Free «Multinational Business Research Paper» Essay Sample

Target Company is a retail store that is specializing with the offering of high quality trendy merchandise at a relatively low price i.e. at discount. The slogan of the company is; “expect more pay less”. The corporation operates a Target .com, a retail store that is good as Super target which deal with the electronic devices. The company operates online and offers a full line store for grocery in addition to target retail operation. Apart from dealing with electronic devices, the company also deals with other key business that includes Target visa and Target red card businesses which involve Target financial services. The company was formed back in the year 1902 with its original name called Dayton Corporation. The company was formed by somebody known by the name George Dayton. During the financial year ending January 2007, the company made revenues amounting to 59,490 million dollars (Stickney, 2010).

The pride of the company is on the issue of corporate responsibility. This includes the charitable donations and the company being forefront in the issue of conserving the environment. The two issues forms the company strong holds of the target corporation. The strengths of the company would include marketing techniques which are innovative, design, markets presence, and branding. Apart from such strengths that the company possesses, it also experience some weaknesses like geographic locations limitation, lack of vision and mission statements, and a number of litigations. Furthermore, the company suffers from the threats such as sluggish economy of the United States of America, and stiff competition in the retail markets. However, the company enjoys some opportunities in turn which includes global expansion of their markets, entering of the unexploited United States markets, driving their growth in private labeled products. The company can take advantage of such opportunities in order to expand their growth in terms of production and revenues. The company is currently located in only three states in the United States of America. These states are Vermont, Alaska and Hawaii.

There are numerous benefits if the company expands in these states and also look for the global markets. If the company opens its stores in Hong Kong and China, they can afford to bring in a multitude of consumers and enable the company to compete with its competitors on a global level. China has also become an economic power house for the past 30 years. This immense change for China does not happen by chance. The countries policy and new laws have enabled this. This shows that the legal from work for China is a work in progress. The operating laws can have gabs and ambiguities’. Policies tend to change quickly and without the warning, and the changes brought about may not be preferred by everyone (Dickie, 2006). Therefore, albeit the opportunities of economy are real and the legal structures that buck up such opportunities are quite tangible, the legal surrounding will always remain tricky.

Target Corporation has got no plan to expand its market to meet the global benefits. The company is just concentrating to expand its growth domestically and to preserve their brand and financial performance. If the company expands its services to reach China, it will be a very beneficial move. This is because, China and India have got a large population and billions of the consumers are to be had. It will enable Target corporation to compete with Wal Mart one of the company’s greatest competitor. By venturing into global market, the company will be less susceptible to the United States economic slowdown.

The following are the ways in which Target Company can enters in to the China markets.


Rather than Target establishing new stores or joint venture companies in China, the Target Company as an investor may acquire the equity or the assets of an existing company in China. As it is also found in other laws and jurisdictions, acquiring the equity of a company normally means acquiring the equity plus all of its liabilities, while in the acquisition of the assets, the law provides for a choice whether to acquire any of the target company liabilities or not to acquire. This means that for the company to take its business to China, the company has to acquire the assets or equity of an existing related company in order to operate as a group.

Environmental Protection

Another requirement for the company to operate in China is in the issue of environment protection. China has emphasized and legislates on the environmental protection in recent years. The significance that China now places on the environment issues is seen in the upgrade of the original law called State environmental protection Administration to be a full status of ministerial. It has now become the full ministry of environmental protection. For the Target Company to operate its business in china, it means that the company has to be in possession of the report on environment prepared by a highly qualified engineering firm, which is subject to approval by highly competent environmental protection authority. Then, the report will be reassessed where further changes will be made to the nature of the project, waste treatments measures of the production process, location scales among other issues. For this matter, if the Target Corporation qualifies for the above requirement, it can be allowed to operate its business in China and enjoys the global markets.

2. The solar industry has attracted a large number of new companies that has caused the company to face some stiff competition in the latter part of the decade. Furthermore the projected reduction on demand has promised to further increase the competition. Additionally, the entry of new companies in to the market with different technology threatens the company’s markets in future. The china’s recent development on the domestic wind industry has proved that the country is formidable if it is sufficiently motivated.

 Customers should be motivated through subsidies. The rich subsidies in a given area should be the area where majority customers are located. The system integration of the customers will lead to greater revenues of the company. First solar multinational business should ensure joint venture with other related companies like Solar City in order to enable it compete with other companies for target market, for example the retail market. Acquisition of other companies will enable the company to capture the target market. For example, it was clear that utility scale projects had provided the future direction of the United States Market. As a result, First Solar Company acquired Turner and Optic-Solar in order to gain direct access to these customers.

As structural matters, the company should adopt good financial structures. This will ensure proper flow and the use of financial resources within the company. Financial decisions like avoiding the use of substantial leverage will enable the company to grow. Substantial leverage may pose the dangers of liberal debt use in an environment of intensive volatility. Too much leverage at the on-start of the business becomes dangerous to the solvency of the business. Expansion of the manufacturing capacity will enable the company expand structurally in its operation and increase the production capacity therefore increasing the sales margin.

First solar Company should be able to changes its business model. This will enable the developers of the ecosystems to make the business model viable. Marketing strategy also plays an important role in the expansion of the market and achieving the target markets. In order for the company to gain a greater share of the market, target market and promotion should be changed. A good target needs to branch out and gain more customers in order to gain their spending dollars. The company should try to expand globally and improve the quality of their products in order to compete with the competing economies in the large potential markets.

3. Target Company provides different services that include the amenities offered both in stores and online. Some services are offered in stores and online while others are not. The company is constantly improving in its services through innovation, partnership and expansion ideas. In the year 2005, the company entered in to partnership with Yahoo Company to provide Target Yahoo photo services. Afterwards, the company dropped yahoo and entered in to partnership with Shurterfly and Kodak companies. The digital services for photos are offered both in the stores and are also available online. This allows the user to properly manage camera phones and digital images. The companies also have the opportunity to order copies of their photos which are printed, or may have the photo applied to aprons, key chains calendars and other different items (Zimmerman, 2010).

In the year 2006 Target Corporation entered the 4 dollar general drug sell. This enable pharmacy consumers the capacity to buy certain generic medicines for only four dollars. The company has also introduced a program into their pharmacy departments called Clear Rx. This program is a lately premeditated recommendation bottle that enables the user to clearly read the bottle label to avoid confusion. Other stores have entered in to partnership agreement with Starbuck Company and they now have coffee cafes in their stores. The company also maintains different donations registries for guests and their probable gift purchasers.

The registries can be accessed both in stores and online. Health clinics, portrait studios and optical centers are positioned at selected stores in the current times. Another service offered by the company is the target list. This is a service where guests can make different lists varying from wish lists to grocery lists. These services are also available online and in stores. The company’s gift cards are a popular idea. In the year 2006, the company redeemed 1.5 billion dollars from the issued gift cards. All the services should be outsourced in order for the company to capture the markets from various geographical regions.


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