Target Corporation

Presented byDiksha dey Dipali gadePooja sarkar

Sneha mhatreSneha deshmukh

Company profile Type :Public company Traded as :NYSE: TGT Industry : Retail Founded1902 (as Dayton Dry Goods)

1969 (as Dayton-Hudson)2000 (as Target)

Founder : George Dayton Headquarters : Target Plaza North & Target

Plaza SouthMinneapolis, 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 ActivitiesCustomer ServiceMarketing and SalesOperations

Secondary ActivitiesHuman ResourcesRecruitment, hiring, training, and developmentTechnologyConduct researchNew 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 big-box 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.

SUBSIDARIESFinancial 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 Dayton’s. 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

Generic Strategies Differentiation Focus

Grand Strategies Innovation Product Development

Strategic Choice

Differentiation Higher quality, more trendy clothing, better

style Drive-through Pharmacies Expansion into SuperTargets

Target corporation : Strategies and objectivesLong 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.

RationaleTarget 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 Estimates in M-USD

Fiscal Period January 2009 2010 2011 2012 2013 2014

Sales 64,948 65,357 67,390 69,903 72,832 77,640

Annual Income Statement

Actuals in M-USD Estimates in M-USD

Fiscal Period January 2009 2010 2011 2012 2013 2014

Sales 64948 65357 67390 69903 72832 77640

EBITDA 6228 6696 7336 7430 7474 7866

EBIT-operating profit 4402 4673 5252 5254 5231 5698

Net income 2214 2488 2920 2874 2814 3080

EPS 286 330 400 420 433 496

Dividend per share 0,62 0,67 0,84 1,05 1,18 1,29

Financial leverage

Actuals in M-USD ESTIMATES IN M-USD

Fiscal period Jan 2009 2010 2011 2012 2013 2014

Debt 17888 14614 14014 14120 12496 12665

Shareholders' equity 14509 14810 15878 15940 15880 15334

Operating income (EBITDA) 6228 6696 7336 7430 7474 7866

Leverage (Debt/EBITDA) 2,87 2,18 1,91 1,90 1,67 1,61

Gearing (Debt/Shareholders' equity)

123% 96,8% 88,3% 88,6% 78,7% 82,6%

Capital Expenditure 3547 1729 2129 2956 3217 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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