing
abletododifferentjobs
Therepetitivenessofthejob
directlyaffectsworkers
disengagement

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5.InternetResearch
EmployeeInterest

Disengagementisaworldwide
problem
Therearemanyideasofhowtofix
saidproblem

6.InternetResearch
EmployeeRelations

Employeerelationshipshavea
directcorrelationwithemployee
engagement

7.InternetResearch
TargetCorporateResponsibilities

UnderstandingTargetspolicies,
beliefs,andlongtermgoals
EvaluatingpreviousTarget
customsandunderstandinghow
reenactingthemcanincreaseprofit
andemployeeengagement

8.FocusGroup
1&2

Knowingwhatemployeesrespond
to
Whatengagesemployeesorwhat
thingsdotheyfeelhavepurpose

Wehaveconcludedthatinordertoincreaseemployeeengagementwemustalsofocuson
managerbehaviors,employeerelationships,andhowworkingforTargetcanbringvalueto
employeeslives.Wealsomustfindawaytodifferentiateouremployeesfromourcompetitors
employees.Wewanttoshowthatourworkershavemoremeaningthansimplystockingshelves
orcheckingcustomersout.WeunderstandthatTargetalreadyusesverygoodpracticesasfaras
encouragingemployeesandcommendingthemontheirwork.Wemuststillfindawayto
increasethesepracticesorbetterperfectthemtoensurethatwegainasmuchemployee
engagementaspossible.Wehavecreatedmanycreativeandextensiveideasbutwealso
understandthattherearemanysimplerthingsthatweshouldbedoingtoengageourworkers.
Someofthesethingsincludesimplythankingemployeesandunderstandingthedepthofthe
simpletasksthattheydoeveryday.Employeeswhoknowthatwhattheyaredoingisaverybig

13

partofthecompanyaremoreengagedandeagertowork.Ourfindingsallowedustounderstand
whatwecandotomakeTargetabetterplaceforcustomers,employees,andmanagers.Another
keyelementfoundthroughoutourresearchphaseisthattheirshouldnotbeabarrierbetween
employeesandmanagers.Although,wehavemadeadistinctionforthesakeofourplanwe
clearlyunderstandthatmanagersarealsoemployeesandthisisafactthatshouldreigntruein
theworkplace.

5.

PROPOSEDSTRATEGICPLAN
5.1.

Objectivesandrationaleoftheproposedplan

OurprimarygoalisengageTargetemployees,substantiatelonglastingfriendships
amongemployees,andsubsequentlyincreasesalesbysatisfyingtheneedsofmore
customers.ThisproposalwillalsocommemoratepastideologiesusedbytheTarget
companyinthepastandbringthembacktolife.Targethasalonghistoryofgivingback
tocommunities.Wewillincorporateemployeesintothistraditionbynotonlygiving5%
ofourearningsbacktolocalschoolsbutbyalsogoingoutintothecommunityand
personallyhelpingothers.Themostimportantthingweaimtoachieveismakingevery
Targetemployeefeelimportantandvalued.

Objectives

Rationale

Increaseemployeeengagement

Disengagedemployeescostcompanies
andbusinessesmillionsofdollarseach
year.Engagingasmanyemployeesas
possiblewillsaveusmoneybyincreasing
productivity

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Givingbacktothecommunity

Givingbacktothecommunityincreases
localawarenessofbusinessesand
increasescustomerloyalty.Ontheother
handemployeesworkingtogethercreate
positivebondsandfeelagreatersenseof
selfworth

Getmorecustomerstosignupfor
RedCards

CustomerswhohaveaRedCardwillshop
atourstoremorethanthosewhodonot.
ThemoreRedCardsignupswehavethe
moremoneywecanpotentiallyearn.

5.2.

Proposedactivitiesandtimeline

RedTeams:
WewillintroduceRedTeamsNovember1,2016.
ThisdatewaschosenbecauseNovemberisa
verybusymonthandemployeesmustwork
togetherduringthistimeinordertosuccessfully
satisfyguestneeds.Employeeswillbeseparated
intovariousteamsandwillcompetetogainthe
mostRedCardsignupsandcompletingseveral
otherbenchmarks.RedTeamscreatehealthycompetitionintheworkplaceandallows
employeestoworktogether.Allteamswillreceiveamonthlyrewardbasedonthefinal
rankings.Thisengagesworkersandencouragesthemtostriveforsuccess.RedTeams
alsoincreasesproductivityamongworkersincreasessales.Competingtogainmore
RedCardsignupsattractsmoreloyalandfrequentshoppingguestsalsoincreasessales.

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HolidaysatTarget:
In1963,DaytonswouldcreateaSantaauditoriumandwouldbringseveralchildhood
storiestolifesuchasChristmasCarol,Cinderella,PeterPan,andmanymoreclassics.In
spiritofembracingpasttraditionspracticedbyTargetwewillreinventHolidaysat
Dayton.StartingDecember3,2016,employeeswilldressupandactoutselectstories.
ThiswilloccureveryfollowingSaturdayinthemonthofDecember.Thisallows
employeestoworktogetherwhileentertainingguests.Wewillalsohavepromotional
tieinseachweekthatcorrespondswiththe
specificcharactersthatwillberepresented
bycustomers.Forexample,ifemployees
aredressedasStarWarscharactersthanwe
wouldhaveaspecialdiscountonselect
StarWarsmerchandisethatweek.Thiswill
alsodrawinmorecustomersbecausemanyfamilieswillcomeintoseethecharacters.

AnnualShiftSwap:
OnJanuary1,2017,wewillbeginanannualteam
memberswap.Selectworkerswillbemovedtoa
randomlyselecteddepartment.Thisallows
employeestododifferenttasks,workwithdifferent
employees,andlearnthebasicsofworkinginthe

16

departmenttheyhavebeenassignedto.SinceTargethasover100employeesmanydo
nothavethechancetointeractwitheachother.ShiftSwapallowsemployeestohave
healthyencounterswithotherworkerstheynormallywouldnotcomeincontactwith.
Annualshiftswapdaycreatesnewrelationshipsandallowsworkerstoexplorenew
positions.Italsoisawaytotrainemployeesindifferentareaswhichcanbevery
beneficialforthecompany.

TargetTeamMeeting
StartinginJanuary2017,therewillbeafunmeetingforallteammembers.Inthis
meetingmanagerswilldiscussgoalsthatwerenotmetaswellasonestheonesthatwere
met.Theywilldiscusshowweshouldaimtoachievegoalsthatwereunattainedandwhy
thesesgoalsareimportant.Employeeswillberecognizedfortheirhardworkand
dedication.Alsoemployeeswillreceivefurtherinsightintothecompany'scurrent
standings.Thepurposeofthismeetingistoletemployeesknowthattheyareavaluable
assettothecompanyandthattheyaretrustedwithvaluableinformation.Thismeeting
shouldalsoincreasetheesteemofworkersandmakethemmoreengagedintheirwork.
Foodandentertainmentwillbeprovidedat
allmeetings.Thiswillalsobeapaid
meeting.

17

5.3Proposedmetricsorkeyperformanceindicatorstomeasureplaneffectiveness
Ourgoalistoengageemployeesandcreatehealthypeerrelationshipswhileincreasing
profits.Inordertotrackthestatusofthesegoalswewilldothefollowing:

Goal

MeasuringGoalsSuccess

EngageEmployees

Wewillcreateanewquestionon
thecurrentonlinecustomersurvey
thatasksthemtoevaluatetheir
cashiersengagementandoverall
engagementfromallemployees
Comparesalesyearwith
implementedideastothesalesof
theprioryear

CreateHealthyRelationshipsAmong
Employees

Evaluateeachdifferentteams
abilitytoworktogetherandreach
specifiedgoals

Attractloyalcustomers

Trackthenumberofcustomers
signingupforRedCardsandusing
Cartwheel,thetargetapp.

6. ProposedBudget
Thefollowingarenecessarycostselementsoftheproposedplan:

Activity

Cost

18

EmployeeIncentives

$20,000

HolidaysatTarget

$40,000

MandatoryMeeting

$3,500

TotalCost

$63,500

TheproposedbudgetiscreatedtoestimateexpensesnecessaryfortheTargetlocatedin
Bainbridge,OHtocarryoutourproposal.EmployeeincentivesderivefromRedTeamswe
expecttospendtwentythousanddollarsonprizesandrewardsforemployees.Thebudget
createdforHolidaysatTargetwillcoverstoredecorations,employeecostumes,andevent
advertising.TargetwillalsobeexpectedtocoverlaborcostsforTargetteammembermandatory
meeting.

Returnoninvestment:
Ourproposalwilleffectivelyincreaseemployeeengagement,althoughthisholdsnocashvalueit
willincreasethevalueofthecompany.Engagedemployeesaremoreproductiveandincreasesa
company'sprofit.Wealsoexpecttodrawinalargerspectrumofcustomers.

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Eisenhauer,Tim."10SimpleSecretsYouNeedtoKnowtoIncreaseEmployeeEngagement."

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Entrepreneur.2015.Web.19Feb.2016.
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Gifford,Julia."MotivatingYourEmployeesWhatYoureDoingWrongandHowtoFixIt|
DeskTimeInsights."DeskTimeInsights.Web.19Feb.2016.
"MotivatingYourEmployeesWhatYoureDoingWrongandHowtoFixIt|DeskTime
Insights."DeskTimeInsights.Web.19Feb.2016.
"Report:StateoftheAmericanWorkplace."Gallup.com.Web.19Feb.2016.
"TargetthroughtheYears."TargetCorporate.29Jan.2016.Web.19Feb.2016.
"TopCompaniesof2015."Forbes.ForbesMagazine,29Jan.2016.Web.19Feb.2016.
"TargetCorporationHistory."HistoryofTargetCorporationFundingUniverse.6May2014.
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APPENDIX:

21