Prerak The Target expansion was started in January 2013

Prerak Patel1/28/2018Part 1 Target’s Canadian Expansion The Target Corporation is the second-largest discount store retailer in the United States, just behind the Walmart and it’s also a component of the S&P 500 Index. Target was founded by George Dayton and headquartered in Minnesota. Target is leading many retailing stores such as sears, Kohl’s, and Macy’s. Target operates around 1,800 stores all around United States as of 2017. They noticed that many Canadian residents shopped more at Target retailers. Canadians often crossed the border and used to shop at Target. Considering this, Target decided to expand and started introducing themselves in the Canadian market. Target had many successions over the years but the one that failed very badly was the one where they tried to expand their stores in Canada. The Target expansion was started in January 2013 when Target  bought the 220 leases of a Canadian company called Zellers. They opened their first stores in just couple months later even though the stores needed remodeling. By doing this, they did not just bought and opened 220 new retailing stores, but they also eliminated one of their competition in the process. Target wanted to expand globally for some time and their preferred path of doing that was to open stores outside of United States rather than e-commerce. One of the reasons why Target’s expansion failed was because of the locations of the new stores, it clearly shows how fast and badly they wanted to expand into Canada. Second reason for their failure is that they opened all their stores in a very small amount of time which led to inventory shortage, causing the items in the store to get out of stock very quickly. Their first impression in Canada wasn’t good. Inventory shortage disappointed shoppers (those who were familiar with Target and those who weren’t), they were expecting good products as they would see in the United States. Another huge reason was the tough competition from companies like Walmart, which is already well known in Canada and ahead of Target. Customers who shopped in Walmart were always satisfied due to their EDLP (everyday low prices).  Target didn’t have low prices as Walmart and that lost many customers. They lost their reputation and customers in Canada because of all the mistakes they made. If the management had thought thoroughly, they could have succeeded in Canada. Target decided to close the stores after finding out that they would not make any profit from any of the stores in Canada until at least 2021. Keeping all the mistakes in mind, Target could avoid all those mistakes and still open stores globally, just not in Canada. They could have avoided the location problem by simply opening just a few stores at better locations rather than opening 220 stores at bad locations. If they opened fewer stores, it would have automatically solved the other problem which was inventory shortage. Fewer stores and a better communication between the warehouse and supply chain software would have solved the second problem. Target’s point of sale system was not working but they opened the stores anyways. Buying all the store at once led them to open faster than they anticipated. The system wasn’t built for Canadian Dollars and it couldn’t handle French characters. They bought a new system from an outside vendor so it would support Canadian Dollars and French characters. The stores took many years to implement the new system. Implementing the new system while also creating Target Canada wasn’t a good idea. In the U.S., Target hires employees right out of school and trains them perfectly but in Canada, young employees that they hired didn’t receive as much training compared to their American counterparts. Employees were pressured to do this insane amount of data entry even though they weren’t trained that much. Inaccurate information delayed a lot of shipments and caused many disasters. Part 2 The success rate for the projects and the concerns for failing will always keep project managers careful. Top management team support is very important for the success of information technology projects. Top management team can help project managers get resources, provide help as a mentor and also approve some unique project needs. Team support helps other team members understand all the missing details. There are many different reasons why it is very important for the support of the top management team for a successful IT project. One of the reason is that the team needs to fully understand and know everything about the project and what they have to do in order to success. Each and every member should meet the expectations and the way to do that is by getting support from the top management team since they help the team members understand all the missing details. Another good reason would be the funding of the project. Everything is based on the budget of the project. The better the budget, the better the team and resources. Securing the resources for the project is also just as important as any of the reasons listed above. The importance of the top management team support is the key for a successful IT project. Building a team just for that specific project and teamwork is very important in any kind of project. Building a team of professionals just for that specific project is important because one cannot deliver the work from all departments since they might not have expertise in that area. There should be a  project leader who would have to choose different members for different tasks and assign them and make tough decisions is needed.