Target Corporation Strategic Management Overview

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SGMA 591 L02 TARGET CORPORATION STRATEGIC MANAGEMENT OVERVIEW Student ID: 10012487 SGMA 591 L02 TARGET CORPORATION STRATEGIC MANAGEMENT OVERVIEW Student ID: 10012487 Contents EXTERNAL ENVIRONMENT 3 Demographics 3 Social Factors 3 Political, Legal, and Regulatory Factors 3 Technological Factors 4 General Economic Conditions 4 COMPETITIVE POSITION AND RESOURCES 4 Tangible Resources 4 Intangible Resources 5 PRESENT STRATEGY 5 Canadian Expansion 6 Store Remodels 6 Strengthening Customer Loyalty 6 City Target 6 INDUSTRY COMPETITIVE FORCES 7 Rivalry among Competitors 7 Threat of New Entrants 7 Competitive Pressures from the Sellers of Substitute Products 7 Competitive Pressures Stemming from Suppliers’ Bargaining Power 8 Competitive Pressures with Buyers’ Bargaining Power 8 SWOT ANALYSIS 9 FINANCIAL PERFORMANCE 9 PROFITABILITY RATIOS 10 LIQUIDITY RATIOS 10 LEVERAGE RATIOS 10 ACTIVITY RATIOS 11 OTHER IMPORTANT MEASURES 11 KEY STRATEGIC ISSUES 12 Channel blurring increases competition in the US. 12 RECOMMENDATIONS 12 Invest in Online Retailing 12 Expand Private Label Range 13 APPENDIX 14 Appendix A: Market Shares of Retailers in Mass Merchandise’s Industry in U.S. 14 Appendix B: Target Ratio Analysis and Wal-Mart Ratio Analysis 15 REFERENCES 17 EXTERNAL ENVIRONMENT Demographics Canada has a smaller population compared to the U.S. however, the Canadian population is expected to increase by 1% per year, as is the number of households. The average income per person in Canada is higher than the average income per person in the U.S. In addition, Canada has a larger portion of middle class than the U.S. does. These all will help retailers that offer good quality products with affordable prices to gain market share in Canada. Social Factors Canadians value family.
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