Target Corporation Final
Target Corporation
Financial Analysis
Introduction:
There are many aspects to my analysis for Target Corporation that I will examine to develop Target’s vision for past, present and future performance. What are the different levels that we need to look at to develop the analytic conclusion for Target that will meet our needs and expectations for this analysis? I will be examining Target’s business strategy, performing an accounting analysis by examining their accounting policies and recasting the financial statements, in addition I will perform a financial analysis by using various financial ratios such as profitability ratios to assess how various line items in financial statements relate to each other, and a cash flow to assess liquidity, operating, investing, and financing activities as they relate to cash flow. Finally I will do a forecasting of the financial statements to estimate future performance and a prospective analysis to value the company using future cash flows to determine a stock price.
Strategic Analysis:
For Target the brand is the complete experience for its customers along with the addition of value for your money. This, of course, is only one strategy to stretch the growth of the company. Target has spent years building its brand image and its loyalty among its customers, which is the envy of the retailing world. Target has never been a company to use generic strategies to build their corporation into what it is today. They have needed to be an innovator in retailing and to develop their business model from the ground up. To the level that a corporation grows its business by building upon a core business strategy and the set of skills developed in that business, we can say that it is creating cooperation throughout the business.
What, then, is a company’s corporate strategy? The most widespread view is that strategy drives the actions of an organization by improving the operations of the operating units and gives you an understanding
Financial Analysis
Introduction:
There are many aspects to my analysis for Target Corporation that I will examine to develop Target’s vision for past, present and future performance. What are the different levels that we need to look at to develop the analytic conclusion for Target that will meet our needs and expectations for this analysis? I will be examining Target’s business strategy, performing an accounting analysis by examining their accounting policies and recasting the financial statements, in addition I will perform a financial analysis by using various financial ratios such as profitability ratios to assess how various line items in financial statements relate to each other, and a cash flow to assess liquidity, operating, investing, and financing activities as they relate to cash flow. Finally I will do a forecasting of the financial statements to estimate future performance and a prospective analysis to value the company using future cash flows to determine a stock price.
Strategic Analysis:
For Target the brand is the complete experience for its customers along with the addition of value for your money. This, of course, is only one strategy to stretch the growth of the company. Target has spent years building its brand image and its loyalty among its customers, which is the envy of the retailing world. Target has never been a company to use generic strategies to build their corporation into what it is today. They have needed to be an innovator in retailing and to develop their business model from the ground up. To the level that a corporation grows its business by building upon a core business strategy and the set of skills developed in that business, we can say that it is creating cooperation throughout the business.
What, then, is a company’s corporate strategy? The most widespread view is that strategy drives the actions of an organization by improving the operations of the operating units and gives you an understanding