Premium Essay

Target Corporation Term Paper

In:

Submitted By kbk7868
Words 3322
Pages 14
-------------------------------------------------
Four Arenas of Competition

Cost/Quality
Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service, and checkout is fast because if customers aren’t happy they could buy their products from Target’s competitors, Wal-Mart.

Timing and Know-How
Target has always been a company that has been a step above its game. They have always known when things need to changed in their product, service, image, etc. In 2004, Target sold off Mervyn’s and Marshall Field’s chain and focused solely on Target stores. Target did that because they knew what they were focusing on and that was quality products at a low price. In 2005, to launch their fashion line, they held a fashion show in New York on a vertical runway on the side of Rockefeller Center Building. The company hired gymnasts and acrobats to showcase the Target fashion and core customers were young, active, and well-educated families. In mid 1990s Target developed its own brand product lines in home and apparel and began to develop partnerships with designers who developed products exclusively for Target that sold under these designers’ names or brands. In early 1990’s Target began to offer small selection of groceries in its stores. In 1995, target opened their first Super

Similar Documents

Premium Essay

Cvs to Buy Target’s Pharmacy Business

...Gege ShiSummer 2015 | PMBA-8365 International Marketing Management Term Project Article 2 Dr. Ashmen CVS to Buy Target’s Pharmacy Business Abstract In this article, the author mainly focused and analyzed one journal “CVS to Buy Target’s Pharmacy Business for $1.9 Billion; Deal includes about 1,700 pharmacies within Target stores” from the Wall Street Journal. At the beginning, the author briefly summarized this essay; then, she explained why this article had bearing on corporate marketing strategies. At the end of paper, the author mentioned her own opinions of this deal. Introduction We all know that “my enemy’s enemy is my friend”; in today’s commercial environment, every industry is tough in this competitive world, especially for the prescription-drug business. So in this journal, it is mainly about an unusual cooperation, which occurs between CVS Health Corporation and Target Corporation. Both CVS and Target decided to make a business deal; CVS paid $1.9 billion to buy Target’s pharmacies and clinics. Why It Is Called “an Unusual Partnership”? CVS, a well-known pharmacy that already become domestic dominant provider of prescription drugs. Although Target’s prescription drugs business is not as good as CVS, it still has chance to be improved and become Target’s another business opportunity. Meanwhile, Target and CVS are the substitute competitors to some extent; most customers would visit either of them based on which one is relatively convenient...

Words: 903 - Pages: 4

Premium Essay

Organizational Politics

...Organizational Behavior & Leadership Analysis of Case on Albert Dunlap and Corporate Transformation (A) Mid Term Exam – WAC Submission Submitted by: Zohaib Riaz MBA – 1st Semester Submitted to: Dr. Nasir Afghan MBA Program director Dated: December 1, 2013 Abstract The case is about Albert Dunlap and his role as a transformational leader in revitalizing Scott paper and Sunbeam Corporation from loss making companies to profit earning enterprises. Dunlap was an aggressive person known for his rapid fire management approach. He used his traditional methods of cutting staff, demanding top performance and setting rigorous standards. He was very passionate for his work. He disregarded the modern management perspective on quality and empowerment. Scott paper and sunbeam were in deep financial trouble when Albert Dunlap took control of these firms and transformed them into profit making entities. Dunlap was successful because of his corporate strategy of having shareholders’ wealth maximization as primary goal. Though employee morale was very low but still Sunbeam was generating good financial results. It has been recommended that Dunlap should focus towards employees’ motivation because employees’ motivation is the key of maximizing shareholders’ wealth in long run. Babson’s case study titled “Albert Dunlap and Corporate Transformation (A)” discuss the role of leadership and senior management in organization’s performance and how a leader can transform a mismanaged chaotic...

Words: 3117 - Pages: 13

Premium Essay

Mgt 330 Final - Ashford

...Target MGT 330 Management for Organizations Prof. Anthony DiGaetano August 27, 2015 Target Target Corporation is a leading big box retailer with a unique outlook and approach to reaching consumers while offering upscale product at affordable everyday process. Working for large companies can be difficult because employees become numbers and are often lost in the everyday shuffle of information, products, and customers. However, while working for Target, one will find an immense respect and a collaborative effort among co-workers. Target Corporation utilizes the five management functions: planning, leading, organizing, staffing and controlling, to benefit their company, their employees, and their customers. Planning “Managers use planning to choose appropriate organizational goals and identify courses of actions to best reach those goals,” (Baack, Reilly, & Minnick, 2014, Section 1.3, “The Five Management Functions,” para. 2). According to an interview conducted by Jennifer Rooney, a Forbes staff member, Jeff Jones, VP and CMO of Target Corporation believes Target’s role in retail consists of knowing what the consumer wants and needs, while delivering top quality products at an everyday price point (Rooney, 2012). Mr. Jones reiterates the goal of Target Corporation is to continually fulfill the motto, expect more, pay less and states that the corporation as a whole relies heavily on the Target Brands that are unique to only Target (Rooney, 2012). These brands allow...

Words: 2178 - Pages: 9

Premium Essay

Strategic Initiatice Papaer

...Strategic Initiative Paper – Target FIN/370 Strategic Initiative In general, the Target Corporation’s overall strategic plan is to improve the relevance and reliability of its customer experience across multiple channels (in-store, online, mobile and social media), as well as preserve, grow and leverage the Target name and maintain a reputation of satisfying customer needs. Consistent with the overall strategy, Target Corporations plan for 2013, involved a number of strategic initiatives to improve long long-term growth. Included in the initiatives is investments in technology, the opening of 17 new stores, the expansion of store base facilitates to effectively penetrate into its target markets to gain a competitive advantage over its competitors. While looking at expansion opportunities in international markets such as Canada and Latin America through the use of smaller-format stores called City Target. (Target's Strategic Initiatives, 2013). The focus of this paper will be Target Corporations technology initiative. Technology Strategic Planning Initiative As noted above, Target Corp. 2013 annual report discusses several strategic initiatives one of which relates to technology. Target Corp. relies on a computer system to manage inventory, process guest transactions, manage guest data, communicate with vendors and other third parties, service REDcard accounts and summarize and analyze results of operations ("Target Corporation" 2013). Target Corp. business is...

Words: 1211 - Pages: 5

Premium Essay

Promotional and Advertising Strategies

...Promotional and Advertising Strategies Abstract The automotive industry is a multi-billion industry. The dawn of the twentieth century witnessed the beginning of the automobile industry.entrpernuers in the United States and Europe made the first prototypes of vehicles by the end of the nineteenth century. Since then entrepreneurial activities has been booming in the industry that has been motivated by competition among car manufacturers. Competition in the automotive industry inspired the introduction of innovative promotional strategies, marketing strategies, pricing and consumer-oriented promotional strategies. This paper researches on the automotive industry, taking note of leading companies in their respective product category, their marketing strategy, consumer-oriented promotional strategies, their pricing and the leading companies within the product group. This paper also recommends ways in which companies I the automotive industry could use marketing information to gain competitive advantage and to differentiate itself in the marketplace. Effective advertising strategies for automotive companies will also be mentioned. Introduction Automotive industry started in the 1890’s as a result of the domestic market and the introduction of mass production in the automotive industry that rapidly revolutionized the industry into the largest in the world (McAlinden, Sean & Bernard 2005). The industry began in the United States but was quickly overtaken by Japan that emerged as the...

Words: 2646 - Pages: 11

Premium Essay

Article Analysis

...SWOT Analysis of Target Corporation Student’s Name Affiliation ID Date of Submission 1. Introduction Target Corporation specializes in detailing business, having origin of America, and its headquarters is located in Minneapolis, Minnesota. At start, this company took birth with the name of Dayton Dry Goods Company, further, which was renamed to the Dayton Corporation. The very 1st store of this organization started working in 1962. “Rapid growth of Target as division of Dayton Hudson Corporation; compelled the owners to rename it as Target Corporation in 2000” (corporate.target.com, 2014). “Target Corporation is considered as second largest retailer providing discounts on its produce in the United States after Walmart” (Dudley, 2013). Target Corporation stood at 30th rank in 2010 and Fortune 500 list, and it is a component of Standard & Poor’s 500 index. The basic business in which the Target Corporation deals are, general merchandise stores, which comprise of food items along with general merchandise. “In the report of fiscal year 2013 Target stores having this collection of food items which include perishable items along with dry, dairy and frozen food items” (Target.com, 2014). 2. Mission statement. The mission statement of the company describes the core objective of the company described in a statement form. Mission of Target Corporation is to make its most favorite and perishable shopping destination for all types of customers from every walk of life by delivering...

Words: 1454 - Pages: 6

Premium Essay

Finanzas

...| Case Study Marriott Corporation | | | | | | 08. April 2014 Table of Contents 1 Are the four components of Marriot`s financial strategy consistent with its growth objective? 1 2 How does Marriott use its estimate of its cost of capital? Does it make sense? 3 3 What is the WACC for Marriott Corporation? 3 3.1 Risk free rate? Market risk premium? 3 3.2 Cost of debt? 4 4 What type of investments would you value using Marriott´s WACC? 6 5 If Marriott used a single corporate hurdle rate for evaluating investment in each of its lines of business, what would happen to the company over time? 7 6 What is the cost of capital for the lodging and restaurants divisions of Marriott? 8 6.1 What risky free rate and risk premium did you use in calculating the cost of equity in each division? 8 6.2 How did you measure the cost of debt for each division? Should the debt cost differ across divisions? 8 6.3 How did you measure the Beta of each division? 9 7 What is the cost of capital for Marriott´s contract service division? How can you estimate its equity costs without publicly traded comparable firms? 11 8 Bibliography 13 Are the four components of Marriot`s financial strategy consistent with its growth objective? Marriott Corporation is an international company whose sales in 1987 grew by 24% and its return on equity was at 22%.The three lines of business are lodging, contract services and restaurants. The main goal consists of developing and...

Words: 2477 - Pages: 10

Premium Essay

Mariott

...1 Marriott Corporation: Cost of Capital Analysis In this paper, I shall attempt to determine the optimal cost of capital for Marriott Corporation using the WACC method and compare it against the cost of capital of a division with the firm to determine the implications of using a “firm wide” cost of capital Cost of Capital for the firm Based on the data given in the case, the beta equity for Marriott Corporation is currently set at 1.11. However, given the changes in the debt component in Marriott’s capital structure over the years, it is essential that we re-calculate the actual value of βequity using the unlevered beta βasset. For this purpose, we first use the average Debt/Total capital ratio for Marriott over the past 5 years as 0.497. Since Debt/Capital for the past 5 years is 0.497, the average D/E for this period is 0.988 (=0.497/0.503). Using the formula for unlevered beta, the beta for the asset can be calculated as, ( ) = as, . Using the target debt to capital ratio for Marriott as 0.60, we can re-calculate the equity ( ) Since we have the βequity, we can calculate the cost of equity using the CAPM as, Requity = Rf + βequity*(Rm – Rf) From the data, we use Rf as 8.95% and the equity risk premium as 7.43% (average spread between S&P 500 and long term US bonds). Substituting these values, we get the equity cost of capital as, Requity = .0895 + 1.273*(0.0743) = 18.40% To calculate cost of debt, we consider the spread over the long term US government bond...

Words: 670 - Pages: 3

Premium Essay

Environmental Factors Paper

...Environmental Factors Paper Earnestine Caldwell MKT/421 May 5, 2013 Lisa Cox Environmental Factors Paper In today’s society companies gain a competitive edge by exploring in the domestic and global markets. Businesses that operate at domestic and global levels will eventually have to deal with factors that affect their day-to-day operations. Within the domestic market customer needs, tastes, geography, demographics, and distribution methods are familiar and easiest to launch a product. Globalization is conducted in an effort to capture greater market share and open up new avenues for sales. Domestic and global marketing The organization that I am most familiar with that conducts domestic and global marketing is the Toyota Motor Corporation. Toyota is the world's largest automaker (The Associated Press, 2013). It runs its operations both at domestic and international levels and thus targets both domestic and international markets. Toyota is one of the top-selling brands in America and we are committed to continuous improvement in everything we do, along with breakthrough products for the future (Toyota Motor North America, Inc., 2013) The factors that impact on the marketing strategies of Toyota Motor Corporation are trade practices, demographics and physical infrastructure, cultural differences, social responsibilities and ethics, political systems and technology. These factors are challenges that effect the normal functioning of business organizations. Global...

Words: 1214 - Pages: 5

Premium Essay

Corporate Responsibility

...Brown Social Responsibility Is any corporation doing their part? Abstract In today’s society of accountability and sustainability, corporate reputation and corporate responsibility are intertwined. Corporations in particular now have to deal with rapidly growing pressures and expectations from diverse and demanding stakeholders (the people of the public) pressures that they cannot escape and expectations that they must address. Corporate Social Responsibility has begun to move from the sideline to the mainstream, from its established positions in socially responsible and environmental investment movements, to the center of media attention and on to the public agendas of multinational corporations. Much good can be credited to ethical public relations practice as is relates to corporate social responsibility. (Broom, 2009, p.133) The term "Corporate Social Responsibility" demonstrates the new expectations that are emerging for multinational corporations. Public relations and corporate responsibility worlds would do well to share an interest in aligning corporate reputation with a post-CSR agenda that is increasingly focused on accountability and sustainability -- and increasingly integrated with corporate strategy. Most corporate managements and communications professionals understand the basics of the corporate responsibility agenda and its potential impact, on the reputations of their companies and clients. Not all corporations are comfortable with integrating these...

Words: 1939 - Pages: 8

Free Essay

Business Model

...operate in international markets has increased the profits and overall net income of these multinational corporations. McDonalds, Exxon and Wal-Mart are among many global companies that have been able to increase their revenues by operating in international markets. Wal-Mart’s international ventures accounts for 20.1% of their total revenue which is estimated at $60 billion annually. The purpose of this paper is to select a company and discuss their business model. The company we will be looking at through out this paper is Wal-Mart. Wal-Mart’s slogan “Saving people money so they can live a better life” is what Wal-Mart’s business model is all about. Selling thousands of quality merchandise to low-income consumers at extremely low prices has been responsible for their success in the United States. Achieving success domestically is quite different from succeeding internationally. Doing business globally requires different business models. For a successful transition into the global environment, each business model must be designed to adhere to the preference or norms of each individual country. Both Wal-Mart and Ikea realized that success in the global market goes beyond offering low priced items when they moved into the global market. Its failure in Germany and South Korea made them realize that culture is a factor that must be considered when operating in international In this paper I will also look at some the factors affecting Wal-Mart and based on my opinion offer recommendations...

Words: 2155 - Pages: 9

Free Essay

Canadian Tire

...to your request regarding an analysis of the Canadian Tire Corporation and in this report you will find the information about the Company and their recent corporate activity. We have identified various points that will be useful in your decision to invest in this company. We have included information regarding Canadian Tire’s history, the products and services offered by them, and an analysis of the internal and external factors that affect the Corporation’s operations. We have also assessed the critical issues the company is currently facing along with their major implications. In order to see the direction in which the company is head, we also evaluated their vision, mission and long term objectives and strategies, followed by a sound strategy assessment. We have also analysed the company’s marketing strategy in regards to three of the products that they offer and also an overview of the marketing mix pursued by the company in general. We collected data regarding their financials of the past three fiscal years, and checked their sources of capital. Lastly, we have provided conclusions and our recommendations about the company keeping in mind the overall shape of the company’s future operations. We hope that this report guides you in your decision to invest in this company. Sincerely, Star Investors This letter would be even better if it had several paragraphs! 2012 INVESTOR ANALYSIS OF THE CANADIAN TIRE CORPORATION November 27, 2012 ...

Words: 11090 - Pages: 45

Premium Essay

Gfhdhdfhd

...Telecom’s Aims and Objectives • Social aims • Profit as an aim • Commercial aims • Service as an aim • Increase product awareness among the target audience by 30 percent in one year. • Inform target audience about features and benefits of our product. • Plans can then be made to achieve these targets. • Motivate the employees. It • Measure the progress towards to its stated aims. Marketing strategy of the company. Marketing strategy is a process that can allow an organisation to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be around the key concept that customer satisfaction is the main goal. The 3C's Model is a business model, which offers a strategical look at the factors needed for success. The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account: 1. The Corporation 2. The Customer 3. The Competitors The Corporation The Corporation needs strategies aiming to maximize the corporation’s strengths relative to the competition in the functional areas that are critical to achieve success in the industry The Customer Target a wider audience by offering promotions and freebies. The Competitors Competitor based strategies can be constructed by looking at possible sources of differentiation...

Words: 962 - Pages: 4

Premium Essay

Npv Cap Bud

...Net Present Value and Capital Budgeting Course Module in Introductory Finance Course Modules help instructors select and sequence material for use as a part of a course. Each module represents the thinking of subject matter experts about the best materials to assign and how to organize them to facilitate learning. Each module recommends four to six items. Whenever possible at least one alternative item for each main recommendation is included, as well as suggested supplemental readings that may provide a broader conceptual context. Cases form the core of many modules but we also include readings from Harvard Business Review, HBS background notes, and other course materials. Click here to add the full list of materials to your library (you must be logged in as a registered user. Not registered? Sign up now.) 1. Overview of suggested content (HBS case unless otherwise noted) Title Author Product Number Publication Year Pages Teaching Note 1. Time Value of Money Introduction Buying Time (HBS online tutorial) Kaplan 104708 2005 -- -- Alternative: Introduction to Accumulated Value, Present Value, and Internal Rate of Return Hammond 173003 1972 10p -- Valuing Capital Investment Projects Kester 298092 1997 5p 204152 Alternative: Tree Value Ruback 201031 2000 3p 202018 Luehrman 207121 2007 6p 209156 Luehrman & Abelli 4212 2010 8p 4213 Piper & DeVolder ...

Words: 912 - Pages: 4

Premium Essay

Target Financial Analysis

...Taylor Johnson Financial Management 2201 Company Analysis Paper June 22, 2015 Target Corporation is the second-largest discount retailer in the world, trading the company’s stocks on the New York Stock Exchange (NYSE) with the ticker symbol ‘TGT’. Target sells general merchandise ranging including clothing, home goods, beauty products, electronics, and both perishable and non-perishable food items. Most Target stores also include pharmacies, gift registries, and food services such as Pizza Hut and Starbucks.  While classified as a discount store, the company is colloquially known as a superstore where you can buy everything you need in one convenient place. Target’s biggest competitors are Wal-Mart, Meijer, and Kmart. Demand for Target’s products and services is growing rapidly, with Target creating new store formats, such as City Target (coming to Boston in 2015) and Target Express to meet the needs of customers in various markets. With instant-gratification being a common customer expectation, Target Express, 1/6th of the size of a normal store, allows the company a competitive edge over retailers such as Walgreens and CVS.  In a cost-conscious economy, consumers understand that Target offers goods such as electronics and groceries at lower prices than other retailers in each respective industry do. City Target, on the other hand, operates as a store with less-bulky items that would not easily fit in to a small apartment. With customers demanding easy accessibility...

Words: 2287 - Pages: 10