Needless to say, there are varied aspects on which the corporation should focus on in order to enhance its sustainability, profitability and competitiveness in the short-term and long-term. For a detailed financial analysis please use +1 – between the second and the third quartile; +2 – above the third quartile; Save my name, email, and website in this browser for the next time I comment. This will enhance its competitiveness in the local and international markets. The industry has a lot of players, thus it experiences a high level of competition. As of 2020, Target Corporation is one of the leading brands in the lifestyle and retail sector. In essence, it should expand its business perspectives, as well as come up with an expanded sense f carrying out its operations. Of course, quality plays an immense role in strengthening a brand and sustaining customer loyalty on a product. Each retailer in the retailing industry tries to differentiate itself from the competitors, but the strategy … The corporation has also made it as part of the Standard & Poor’s 500 index (Pederson, 2004). To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2. Operating performance ratios describe the relationship between the Target Corp.’s level of operations and the assets needed to sustain operating activities. 301 certified writers online. ... SUB-INDUSTRY. Target Corporation, popularly known as Target, is an American retailing company whose headquarters are in Minneapolis, Minnesota. It was established in 1962 as Dayton Dry Goods Company (later converted to Dayton Hudson Corporation), with the first Target discount store opening the same year. The result of the comparison may be as follows: Please note: The presented analysis does not indicate a poor or good financial position of the company, but gives its description relative to other U.S. businesses. Situation Analysis 3. Business Objective Statement Target Corporation is the second largest American retailer and mass merchandiser. The company has ridden well on its capacity to make accurate predictions on the customers’ demands, which they satisfy with creative and high-quality products thereby cementing the loyalty of the customers in the company. Creating a Tailored Economic Development Strategy In order to attract the right industries and organizations, it is essential that … (-2 – below the first quartile; -1 – between the first and the second quartile; within the same industry, and also with the quartiles of those ratios. "ReadyRatios Financial Analysis" This is especially considering that the lawsuits involve touchy and controversial topics such as racial discrimination, not to mention the suits by the blind community, as well as the boycotts by the gay and lesbian community (National Federation of Blind, 2008). In addition to corrective measures, Target Corporation is environmental friendly since it is concerned with conservation of the environment. According to these financial ratios Target Corporation's valuation is above the market valuation of its sector. Target's Current Key Valuation Ratios, PE, PB, PCF, PS, compare to Department & Discount Retail Industry and Retail Sector Additionally, CVS, Kroger, and Amazon are alsoabove target at 0.7% and 0.6%. Recommendations. Target Corporation Market Analysis 1. Situation Analysis. Profitability Analysis of Target Corporation ( TGT | USA) The Profitability Score is a relevant measure for the assessment of a stock attractiveness. Calculations and summary conclusions are made Get the latest stock and industry comparisons from Zacks Investment Research. In this case, it should consider international markets such as India, Japan and China among other markets that exhibit incredible potential for profitability, expansion and sustainability in the long-term. Amazon as the biggest e-retailer also poses a strong threat to Target’s business. External Situation. all other companies with a 3.3% share in the market. These markets have potential customers running into millions, in which case they have incredible opportunities for growth. Since 1962, Target has been growing very fast and in 2000 it assumed its present name. This threatens the company’s competitiveness in times of crises as it does not have the capacity to fall back on its international or foreign markets. Preliminary Target Industry Assessment 2. The key weakness of Target Corporation revolves around the fact that its current locations are only in the U.S. with only Vermont, Hawaii and Alaska states lacking a Target discount store as at 2011 (USSEC, 2011). The general economic situation is not very good for the company. Target Corporation (TGT) financial analysis and rating Comparison analysis based on SEC data. SWOT Analysis is a proven management framework which enables a brand like Target Corporation to benchmark its business & performance as compared to the competitors and industry. University of North Dakota, Retrieved from http://www.und.nodak.edu/dep/grad/html/gfinfo.html. Change during the year is calculated by comparing the resulting score of financial position within the industry with the last year's (quarter's) score. The (current) company valuation of Target Corporation is therefore way above its valuation average over the last five years. Target's brand value has empowered the company to build up the reputation of offering clients quality products at marked down costs. Customer analysis of Target Corporation. (See also Walmart SWOT Analysis.). Target Social Media Analysis By: Kaitlin Carvalho, Francesca DiGisi, Robert Goeren, Jessica Guerrero, Denisha Pena Future Opportunity Current Situation Target Canada Focused marketing strategy from U.S. promotion Alternative Solutions #2 discount chain in United States Brand FOUNDED. Target's Sales and Income per Employee, Receivables, Inventory and Asset Turnover Ratio compare toDepartment & Discount Retail Industry, Retail Sector and S&P It offers a wide range of products like electronic accessories, gardening tools, beauty cosmetics and health products, kid’s toys and video games, appliances, beds, clothes, jewelry, pet’s supplies, and shoes. Target Industry Analysis FLOR Group helps you identify the ideal industries and organizations for your region, and then expand your efforts to attract them. Nevertheless, the corporation has an immense opportunity for expanding in the international markets. One of the key strengths pertaining to the apparel products offered by the company is the recognized status of the company. In essence, it is imperative that the corporation comes up with strategies that will sustain its high quality without compromising on the cost of its products. The above is a comparative analysis of the financial position and performance of the company. The primary business activity of the company is Variety Stores (SIC code 5331). Strategic Analysis- Target Corporation Business model The business model adopted by Target Corporation is that of a traditional physical value chain model (Hamilton & Selen, 2006). The retail landscape of US has grown highly competitive. This will go a long way in the restoration of the public trust in the company, which will enhance its position. The comparison is performed using the eleven key financial ratios (see table above). The crisis in the housing market, coupled with the increasing cost of foods and utility has left consumers with little disposable income. Target Match (Strength & Weakness) Analysis 3. 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and The financial position of Target Corporation is about the same as the average financial condition of the listed companies that submit financial statements to the U.S. Securities and Exchange Commission. Short-term Activity Ratios (Summary) Inventory Turnover Learn More. It can have an immense share of the expanding markets in countries such as India and China. We will write a custom Essay on Strategic Analysis of Target Corporation specifically for you for only $16.05 $11/page. A large number of its competitors have incredible presence in the local and international markets, thereby offering cutthroat competition in its markets. There are several US and non-US brands that are competing for market share. 2 Porter’s Five Competitive Forces Analysis of Target Corporation Target Corporation (TGT) operates as a general merchandise retailer in the United States and Canada. It gives Target customers a great opportunity to access industry-leading health care services in their stores. Target Corporation is among the top ten largest retailers and highest employers in the US. Target Corporation comes as an extremely strong brand with 97% of the entire population in the United States recognizing the color red and bull’s eye logo (Community Grand Forks, 2007). It is the second largest retailer in the USA and offers household essentials, food and pet supplies, apparel, accessories, home furnishing etc. Analysis of Short-term (Operating) Activity Ratios. Phase I: Preliminary Target Industry Analysis Targeting is well recognized as the best method of attracting economic development. The Profitability Score for Target Corporation is significantly higher than its peer group's. These individuals look for superiority, self-respect, status, and prestige. 1. The brand has over the years grown into an icon for everything that can be considered cool, stylish and hip in the retail world. During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. Target Five Forces Analysis. - load the data into the program>>. This corporation deals in general merchandise stores including apparel, fashion clothing, as well as foodstuffs home furnishings and décor, hardlines (toys, music, electronics, sporting goods, books), food and pet supplies, and home goods. Company's financial ratios are compared with the median values of ratios of all companies and of companies Consumers of the brand can buy trendier and stylish clothing, furniture or other items of their choice at a discounted rate. Evaluates revenues and output generated by the Target Corp.’s assets. By analyzing all the five competitive forces Target Corporation strategists can gain a complete picture of what impacts the profitability of the organization in Discount, Variety Stores industry. By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. This underlines the fact that the corporation has no presence in the international market. On the same note, a large number of these companies have undergone mergers thereby increasing their sizes and customer bases as is the case for Sears and K-Mart retail companies. It was established in 1962 as Dayton Dry Goods Company (later converted to Dayton Hudson Corporation), with the first Target discount store opening the same year. Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). We have conducted a comparative analysis of the balance sheet and the income statement of Target Corporation (hereafter – the "Company") for the year 2020 submitted to the U.S. Securities and Exchange Commission (SEC). Target's strong image ought to be effortlessly transferable to urban areas. Continued use of this website indicates you have read and understood our, ReadyRatios - financial reporting and statements analysis on-line, improved considerably (positive change of more than 1 point), improved (positive change of less than 1 point), unchanged (little or no change in score, no more than 0.11 points), deteriorated (the score has decreased by less than 1 point during the year), deteriorated considerably (the score has decreased by more than 1 point during the year). Selection of the “Best Fit” Targets 4. 10. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. In addition, the numerous lawsuits that Target Corporation has been facing in the recent times have had an immensely negative impact on its image. However, being overly obsessed with the same would be likely to jeopardize its capabilities in the long-term especially considering that it results in the increased cost of its products compared to the goods offered by its competitors especially Wal-Mart. The financial condition of Target Corporation in 2020 is worse than the financial condition of half of all companies engaged in the activity "Variety Stores". In a ranking for largest discount retailers, Target Corporation was ranked the second largest in the entire United States in 2009 and number 30 in 2010 on the Fortune 500 ranking (Burritt, 2009). For that reason, in comparison with all businesses, the Company shows a satisfactory result. Target Corporation is a company that operates in the discount retail store industry. This may have been as a result of its advertising campaigns, as well as distinctive marketing tactics that have made it the epitome of everything that is considered cool. The averages are calculated using the data from financial statements for the year 2020 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). First, it should increase its business operations and presence in other parts of the globe especially the developing international markets such as India and China. Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Target Corporation has its biggest threat as the competition in the national and local markets both from national and international companies. The EV/EBITDA NTM ratio of Target Corporation is significantly higher than its historical 5-year average: 7.8. Target experienced phenomenal growth and ultimately became Dayton Hudson Corporation’s largest division, which consequently led the renaming of the company as Target Corporation in 1990 (Pederson, 2004). These do not auger well with the company’s profitability and sustainability in the short-term and long-term especially considering its impact on the corporation’s image and reputation. Even in instances where it may win the lawsuits, the reputation of the corporation remains at stake. Target serves in the US only and also has an E-Commerce platform at target.com. PDF | The preprint is aimed for analyzing Five Forces Analyisis of Target Corporation. This would not only increase its competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the United States economy. In addition, the company is made up of over 1700 stores in the country, situated in almost all states (USSEC, 2011). Finally Target istowards the bottom of the list ranked at 13 for … A high-level overview of Target Corporation (TGT) stock. In addition, it is imperative that the corporation lessens its obsession with quality. Business Culture Analysis: Target Corporation Introduction Target Corporation, simply known as Target, is a retailing American company began in 1902 and is founded in Minneapolis, Minnesota, as Dayton Dry Goods Company. TARGET CORPORATION : Industry and sector chart comparison share TARGET … The comparison is based In this model, five forces have been identified which play an important part in shaping the market and industry. By understanding the Porter Five Forces in great detail Target Corporation 's managers can shape those forces in their favor. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, In 2020, Target will enhance these industry-leading same-day services by offering an assortment of fresh grocery and adult beverage items via Order Pickup and Drive Up fulfillment. 1000 Nicollet Mall TPS-3165 Minneapolis, MN … Notwithstanding the Target name, the company's prominent image, the red bulls-eye, is conspicuous all alone and is frequently used as a part of advertising campaigns. the quartile closest to the ratio value). Use of Technology for Better Human Services, Accidental Heroes: Whether Heroes are Born or Created. Target is one of the best known retailers in US which faces tough competition from Walmart and Costco. 1.Strong brand presence: The Target brand name is widely perceived and publicized. In addition, the company has been facing an immense threat from the slowdown in the United States’ economy, which would undoubtedly affect the revenue growth of the corporation, which has already been affected by the numerous lawsuits. The fact that the business operations of Target Corporation are primarily concentrated in the United States puts the company at an immense risk in cases of slowdown of the economy, not to mention the fact that it limits it capacity to grow. Bloomberge. On the same note, researchers have noted that the corporation tends to overemphasize on quality, which drives its costs extremely high unlike those of its close competitor Wal-Mart. TARGET CORPORATION : Forcasts, revenue, earnings, analysts expectations, ratios for TARGET CORPORATION Stock | TGT | It incorporates the flow of five elements namely inbound logistics, operations, outbound logistics, marketing &sales and customer service. Target Corporation is a chain of retail stores based in the US. See Target Corporation (TGT) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. In essence, it is imperative that the company comes up with effective corporate social responsibility strategies that will reassure the general public (and customer base) that the company cares about their welfare, the environment, as well as the health of the economy. Macy’s. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Target Corporation. Target Corporation operates general merchandise discount stores. Retail - Consumer Staples. As a result of the analysis of the key financial ratios of the company, we have established the following. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. Retrieved from http://www.bloomberg.com/apps/news?sid=aX.YYXT2sDwI&pid=newsarchive, Community of Grand Forks, (2007). In-depth view of key statistics and finances for TARGET CORPORATION (TGT) on MSN Money. Target’s partnership with CVS – In December of 2015, CVS Health had acquired Target’s clinic and pharmacy business for nearly $1.9 Billion.What it means is that the Target pharmacy section is managed and operated by CVS health now. On the same note, the brand has a close relationship with young consumers thanks to its adverts, as well as the fact that it has partnered with recognized designers including Michael Graves, Liz Lange, Mosssimo and Amy Coe among others. ADDRESS. Will Transaction Leadership Philosophy Bring Additional Facets to... Thesis Outline Example: Healthcare Reform in United States, CSI Seattle Construction Industry Analysis, Advantages and Disadvantages of Euthanasia, Will Transaction Leadership Philosophy Bring Additional Facets to Future Leadership Practises, Burritt, C (2009). Customers for Target Corporation falls in the category of “Esteem” based on Maslow’s Need Hierarchy. Company Name: Target Corporation : Industry (SIC) 5331 - Variety Stores: Latest report: 1/31/2020 (filed 3/11/2020) Revenue: $78,112 million (ranked #3 out of 16 companies in the industry) STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Target Corporation Case Study: To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles TARGET Liza Albaine, Femi Emmanuel, Abdul Hadi, Zain Haider, Kaitlin Loper 2. TGT: Target Corporation industry comparisons. On the same note, t could examine ways of improving and strengthening its brand without increasing the cost of its products. Target Corporation PESTEL analysis is a strategic tool to analyze the macro environment of the organization. The company has also suffered numerous lawsuits in the recent times that have disengaged it from business focus to the lawsuits. 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