Part 1-20 marks. Using the company's 2014 annual report, please answer the following questions:

Transcription

1 Part 1-20 marks Using the company's 2014 annual report, please answer the following questions: i. (3 marks) What industry(s) does Target operate in (3 marks)? - - Target operates in the retail industry (10-K) Department stores (Ibisworld) any 2 (1/2 m - General merchandise stores (CapitalIQ) ( 1 mark fo ii. ( 7 marks) What is the company's strategy and how is it positioned within its industry? Wh Target offers its customers both everyday essentials and fashionable, differentiated merchan Target's main differentiating advantage in the US market is in its apparel and fashion lines, w Customers: - Luxottica Group S.p.A. - Playmates Toys Limited - Verizon Communications Inc. - US consumers any 2 (1/2 mark each) Suppliers: - Emerson Radio Corp. any 2 (1/2 mark each) - Cherokee Inc. - Gaiam Inc. - Hanesbrands Inc. - Shinsung Tongsang Co., Ltd - Levi Strauss & Co. Competitors: any 2 (1/2 mark each) - Amazon.com, Best Buy, Staples - Home Depot, Lowe's - J. C. Penney, Kohl's, Macy's, Sears, TJX, The Gap, Publix - Costco, Safeway, Kroger, Publix, and Walmart - Dollar General, CVS Caremark, Walgreens, Rite Aid Key Event in 2015: On January 15, 2015, Target Corporation announced its plan to discontinue operating stores in Canada throug As part of the process, Target Canada filed an application for protection under the Companies' Creditors Arran iii. (7 marks) Identify key elements of the company's business /business environment that imp - If the company is unable to differentiate itself from other retailers or respond quickly to changing - If they are unable to successfully develop and maintain a relevant and reliable multichannel exper - The company's earnings are highly susceptible to the state of macroeconomic conditions and cons

2 - Interruptions in the company's supply chain or increased commodity prices and supply chain costs iv. ( 3 marks) What are Target's financial reporting objectives? Identify key stakeholders and Target's financial reporting objective is to provide its stakeholders with useful, timely, and material informati Key Stakeholders: - Customers: Individuals who shop in stores and online at Target.com - Employees: Current, prospective and retired employees in our stores, distribution centers, global s - Policy Influencers: National, state and local elected and appointed officials and trade organizations - Communities: National and global NGOs, community organizations, national and local nonprofits, - Investors/Creditors: All investors, including current and prospective shareholders and bondholder - Vendors/Suppliers: Vendors used in the production and finishing of products ordered by Target Stakeholder Interests: - Customers: customers want to know how Target is doing in order to i) decide about whether to co - Employees: employees want to know how Target is doing to decide i) whether to begin or continu - Policy Influencers: they want to know how Target is doing to i) determine how Target should be ta - Communities: communities where either Target or its suppliers/vendors operate are interested in - Investors/Creditors: current and prospective investors/creditors want to know about Target's busi - Vendors/Suppliers: vendors and suppliers are interested in knowing how Target is doing to determ

3 mark each) or strategy) ho are the customers, suppliers and competitors? Identify one key event that occurred for the compa ndise at discounted prices. Target's strategy is similar to Walmart, in that they operate large store fo where the company partners with upscale brands and designers to offer collaborative collections that gh its indirect wholly-owned subsidiary, Target Canada ngement Act (CCAA) with the Ontario Superior Court of Justice in Toronto. (2 marks) pact the company's operations and profitability. (any of the comments below and consumer preferences, their customer acquisition and sales could be adversely affected rience for their customers, their sales and reputation could be adversely affected sumer confidence in the United States

4 s could adversely affect their gross margins, expenses and results of operations their interests. (any 3 below as long as their interests are properly iden ion that will allow them to make educated decisions. sourcing offices and headquarters locations s foundations, local schools and administration, national and local law enforcement and public safety officials a s ontinue shopping in their stores or not ; ii) in the case of long-term customer relationships (for example: in the ue working with them and ii) retired employees care about their pension or other long-lived liabilities that Tar axed, ii) what kinds of aid could be made available to help companies like Target grow and create more econom knowing how Target is doing to determine if they will continue business in the area,owed in taxes by Target. iness practices and financial health in order to continue to provide capital to the company (for example: bond mine whether to continue doing business with them or not.

5 any in ormats with a variety of general merchandise at affordable prices. t are exclusive to Target. d as long as it is relevant (if not below) then count as correct)

6 ntified, give full marks) and emergency management offices e case of product warranties, returns, etc.) rget owes to them. mic growth/jobs. dholders want to know if Target can pay back its loans)