sales saw a major increase raising their revenue to $52.6 billion. With 1400 locations throughout the nation‚ Doug Scovanner‚ the CEO‚ has to decide the next steps Target must take for continual growth. He was presented ten different investment options‚ which‚ he narrowed down to five with a total capital expenditure equaling $200 million. Upon analyzing the five locations‚ Scovanner has decided to suggest three locations‚ The Barn‚ Gopher Place‚ and Remodeling of the Stadium to the Capital Expenditure
Premium Wal-Mart Target Corporation Household income in the United States
up and running if there is a chance for starting up a new store in any geography (Real-estate managers are responsible for this) Which of the five CPRs should Doug Scovanner accept? Be prepared to explain how each of the considerations that follow influenced your decision: Out of the 8 choices available‚ I would tell that Scovanner will accept NPV/IRR‚ Size of the project‚ Customer demographics‚ Brand‐awareness impact‚ Cannibalization of other stores’ sales‚ because‚ • NPV and IRR are two main
Premium Finance Capital Target Corporation
purchase of leaseholds from the Canadian chain Zellers. Doug Scovanner‚ CFO of Target Corporation‚ was one of the five executive officers who were members of the Capital Expenditure Committee (CEC). The CEC were meeting on November 14‚ 2006 where 10 projects representing nearly $300 million in capital-expenditure request were to be reviewed. In reviewing the 10 projects coming before the committee‚ it was clear to Scovanner that five of the projects‚ representing $200 million in requested
Premium Target Corporation Wal-Mart
capital budgeting process‚ Doug Scovanner should accept all stores except Goldie’s Square. Furthermore‚ if Target were to limit its capital budget for store expansion to $120 million‚ Gopher Place‚ The Barn‚ and the Stadium Remodel should be accepted. INTRODUCTION This executive memorandum compares Target’s business model to Wal-Mart’s and Costco’s‚ and analyzes Target’s capital budgeting process. Additionally‚ this memorandum analyzes which of the 4 CPR’s Doug Scovanner should accept using various
Premium Target Corporation Wal-Mart
the expansion of groceries and store brands has continued. In fact‚ for 2010‚ Target planned just 10 store openings‚ the lowest in its history. “It will be a long time before we approach the development pace of several years ago‚” said Doug Scovanner‚ Target’s chief financial officer.
Premium Wal-Mart Hypermarket The Target
| Target Corporation | Memo To: Dr. Brian Boscaljon From: Adam Leone and Jean Costa CC: Doug Scovanner‚ CFO Date: [ 2/14/2011 ] Re: November Meeting Capital Budgeting Decisions The Objective As the November Meeting approaches‚ CFO Doug Scovanner is faced with the problem of choosing which of the five controversial projects available to accept. Our task is to assume this role and evaluate each of the projects based upon two major criteria. The first is determining the firm’s financial motives
Premium Marketing Management Investment
article explains how Target is beginning to look very similar to competitor Wal-Mart‚ and is being affected by the industry. In the article‚ it opens with explaining how discussing Target‘s 2011 same-store sales‚ Chief Financial Officer Douglas Scovanner pointed out that Wal-Mart had been struggling with “weak retailing performance.” The article then explains that for years Target has been seen as the trendier‚ hipper version of Wal-Mart. But as of late that hasn’t been the case. Target has been
Premium Wal-Mart Department store Marketing
Dan Scovanner‚ CFO of Target‚ and the four other executives in the CEC (Capital Expenditure Committee) meet it is of high importance. The approval or denial of CPR’s (Capital Project Requests) has the potential to set precedents that would affect possible decisions in the future. Every month the CEC meets to go over new CPR’s that could have a lasting impact on the short-term and long-term profitability of Target. For the month of November in 2006‚ there were five particular projects Scovanner knew
Premium Wal-Mart Target Corporation Capital expenditure
concern over specifics of specialties C. Maximizes efficiency within the specialties D. Less concern with the overall business Target’s organizational chart 1. Steinhafel Chairman & CEO‚ Gregg – Chairman & CEO A. Scovanner‚ Douglas – EVP & CFO B. Scully‚ Terrence – President‚ Target Financial Services C. Griffith‚ John – EVP‚ Property Development D. Kozlak‚ Jodeen – SVP‚ Human Resources E. Tesija‚ Kathryn – SVP‚ Merchandising
Premium Collaboration Organization
Goldie’s Square has the lowest NPV and IRR of the projects‚ declining market share‚ and the impact of the project won’t be seen till the third year. ------------------------------------------------- BACKGROUND It is November 2006‚ and CFO Doug Scovanner has to review five projects along with other members of the Capital Expenditure Committee‚ after five projects have already been accepted. Targets management has an overarching goal to create 100 new stores a year while maintaining their strong brand
Premium Wal-Mart Target Corporation Big-box store