Strategic Initiative Paper

1633 WordsJan 31, 20137 Pages
Strategic Initiative FIN 370 December 06, 2012 Strategic Initiative Strategic and financial planning is necessary in every business no matter how big or small. Target is not an exception in the market and in this paper, we will analyze both their strategic and financial planning. We will discuss the strategic initiative that we identified based on the annual report and what would be the best for Target. Here you will also find how our initiative will affect the financial planning of Target and how will it affect costs and sales. Finally yet importantly, we will analyze the risks associated with the initiative and financial effects that they have. Target Strategic Planning Initiative There are many different outlooks and approaches used in strategic planning. The method in which a strategic plan is established depends on the nature of the business’s leadership, culture of business, intricacy, and size of the business environment, etc. Target’s strategic planning initiative begins with opening fewer stores in 2013 while investing $1 billion in renovation of 340 existing locations. The continuation to expand grocery offerings in general merchandise stores as well as improving customer experience in certain categories, such as beauty, home, and consumer electronics (including video games). To reduce costs, drive profitability, and gain greater control of the quality and freshness of the products we offer our guests, we took over management of two food distribution centers we previously operated in partnership with another grocer. Our expanded food assortment grew to more than half of our stores last year (“Target” 2011). The initiative discussed in Target’s annual report was expansion and credit cards. Target expects the expansion outside the U.S. to Canada, Mexico, and Latin American. Beginning in 2013, Target plans to open 125 to 135 stores in

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