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Assignment on Target Corporation Enters Singapore

Each student will do a Global Business Report on a company of his/her choice that is specifically entering or developing within an international market addressing the key themes of the Global Business module.

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Added on  2022-09-01

Assignment on Target Corporation Enters Singapore

Each student will do a Global Business Report on a company of his/her choice that is specifically entering or developing within an international market addressing the key themes of the Global Business module.

   Added on 2022-09-01

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Running head: TARGET CORPORATION ENTERS SINGAPORE
Target Corporation Enters Singapore
Name of the student
Name of the university
Author Note:
Assignment on Target Corporation Enters Singapore_1
TARGET CORPORATION ENTERS SINGAPORE
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Table of Contents
Part I. Introduction:......................................................................................................................................................................................3
Global business of Target Corporation:...................................................................................................................................................3
Brief background of Target Corporation:................................................................................................................................................3
Purpose of the report:...............................................................................................................................................................................3
Part II. External business environment (Institution)(Institution based view table of Singapore):..............................................................4
Four competences of the company that could be sustainable competitive advantage:..........................................................................24
a. Competence1 – Financial strength:........................................................................................................................................................24
b. Competence2- Supply chain management:...........................................................................................................................................24
c. Competence3- Multinational companies as suppliers:..........................................................................................................................25
d. Competence4-Technological strengths:.................................................................................................................................................25
Part IV. Entry Strategy..............................................................................................................................................................................25
Evaluation of different strategies i.e. export, licensing, alliances, JV, FDI, others:.................................................................................25
Identify 3 strategies, debate and select only 1 strategy:........................................................................................................................26
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Part V. Implementation:.............................................................................................................................................................................27
Suggested implementation strategy:......................................................................................................................................................27
Timeline, key process, organisational structure, HRM and others:.......................................................................................................29
Timeline:............................................................................................................................................................................................29
Key processes:...................................................................................................................................................................................29
Organisational structure:....................................................................................................................................................................29
HRM:.................................................................................................................................................................................................30
Part VI. Conclusion:..................................................................................................................................................................................30
References:................................................................................................................................................................................................32
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Part I. Introduction:
Global business of Target Corporation:
One of the most significant trends in the global business is expansion of international companies into foreign markets. Kotabe
and Kothari (2016) mention that international companies expand into foreign markets in order to create value to large customer bases
in those markets and generate higher revenue. In fact, foreign expansion strategy is one of the strategies which companies adopt in
order to maintain their competitive advantages in the global market. The paper would delve into the foreign expansion strategy of an
international company to enter a selected foreign market. The company selected for the analysis would be Target Corporation which is
based in the United States of America (Target.com. 2020) and the target market would be Singapore.
Brief background of Target Corporation:
Target Corporation is a retail company based in the United States of America. It is listed on the NYSE and operates under the
leadership of Brian C. Cornell, the CEO and chairman. The company owns over more than 1800 stores in the US alone and operates in
more than 10 host countries include India.
Purpose of the report:
The purpose of the report would be analysing the external market conditions of the target host country of Target Corporation
namely, Singapore. Then the researcher would go on to analyse the internal conditions of the company. This would ultimately lead to
recognising the foreign expansion strategies which the retail company would adopt and implement.
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Part II. External business environment (Institution)(Institution based view table of Singapore):
Politics (formal):
1. Singapore has a parliamentary type of government with the
prime minister as its head. The president of the country is a nominal
head (Gov.sg. 2020).
2. Singapore is politically stable country enjoying a score of 79 in
2017 (Sbr.com.sg. 2018). The government of the country holds
political stability of great importance in order to promote business
and commerce as well as to attract foreign companies (Lim 2019).
However, the ongoing trade between the United States of America
and China would have negative impacts on the political stability of
the country (BBC.com. 2019).
3. Singapore enjoys strong bilateral relationship with the United
States of America. The two countries enjoys Free Trade Agreement
which enables goods and services to flow among themselves. The
companies based in the United States invest more than $bn 180 in
Singapore (State.gov. 2020). However, American companies
Economic (formal):
1. Singapore is an economically strong economy with a
GDP of S$ 491175 mn in 2018. The real GDP growth
which the country experienced is 3.1% in 2018
(Singstat.gov.sg. 2020). Fraumeni (2017) mentions that
GDP can be considered as the index to measure the
health of an economy. One can point point that GDP
refers to the value of finished goods and services
produced within an economy. In other words increasing
GDP means that the increasing productivity in economy
namely, Singapore in this case. It is also clear that
increasing productivity to employ more staff which
means higher GDP generally indicates higher rate
employment and earning within the economy. Thus,
considering that the economy of Singapore is
experiencing higher GDP, it can be inferred that the
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seeking to enter to Singapore and already enjoying presence in
India can diversify their business risks stemming from the US-
China Trade War since India and the US share strong bilateral
relationships.
4. Terrorism is one of the main political barriers threatening
international trade. The United States of America faces threats
owing to terrorism (Nakashima 2019). The
Singapore Terrorism Threat Assessment Report 2019 released
by the Government of Singapore reveals that the country just like
the US, is prone to terrorism at high levels. In fact the reports
reveals that some of extremist groups target both the US and
Singapore
(Mha.gov.sg. 2019). Thus, it is clear that the terrorism poses threat
to foreign expansion of companies based in either of the two
countries and into either of the two countries (Baharudin 2019).
people in the country would have more disposable
income to afford products marketed by retail chains.
2. The value of SGD in the international currency
market against other foreign currencies like USD is one
of the most important financial factors impacting the
operations of the international companies (like Target).
This is because the companies have to bear high
expenditure while importing and exporting resources
which is heavily dependent on exchange rates of
currencies. The same fact also holds true for revenue
generation since the revenue generation enjoyed in the
host countries (Singapore in this case) would have to be
converted into the currency of the home countries of the
concerned companies (USD for Target)
(Bloomberg.com. 2020). This reduces actual profits
generated owing to losing a portion of the revenue
during conversion.
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Laws (formal):
1. The legal system of Singapore is largely based on the English
Common law system with the Supreme Court at its helm. The State
Courts and the Family Justice Courts are subordinate in position to
the Supreme Court.
2. The laws in Singapore are very strong on corruption. The
Transparency International (TI) Corruption Perceptions Index (CPI)
released in 2018 shows that Singapore occupies third rank in terms
of anti-corruption measures. In fact the country scored 85 in 2018
compared to 84 in 2017 (Cpib.gov.sg. 2020). This means that the
country is comparatively free from corruption compared to several
other countries.
3. Customs duty and taxes are one the main legal aspects which the
companies have to consider. The Government of Singapore forms
laws regarding export and import of goods. The companies have to
comply with the new tax laws and amended forms of existing laws
Social culture (Informal):
1. The first social factor which Target should consider
that the people of Singapore are experiencing high per
capita income. This means that the consumers of
Singapore have higher amount of disposable income
which enable them to purchase highly expensive goods
like premium apparel products.
2. Singapore being an economically strong country,
enjoys high rate of internet penetration. In fact, it is
expected that by 2020, the country would experience an
internet penetration rate of 93% (Statista.com. 2020).
The high rates of penetration of internet in Singapore
enable the consumers in the country to view and
purchase goods on the ecommerce (Bag, Tiwari and
Chan 2019). One can also point out that deep
penetration of internet enables customers to make
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while conducting business in the country. payments online using their smart phones (Donovan et
al. 2017). Moreover, internet also enables the banks in
the country to set up more ATMs which facilitate the
customers withdraw money on spot to purchase
premium retail goods, if required. Thus, it is evident that
the high penetrate rate of Singapore is one of the main
social factors which enable the foreign companies to
market more goods both in their respective brick-and-
mortar outlets as well on the ecommerce platforms, thus
generating high revenue (Cheung and Yang 2016).
Part III. Internal business environment (Resource based):
Value Chain Capabilities Resources VRIO Sustainable
Competitive
Advantage
Assignment on Target Corporation Enters Singapore_8

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