Calculations and summary conclusions are made Profitability Analysis of Target Corporation ( TGT | USA) The Profitability Score is a relevant measure for the assessment of a stock attractiveness. A high-level overview of Target Corporation (TGT) stock. In addition, the numerous lawsuits that Target Corporation has been facing in the recent times have had an immensely negative impact on its image. Preliminary Target Industry Assessment 2. on official financial statements filed with the U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, The crisis in the housing market, coupled with the increasing cost of foods and utility has left consumers with little disposable income. 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. Target Corporation is a company that operates in the discount retail store industry. Finally Target istowards the bottom of the list ranked at 13 for … In this model, five forces have been identified which play an important part in shaping the market and industry. It gives Target customers a great opportunity to access industry-leading health care services in their stores. 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. Since 1962, Target has been growing very fast and in 2000 it assumed its present name. Target Corporation shows a Profitability Score of 7.00. Target Match (Strength & Weakness) Analysis 3. 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. Bloomberge. 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. In addition to corrective measures, Target Corporation is environmental friendly since it is concerned with conservation of the environment. Target Corporation has its biggest threat as the competition in the national and local markets both from national and international companies. Save my name, email, and website in this browser for the next time I comment. It can have an immense share of the expanding markets in countries such as India and China. (-2 – below the first quartile; -1 – between the first and the second quartile; The above is a comparative analysis of the financial position and performance of the company. Target serves in the US only and also has an E-Commerce platform at target.com. 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. One of the key strengths pertaining to the apparel products offered by the company is the recognized status of the company. 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 EV/EBITDA NTM ratio of Target Corporation is significantly higher than its historical 5-year average: 7.8. To draw a conclusion from the analysis the individual scores are weighted equally to get an overall score ranging from -2 and +2. 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. Use of Technology for Better Human Services, Accidental Heroes: Whether Heroes are Born or Created. University of North Dakota, Retrieved from http://www.und.nodak.edu/dep/grad/html/gfinfo.html. within the same industry, and also with the quartiles of those ratios. Each retailer in the retailing industry tries to differentiate itself from the competitors, but the strategy … 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. 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. 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). Learn More. A large number of its competitors have incredible presence in the local and international markets, thereby offering cutthroat competition in its markets. 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. (See also Walmart SWOT Analysis.). 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). The corporation has also made it as part of the Standard & Poor’s 500 index (Pederson, 2004). It incorporates the flow of five elements namely inbound logistics, operations, outbound logistics, marketing &sales and customer service. 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. There are several US and non-US brands that are competing for market share. Analysis of Short-term (Operating) Activity Ratios. 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". The comparison is based 02/11/1902. 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). Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Retrieved from http://www.bloomberg.com/apps/news?sid=aX.YYXT2sDwI&pid=newsarchive, Community of Grand Forks, (2007). "ReadyRatios Financial Analysis" Each ratio value is given a score ranging from -2 and +2 depending on its position relative to the quartiles Company's financial ratios are compared with the median values of ratios of all companies and of companies Get the latest stock and industry comparisons from Zacks Investment Research. 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. This will go a long way in the restoration of the public trust in the company, which will enhance its position. Customer analysis of Target Corporation. 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. Target Corporation operates general merchandise discount stores. By understanding the Porter Five Forces in great detail Target Corporation 's managers can shape those forces in their favor. - load the data into the program>>. In essence, it should expand its business perspectives, as well as come up with an expanded sense f carrying out its operations. 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. 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 Profitability Score for Target Corporation is significantly higher than its peer group's. Macy’s. This would not only increase its competitiveness against Wal-Mart but also lower its vulnerability to slowdown of the United States economy. The (current) company valuation of Target Corporation is therefore way above its valuation average over the last five years. The brand has over the years grown into an icon for everything that can be considered cool, stylish and hip in the retail world. Nevertheless, the corporation has an immense opportunity for expanding in the international markets. Target's strong image ought to be effortlessly transferable to urban areas. In-depth view of key statistics and finances for TARGET CORPORATION (TGT) on MSN Money. 10. Target Corporation, popularly known as Target, is an American retailing company whose headquarters are in Minneapolis, Minnesota. Customers for Target Corporation falls in the category of “Esteem” based on Maslow’s Need Hierarchy. 1000 Nicollet Mall TPS-3165 Minneapolis, MN … 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. Evaluates revenues and output generated by the Target Corp.’s assets. 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. The retail landscape of US has grown highly competitive. Creating a Tailored Economic Development Strategy In order to attract the right industries and organizations, it is essential that … For that reason, in comparison with all businesses, the Company shows a satisfactory result. TARGET CORPORATION : Forcasts, revenue, earnings, analysts expectations, ratios for TARGET CORPORATION Stock | TGT | Recommendations. The primary business activity of the company is Variety Stores (SIC code 5331). Target Corporation is a chain of retail stores based in the US. 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. TARGET CORPORATION : Industry and sector chart comparison share TARGET … Analysis, and Retrieval system (EDGAR) (about 10,000 largest publicly traded companies). In addition, it is imperative that the corporation lessens its obsession with quality. Even in instances where it may win the lawsuits, the reputation of the corporation remains at stake. The general economic situation is not very good for the company. 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). TARGET Liza Albaine, Femi Emmanuel, Abdul Hadi, Zain Haider, Kaitlin Loper 2. It is the second largest retailer in the USA and offers household essentials, food and pet supplies, apparel, accessories, home furnishing etc. FOUNDED. Target Corporation Market Analysis 1. 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. Operating performance ratios describe the relationship between the Target Corp.’s level of operations and the assets needed to sustain operating activities. This will enhance its competitiveness in the local and international markets. We will write a custom Essay on Strategic Analysis of Target Corporation specifically for you for only $16.05 $11/page. External Situation. For a detailed financial analysis please use 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). See Target Corporation (TGT) stock analyst estimates, including earnings and revenue, EPS, upgrades and downgrades. 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. 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. Wal-Mart Set to Repeat Share Gains, Grab Target Sales (Update3). The industry has a lot of players, thus it experiences a high level of competition. Phase I: Preliminary Target Industry Analysis Targeting is well recognized as the best method of attracting economic development. 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. Target's brand value has empowered the company to build up the reputation of offering clients quality products at marked down costs. 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). ADDRESS. Target Industry Analysis FLOR Group helps you identify the ideal industries and organizations for your region, and then expand your efforts to attract them. Consumers of the brand can buy trendier and stylish clothing, furniture or other items of their choice at a discounted rate. This underlines the fact that the corporation has no presence in the international market. TGT: Target Corporation industry comparisons. 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 comparison is performed using the eleven key financial ratios (see table above). 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. in a computerized way using software and methods developed by Consulting financial and analytical company Ankon. Target Corporation PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Selection of the “Best Fit” Targets 4. The company has also suffered numerous lawsuits in the recent times that have disengaged it from business focus to the lawsuits. 1. Additionally, CVS, Kroger, and Amazon are alsoabove target at 0.7% and 0.6%. According to these financial ratios Target Corporation's valuation is above the market valuation of its sector. Target Corporation, popularly known as Target, is an American retailing company whose headquarters are in Minneapolis, Minnesota. 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. 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) Target Corporation (TGT) financial analysis and rating Comparison analysis based on SEC data. +1 – between the second and the third quartile; +2 – above the third quartile; 1.Strong brand presence: The Target brand name is widely perceived and publicized. 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. 301 certified writers online. The average ratios for this type of business activity are higher than the average for all industries. 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. Target Five Forces 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 ... SUB-INDUSTRY. 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 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). In addition, the company is made up of over 1700 stores in the country, situated in almost all states (USSEC, 2011). Target's Current Key Valuation Ratios, PE, PB, PCF, PS, compare to Department & Discount Retail Industry and Retail Sector 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and 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). As a result of the analysis of the key financial ratios of the company, we have established the following. These individuals look for superiority, self-respect, status, and prestige. Target is one of the best known retailers in US which faces tough competition from Walmart and Costco. Retail - Consumer Staples. the quartile closest to the ratio value). Situation Analysis 3. Business Objective Statement Target Corporation is the second largest American retailer and mass merchandiser. 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. They can identify game changing trends early on and can swiftly respond to exploit the emerging opportunity. On the same note, t could examine ways of improving and strengthening its brand without increasing the cost of its products. 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. PDF | The preprint is aimed for analyzing Five Forces Analyisis of Target Corporation. PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of Target Corporation. Of course, quality plays an immense role in strengthening a brand and sustaining customer loyalty on a product. Target's Sales and Income per Employee, Receivables, Inventory and Asset Turnover Ratio compare toDepartment & Discount Retail Industry, Retail Sector and S&P Target generated revenue of $ 69.5 billion in FY 2016. If you have a Facebook or Twitter account, you can use it to log in to ReadyRatios: You can log in if you are registered at one of these services: This website uses cookies. As of 2020, Target Corporation is one of the leading brands in the lifestyle and retail sector. 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. Amazon as the biggest e-retailer also poses a strong threat to Target’s business. 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. 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. 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). 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). Situation Analysis. Target Corporation is among the top ten largest retailers and highest employers in the US. 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