...Target Corporation: A Financial & Competitive Analysis [pic] By: O.P. For Econ 2304 Prof. Alexander [pic] Overview Target has been a publicly traded company since 1963, but has been around since 1902. Target was originally part of the Dayton Hudson Corporation which was founded in Minneapolis, Minnesota. In 2000, because Target had become the largest division of the Dayton Hudson Corporation, it became known as the Target Corporation. Target is the second largest discount retailer in the United States, behind Wal-Mart. The company is also ranked number thirty on the Fortune 500, and is part of the Standard & Poor’s 500 index. Target operates about 1,750 Target and Super Target stores in 49 states, (with no stores in Vermont), as well as online at Target.com. The company has 355,000 employees. Interestingly Target also owns the land that its stores sit on. Target also offers its own proprietary credit card good only at Target stores. Target was able to cut out a niche for itself by offering more upscale merchandise than competitors such as Wal-Mart or Kmart, and has begun to enter the Canadian Market with the purchase of the Canadian discount chain “Zellers” from the Hudson’s Bay Company worth 1.8 billion. Target’s fiscal year ends in January: its sales exceed 67 million dollars. The company has a one year sales growth of 3.11% with a net income of 2.92 million dollars. Target’s total assets exceed 43 million dollars and...
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...I chose to do my research on the Target Corporation. I feel they have a reputation of service to their customers, employees and community. Target’s mission is great value, the community, diversity and the environment. Target takes 5% of its income and puts back into the community. The Reading and Education Program, The Military and Veteran Support Program and The Social Services Program are just a few of several programs Target Corporation offers to the community. Target has a great reputation to be a positive fixture in the communities they serve. I think it says a lot about a company and the way it does business. I would feel good about working for a corporation like this. The Target Corporation has good ethics and is socially responsible. Target invests in their employees and their community. Target Corporation is the 4th largest retailer in the United States and the 2nd largest discount retailer in the country just behind Wal-Mart. Target reflects its founder, George D. Dayton in the sense of persistence and hard work. Dayton’s father was a physician who could not afford to send his son to college because he would offer his services to the poor for free (Target). In 1902, George D. Dayton bought Goodfellow’s Dry Goods Company in Minneapolis, MN. Early on, his stores became known for their dependable merchandise, fair business practice and a generous spirit of giving. In 1918, George Dayton created the “Dayton Foundation”, to promote the welfare of mankind anywhere...
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...Lukas Stump 905556475 Assignment 8 Asset valuation 4244 Assignment 8 1) The alternative that would be best for the company to choose is the second project. After using the replacement chain because the projects do not have the same life the NPV gave us a clear conclusion. Even though this problem is cost based and not based on revenue you would still take the NPV project that has the lowest NPV or associated cost. Project 2 actually had positive free cash flow for the years that were not a reinvestment or replacement chain year. 2) After analysis of the firm and manufacturing the container I have calculated that the price to be charged for each of the 28000 containers is 42 dollars. This would be the break even point from where the present value of the free cash flows is divided by the number of containers needed sold. Inflation has an effect on the rise in price due to labor and materials. At this price the firm will earn no profit but if they charge a little higher anything over 42 dollars is all profit. ( excel sheet ). Net working capital being reclaimed benefited the price as well. Problem B 1) This problem for worldwide paper has a lot of relevant cash flows. Net working capital is a huge part of this project totaling 18 million and 16 million in the first year with the last 2 million spread out between 2 years. Revenues increase From 4 million in 2008 to 10 million in 2009 all the way up to 2013. This could be tapping a new market and cost...
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...ADM 335 ACCOUNTING II: MANAGERIAL ACCOUNTING COURSE DESCRIPTION Managerial accounting involves the use of economic and financial information to plan and control many of the activities of the business entity and to support the management decision-making process. The main objective of this course is to explore the relevant issues of cost accounting. Hence, this course examines the acquisition, analysis, and reporting of accounting information from the perspective of effective management decision making, with special emphasis on the planning and control responsibilities of practicing managers. It also familiarizes the student with an electronic spreadsheet package found in today’s business world. TOPICS Topics to be covered in this course: • • • • • • • • • • • • • Managerial Accounting—Definition and Perspective Cost Terms, Concepts, and Classifications Job-Order Costing Process Costing Cost Behavior Analysis Cost-Volume-Profit Relationships Profit Planning and Budgeting Standard Costs and Variance Reporting Flexible Budgets Segment Reporting and Profitability Relevant Costs for Decision Making Statement of Cash Flows Financial Statement Analysis STUDENT—1 ACCOUNTING II: MANAGERIAL ACCOUNTING This syllabus has been developed by the faculty of the College of Business and Management at Cardinal Stritch University. © 2014 Cardinal Stritch University Syllabus Control Number: 061614 STUDENT—2 ACCOUNTING II: MANAGERIAL ACCOUNTING INTRODUCTION SYLLABUS FORMAT This...
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...Target Corp (NYSE: TGT) PME 604 Project Financial Management Project Target Description Target is a general Merchandise store in the discounter genre. Its biggest competitor is Wal-Mart. Wal-Mart’s success is based on its differentiation in its market. The main differentiation is its distinct marketing strategy. Target’s distinction from Wal-Mart is the shopping experience. The stores are clean, have a slightly more sophisticated environment and shorter lines. As stated by the Gerald Storch Targets Vice Chairman It positioned itself as a “mass merchandiser of affordable chic goods”. A table listing the financial statement ratios listed above in which you list ratio figures for the most recent full year, prior year and industry average. Target 2013 | Target 2012 | Industry Average * | Current Ratio = 1.68 | Current Ratio = 1.15 | 2.0 | Inventory Turnover = 9.27 | Inventory Turnover = 8.23 | 3.6 | Debt to Equity = 1.91 | Debt to Equity = 1.95 | 3.3 | Net Profit Margin = 4.09% | Net Profit Margin = 4.19% | 3% | ROE = 18.1% | ROE = 18.5% | NA | P/E Ration as of 1/29/14 = 12.45 | NA | NA | * Industry Averages per http://www.retailowner.com Current Ratio The Current Ration formula = current assets/current liabilities For 2013, Current assets = 16,388, Current Liabilities =14,031, Current Ratio = 1.68 For 2012, Current assets = 16,449, Current Liabilities = 14,287, Current Ratio = 1.151 The current ratio is sometimes called the "liquidity...
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...The purpose of this memo is to provide Target Corp. senior management with an evaluation of the company’s weighted average cost of capital (WACC). Since the 2010 financial information is not yet to be finalized, the analysis will use the most currently published financial data to evaluate each component of the WACC, including the company financial structure, cost of debt, and cost of equity. I. Target Corp. Financial Structure According to the consolidated balance sheet on January 30, 2010 (exhibit 1), the total amount of debt, including short-term and long-term debts and other current liabilities was at $16.814 billion. Account Payable is excluded from the WACC’s debt component because it is not a source of funding that comes from investors. Also in January 30, 2010, Target‘s market capitalization was at $36.176 billion (708.08 million shares at $51.09/share). As a result, the company was financed with 31.7% debt and 68.3% equity. II. Cost of Debt A close estimate for the cost of debt would be the yield to maturity of Target’s corporate bonds because it reflects the expected return of debt holders from investing in this type of corporate security. Exhibit 4 lists several Target corporate bonds with similar term length and slightly different time of issuance. For this analysis, I used the average yield to maturity of 5.06% as an appropriate estimate of the borrowing rate. III. Cost of Equity The analysis used the CAPM model to determine the cost of equity. ...
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...Reproduction or translation of this book beyond that permitted by the applicable copyright law without Applied Accounting Analytics’ permission is prohibited. Requests for permission to reprint or for further information should be directed to bstanko@luc.edu or tzeller@luc.edu. ISBN: 978-0-9841839-2-0 To be completed by the student and submitted with the completed annual report project according to your instructor’s requirements. Complete the following before you submit your assignment. This step is required to validate your compliance with sections 107 or 108 of the 1976 United States Copyright Act. 1. Remove the front cover of the workbook and identify: Student Name:ASHLEY K BINEGAR Term: SPRING 1 2011 Selected Company: TARGET Instructor: 2. Print your completed electronic template. 3. Attach the following: • This page completed with all required information. • Completed Word template. Template boxes expand as you input responses. Adjust page breaks as necessary to submit a professional representation of your work. CHAPTER 1 - INTRODUCTION Select a Company and Gather Documents Chapter 1: Select a Company and Gather Documents – Question 1 Identify with an “X” the primary source of data for this project. Annual report to shareholders X Annual report to shareholders with a letter from Chief Executive Officer and SEC Form 10-K as part of the annual report to shareholders. The annual report may include additional...
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...Unit 1 – AO1 – Investigate the roles and responsibilities of two contrasting public services and describe their purpose AO2 – Investigate the internal structure and functional areas for two chosen public services The two public services I am going to speak about are the prison service and the army. The reason is because both have a very important part of the keeping Britain safe. The prisons vision is to provide the very best prison service as possible and to help secure the following points. * Hold prisoners securely and safely * Reduce the risk of any prisoners from re-offending * Providing safe and well-ordered establishments in which we treat prisoners humanely, decently and lawfully To make sure the prison service actually completes their objectives they work in * close partnership with our commissioners and others in the Criminal Justice System to achieve common objectives * Obtain best value from the resources available using research to ensure effective correctional practice * Promote diversity, equality of opportunity and combat unlawful discrimination, and * Ensure our staff have the right leadership, organisation, support and preparation to carry out their work effectively. This is what the prison set out to achieve and how they plan to do it but there is a lot more involved in running a successful prison because a prison is a business. The prison has it goals but the prison needs top security to complete the goals. No...
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...XVIII AIRBORNE CORPS AND FORT BRAGG DFAC SCHEDULE SNAPSHOT NOVEMBER 2014 XVIII AIRBORNE CORPS & FORT BRAGG DINING FACILITY OPEN/CLOSE SCHEDULE November 2014 1-2 CLOSED POPE AAF Weekday 8-11 CLOSED 15-16 OPEN 22-23 CLOSED 27-30 82ND CAB CLOSED 1 Phone# 396-9993/ 7685 DINING FACILITY Location Goldberg Street Weekend Br: 0930-1300 Sup: 1600-1730 Find Your Location Bldg# M-5530 SMOKE BOMB CLOSED CLOSED CLOSED CLOSED CLOSED 2 Phone# 396-2592 /0103 Essayons Street Bldg# H-4842 2nd BCT Closed Weekends Br: 0930-1230 Sup: 1530-1730 Br: 0930-1300 Sup: 1600-1730 Br: 0930-1300 Sup: 1600-1730 Br: 0930-1230 Sup: 1530-1730 Brk: 0800-1000 Lun: 1130-1330 Din: 1530-1730 Brk: 0800-1000 Lun: 1130-1330 Din: 1530-1730 Brk: 0800-0930 Lun: 1200-1330 Din: 1530-1730 CLOSED OPEN CLOSED OPEN CLOSED 3 Phone# 643-6929 Gruber Road Bldg# C 9453 525th BFSB OPEN OPEN CLOSED OPEN CLOSED 4 Phone# 396-8063 Ricketts Street Bldg# 2-5112 WTB CLOSED CLOSED CLOSED CLOSED OPEN 5 Phone# 396-3436 Normandy Drive Bldg# A-4-1832 SWCS OPEN CLOSED OPEN CLOSED OPEN 6 Phone# 396-7291 Merrill Street Bldg# D-3624 3rd BCT OPEN OPEN CLOSED OPEN CLOSED 7 Phone# 432-8798/ 2298 Butner Road Bldg# A-3556 1st BCT OPEN CLOSED OPEN CLOSED OPEN 8 Phone# 643-6886 Bastogne Drive Bldg# B-1732 82ND SBDE CLOSED CLOSED OPEN CLOSED CLOSED 9 Phone# 432-5538 Longstreet Road Bldg# 3-5103 3rd SFG CLOSED...
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...Case #1. Liston Mechanics Corporation DEADLINE. 4TH CLASS, END OF CLASS SUBMISSION: BY EMAIL AT SAUGUSTE@UTDT.EDU This case gives you an overview of three DCF-based valuation variants (FCFF, FCFE, and APV), relative valuation via comps, and relative valuation via trans. Please use exclusively the data in the case. PART A You must compute the Equity Value of Liston Corp., on a stand-alone basis (i.e., pre-acquisition), for Jim Liston, by doing the following: 1. Use DCF via FCFF discounted at constant target WACC to compute the value of the company and equity. 2. Now check: does the actual D/A ratio (i.e., after your valuation) match the target D/A? If not, find the amount of initial debt that should be used to force a match between actual and target D/A. Using that debt value, recompute Equity. 3. Using the amount of debt you calculated in the previous step as a fixed amount over the planning horizon, perform a valuation via FCFE discounted at constant Ce. What could be wrong with this procedure? 4. Now perform APV with constant debt (again at the fixed level computed in Step 2) and include default risk by discounting tax benefits at the unlevered Ce. 5. Perform APV with constant debt (again at same debt level) but this time, account for default risk by discounting tax benefits at Cd AND by adding a negative term equal to 15% of unlevered EV. 6. Using the original debt amount of Liston (i.e., $ 140 million), compute Equity via comps using EV/Sales...
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...Objectives The Acquisition Process – Target Research and Process Execution Case Studies Concluding Thoughts – Keys to Success Background Information on John Dickinson Page 2 3 7 15 17 CONFIDENTIAL 1 Introductions and Segment Objectives Introductions: • • John Dickinson – Session Leader Participants – Goals, objectives, questions, and backgrounds CONFIDENTIAL Session Objectives: • Why pursue external strategies? • • • Limited organic growth versus strategic goals New products / services, end markets, technologies, and customers, as well as sourcing synergies What are some of the strategies? • • • Joint ventures – private and public / governmental Acquisitions Divestitures and re-investing in the core business The Acquisition Process: • • Strategic goals and target identification / research Deal execution – the team, valuation / structure, and culture / integration 2 CONFIDENTIAL The Acquisition Process – Target Research and Deal Execution 3 Developing the Optimal Acquisition Process CONFIDENTIAL Optimizing the process begins with analyzing the unique dynamics of the Buyer’s situation, and then developing an appropriate and flexible strategy for achieving the Buyer’s goals. Process Considerations Current End Market Dynamics & Outlook Parent Company Objectives & Resource Commitment Management Team Objectives Universe, Attributes, and Strategies of Likely Targets Size, Quality, and Performance of Targets Credit and Equity Market Conditions ...
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...754 • Case 24 • ABC Chemical Company Goes Global The ongoing economic recession in Japan will continue to erode consumer purchasing power and confidence; luxury goods will suffer as consumers move toward cheaper products. This is already becoming evident: consumption of cognac and premium whisky is declining in Japan. Since TWO DOGS was launched in 1998, there has been massive growth in the sales volume of cheaper products, such as ‘‘Can Chu-Hi’’ and ‘‘Hyoketsu Chu-Hi’’. These locally made Japanese brands are, in convenience stores, almost half the price of fully imported TWO DOGS. DISCUSSION QUESTIONS 1. Should TWO DOGS maintain its premium price and thus risk losing volume growth to cheaper products during the recession? 2. What effect would lowering its price have on its brand positioning? 3. Would lowering its price require TWO DOGS to change to a licensing strategy? If so, should local production be in Japan? Or in nearby Asian countries with lower manufacturing costs, such as China or Thailand? 4. What other options does TWO DOGS have? Could the company change to a multi-brand strategy by introducing a new brand targeting the low-end segment? C ASE 24 ABC CHEMICAL COMPANY GOES GLOBAL Driven by competitive pressures, and the attractiveness of the industry’s fastest growing market in the world, a U.S.-based chemical manufacturer, ABC Chemical Company (name changed to maintain confidentiality) considered expansion into Asia, specifically, China. William Smith is...
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...other products. Our research is based on their financial sector, Sales and distribution, technological sector, Marketing Department and Management department. Most of the cases they are doing well specially LCD TV and Home Appliance sector. And they have a huge opportunity to do well in health care product. Still they have some problems of after sales services. In SWOT analysis our group analyzes Strength, (Investment strategy, Innovation process, R & D, Technological purgation, and Advertising & Promoting) Weakness, (Discontinued operation, After sales services, Assets tide up with slow growth area, Slow career growth, Diversified manufacturing) Threat, (Exchange rate fluctuation, Labour cost, HRM, Rapid technological changes, Target marketing)...
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...competitive edges to succeed in this dynamic market. The current workplace is a buzz with technology that has transformed and redefined the work environment. With the introduction of new technology at the workplace, the contributions and productions of organizations have increased productivity and profitability in equal measures. This is through empowering employees through motivation and a departure from traditional forms of work by giving them control or rather autonomy over how, where and when they can accomplish their projects at work increasing their productivity (Karoly & Panis, 2004). The positive effects of technology around the workplace also involve creating a positive image for the organization to attract social advantages through target markets and to reduce the costs of production. There is however, challenges that have come about with the introduction of technology at the...
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...INTEROFFICE MEMORAND UM TO: FROM: SUBJECT: DATE: XXXXXXXX, CEO-MAKERBOT CORP XXXXXXX, BUSINESS STRATEGIST-MAKERBOT CORP STRATEGY PLAN FOR MAKERBOT CORP SEPTEMBER 8, 2014 This memorandum is aimed to highlight a few important strategies Makerbot needs to adapt that would help it in creating a revolution in the 3D desktop printing space which would result in an increase in the market share and total revenue which would subsequently make Makerbot an undisputed leader in the 3D Printing space and place themselves in a winning position. The company has to focus on their core strength and work towards targeting a larger customer base and affordable printing solution with unparalleled innovation as the main driving force resulting in a substantial advantage in the competitive landscape of 3D printing. To begin with, Makerbot should adopt the Microsoft model for business. Microsoft always believed in the licensing model for its software services (Windows & office software suite) which is the biggest revenue generating factor for the American Multinational. Makerbot should venture into a licensing model for its software. If the end user experience is good, reliable & affordable, there is no reason why Makerbot as an OEM would not enter into the league of high performance players in the 3D printing market space. The best always comes from the best resources and Makerbot, as always, should invest time and energy to recruit the best in the business and develop the OS which would not only...
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