Case Notes/Answers
TARGET CORPORATION THE CANADIAN DECISION by
David Wood Tarika Menezes
Discussion Questions:
1. What are Brian Cornell’s options?
2. How is Target Corporation performing in the United States?
3. What is Target Corporation’s strategy?
4. How do Target Canada’s operations differ from Target Corporation’s U.S. operations?
5. How well is Target Canada performing?
6. What are some of the key issues that Target Canada must address?
7. When do you think Target Canada will become profitable?
8. What would you do if you were in the position of Brian Cornell?
, W15335
Teaching Note
TARGET CORPORATION: THE CANADIAN DECISION
SYNOPSIS
Brian Cornell, Target Corporation’s (Target’s) recently appointed chief executive officer (CEO), needed to
make a difficult decision: should Target continue operating in Canada? After the launch of 133 stores since
2013, Target Canada was plagued with operational challenges, poor sales and intensifying competition and
had reported deep losses amounting to over $1.36 billion. 1 It was evident that the company needed to
change direction. It was now December 29, 2014 and with the sales report from holiday season now
available, Cornell considered his alternatives.
This case presents students with a difficult business dilemma, stay in Canada knowing that profitability is
still many years away or exit Canada and abandon all plans for international expansion. To complicate
matters further, Target Corporation is struggling in the United States and investors have run out of
patience. Students will have to address both the feasibility of recovery in Canada and the management’s
ability to make a step change in Target Canada’s performance while staying focused on recovery plans in
the United States.
LEARNING OBJECTIVES
1. To identify the challenges involved when expanding internationally
2. To assess the current performance of a business based on the business structure and financials provided
and outline the operational restructuring strategy required to become profitable
3. To determine the cost and time of recovery for a retail business
4. To discuss the impact that corporate strategy and competing priorities have on the business unit
strategy
1
All currency in Canadian dollars unless specified otherwise.
TARGET CORPORATION THE CANADIAN DECISION by
David Wood Tarika Menezes
Discussion Questions:
1. What are Brian Cornell’s options?
2. How is Target Corporation performing in the United States?
3. What is Target Corporation’s strategy?
4. How do Target Canada’s operations differ from Target Corporation’s U.S. operations?
5. How well is Target Canada performing?
6. What are some of the key issues that Target Canada must address?
7. When do you think Target Canada will become profitable?
8. What would you do if you were in the position of Brian Cornell?
, W15335
Teaching Note
TARGET CORPORATION: THE CANADIAN DECISION
SYNOPSIS
Brian Cornell, Target Corporation’s (Target’s) recently appointed chief executive officer (CEO), needed to
make a difficult decision: should Target continue operating in Canada? After the launch of 133 stores since
2013, Target Canada was plagued with operational challenges, poor sales and intensifying competition and
had reported deep losses amounting to over $1.36 billion. 1 It was evident that the company needed to
change direction. It was now December 29, 2014 and with the sales report from holiday season now
available, Cornell considered his alternatives.
This case presents students with a difficult business dilemma, stay in Canada knowing that profitability is
still many years away or exit Canada and abandon all plans for international expansion. To complicate
matters further, Target Corporation is struggling in the United States and investors have run out of
patience. Students will have to address both the feasibility of recovery in Canada and the management’s
ability to make a step change in Target Canada’s performance while staying focused on recovery plans in
the United States.
LEARNING OBJECTIVES
1. To identify the challenges involved when expanding internationally
2. To assess the current performance of a business based on the business structure and financials provided
and outline the operational restructuring strategy required to become profitable
3. To determine the cost and time of recovery for a retail business
4. To discuss the impact that corporate strategy and competing priorities have on the business unit
strategy
1
All currency in Canadian dollars unless specified otherwise.
