Target Corporation
In the first part of our analysis, we give a brief introduction about Target Corporation and its main competitors, Costco and Wal-Mart, so that we can set some decision rules to allocate the resources.
Target Corporation
Brand Strategy Target Corporation has a very strong brand, and their logo is recognized by more than 97% of the United States population. One of Target’s strength is that the corporation has more than 1,750 stores in the United States, and it has store in almost all the states of United States. Another of its strength is its ability to anticipate the demands of the customers and its ability to provide high-quality and innovative products which in return make their customers become loyal of availing …show more content…
Opportunities for future business in expanding consumer markets, such as China and India. Weakness Could leave it weak in some areas due to the huge span of control Weak advertisement base leading to the inability of reaching full range of membership base. Negative publicity(paying below minimum wage, exposing employees to health hazards and sex discrimination) Threats
political problems in the countries which operate in Intense price competition because of fallen cost of producing (price deflation)
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Capital Budgeting - Financial Analysis
Our analysis considers three important parts of each project: investment and return, and risk and sensitivity. After carefully analyzing data and given information from the dashboards, we conclude grade points of five projects to give some recommendations to the Capital Expenditure Committee.
Investment and Return
In the first part of our financial analysis, we consider some important factors and financial ratios to understand the profitability of each capital expenditure project. NPV and IRR methods are two effective ways to see whether a project is worth investing. Therefore, the first factor we use to analyze project’s return is the expected NPV and internal rate of return. Note that since we have known that the financial crisis and a large economic regression happened in 2008, we assume that the probability of 10% decline is 0.6 and base