Preview

Target Supply Chain Case Study

Good Essays
Open Document
Open Document
329 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Target Supply Chain Case Study
Target is the third largest retail chain in the United States and in the case study of, we find that Target was having growth slowed because of an overly complicated supply chain and unacceptable levels of stockouts that was causing upset customers and leading to decreased sales. Stockouts are zero inventory situations where inventory does not mirror demand. The distribution process became very complicated with the addition of the grocery business and became more complicated when they began to let customers order online directly from warehouses and pick up the online orders at the stores (Solomon, Marshall, & Stuart, 2018). This resulted in a huge mess for Target, and they had to redesign thier supply chain (Solomon, et al., 2018).
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Supply Chain Task 1
    • 1619 Words
    • 7 Pages

    Supply Chain Task 1

    To evaluate how I utilized both budgets and pro-formas to ensure the adequacy of funds for providing production capacity that was needed to achieve the businesses goals. I want to first start with the definition of both pro-forma and budget; A budget is a basic idea that covers more than a few areas, all in all it's a financial plan that is made to control costs for operations and results. It can be expressed in a multitude of numerical terms, it also can cover a certain period of time, short, intermediate and long term goals. A pro-forma is also a financial statement but it is prepared based upon assumptions of specific events and transactions that will hopefully occur in the Future, so basically a projected estimate using historical data to form a hypothesis of A financial outcome. The importance of both the pro-forma and budget were huge. Knowing going into the simulation how much seed money was going to be issued and how much additional money was coming in future investments, gave me an idea of how aggressive or conservative I could be. I was able to to set with an initial idea of how much I could spend for each factor needed moving forward. I was able to understand how much to market, how much to hire and how much I could afford for each of these tasks, as well as how much was coming into pay for future marketing and hires. Without advertising there are no customers, without a good sales and service staff there are no sales, or an ability to take care of the customer. In the opening quarter of the company I had a 2 million dollar start-up fund. My upfront expenses were approximately $530,000. I also chose to invest in a 3 month CD about $880,000, I made sure in my first endeavor to keep money available and not to over indulge. I took similar approaches going…

    • 1619 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Supply Chain Task 2
    • 1199 Words
    • 5 Pages

    Supply Chain Task 2

    1. As I began my journey as a new business owner of a computer company I needed to define my company 's goals, decide which direction I wanted to take the company to and create a mission statement that will best represent my company. Since the company was new I needed to come up with something catchy and promising that would invite potential clients to find out more about the products we offer. Since there were more participants in this game and from my professional experience I learned that staying on the same path and making advancements is more beneficial than trying to change directions every time. In this case I remained focused on the same two groups for the remaining 3 rounds. Instead of changing and adding more products every quarters like most of the other participants I kept my two models (one for each group) and made necessary corrections and modifications based on the market needs. I verified the requirements of each group, the priorities and the price range each client is willing to pay. Since there are no specific techniques used in this part of the business analysis I used my own judgment in making sure that I create the best product with the items that are most important to the potential client group. As stated above I initially created two products (one for each group) and after the first round they both passed 70% but in the scientific group it was not chosen as one of the best. In the second round I was given an option of reviewing products of my competitors and the only difference was the larger monitor and an upgraded keyboard. I added those options to my products and in the next round both products did very well. I had to make sure that in the nest round I keep up with the new upgrades and add them to my products to make sure that I keep up with the new technology. Even after making the upgrades the prices did not change a lot and the two groups still chose my product as one of…

    • 1199 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Supply Chain Task 1
    • 2621 Words
    • 8 Pages

    Supply Chain Task 1

    In Quarter 2 I projected a demand of 350 units for my primary target market, the Mercedes group, and 170 units for my secondary group, the Traveler. My total forecasted demand was 500 units, and my available operating capacity was 520 units. I decided to sale my product to the Mercedes group for $3800.00/unit with a $100 rebate/unit and sold my product to the travelers for $3000.00/unit with a $100/rebate. I operated at 100% capacity for Quarter 2. I sold out of both products, under estimating my consumers. For the Mercedes group, I lost out on 158 sales and for the Travelers I lost out on 74 sales. At the end of quarter 2, I was still operating at a loss, but had significantly cut my loss from $-338,500 to $-195,018. Thanks to the common stock I sold this quarter, I still had a cash balance over a million dollars which helped me make changes for quarter 3.…

    • 2621 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Target Corporation
    • 837 Words
    • 3 Pages

    Target Corporation

    Since 2013, Target has been facing some negative changes that have affected its financial wellness. According to Target’s financial statements, total stockholder equity decreased by 2% from 2013 to 2014. There was a 1% decreased in total revenues from 2013 to 2014 and a 5.7% decreased of gross profit was recorded during the same period as well. The 34.3% decreased in Net Income from 2013 to 2014 shows the actual performance of the company. Key statistics such as profitability ratios and management effectiveness ratios capture a wider view of the company achievement. Target currently has a profit margin of 2.07% which is relatively low compared to the 2.77% industry average. Likewise, Target’s 4.55% operating margin is lower than the 4.99% industry average. Target’s current quick ratio is .22 which indicates that it doesn’t have enough assets to meet its short term liabilities without having to sell its inventory. Furthermore, management effectiveness ratios indicate that its capability to attain higher returns is declining. Target currently has a low ROA of 4.52% compared to the 5.72% industry average. Moreover, Target’s ROE of 9.37% is almost half of what the industry average is; 16.45%. As a result, the equity debt ratio increased to 87.53 making the…

    • 837 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Target Strategic Audit
    • 15483 Words
    • 83 Pages

    Target Strategic Audit

    This report examines Target Corporation’s performance in a detailed strategic audit. The audit includes an external, internal and strategic analysis as well as a recommended course of action. The findings of the audit recommend a robust on-line/mobile presence to complement in-store sales, and to increase future earnings to remain competitive by building upon physical assets, brand value and logistical capabilities.…

    • 15483 Words
    • 83 Pages
    Powerful Essays
    Read More
  • Good Essays

    Supply Chain Task 2
    • 1092 Words
    • 5 Pages

    Supply Chain Task 2

    I made my brand design decisions in the simulation by taking into account what the customers were looking for in a product. The simulation provided me with information as to what was important to the customer and what the customer wanted in their ideal computer. I then took that information and made sure that I included all of it in the product. In the first design which was aimed at the Mercedes target market; I did not make the screen size as big as the customer wanted it. When the simulation showed me my product compared to my competitor’s product, my competitors were in the lead. After seeing this information I changed the design to the screen size and made it bigger. I also included some extra games and made the keyboard more user friendly. My results after the changes were favorable. After making a few changes to the advertising as well, we emphasized on those factors that were important to the customer including the screen size. We then started to do better than our competitors. The simulation showed that we were the preferred brand within customers of the Mercedes and the Travelers market. For the Workhorse market I determined the design decisions just as I did the Mercedes and Travelers market. I made sure to include everything the customer was looking for according to the information the simulation provided me. Our product aimed at the Workhorse market did well and was the preferred brand from the time it was introduced.…

    • 1092 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Target Corporation
    • 4839 Words
    • 20 Pages

    Target Corporation

    Target Corporation has no new imminent threats on its horizon. Its greatest challenge continues to be the problem of competing with Wal-Mart. In order to reduce the threat posed to profits by internal rivalry in the discount retailing industry, Target should focus on two key issues: growth and differentiation. Target has grown consistently in the past. The obvious areas in which Target should concentrate its expansion are markets in the South and Northeast, where there are plenty of attractive locations with no Target stores. New territory also exists in the form of urban areas. Due to size…

    • 4839 Words
    • 20 Pages
    Powerful Essays
    Read More
  • Good Essays

    Target Corporation Porter's 5 Forces
    • 638 Words
    • 3 Pages

    Target Corporation Porter's 5 Forces

    Target Corporation is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. (information technology).…

    • 638 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Target Swot Analysis
    • 976 Words
    • 4 Pages

    Target Swot Analysis

    I 've scanned a listing of newspaper articles with "Target Corporation" as the headline, and a pattern has emerged: Target has consistently grown while many other companies are losing ground. To take just three examples: in August 2002, Target sales grew 7.5% ("Target Corporation August Sales Up 7.5 Percent," PG); In October 2002, they were up 9.8% ("Target Corporation October Sales Up 9.8 Percent," PG); and the most recent article cites a 7.7 percent increase in January 2003. ("Target Corporation January Sales Up 7.7 Percent," PG). This is an impressive record for a company in a country mired in a deepening recession.…

    • 976 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Target Background and History
    • 516 Words
    • 3 Pages

    Target Background and History

    Many industry observers believe that Target is facing a critical crossroad in its strategic direction (both from a financial as well as operating standpoint). They question how it will sustain its double digit historical growth trend given its benchmark competitors size. In addition, Wal-Mart's rapid expansion of its food business is expected to produce continued double-digit growth. While Wal-Mart has chosen the Supercenter to be its primary growth vehicle, Target views its own SuperTarget concept as an important contributor to growth, but not its primary contributor. Target's traditional discount store remains its significant growth channel and considerable capital expenditures are devoted to the continued expansion of this concept.…

    • 516 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Target Corporation Case Study
    • 443 Words
    • 2 Pages

    Target Corporation Case Study

    Since 2008 Target Corporation has been implementing solutions to cut expenses without losing the integrity of the “Target Brand” (https://corporate.target.com/about/history/Target-through-the-years ). While testing the solutions each year expectations increase to improve sales per individual store. Implementing correct price changes daily is a multi-billion dollar problem for corporations (Stross, R., 2013). The recession of 2008 unveiled the need to do more with less and refocused Target’s efforts on decreasing one of their highest expenses, payroll. I…

    • 443 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Target Corporation's Expansion Into Canada
    • 538 Words
    • 3 Pages

    Target Corporation's Expansion Into Canada

    First, the case discussed the work methods and facilities plans of Target Corp. as mentioned before, which is to provide the combination of the brand experience. This would separate Target Corp. from other competitors who are operating subpar. This was to recreate the same exciting atmosphere that they provided back in United States. Moreover, the one billion dollars being spent to convert 100-150 of the banners is one of the capital investments they had to make, which can be identified as financial plan. Furthermore, aspect of logistics can be found in Fisher’s interview saying, “Our supply chain strategy is going to be very critical to how we respond quickly. We have to make sure that from an inventory and purchasing strategy, we remain flexible…”(Schermerhorn & Wright, 2014). Although not mentioned in the case itself, media was already covering and marketing Target Corp. before actual opening of the stores. The media constantly updated the Canadian consumers who were eager to shop at Target. When the stores finally opened, media covered the Target pilot stores and their overwhelming demands, leading to empty shelves. Lastly, the case involved human resource plans through discussing of 150 to 200 staffs planning to be hired for each store. Also, they mentioned that their brand experience included keeping talented workforce who is ready and willing to help the customers in need. Therefore, all of functional plans were…

    • 538 Words
    • 3 Pages
    Good Essays
    Read More
  • Best Essays

    Target Corp.
    • 3639 Words
    • 15 Pages

    Target Corp.

    The Target Bulls-eye logo has become instantly recognizable and synonymous with high quality and style at affordable prices. From its origins in 1902 as The Dayton Dry Goods Company in Minneapolis, Minnesota to the opening of the first Target store in 1962 in Roseville, Minnesota, Target Corporation has grown into one of top five retailers in the United States today with over 1,600 stores and 350,000 employees. Total revenues and net earnings for 2008 reached $64.9 billion and $2.2 billion respectively (Target Corporation, n.d.). Such results rank Target as the 28th largest U.S. Corporation with a market value of $25.7 billion as of March 2009 (Largest U.S., 2009). Innovative marketing strategies have certainly contributed to the company’s enormous success over the years. The “Expect More. Pay Less” strategy builds upon the company’s mission to deliver outstanding value, great brands, thoughtful innovation, exceptional design, and unique style (Target Corporation, n.d.). Target’s market positioning and value proposition have evidently helped build the company into one of the leading retailers today.…

    • 3639 Words
    • 15 Pages
    Best Essays
    Read More
  • Powerful Essays

    Target Corporation
    • 2481 Words
    • 10 Pages

    Target Corporation

    Companies were struggling to paddle against the stock market waterfall. Unemployment rates reached astonishing numbers seen only by generations before, and the American workforce was strangling to catch a breath under the deep state of turmoil. A recession was inevitable. It was a tough time for individuals and companies alike. Numerous companies filed bankruptcy and many workers lost their jobs. One of the companies that stayed afloat during the economic recession was the Target Corporation. Although experiencing profit losses and was forced to lay-off workers, Target stayed true to its cores and values. Its brand promise of “Expect More. Pay Less.” retained much of its customer loyalty. Its dependable merchandises and exceeding expectations are unique in the market. Target focuses heavily on attaining customer satisfaction and employee satisfaction. The company believes employee satisfaction will yield higher performances and increase sales profits. Target sees itself more than a discount retail store, but as an innovate leader. It constantly searches for new ideas and ways to enhance the customer shopping experience at its local stores. Target contributes much of its innovate mindset to a diverse team of employees. The company emphasizes the importance of diversity and individuality, acknowledging how diversity allows for greater innovation. Despite recent losses in profits due to economic recession, Target has revived itself through its diverse teams, emphasis on employee satisfaction and thirst for innovation.…

    • 2481 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    What Is The Cause Of Target's Dilemma
    • 243 Words
    • 1 Page

    What Is The Cause Of Target's Dilemma

    In today’s consumer driven economy, Target is facing a dilemma. Many consumers, even myself, have discovered deep discounts while online shopping. The only problem with online shopping is you can’t inspect the item until you’ve already purchased it. Target is now experiencing a “showrooming” problem, as many consumers will review a product in store, then return home to purchase it online at a cheaper price (Kinicki & William, 2013). While competing with online only rivals, such as Amazon, Target discovered they had to act as these stores don’t have the overhead expenses, therefore can offer cheaper prices.…

    • 243 Words
    • 1 Page
    Satisfactory Essays
    Read More