...Investment Recommendation: MARKET PERFORMER TGT – NYSE (11/30/01) 52 Week Range 2000 Revenue Market Capitalization Shares Outstanding Dividend Yield Avg. Daily Trading Volume Book Value per Share (mrq) Return on Equity (ttm) Return on Assets (ttm) Est. 5-Yr Growth of EPS Industry: Retail $36,903M $33,800M 901.7M 0.59% 3.67M $7.76 19.28% 6.26% 15% EPS Forecast EPS Ratios P/E Forward PEG M/B 1999A $1.28 2000A $1.40 TGT 27.01 1.80 4.84 2001E $1.48 2002E $1.69 12/03/01 Competitor Average 13.28 1.96 4.02 $37.54 $57.46 $43.52 $31.27 $11.03 $16.92 $43.63 12 mo 26 % -14% 24 mo -8% 18% Valuation Predictions Actual Current Price Forward P/E Valuation Forward PEG Valuation M/B Valuation EBO (Abnormal Earnings) Valuation DCF Valuation P/S Valuation Performance of TGT Trailing TGT Relative to S&P500 6 mo -0.1% -10% • • • • • • Target operates in the discount retail industry in its Target stores but also attracts fashion minded customers through its Marshall Field’s and Mervyn’s stores. Target uses it Super Target model as its growth engine and funds this with cash flows from its Mervyn’s operations. Target has also recently partnered with Amazon to develop its online sales and fulfillment. The overall retail industry is growing at 3.8% and is competitive. Those players who can aggressively manage costs are the market leaders. Indicators suggest Target does not manage earnings in any significant way. Our valuations predict a stock price ranging from $11 to $57 per share. Rating...
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...Background and Description of Major Issues Target actually began as Dayton Dry Goods, a department store - focus on high quality feel at lower prices - Customers have a more pleasurable shopping experience • However, many customers are willing to forgo aesthetics for lower costs in tough economic times. o Because Target is following a “Cost Leadership” strategy, it is important to play the game, because the target market will not respond to largely excessively higher costs in the name of differentiation. • Additionally, it is important to make sure that an efficient supply chain is maintained and that inventory is turned over as quickly as possible. Target’s gross margin is higher than the industry average and Wal-Mart’s, which implies that Target is relatively efficient in this area. o Wal-Mart’s large amount of stores, both within the United States and internationally, help the low-cost retailer bring in revenues. ▪ Target could improve by stepping up against this strategy. • As the world becomes more inter-connected, Target needs to stay on board o For example, the potential revenues gained by reaching foreign markets can be seen as an opportunity. ▪ However, PEST analysis shows that this can also pose problems: • U.S. Export Tariff on Chinese goods • Risk of instability in other countries o Both politically...
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...Value Alignment BUS475 June 29, 2011 Value Alignment In the analyzing of a specific business and the reflection of a business’s individual values is illustrated in Target’s organizations plans and action’s. The preparatory point of this paper will identify on several areas that will analyze the origin of the Target store and the sub sequential of its values in the workplace. Explaining how the individual values drive his or her actions and behaviors and analyzing the alignments between the actions, values and behaviors. Following that, which will be the analyzing of the degree of the alignment that, which Target’s stated values and Target’s actual plans and actions are defined. In addition to, the explanation of all the analyzed differences of his or her individual values and Target’s values as reflected by Target’s plans and actions will be expressed. In the lead above the many places one may go to obtain their everyday needs from pet supplies, to electronics are only a few stores that would come to mind first. Among these top organizations is Target that, which is known for its prices, the services and the cleanliness, with a red sign as a logo that no-one, can mistake that, which is the Target bulls eye and this choice for shopping rises to the top of most consumers favorite destinations to shop. The existence of Target is pure, and to be the preferred shopping destination for all consumers and to appeal to all demographics is the drive for Target. When...
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...-- | Target Retail Analysis | | | | Arpit Minhas, Tim Gaugler, Christopher ScwartzRetailing –Marketing 327 Fall 2015 – Dr. Denise T. Ogden 10/12/15 | | Target Retail Analysis | | | | Arpit Minhas, Tim Gaugler, Christopher ScwartzRetailing –Marketing 327 Fall 2015 – Dr. Denise T. Ogden 10/12/15 | Introduction Target Corporation is one of the largest retailers and mass merchandiser in America. According to the National Retail Federation (NRF), Target falls in the top 10 companies out of the top 100 companies in America falling at number 6. Target offers everyday necessities, fashionable merchandise, home essentials and many more offering pricing at discounted levels. As one of the major retailers in America, target provides an opportunity for success by providing an exceptional guest experience, licensing departments and diversity in all parties involved. Targets purpose is to make everyday consumers make all target retail locations their number one preferred shopping destination in all channels by delivering outstanding value, continuous innovation and exceptional experiences. In this analysis of Target Corporation we will discuss the areas of retailing activities. We will go in depth on how Target Corp. began into the one of the largest retailers in America by discussing a brief situational analysis providing information on Target’s sole mission to consumers, their distinctive retail strategy and to whom this successful strategy is targeting and...
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...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...
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...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 only 27% of customers indicated they were “very satisfied” with their experience at Target, compared with Costco’s 62% and Walmart’s 40%. A key issue at hand is inventory management, which directly ties in to poor demand forecasting by sales managers. A common complaint voiced by Target customers...
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...[pic] King Saud University College of Administrative Sciences Strategic Management 597 BUS Case analysis Target Corporation Professor Dr. Nadia Ayoub Submit by Ghadeer Al- Mutawa Reem Abdul Jabbar 9, January 2007 Contents Introduction Vision Statement Mission Statement Strategy Analysis State 1: The Input Stage External Factor Evaluation o Opportunities o Threats Competitive Profile Matrix Internal Factor Evaluation o Strengths o Weaknesses Summary of Financial Ratios in Target Corporation Stage 2: The Matching Stage 1) The Strengths-Weaknesses-Opportunities-Threats (SWOT) Matrix, 2) The Strategic Position and Action Evaluation (SPACE) Matrix, 3) The Grand Strategy Matrix, 4) The Internal-External (IE) Matrix. Summary of Matrix Analysis Stage 3: The Decision Stage Quantitative Strategic Planning Model [QSPM] Recommendations Epilogue Introduction Target Corporation is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Target Corporation is the third-largest general merchandise retailer in the United States. It offers an assortment of general merchandise, including consumables...
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.......................................................................................................3 Marketing Analysis .............................................................................................................................................3 The Target Brand ............................................................................................................................................3 "The Guest" ....................................................................................................................................................4 Target's Competitors ......................................................................................................................................4 Expect More, Pay Less ....................................................................................................................................4 Rise of the Store Brand ...................................................................................................................................5 Up and Up......................................................................................................................................................6 The Introduction of PFresh............................................................................................................................7 Accounting Analysis....................................................................................................................
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...merchandise retailers in the United States. The company’s mix of stylish products and everyday essentials at low prices give it a unique strategy; it is one of the only companies to simultaneously incorporate price leadership and differentiation as its strategic business model. Strong private label brands have allowed Target to capture high profit margins. The company also utilizes its large size to achieve economies of scale so as to better compete with merchandising giants such as Wal-Mart, one of Target’s main competitors. PESTL Analysis Political The ever changing international political situation affects both domestic and international firms. International trade policies, political movements and global events all affect the manner in which firms operate within the market. The general retail industry has greatly benefited from the liberalization of international trade. Europe and the United States comprise approximately 75% of the market of the general merchandise store sector. With the lowering of US tariffs and the ending of Europe’s Multi Fiber Agreement, these markets now benefit from the availability of low cost labor. Reducing labor costs lowers the product price allowing companies to offer lower priced goods while still maintaining a...
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...Grand Strategy Matrix, 4) The Internal-External (IE) Matrix. Summary of Matrix Analysis Stage 3: The Decision Stage Quantitative Strategic Planning Model [QSPM] Recommendations Epilogue Introduction Target Corporation is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Target Corporation is the third-largest general merchandise retailer in the United States. It offers an assortment of general merchandise, including consumables and commodities; electronics, entertainment, sporting goods, and toys; apparel and accessories; and home furnishings and decor; as well as a line of food items. The company operates its stores under Target and SuperTarget brands. It also sells its merchandise online, as well as offers credit cards to its customers. In addition, the company runs Target Clinics in select twin cities Target stores, which offer various services, including flu shots; and treatment for common illnesses, such as strep throat, bronchitis, and skin conditions. Target's first store opened in Roseville, Minnesota, in 1962. Its on-trend merchandise at affordable prices launched a new era in discount retailing. This "T-1" stores were easy to shop, attractive and...
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...Competitive Strategy April 30, 2003 Introduction Discount retail has evolved into a highly competitive industry. As a result, discount retail pioneer Kmart, has faltered and fallen into Chapter 11 reorganization. This paper provides analysis of the industry, and a discussion of the firm-specific strategy that Kmart should undertake in order to reestablish itself as a player in the market. Relevant Industry Forces Entry Barriers Entry barriers in the discount retailer industry are high. In order to compete with the likes of Wal-Mart and Target, a company would need a minimum efficient scale to compete on cost. To Kmart’s advantage, it does benefit from a certain amount of economies of scale. The company is still the third largest retailer in the U.S. Once the restructuring plan has been implemented, Kmart plans to have 1,500 stores remaining. But Kmart has to realize, “Everybody today lives under the shadow of Wal-Mart.” 1 Kmart should not fool itself into thinking that its economies of scale in purchasing or its distribution system can compete with Wal-Mart’s. Wal-Mart is known for its expansive, powerful, and efficient inventory and distribution capabilities. It’s also known for its low-cost structure from real estate to labor (non-union). Wal-Mart is now one of the leading buyers of consumer products in the world. Wal-Mart claims it has the biggest private satellite communications network in the U.S. The system links stores to headquarters in Arkansas by voice, data and video. Suppliers...
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...organization should watch the outside environment, marketers have two special aptitudes. They have disciplined methods-marketing research and marketing intelligence-for collecting information about the marketing environment. They also spend more time in customer and competitor environments. By carefully studying the environment, marketers can adapt their strategies to meet new marketplace challenges and opportunities. 2. List some of the demographic trends of interest to marketers in the United States and discuss whether these trends pose opportunities or threats for marketers. a. Changing Age Structure of the Population Changing American Family Geographic Shifts in Population A better-educated, more white-collar, more professional population Increasing diversity b. The first trend( The changing age structure of the population), poses a threat because defining people by their birth date may be less effective than segmenting them by their lifestyle, life stage, life stage, or the common values they seek in the products they buy. The second trend (The changing American family) poses an opportunity because the significant number of women in the...
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...Target Structure Sierra Phelps MGT/230 March 10, 2014 George DeMetropolis Target Structure “Expect more, pay less” this slogan is known throughout the United States that links amazing service and quality products at a great price from one convenient location, Target. Target has a long history of providing a wide variety of products from fashionable clothing for all members of the family to your everyday essential needs such as toiletries and cleaning supplies. Behind every wildly successful corporation is a strong organizational structure. Target has an extensive organizational structure that helps them provide the amazing products they do at even better prices. Target’s organizational structure is a functional organizational structure and begins at the very top with CEO, Gregg Steinhafel. From there it breaks down into all different areas. There are presidents of departments such as finical, distribution, stores, Target Canada and others. Each one of these valleys then splits up and goes down the ladder until you reach the very bottom with non-management hourly employees. The management of the stores is the most interesting structure. After the CEO, Gregg Steinhafel there is an Executive Vice President, Tina M. Schiel. After that point Target is broken down into four regions throughout the United Sates. Each region has a regional president that is in charge of the stores and distribution centers in their region. Target then breaks down their regions into groups...
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...Wal-Mart Survive China’s Growing Middle Class? China’s rising standard of living and its impact on the discount retail market. Abstract This paper investigates published articles, financial information and books which discuss Wal-Mart’s recent business activities in China. The activity discussed includes Wal-Mart’s increasing impact and influence on the Chinese economy as a buyer and consumer of raw materials, a manufacturer of products, and as a retailer and employer in China. This paper discusses how Wal-Mart sources its finished products and raw materials in and from China, how Wal-Mart markets to China’s middle class, and how Wal-Mart manages China’s middle-class as both its primary customer and their source of labor in China. The intent of this paper is to provide readers with a high level understanding of how Wal-Mart is conducting business in today’s China and how Wal-Mart’s manages their exposure to the various supply chains in China, its increasing dependence on products and services sourced in China and how Wal-Mart is handling China’s growing middle-class and the nationally unionized workforce in their Chinese stores. Lastly, this paper discusses how Wal-Mart’s business strategy competes and compares with Target Stores, one of their leading competitors in the discount retailer marketplace. Keywords: wal-mart, target, china, supply chain management, sourcing, global marketplace Identification. This paper discusses Wal-Mart’s history in China and...
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...Bulls Eye Analyst A Valuation of Target As of November 1, 2006 Kyle Barkel Kyle.Barkel@ttu.edu Jerry Boroff Jerryjboroff@hotmail.com Ryan Campbell Ryancampbell85@yahoo.com Peter Carini Peter.J.Carini@ttu.edu Leslie Mitchell Leslie.Mitchell@ttu.edu Camille Ricci Camille.N.Ricci@ttu.edu Table of Contents Executive Summary………………………………3 Business & Industry Analysis Company Overview……………………………………...…5 Five Forces Model ……………………………….….6 Competitive Analysis……………………………………...12 Industry Conclusion……………………………………….15 Accounting Analysis Key Accounting Policies………………………………….15 Accounting Flexibility…………………………………….17 Accounting Strategy……………………………………...19 Quality of Disclosure……………………………………..19 Screening Ratio Analysis…………………………..……21 Potential Red Flags……………………………..………..25 Undoing Accounting Distortions…………..………...26 Ratio Analysis and Forecast Financials Financial Ratio Analysis……………………….……….27 Time Series Analysis…………………………...……...28 Cross Sectional (Benchmark) Analysis…….……..32 Financial Statement Forecasting Method..……...47 Analysis and Forecasting Solutions………..……...49 Valuation Analysis Method of Comparables……………………………….50 Cost of Capital…………………………………………….51 Discounted Dividend Models………………………...53 Discounted Free Cash Flows………………………...54 Abnormal Earnings Growth Method……………….55 Discounted Residual Income Method….…………56 LR Average RI Perpetuity Method…………….…..57 Altman’s Z-score………………………………………...59 Enterprise Value/ EBITDA……………………………59 Appendixes Appendix...
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