store 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
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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
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its 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
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And 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.
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| 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
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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
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------------------------------------------------- FI 627: Corporate Finance: Applications and advanced topics ------------------------------------------------- Study questions for case studies: Spring 2013 Week 1: Sears‚ Roebuck & Co. vs. Wal-Mart Stores‚ Inc. 1. How do the retailing strategies of Sears and Wal-Mart differ? 2. Wal-Mart’s average return on equity for the 1997 fiscal year was 19.7% while Sears’ average return on equity over roughly the same period was
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MODULE M6 Financial Management of Corporate Projects and Programmes Case: TARGET CORPORATION 1. Executive Summary Target corporation has a growth strategy of opening 100 new stores per year. Doug Scovanner‚ the CFO of Target Corporation is preparing for the November meeting of the Capital Expenditure Committee (CEC). He is one of the executive officers who are members of the CEC. With the fiscal year’s end approaching in January‚ there was a need
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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
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someone to help you get through it. In the book‚ Doug finds Lil. Okay for Now by Gary D. Schmidt is about a boy named Doug who has and alcoholic father‚ a mother‚ and two brothers. He meets a girl named Lil and they quickly become friends. Lil helps Doug become a better person by helping him to overcome challenges like school‚ his drawing‚ and she helps him to like Marysville. In the book‚ Lil helps Doug a lot with school. In chapter three‚ while Doug and Lil were in math class‚ this happened‚ “You
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