...Target: “From More” to “Pay Less” Gregory Tatum Saint Leo University Target: “From More” to “Pay Less” The central problem for Target is maintaining their goal of affordable prices against a weakening economy and competitors who have an advantage over them when it comes to price. Target got a shock during the 2008 economic slump. Consumers are supposed to "expect more, pay less" at Target. But during the slump, shoppers clearly opted for "always low prices" at Wal-Mart, the retail giant's old marketing tagline. Although there are several facts of relevance to the case, the glaring one was the urgency in solving the problem. Some people have always said, “Imitation is the greatest form of flattery.” To put it simply, Target is looking to the Wal-Mart model, lots of consumables at discount prices, to help it hold off any serious decreases in profit. Chasing other retailers to low prices is a mistake as it is a battle that Target cannot win in. Target has spent years building its image as a cleaner, trendier, and generally more pleasant shopping experience than its competitors. This image has had immeasurable advantages in the marketplace. The inherent danger of beginning to focus on price is that consumers may perceive less of a difference between Target and its competitors. This would tarnish Target’s brand image and eat away at the tremendous brand equity that it has spent decades establishing. By moving to a focus on price...
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...the companies’ slogan; my personal favorite is “better ingredients; better pizza, Papa Johns” I love pizza. Like wise large retail discount stores and chains such as Wal-Mart, Target and Kmart for example all have a company mission, vision, and value’s statements which help them to perform at optimum levels of operations. Missions, vision and value statements: the overall goal is to provide the organization with their purpose; which is the case for these retail chains in the U.S. The mission, vision and value statements aid each chain to define their brand, culture, and consumer relations. Each retail chain differentiates them-selves by providing unique good and services to their consumers, more-over their mission, vision and values statement must also be unique, enabling them to stand out form each other. The big players in the discount retail market are Wal-Mart, Kmart, and Target. (retailindustry.about.com) Supporting Paragraphs Both mission and vision relates to an organization’s purpose and are typically communicated in some written form. Mission and vision are statements from the organization that answer questions about which we are, what we value, and where we’re going. (Coffman, Freire, Heaver, & Soltis, 2002) Mission statements are often longer than vision statements. Sometimes mission statements also include a summation of the firm’s values. (Cady, Wheeler, DeWolf, & Brodke, 2011, p. 70) Values are the beliefs of an individual or group, and in this case the organization...
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...Case Study: Target Laval University 01/10/2013 To understand the struggles of Target during the economic crisis that started in 2008, one has to comprehend the relationship Target has with the biggest discount retailer in the United States; Walmart. The two stores are very often paralleled, so much that when one store is brought up, the other one is also brought up for a quick comparison. However, they still have one big difference in the fact that Target is considered to be more up scaled. Often described as “Cheap Chic”, the products at Target are of higher quality for a slightly higher price, while still staying affordable. Before the economic crisis, Target sales were always increasing and the business was growing at a faster rate than Walmart. Target’s profits and sales were increasing from one period to another, while Walmart was basically lagging; not decreasing in sales but not increasing neither. That situation alerted the biggest discount retailer so much that its top manager decided to change their marketing strategy and copy Target. They started to have more and more designer clothing and house furniture lines as well as more gourmet and organic food in its aisles. The well known “Always low prices. Always.” slogan was even changed to “Save money. Live better.” That new catch phrase was designed to take away the...
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...Once you have completed the section, erase the instructions that appear in italics. Overview This section consists of a single paragraph that succinctly describes the product you intend to develop, the target market for the product, the benefit the product provides to that target market, the competitors for the product, and how the product is different from competitive solutions in the market. A sample overview paragraph might look like this: is a that delivers . Unlike , provides . For example: PayPal is a web-based payment service that allows buyers and sellers to transfer funds instantaneously while protecting against fraud and identity theft. Unlike credit cards, PayPal allows any merchant to accept funds, and allows customers to pay for goods without disclosing sensitive banking or personal information. Lorem ipsum… Problem This section consists of either a short story or a handful of bullet points that concisely identifies the problems the product is designed to solve. Educate us – what is the current state of the world? Tell us – why is this a problem, and for whom is it a problem? Inspire us – what could a customer achieve with the product that currently isn’t possible? Use declarative sentences with simple words to communicate each point. Less is more. For example: Small web-based merchants are currently unable to sell their goods...
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...Case 6-33 (90 minutes) 1. a. Before the income statement can be completed, we need to estimate the company’s revenues and expenses for the month. The first step is to compute the sales for the month in both units and dollars. Sales in units would be: 90,000 units (August sales) ÷ 1.20 = 75,000 units sold in July. To determine the sales in dollars, we must integrate the break-even point, the margin of safety in dollars, and the margin of safety percentage. The computations are: [pic] [pic] If the margin of safety in dollars is 25% of total sales, then the break-even point in dollars must be 75% of total sales. Therefore, total sales would be: [pic] The selling price per unit would be: $1,350,000 total sales ÷ 75,000 units = $18 per unit. The second step is to determine the total contribution margin for the month of July. This can be done by using the operating leverage concept. Note that a 20% increase in sales has resulted in an 80% increase in net operating income between July and August: [pic] Case 6-33 (continued) Since the net operating income for August increased by 80% when sales increased by 20%, the degree of operating leverage for July must be 4. Therefore, total contribution margin for July must have been: 4 × $135,000 = $540,000. With this figure, July’s income statement can be completed by inserting known data and...
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... Starbucks has done studies overseas in Japan, Italy, Spain, Germany, Mexico, and Puerto Rico. For each location, they had to do studies and factor in what their target market is and what they will be doing in those countries. Some problems Starbucks faced were their product. One thing the local coffee shops had over Starbucks is that they served food with their drinks. The uncontrollable elements in the global market are the social factors, legal matters, government, and competitors. As we all know, Starbucks is all over the globe in almost every country. By doing this, they had to face local coffee shops, competitors, and people that were loyal to the local shops. Everyone knows what Starbucks is and what they do, and even so, they had a hard time gaining new customers. There are many regulations and laws they had to face because every country is different and has different regulations and laws that are to be enforced. 2. What are the major sources of risk facing the company? Discuss potential solutions. Global expansion is a huge risk for Starbucks. Starbucks does not generate as much income on each overseas location because most of them are ran with local partners. Even though it may be easier to open a location overseas, it reduces the company’s profits to 20 to 50 percent. A potential solution is that they have to strategize where to open a location. If a location is not generating profit, then they have to...
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...between different organizations within a society) largely amounts to characterizing the differences in incentive structuresfaced by individuals involved in these collective efforts. Ultimately, incentives aim to provide value for money and contribute to organizational success. Benefits of Incentives Some benefits of incentives are: 1.) Spill-over Effects: The decision to employ incentives will not only influence the immediate behavior of the target, but will also have a "spill-over effect" on relations in general. 2.) Legitimacy: It is generally much easier and less controversial to increase another's prosperity in return for a desired action, than to forcibly deprive them of something if they do not conform. 3.) Market Forces: Eileen Crumm argues that market forces work against sanctions, while incentives can be tailored to maximize their value to the targeted actor. 4.) Addressing Needs: Conflict largely arises out of political, economic or security-related need. Sanctions increase that need; by subtracting from the target's political, economic, or security baseline, they exacerbate the tensions and can precipitate conflict. Problems Problems with incentives include: 1.) Symbolism: David Baldwin argues that "negative sanctions have become psychologically linked with such characteristics as courage, honor, and masculinity," which are especially important in the international arena. Thus, he continues, "the statesman who would use [incentives] risks being...
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...Autogroep was a reputable family-owned automobile retailing company founded in 1953. The company initially began in a single location in Netherlands, selling and servicing few brands. However, growth was imminent for the fortunate company as it soon made recognition for itself by securing a spot as a top 20 player in the Dutch Dealership Market. Its growth stemmed from the successful acquisitions made in the southern regions of Netherlands in the hopes of battling the upcoming competitive environment. Growth was one of the many visions held by the former CEO of Kooistra who believed in expanding the number of brands sold, standardizing the operating procedures and exploiting economies of scale to hold a competitive position in the industry. By 2007, Kooistra owned 13 dealerships, sold 10 brands of automobiles and had 325 employees. Although the company was growing in size, the profit margins remained still, which signaled a need for amendments in the system. In 2002, the former CEO handed his position to his son, Tom Kooistra to carry on the family fortune. Tom Kooistra began his journey as CEO by making various modifications to the traditional system. He decided to change his father's view on the centralized organizational structure. He believed that it was necessary to empower the managers by giving them more authority so that they can be accountable for their actions. As a result, the organization made a transition from a centralized organization to a decentralized one. This...
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...Business Idea Industrial Waste Management Ltd. is a company that would provide industrial waste management services to the companies of various sectors in on a contractual basis. IWM Ltd, in its initial years of operation, will be located in proximity of the Savar EPZ region, and concentrate primarily on companies of the textile, knitting, RMG (ready-made garments) and tanning industries – industries where safe disposal of residues is a major issue – in that region. From a businessman's perspective, the waste produced from an industrial facility needs to be disposed at the lowest possible cost. However, this attitude is rapidly changing. Modern society is urging for environment control, and this pressure will continue to increase over time. Stringent government laws such as the Environmental Conservation Act 1995 (ECA) and the Environmental Conservation Rules 1997 have made the industries more concerned about waste disposal in an environmental friendly way. Again, due to the non-tariff barriers (e.g. Global Compact) and ISO 14000 certifications industries are trying to take necessary measures to dispose the waste. Also, as managing its waste is not the core business of any industry and waste management in some industries requires a complicated process, it can be a critical factor for any business operation, increasing its operating expenses. In this regard, companies are willing to find a solution through outsourcing and dealing with a single third party source. Thus...
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...BMGT 321 Chapter 13 Homework Click Link Below To Buy: http://hwaid.com/shop/bmgt-321-chapter-13-homework/ Solutions to In Class Homework Assignments 13-16 Value-added, nonvalue-added costs. The Magill Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2013 is as follows: Required: 1. Classify each cost as value-added, non-value-added, or in the gray area between. 2. For any cost classified in the gray area, assume 60% is value-added and 40% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? 3. Magill is considering the following changes: (a) introducing quality-improvement programs whose net effect will be to reduce rework and expediting costs by 40% and materials and labor costs for servicing machine tools by 5%; (b) working with suppliers to reduce materials-procurement and inspection costs by 20% and materials-handling costs by 30%; and (c) increasing preventive-maintenance costs by 70% to reduce breakdown-maintenance costs by 50%. Calculate the effect of programs (a), (b), and (c) on value-added costs, non-value-added costs, and total costs. Comment briefly. 3. Effect on Costs Classified as Program Value-Added Nonvalue-Added Gray Area (a) Quality improvement programs to • reduce rework costs by 40% (0.40 $90,000) • reduce expediting costs by 40% (0.40 $65,000) • reduce materials and labor costs by 5% (0.05 $1,100,000) ...
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...customer, one must first discover how profitable a satisfied customer really is to an airline. Through the use of on-line journals, news articles, and case studies, information will be presented that will help develop an opinion. The end result will prove why customer service is an essential part of profitability. The Price of Customer Service In an industry where it is a constant balance to keep a profitable margin, customer service that can be expected at various airlines can vary extremely. From a management perspective the question is how much will the customer service cost and does the cost outweigh the profit that results from said services. Services to be considered include baggage fees, loyalty programs, available attendants, check-in services, in-flight services, and level of technology available to customers. Directly related to customer service and the profitability generated by it is the structure of operations and management theory in use at each individual airline. By evaluating management theories, company culture, and operations, and then comparing these to profits of each airline, a conclusion can be drawn that will identify the most important and profitable principles of customer service and describe how to successfully integrate the findings into the operations. The level of customer service varies from airline carrier to airline carrier. Some airlines, such as Southwest,...
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...Management From the perspective of the Chief Financial Officer (CFO), the concept of working capital management is relatively straightforward: to ensure that the organization is able to fund the difference between short-term assets and short-term liabilities. In practice, though, working capital management has become the Achilles' heel of scores of finance organizations, with many CFOs struggling to identify core working capital drivers and the appropriate level of working capital. As a result, companies can be limited in their ability to weather unforeseen or adverse events and ensure that cash is readily available where it is needed, regardless of the circumstances. By understanding the role and drivers of working capital management and taking steps to reach the "right" levels of working capital, companies can minimize risk, effectively prepare for uncertainty and improve overall performance. Factors Influencing Working Capital Performance For most CFOs, the greatest challenge with respect to working capital management is the need to understand and influence factors that are out of their direct control, in order to obtain a complete picture of the company's needs. The CFO's span of control can be limited in terms of functional silos, though corporate finance may well have some powers of influence over operating units. While organizations generally concentrate on the right processes, such as cash, payables and their supply chain, they are less likely to take into...
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...1993 1994 1995 1996 2005 2006 2007 2008 2009 2010 2011 2012 Holcim’s original cement plant in Holderbank in the Swiss canton of Aargau. 100 The new Ste. Genevieve plant of Holcim US in Missouri. Contents Introduction Performance against targets Chairman’s statement CEO interview Vision and strategy Q “Delivering value to your stakeholders is part of your mission. How do you achieve results while operating with sustainability and integrity? Are incentives for sustainable practices integrated into performance compensation plans?” SD challenges Sustainable solutions and construction Q “What is Holcim’s contribution to improve efficiencies in the building materials industry?” Energy and climate Q “Holcim appears to be ahead of its competitors with regards to its level of carbon emissions. How does Holcim plan to further reduce its CO2 footprint, while providing the construction materials for the schools, hospitals, homes and infrastructure the world needs?” Biodiversity and water Q “Reducing energy use will in turn reduce CO2 emissions and water consumption. How can Holcim ensure that the overall synergies between energy, climate, biodiversity and water are taken into consideration?” Our people Q “There have been complaints from unions regarding labor issues. What kind of measures is Holcim taking to prevent unfair labor practices?” Social commitment Q “How is Holcim’s business model able to improve the quality of life of the poor?” Performance data Methodology and assurance...
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...Capital Management From the perspective of the Chief Financial Officer (CFO), the concept of working capital management is relatively straightforward: to ensure that the organization is able to fund the difference between short-term assets and short-term liabilities. In practice, though, working capital management has become the Achilles' heel of scores of finance organizations, with many CFOs struggling to identify core working capital drivers and the appropriate level of working capital. As a result, companies can be limited in their ability to weather unforeseen or adverse events and ensure that cash is readily available where it is needed, regardless of the circumstances. By understanding the role and drivers of working capital management and taking steps to reach the "right" levels of working capital, companies can minimize risk, effectively prepare for uncertainty and improve overall performance. Factors Influencing Working Capital Performance For most CFOs, the greatest challenge with respect to working capital management is the need to understand and influence factors that are out of their direct control, in order to obtain a complete picture of the company's needs. The CFO's span of control can be limited in terms of functional silos, though corporate finance may well have some powers of influence over operating units. While organizations generally concentrate on the right processes, such as cash, payables and their supply chain, they are less likely to take into...
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...agreement 3) Increase the delivery charge 4) Eliminate drivers taking payment at delivery 5) Status Quo-many not actually improve the delivery options but it is an alternative Alternative 4 and 2 are the main recommendations as they will assist Grocery Gateway in increasing their deliveries completed per driver as well as speed up each delivery. If the majority of purchases were paid for online as opposed to the driver directly, delivery times would decrease significantly. Offering incentives to customers would assist in the promotion of this strategy. Also, the expansion of their current system would help them become more efficient in assessing route profitability and to determine the desirability of delivery in particular time slots. Alternative 1 and 3 would be included as part of the contingency plan in case the first recommendations do not go...
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