Target Corporation

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Company profile
Type :Public company Traded as :NYSE: TGT Industry : Retail Founded 1902 (as Dayton Dry Goods) 1969 (as Dayton-Hudson) 2000 (as Target) Founder : George Dayton Headquarters : Target Plaza North & Target Plaza South Minneapolis, Minnesota, United States Number of locations :1,750 (January 2011) Area served : United States (except Vermont) Canada (starting in Late 2011) Key people: Gregg Steinhafel (Chairman, President and CEO)

920 billion (FY 2009) Total assets : US$ 44.533 billion (FY 2010) Total equity :US$ 15.000 (FY 2010) .390 billion (FY 2010) Operating income : US$ 43.Cont« Revenue : US$ 67.705 billion (FY 2010) Net income : US$ 2.487 billion (FY 2010) Employees : 355.

® brand promise. . we are guided by our commitments to great value.Mission Statement Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value. Pay Less. continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. diversity and the environment. the community. To support our mission.

training. hiring. and development  Technology  Conduct research  New trends and interests .Company activities Primary Activities  Customer Service  Marketing and Sales  Operations Secondary Activities  Human Resources  Recruitment.

DVDs. electronics. automotive supplies. sporting goods.750 stores in 49 states. jewelry. pet supplies.000 square feet The first Target store opened in Roseville. shoes. bedding. Minnesota. Target operates nearly 1. and hardware supplies. including more than 240 SuperTarget stores that include an upscale grocery shopping experience. .000 to 135. toys. Target stores carry clothing. kitchen supplies. health and beauty products. in 1962. Today. compact discs. Specifically.STORES Target is a chain of discount stores that are about 95.

elevator.While many Target stores share a fairly common bigbox store layout. the company has been flexible with its designs. in which a standard one-story building would not be feasible. a specialized escalator for carts. These stores encompass multiple floors with both sales floor area and off stage areas such as offices or storage rooms spanning a number of these floors. Target operates unique stores across the country in urban locations or within malls. . or Vermaport. Vertical transportation is provided in the store by escalator.

Here. Also. On August 9. Minnesota. in 1969. these distribution centers ship items directly to Target stores. With the exception of vendor supplied items. unlike Wal-Mart. It included a computerized distribution system and was known as the Northern Distribution Center. . This trial involved one Target distribution center and ten nearby Target stores. but from the companies that Target has partnered with. Target's grocery selection does not come from their own distribution centers.Regional distribution centers As of January 2010 Target Corporation operated 38 distribution centers across the United States. The retail chain's first distribution center opened in Fridley. such as greeting cards and soda. RFID tags would be placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center. Target announced to their suppliers that they were going to perform a trial on the effects of radio frequency identification on the efficiency of supply chain management in the Dallas/Fort Worth Metroplex. and from the distribution center to the stores. 2004. As of 2009 RFID has been phased out of the Dallas/Fort Worth Metroplex stores.

Virginia. California Savannah. Colorado. refrigerated and frozen items. Lacey. Georgia. In Colorado.Food distribution centers SuperTarget and Fresh stores require fresh produce. of Denver. stores are serviced through Fresh Pack Produce Inc. . Merchandise received is sent directly to Regional Distribution centers. Import warehouses The company operates four facilities to receive shipments from overseas manufacturers and suppliers. They are located near ports at Rialto. Washington and Suffolk. Food distribution center owned by Supervalu have been utilized by Target for many years.

Fulfillment Centers Internet sales orders from the Target Direct division. New centers are scheduled to open at Ontario. Georgia and other vendors. which operates from the Target. .com website. are processed by the facility in Woodbury. California and Tucson. Minnesota with some support from Savannah. Arizona in 2009.

and accumulate pharmacy rewards." debit card allows to save 5% of each purchase. . as well as designate a school for Target's Take Charge of Education program.SUBSIDARIES Financial and Retail Services (FRS) formerly Target Financial Services (TFS): Target's credit cards Gift Card balances debit card Target Check Card (later re-branded the Target Debit Card) Target Debit Card withdraws -up to $40 "cash back.

bedding. TSS employs 1.200 people. Today's Target Sourcing Services locates merchandise exclusively for Target Stores and Target. Its engineers are responsible for evaluating the factories that do business with Target Corporation for quality. .com.Target Sourcing Services (TSS): This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. as well as labor rights and trans shipment issues. 48 quality-control offices. furniture. TSS has 27 full-service offices. Such merchandise include garments. and towels. and seven concessionaires located throughout the world.

baby. and the Bullseye Design and 'Target' are registered trademarks of Target Brands. Currently. Target Commercial Interiors has an unusually high market share of Fortune 500/1000 business customers. beauty. their premium meat line. . The up & up brand offers essential commodities including household. Sutton & Dodge. Bullseye Dog is a trademark. as well as home offices. The brand claims to offer products of equal quality to national brands at a fraction of the cost. and personal care products. including the grocery brands Archer Farms and Market Pantry. and the electronics brand Trutech. Target Brands: owns and oversees the company's private label products. health care. averaging a savings of 30 percent. and are expanding to attract small to medium sized businesses.Target Commercial Interiors: provides design services and furniture for office space and originated in the home furniture department at Dayton¶s.

COM. This partnership ended in August. . The domain target.. 2011. such as the Target. COM: owns and oversees the company's e-commerce initiatives. Target. Target. COM survey.Cont. COM domain.com attracted at least 288 million visitors annually by 2008 according to a Compete.

Strategy .

Corporate Level Strategy Growth International Expansion Create more competitive advantage Increase market share To cater employee development through excellent human resource development. Target Company has the highest quality products .

Target Pharmacy.Business Level Strategy Strategic Business Unit  Target Food Centers. Target Retail Merchandise Differentiation Focus Innovation Product Development Generic Strategies   Grand Strategies   .

more trendy clothing.Strategic Choice Differentiation    Higher quality. better style Drive-through Pharmacies Expansion into SuperTargets .

2. .Target corporation : Strategies and objectives Long term objectives 1. To cater employee development through excellent human resource development. To gain competitive advantage over its competitors by committing to growth and delivering superior return to their shareholders.

Rationale Target Company has the highest quality products among its competitors however the company has the difficulty in the competing with its competitors in price. A competitive advantage is important for the company to gain more customers and to be able to grow and gain superiors returns. experiences. The human capital is consists of the education. and skills at a given point in time that help in the tasks of getting one's work done. . employee development increase productivity through increasing employees' skills and motivation.

. To reduce cost by 20% by the end of two years. 2. Increase earning per share by 10% by the end of 1 year.Short term objectives 1.

Rationale Target Corporation has continually target to increase earning per share every year. The company knows that they deliver excellent quality of products however the company needs to lower its cost in order for them to stay on the competition. When cost is lower. . the company would have the chance to lower its price. With a lower price with a high quality product the company would surely gain more customers over time and would increase its returns.

Financial strategy .

948 2010 65.390 .832 2014 77.357 Estimates in M-USD 2012 69.640 2011 67.Annual financial Statement Actuals in M-USD Fiscal Period January Sales 2009 64.903 2013 72.

67 69903 7430 5254 2874 420 1.05 72832 7474 5231 2814 433 1.18 77640 7866 5698 3080 496 1.29 .Annual Income Statement Actuals in M-USD Fiscal Period January 2009 2010 Estimates in M-USD 2012 2013 2014 2011 67390 7336 5252 2920 400 0.84 Sales EBITDA EBIT-operating profit Net income EPS Dividend per share 64948 6228 4402 2214 286 0.62 65357 6696 4673 2488 330 0.

0% 17.61 82.7% 20.3% 2129 ESTIMATES IN M-USD 2012 14120 15940 7430 1.6% 3056 Return On Equities 15.3% 16.1% .6% 2956 2013 12496 15880 7474 1.91 88.18 96.90 88.87 123% 3547 2010 14614 14810 6696 2.7% 3217 2014 12665 15334 7866 1.8 % 18.4% 18.67 78.Financial leverage Actuals in M-USD Fiscal period Jan Debt Shareholders' equity Operating income (EBITDA) Leverage (Debt/EBITDA) Gearing (Debt/Shareholders' equity) Capital Expenditure 2009 17888 14509 6228 2.8% 1729 2011 14014 15878 7336 1.

Swot analysis Strengths Brand Market Presence Design Innovative Marketing Techniques Weaknesses Geographic Locations Lack of Mission and Vision Statements Litigations Opportunities Global Expansion Entering untapped US Markets Continued growth in private label products Threats Competition U. Economy .S.

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