The necessary analysis to decide whether to invest in Target Case Study

The necessary analysis to decide whether to invest in Target - Case Study Example Target Plc is not a new name in the retail, food and ingredients industry and is considered analogous to quality and premium branding. The company is a diversified conglomerate having five major strategic segments which are sugar, agriculture, retail, grocery and ingredients. As per the latest financial statements of the company for the annual year 2012, the company is operating in almost all of the major cities of the United States. The vision and mission statement of the company is to achieve strong leadership in the course of business which is sustainable and long lasting. The company always strives to provide quality products to the individuals and other consumers and to become a necessary brand in the people’s day to day active life. Financial Highlight [Annual report Target, 2012 , Pg2] As apparent form the above financial highlight, the company presents a strong financial outlook and appears to be a lucrative company for the investors to invest in. The company has vario us revenue centers through which the company generates most of its revenues. During the financial year 2012, the highest earning revenue center for the company was heath, beauty and households which constituted about 25% of the total revenue of the company. Evaluation of American Retail Market The growth in the American retail market for the financial year 2012 saw an escalation as compared to the previous financial years. During every quarter of the financial year, the retail industry in USA experienced a growth of 1%. The analysts are of the view that this particular growth in the industry is a definite positive sign if it is compared to the last two financial years. The retailing conditions in the past two years remained quite adverse for the companies but now the situation appears fruitful and lucrative for the companies. A Comparison of financial year 2012 with the financial year of 2011 presents that fact that the volume of sales in the retail industry in USA increased by 2.7 percent. Changes in reported retail sales between August 2011 and August 2012 standard reporting periods (by size of business)       Pre-dominantly food Non-specialized pre-dominantly non-food Textile, clothing and footwear House-hold goods Other non-food Non-store retailing Pre-dominantly automotive fuel Total All Retailing including automotive fuel                               increase 107 32 138 72 375 64 23 811 All decrease 97 33 104 77 306 46 50 713    Total 204 65 242 149 681 110 73 1524                               Large increase 66 32 110 42 158 30 n.a. 438 decrease 56 33 73 47 107 19 n.a. 335    Total 122 65 183 89 265 49 n.a. 773 Small increase 41 n.a. 28 30 217 34 23 373 and decrease 41 n.a. 31 30 199 27 50 378 medium Total 82 n.a. 59 60 416 61 73 751 [Ons.gov (1999) Retail Sales: August, 2012] With respect to the sports merchandise business, there were certain hardships that were faced by the retailer. During the year 201 2, costs of both cotton and fuel increased, particularly of fuel which resulted in an escalation in the manufacturing cost of the merchandise. Target has in place an import team which constantly monitors the fluctuation in prices of cotton. For the purpose of reducing the cost of fuel, the retailers are now acquiring the help from the

Gloal corporate strategy Essay Example | Topics and Well Written Essays - 3000 words

Gloal corporate strategy - Essay Example It has been estimated that Asia will witness the highest growth in the retail food market. To become market leaders, Walmart, Carrefour and Tesco have adopted several innovation strategies which have ultimately helped them to become global leaders. Walmart’s growth under the leadership of Lee Scoot needs special mention as the company has made significant breakthroughs after he became the company’s CEO in 2000. Kapner S., February 2009, Changing Of The Guard At Wal-Mart, Cable News Network: A Time Warner Company, [Online], Available: http://money.cnn.com/2009/02/17/news/companies/kapner_scott.fortune/index.htm, [2 May 2009] 21 The Unending Woes Of Lee Scott, January 2007, Cable News Network: A Time Warner Company, [Online], Available: http://money.cnn.com/magazines/fortune/fortune_archive/2007/01/22/8397972/ , [2 May 2009] 23 Carrefour has grown to become one of the global food retail giants by expanding both domestically and internationally. It started off by entering into joint ventures with the local companies. The company was the first to introduce the concept of hypermarkets and its first international foray was marked by setting hypermarkets in Brazil in the year 1975. (Holtreman A, n.d). Carrefour and Promodes merged forces in 1999 to form the largest food retailer within Europe. This merger made them the second largest global retailer with their presence stretched to cover almost 26 countries. (Merger Carrefour – Promodà ¨s, n.d.) This merger promised to have an overall beneficial effect on the business of the two merged entities. The aftereffects of the merger were supposed to benefit the stakeholders of the company at large. Suppliers would be able to reap the advantages of increased export opportunities and customers would be able to get their hands on an array of new products. This deal was mainly drafted by Carrefour to save itself from falling prey to Walmart, the leading US food retail giant, as the latter