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Target

MEMO To: Bobby C. Vaught, Ph.D. Date: July 11, 2000 Professor of Management From: John Schindele Subject: Target Corporation (Formerly Dayton Hudson) The main issue facing Target Corporation is what it should do with its department store and Mervyn's divisions. The company has considered closing or selling the divisions several times over the past few decades. Although both divisions continue to make a profit, the company could be better off focusing all of its attention on the Target stores. On the other hand, maybe the company needs to take a different approach with the divisions and try to make them more successful to generate greater profits. Target Corporation is going to have to sell its department store and Mervyn's divisions if they do not show significant improvements in next year after the new strategy goes into affect. These two divisions are holding Target back and depleting some of its much-needed resources. In the short run the other two divisions are going to st!

art conducting business in the same fashion as the Target stores. If after a year the new strategy, which is making the other two divisions more like the target division, has not produced more profit for the company, it will be time to either sell or close


18.42 Operating Margin - 5 Yr. Avg. 4.17 5.29 7.88 17.13 Pre-Tax Margin (TTM) 5.86 5.79 10.19 17.59 Pre-Tax Margin - 5 Yr. Avg. 4.17 5.19 6.69 16.80 Net Profit Margin (TTM) 3.59 3.63 2.47 13.38 Net Profit Margin - 5 Yr. Avg. 2.55 3.23 0.79 10.27 Effective Tax Rate (TTM) 38.75 37.10 37.95 34.63 Effective Tax Rate - 5 Yr. Avg. 38.77 37.52 38.40 35.54



Some common words found in the essay are:
Target Corporation, Target Corporation's, Department Stores, Internet Suppliers, Square Feet*, Wal-Mart's Supercenter, Success Industry, K-Mart Sears, Mervyn's Inventory, Yr Avg, target corporation, department stores, target corporation's, target stores, customer service, department store, 5 yr, yr avg, 5 yr avg, mervyn's divisions, store mervyn's divisions, margin ttm, department store mervyn's, merchandise retail industry, company industry sector,
Approximate Word count = 9069
Approximate Pages = 36 (250 words per page double spaced)


  

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