...Target management rushed there store openings. Opened too many stores to fast Opened up stores before they remodel old Zellers stores Target management failed to see that the Canadian market was too tough / too competitive, with thier competitor Walmart already being well established and popular in Canada Target management failed to differentiate itself from the other competitors Target managment although did make a couple of good choices, like Target managment introudced Target Canada to Canadians through a multiplatform ad strategy. Target managenment also failed to work cooperatively with their distributors because customers constantly complained about Target shelfs often being out of stock Citation: Dahlhoff, Denise. "Why Target’s Canadian Expansion Failed." Harvard Business Review, January 20, 2015. Accessed January 6, 2015. https://hbr.org/2015/01/why-targets-canadian-expansion-failed. Target had higher prices then other stores in Canada Target opened more stores then they were able to manage effectively. Citation: Sturgeon, Jamie. "Here’s Why Target Failed in Canada." Global News. January 15, 2015. Accessed January 15, 2015. http://globalnews.ca/news/1774769/heres-why-target-failed-in-canada/. Target had a non-functioning website, Target didn't have online shopping in Canada and when rivals like wal-mart and amazon have expanded their online offerings.Citation: McMahon, Tamsin. "Missing the...
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...Running head: TARGET: AN INTERNATIONAL BUSINESS EXPANSION CASE STUDY Target: An International Business Expansion Case Study Sarah Livingstone Mount Saint Vincent University Introduction The decision to expand into a foreign market should not be taken lightly. It can be a great way to grow your company, however, as demonstrated in the following paper, extensive planning is essential to ensure success. Entering Foreign Markets Companies entering foreign markets must decide where to enter as well as the timing and scale of entry. Determining which markets to enter must be analyzed in depth to assure relative long-term growth and profit. Wynne (2004) emphasizes, "Today's markets are knowledge-competitive and unforgiving. Companies must develop useful, first-hand market information before creating market penetration strategies"(Wynne, p.2, 2004). When these basic factors are overlooked, expansions can be catastrophic. Take for example Target's expansion into Canada. With the weakening American economy, Target set goals to expand into Canada. Canada was a promising market with ample opportunity for growth. This expansion was strategic for Target, whose ultimate goal was global expansion. Senger (2011) indicated, "Canada is the perfect test market for a first foray into international expansion: there is a mainly English-speaking population, Canada's close to existing supply chains, and its consumers already know U.S. brands." (Senger, 2011) However, despite the positive initiative...
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...impossible to pass effective environmental legislation? Would you change anything about the division of powers between the federal and provincial/territorial governments in order to improve the design and implementation of environmental policy in Canada? Is environmental policy superior in the United States (can we learn any lessons from their approach including things to avoid)? Can you find any examples of successful provincial/federal cooperation on environmental policy implementation in Canada? Finally, do you think that we are in for a new era of environmental policy cooperation with the election of a new government this fall? Post 1: Hi Kristen, In addition to your extensive research on the comparison of both the US and Canada’s differences in environmental policy, I have done some research myself and have read an interesting article that discusses lessons from America for environmental law enforcement in Canada. The textbook has done a great job synthesizing information and giving an overview of environmental policies in both countries, but the journal critically assesses government efforts and outlines key policy differences. This journal first discusses jurisdictional differences in regards to environmental law in the US and Canada stemming from their...
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...oil and gas industry. FourQuest Energy (FQE) is an ISO 9001:2008 certified international company with locations across Canada, the Middle East, Africa, and the Caspian region (FourQuest, Canada’s Fastest-Growning Company, 2015). FQE was ranked Canada’s number 1 fastest growing company on the Profit 500 2014 list showing a revenue growth of 7,308% (ProfitGuide, profit500, 2015). The Edmonton Alberta organization which first began operation in 2008 is a very strong player in helping to keep the energy giants working. FQE employs more than 200 people fulltime, runs 12 offices worldwide and posts upwards of $50 million in annual sales (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Entrepreneurs Karl Gannon and Nik Grgic started FourQuest Energy after their suggestions for improvements were not implemented in the organization they worked for. They felt that they could do a better job with the right opportunities (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Together they have been able to attract other top talent to their organization to help further grow the organization. Their management style has won them the 16th spot on the 2013 Best Managed Companies list. Their ultimate goal is to turn the organization into a $500 Million organization within 10 years (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Gannon believes that quality customer service, as well as strong customer satisfaction are the two most important things FQE can do, and has allowed FQE to...
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...Chapter 15 Monetary Policy Xingfei Liu, Ryerson University Interest Rates and Monetary Policy 15 LEARNING OBJECTIVES LO15.1 Discuss how the equilibrium interest rate is determined in the market for money. LO15.2 List and explain the main functions of the Bank of Canada. LO15.3 List and explain the goals and tools of monetary policy. LO15.4 Describe the overnight lending rate and how the Bank of Canada directly influences it. LO15.5 Identify the mechanisms by which monetary policy affects GDP and the price level. LO15.6 Explain the effectiveness of monetary policy and its shortcomings. LO15.7 Describe the effects of the international economy on the operation of monetary policy. 2 15.1 The Market for Money and the Determination of Interest Rates 3 KEY GRAPH - The Demand for Money, the Supply of Money, and the Equilibrium Interest Rate FIGURE 15-1 (a) Transactions demand for money, Dt (c) Total demand for money, Dm and supply (b) Asset demand for money, Da Rate of interest, i percent 10 7.5 Sm 5 + 2.5 = 5 0 Dt 50 100 150 Da 200 Amount of money demanded (billions of dollars) 50 100 150 200 Amount of money demanded (billions of dollars) Dm 50 100 150 200 250 300 Amount of money demanded and supplied (billions of dollars) ...
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...and how economic indicators have impacted the performance of the industry over the years. The measure of production, interest rates, real GDP, automotive sales and inflation and unemployment are some of the most compelling instruments that can be used to assess the state of the automotive industry. Business Cycles The U.S automotive industry saw a steady expansion from its inception until 1978 in which where production reached its all-time peak. The industry showed a small contraction and a quick recovery leading to its peak between 1972 and 1976. In the early 1980 there was a big drop in production units and the industry fell into its first true recession. The industry recovered in the mid 80s peaking in 1988, but never reached its previous high before falling into another recession that lasted from 1990 to 1992 (Smith, 1996). The automotive industry’s production rates have been cycling through different business phases throughout history. In 1999 the automotive industry finally recovered and reached its previous high. Now the automotive industry is again experiencing a recession. Traditionally, during times of expansion the inflation in the economy is...
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...Target: Missing the Bullseye in Canada Target Corp. was founded in 1902 as the Dayton Dry Goods Company and has now become the second largest discount retailer in the United States. Over the past decade, it has continuously discussed the possibility of an aggressive entry into Canada. In 2013, Target turned this discussion into a reality by acquiring the lease agreements of Zellers and rebranding the stores. The grand opening was met with immediate enthusiasm and was a highly publicized event. However, six months into Target’s official opening of its current 82 stores, the excitement quickly diminished and has instead translated into a dramatic $374M loss. More importantly, the company needs to realize that its Canadian expansion has more than just financial implications, but it may also be demonstrating to valuable investors that it is incapable of being an international company and has reached the maturity stage of its growth cycle. Note: There was an IBR article called “On Target” in 2011 regarding the feasibility of this expansion. There is absolutely no overlapping of content in any sense; this article will strictly discuss potential strategic alternatives in the current situation at Target. Although unintentional, Target created great expectations for itself amongst Canadians upon its announcement of entering the country. Since entry however, it has not lived up to these expectations and Canadians have largely been disappointed by Target’s performance. A survey showed that...
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...Management Target in Canada I. Executive Summary In this report I will talk about the American retailer; “Target” failed attempt to conquer the Canadian market. I will first give a detailed introduction of the company and what were the circumstances of such event. I will then describe the different problems the company encountered during their stay in Canada. I will briefly showcase the different guidelines that Target should have used going into this international market. Afterwards I will give my market research of the retailer’s market in Canada to then give a new marketing plan that Target should have followed in order to succeed internationally. I will end by a brief conclusion of the case and give my personal opinion on the subject. II. Introduction Target, the US supermarket founded in 1962, decided to expand into the international market in 2013. It only seemed like the logical next step for the 3rd biggest supermarket in America. After 50 years, they had conquered the American market with their great customer service and products and it was now time for the world to experience the Target culture. The timing was perfect, as the previous year, the Canadian supermarket Zeller had gone out of business. This meant their 220 retail stores in Canada were for sale. It was the perfect opportunity for Target to finally expand beyond the US. Canada was a considered an easy step into the foreign market, as there was a similar culture to Minnesota, where Target had started...
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...PART-I US-Canada: Since many years, US-Canada trade has been the cornerstone for Canada’s economic development. Canada began its trade with the US in 1920s when rapid urbanization in the US led to huge demand in wood and other forestry products. In the 1920s and 1930s, pulp production increased steadily with over 90% of the produce being exported to the US. In 1925, the opening of the Panama Canal increased the exports of lumber from British Columbia to eastern U.S. markets, which dramatically increased the netbacks received for lumber produced in British Columbia (Statistics, Canada, 2012). Post world war, rapid expansion in the US industrial capacity was accompanied with rapid growth in the Canadian economy as well. Growth in the demand for newspapers led to the growth of pulp and paper industry. By1950, over half of the world’s newsprint was supplied by Canada. By 1954, pulp and paper exports accounted for 24% of Canada’s total exports, of which, 33% of those exports were to the United States (Statistics, Canada, 2012). Post 1960, the new staple in the resource landscape for Canada was Energy. Until this time, though some local sources were available on the Prairies and in Nova Scotia, Canada had relied on coal imports. In 1957, there was a major oil discovery in Alberta at Leduc, which lead to a major and dramatic expansion of crude oil and natural gas industry, the effects of which are still evident till date. The North American Free Trade Agreement (NAFTA) removed most...
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...The Entrepreneurs and their Objectives at Start-Up The entrepreneurs behind Green Energy Solution's (hereafter, GES) developing business are the management team of Enertek EMT Canada, with Enertek's CEO George Nemer, acting as General Manager for the initial period. Mr. Nemer has a Bachelor of Science from McGill University, and extensive studies in Marketing and Finance. He is presently working on his Global Energy Executive MBA through the University of Calgary, with an emphasis on environmental studies. He has several years of work experience as a Chartered financial planner for 23 years, and headed Whitewater Lebanon S.A.L. as its CEO while being involved in the construction and management of many of the waterparks built in the Middle East and North Africa. Moreover, he has been active within the renewable energy industry for the last several years. The second entrepreneur responsible for GES is Mr. Alberto Bilotta. Mr. Bilotta graduated from McGill University as a civil engineer, and has over 25 years of work experience as head of Vinac Construction Inc, where he did work on several prominent projects from the Pierre Elliot Trudeau Montreal International Airport to various public institutions such as libraries and hospitals. The original objectives of both Mr. Nemer and Mr. Bilotta were to approach the expanding market of sustainable resources and energy. GES was created to be a division of Enertek EMT Canada as a start-up subsidiary based in Montreal, Quebec. It will...
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...In a single day in 1959, the Toronto Daily Star reported that almost 14,000 people were laid off in Milton, Ontario. The cause of this was the cancellation of the Avro Arrow, a Canadian made supersonic jet interceptor built to protect Canadian airspace from Russian bombers. As it was the Cold War, when Canada and the United States were in fear of communist expansion, counter measures were necessary to protect its citizens. Although the federal government under Prime Minister John G. Diefenbaker, decided that Canada was no longer in threat of foreign attacks, Diefenbaker made the wrong decision to cancel the Arrow project. By doing this, he removed a vital future addition to Canada’s national defense through supporting the Royal Canadian Air...
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...INTRODUCTION AND BACKGROUND OF CANADA Canada is one of the countries that shares more than just a border with America. United States is Canada’s primary trading partner. Canada is the largest foreign energy supplier to the U.S. Canada and America has similar western values. Most Canadians are urbanized. Per land mass, Canada is the second largest country in the world. Canada has two official languages; English and French. 1.4. INTRODUCTION AND BACKGROUND OF HEB HEB was founded in 1905. The first store was located in Kerrville TX. Although HEB has been around for over 100 years, they are still going strong in the state where it originated. Other than Texas, HEB also has store locations in Mexico. HEB has a combined total of over 340 stores in Texas and Mexico. HEB also employs about 76,000 people in the communities that it serves. 2.0 CANADIAN MACRO ENVIRONMENT ANALYSIS: PEST ANALYSIS Just like any other country, completing an analysis of Canada’s macro environment will be inadequate without making use of a PEST analysis. With the use of PEST analysis, HEB will better understand four important aspects of Canada economy. The term PEST analysis is an acronym that stands for four major four macro-economic factors. They are Political, Economic, social, and technological factors. The analysis will help in understanding Canada’s current market situation. Specifically, PEST analysis will help HEB in strategic and business planning, entry strategy methods, marketing mix...
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...Wednesday April 18th, 2012 BUS 800, Section 131 Professor: Jim Diodati Individual Case Assignment Turnitin ID# 243102298 Joseph Nicosia 500198044 TABLE OF CONTENTS Strategic Recommendations 3 Appendix A: Industrial Analysis 6 B: PEST Analysis 6 C: Key Driving Forces 7 D: Porter’s Five Forces Analysis 7 E: Strategic Group Map 7 F: Key Strategic Factors 8 G: Competitor Analysis 8 H: Attractiveness of Industry 8 I: Mission and Vision Statement 8 J: Value Chain 9 K: Financial Analysis 9 L: SWOT Analysis 10 M: Issues 10 N: Rationale for Issues 10 O: Execution Strategies 10 Strategic Recommendations Issues: As one thoroughly analyzes the Loblaw’s Companies Ltd. it is identified that Loblaw’s success is determined by their willingness to serve their customers with high quality products at a level of customer satisfaction at every location. Loblaw’s has transformed the persona of a general grocery store to a superstore with all the necessities for their customers. With such drastic changes and new implementations Loblaw’s success in Canada is correlated to their innovated ways to attract their customers. But there is always room for improvement, especially in a market where new entrants are low but large companies can overwhelm. There are three major issues that Loblaw’s can address to further succeed in this industry. Firstly, Loblaw’s is lacking global presence, by narrowing their market strictly in Canada. Secondly, the Loblaw’s competition...
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...A Comparative Study of Walmart Operations in Canada & Mexico Table of Contents 1. Executive Summary…………………………...………………………………...…...2 2. Introduction………………………………………………………………………….3 3. Walmart and the Canadian Marketplace……………………………..…………3 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 4. Walmart and the Mexican Marketplace……………………………..………….10 A. Country Competitiveness B. Cultural Environment C. Political and Legal Environment D. Entry Strategies 5. Summary Comparison of Canadian and Mexican Markets…………………….18 6. Recommendation…………………………………………………………………….19 7. References…………………………………………………………………………...21 1. Executive Summary This report closely examines the operations of the world's largest retailer, Walmart, in Canada and Mexico. Assessments of market conditions in both countries have been conducted in terms of country competitiveness, cultural, political and legal environments and the strategies used by Walmart upon entry. Tying into these international business factors, specific aspects of international economic integration, monetary systems, social responsibility and corruption have also been reviewed. While being part of one continent and a common trade bloc (NAFTA, the North American Free Trade Agreement), considerable differences between Canada and Mexico are apparent. These differences are individually analyzed on the following pages. Inevitably, they...
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...or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; email cases@ivey.uwo.ca. Copyright © 2012, Richard Ivey School of Business Foundation Version: 2012-03-05 tC It was Tuesday, January 18, 2011, and Kym Meisner, director of warehousing and logistics at Volkswagen Group Canada Inc. (VGCA), was reviewing a presentation by the sales and marketing team regarding the five-year growth plan for both the Volkswagen and Audi vehicle brands in Canada. In her 20 years working for VGCA, Kym had never seen such aggressive growth targets attributed to new car launches, product facelifts and expected increases in year-over-year vehicle sales volume. She had already heard concerns from Dave Cook, the warehouse manager of VGCA’s parts distribution centre in Toronto, Ontario, regarding the limited space available in the warehouse. She wondered to herself how they could possibly make room for the inventory of additional new parts needed to supply the growing network...
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