Target Corporation

Presented by
Diksha dey Dipali gade Pooja sarkar Sneha mhatre Sneha deshmukh

Company profile
Type :Public company Traded as :NYSE: TGT Industry : Retail Founded 1902 (as Dayton Dry Goods) 1969 (as Dayton-Hudson) 2000 (as Target) Founder : George Dayton Headquarters : Target Plaza North & Target Plaza South Minneapolis, Minnesota, United States Number of locations :1,750 (January 2011) Area served : United States (except Vermont) Canada (starting in Late 2011) Key people: Gregg Steinhafel (Chairman, President and CEO)

Cont
Revenue : US$ 67.390 billion (FY 2010) Operating income : US$ 43.705 billion (FY 2010) Net income : US$ 2.920 billion (FY 2009) Total assets : US$ 44.533 billion (FY 2010) Total equity :US$ 15.487 billion (FY 2010) Employees : 355,000 (FY 2010)

Mission Statement
Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less. brand promise. To support our mission, we are guided by our commitments to great value, the community, diversity and the environment.

Company activities
Primary Activities
 Customer

Service  Marketing and Sales  Operations

Secondary Activities
 Human

Resources  Recruitment, hiring, training, and development  Technology  Conduct research  New trends and interests

STORES
Target is a chain of discount stores that are about 95,000 to 135,000 square feet The first Target store opened in Roseville, Minnesota, in 1962. Today, Target operates nearly 1,750 stores in 49 states, including more than 240 SuperTarget stores that include an upscale grocery shopping experience. Specifically, Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, and hardware supplies.

While many Target stores share a fairly common bigbox store layout, the company has been flexible with its designs. Target operates unique stores across the country in urban locations or within malls, in which a standard one-story building would not be feasible. These stores encompass multiple floors with both sales floor area and off stage areas such as offices or storage rooms spanning a number of these floors. Vertical transportation is provided in the store by escalator, elevator, or Vermaport, a specialized escalator for carts.

Regional distribution centers

As of January 2010 Target Corporation operated 38 distribution centers across the United States. With the exception of vendor supplied items, such as greeting cards and soda, these distribution centers ship items directly to Target stores. Also, unlike Wal-Mart, Target's grocery selection does not come from their own distribution centers, but from the companies that Target has partnered with. The retail chain's first distribution center opened in Fridley, Minnesota, in 1969. It included a computerized distribution system and was known as the Northern Distribution Center. On August 9, 2004, Target announced to their suppliers that they were going to perform a trial on the effects of radio frequency identification on the efficiency of supply chain management in the Dallas/Fort Worth Metroplex. This trial involved one Target distribution center and ten nearby Target stores. Here, RFID tags would be placed on the bar codes of pallets and cartons to track the goods from the suppliers to the distribution center, and from the distribution center to the stores. As of 2009 RFID has been phased out of the Dallas/Fort Worth Metroplex stores.

Food distribution centers

SuperTarget and Fresh stores require fresh produce, refrigerated and frozen items. Food distribution center owned by Supervalu have been utilized by Target for many years. In Colorado, stores are serviced through Fresh Pack Produce Inc. of Denver, Colorado. Import warehouses The company operates four facilities to receive shipments from overseas manufacturers and suppliers. They are located near ports at Rialto, California Savannah, Georgia; Lacey, Washington and Suffolk, Virginia. Merchandise received is sent directly to Regional Distribution centers.

Fulfillment Centers
Internet sales orders from the Target Direct division, which operates from the Target.com website, are processed by the facility in Woodbury, Minnesota with some support from Savannah, Georgia and other vendors. New centers are scheduled to open at Ontario, California and Tucson, Arizona in 2009.

SUBSIDARIES
Financial and Retail Services (FRS) formerly Target Financial Services (TFS): Target's credit cards Gift Card balances debit card Target Check Card (later re-branded the Target Debit Card) Target Debit Card withdraws -up to $40 "cash back." debit card allows to save 5% of each purchase, as well as designate a school for Target's Take Charge of Education program, and accumulate pharmacy rewards.

Target Sourcing Services (TSS):

This global sourcing organization locates merchandise from around the world for Target and helps import the merchandise to the United States. Such merchandise include garments, furniture, bedding, and towels. TSS has 27 full-service offices, 48 quality-control offices, and seven concessionaires located throughout the world. TSS employs 1,200 people. Its engineers are responsible for evaluating the factories that do business with Target Corporation for quality, as well as labor rights and trans shipment issues. Today's Target Sourcing Services locates merchandise exclusively for Target Stores and Target.com.

Target Commercial Interiors:

provides design services and furniture for office space and originated in the home furniture department at Daytons. Currently, Target Commercial Interiors has an unusually high market share of Fortune 500/1000 business customers, and are expanding to attract small to medium sized businesses, as well as home offices. Target Brands: owns and oversees the company's private label products, including the grocery brands Archer Farms and Market Pantry, Sutton & Dodge, their premium meat line, and the electronics brand Trutech. The up & up brand offers essential commodities including household, health care, beauty, baby, and personal care products. The brand claims to offer products of equal quality to national brands at a fraction of the cost, averaging a savings of 30 percent. Bullseye Dog is a trademark, and the Bullseye Design and 'Target' are registered trademarks of Target Brands.

Cont..
Target. COM: owns and oversees the company's e-commerce initiatives, such as the Target. COM domain. Target. COM. The domain target.com attracted at least 288 million visitors annually by 2008 according to a Compete. COM survey. This partnership ended in August, 2011.

Strategy

Corporate Level Strategy

Growth International Expansion
Create more competitive advantage Increase market share To cater employee development through excellent human resource development.

Target Company has the highest quality products

Business Level Strategy

Strategic Business Unit


Target Food Centers, Target Pharmacy, Target Retail Merchandise Differentiation Focus Innovation Product Development

Generic Strategies
 

Grand Strategies
 

Strategic Choice
Differentiation
  

Higher quality, more trendy clothing, better style Drive-through Pharmacies Expansion into SuperTargets

Target corporation : Strategies and objectives

Long term objectives 1. To gain competitive advantage over its competitors by committing to growth and delivering superior return to their shareholders. 2. To cater employee development through excellent human resource development.

Rationale
Target Company has the highest quality products among its competitors however the company has the difficulty in the competing with its competitors in price. A competitive advantage is important for the company to gain more customers and to be able to grow and gain superiors returns. The human capital is consists of the education, experiences, and skills at a given point in time that help in the tasks of getting one's work done. employee development increase productivity through increasing employees' skills and motivation.

Short term objectives 1. Increase earning per share by 10% by the end of 1 year. 2. To reduce cost by 20% by the end of two years.

Rationale
Target Corporation has continually target to increase earning per share every year. The company knows that they deliver excellent quality of products however the company needs to lower its cost in order for them to stay on the competition. When cost is lower, the company would have the chance to lower its price. With a lower price with a high quality product the company would surely gain more customers over time and would increase its returns.

Financial strategy

Annual financial Statement

Actuals in M-USD Fiscal Period January Sales 2009 64,948 2010 65,357

Estimates in M-USD 2012 69,903 2013 72,832 2014 77,640

2011 67,390

Annual Income Statement

Actuals in M-USD Fiscal Period January 2009 2010

Estimates in M-USD 2012 2013 2014

2011 67390 7336 5252 2920 400 0,84

Sales EBITDA EBIT-operating profit Net income EPS Dividend per share

64948 6228 4402 2214 286 0,62

65357 6696 4673 2488 330 0,67

69903 7430 5254 2874 420 1,05

72832 7474 5231 2814 433 1,18

77640 7866 5698 3080 496 1,29

Financial leverage

Actuals in M-USD Fiscal period Jan Debt Shareholders' equity Operating income (EBITDA) Leverage (Debt/EBITDA) Gearing (Debt/Shareholders' equity) Capital Expenditure 2009 17888 14509 6228 2,87 123% 3547 2010 14614 14810 6696 2,18 96,8% 1729 2011 14014 15878 7336 1,91 88,3% 2129

ESTIMATES IN M-USD 2012 14120 15940 7430 1,90 88,6% 2956 2013 12496 15880 7474 1,67 78,7% 3217 2014 12665 15334 7866 1,61 82,6% 3056

Return On Equities

15.3%

16.8 %

18.4%

18.0%

17.7%

20.1%

Swot analysis
Strengths Brand Market Presence Design Innovative Marketing Techniques Weaknesses Geographic Locations Lack of Mission and Vision Statements Litigations Opportunities Global Expansion Entering untapped US Markets Continued growth in private label products Threats Competition U.S. Economy

Thank you

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