PROSPECTIVE TARGET

UK PROJECT- CASE
STTUDY OF TARGET
CANADA PROJECT
FAILURE
BY
AGADA, SIMON EKEDEGWA
Presentation Outline
• Statement of the problem
• Objectives of the project
• The Benefit of the project
• Possible opportunities for investing the money
• Recommendation
• The project management plans
• The financial appraisal
• Project Governance
Statement of the Problem

• Target US, a successful retailer corporation in USA has a vision of

international expansion to get closer to her customers for effective and
efficient service delivery while generating revenue to increase her
profit margin or bottom line.
• Target US launched out an expansion project in Canada in 2013, but
experienced a colossal failed project and backed out finally in 2015.
• The company is deciding to shift base to UK to open a subsidiary
called ‘Target UK’.
• The use of experience of Canada by Target US to avoid a repeat order
in the prospective new project.
Objectives of the project

1. To realise the vision of international expansion and improve the

profitability of the company.
2. To redeem the credibility of the company that was lost in Canada.
3. To take Target US service closer to her customer for effective and
efficient distribution of products and service.
The Benefit of the Project

1. The project is in line with the company’s strategic goal and vision
2. The project shall generate revenue for the company.
3. Makes the company remain focused and competitive in the market.
4. The project shall improve customer service.
Possible opportunities for investing the money

The objective of Target US wanting to open Target U.K shop is to generate

revenue. Other alternative routes to store opening in United Kingdom include
the following:
1. Invest the money in the Bank.
2. Buy shares in a multi-Dollar company
3. Franchising and
4. Joint Venture
Recommendation

A Careful analysis was carried out in terms of economics, risks,

reputation and colossal failure and the following recommendations are
made to Management:

• Invest money, $7 Billion US Dollar in opening Target UK.

• The cost-benefits analysis carried out shows that the project is

profitable and viable. The return on Investment is after 5 years.
The Project Management Plans

• It shall take a minimum of 18 months to complete the project with

opening of the first store stocked with products.

• The total resources allocated to risk as contingency is $ 456,789 US

Dollar.

• Steering Committee shall be formed among the chief executives to

monitor the project
The Financial Appraisal

• The estimated budget for the prospective project is Seven Billion US

Dollars

• The opportunity cost of the project is Franchising or joint venture

whose payback period is five years.
Project Governance

• The project requires a steering committee .

• Management may wish to form a steering committee comprising the

CEO and all business unit directors.