Expanding Target to China Essay Example for Free

Expanding Target to China Essay China is, without a doubt, the fastest growing economy in the world today. Companies from around the world have wanted to tap into Chinas market to cash in on the tremendous success that it continues to experience. There had been many restrictions for foreign companies who tried to do business in China, limiting the number of foreign companies, and allowing only the big players to come into China. Even then, these big players from around the globe faced more restrictions and rules once they entered China. But things have changed since China joined the World Trade Organization (WTO) in 2001; a new milestone for this country, as well as for other economies. Since then, restrictions for foreign investors and businesses to enter Chinas market had begun to ease up. By December 11th, 2004, China must remove remaining restrictions on the retail sector in order to comply with the WTO rules. This means it will be much easier for foreign retailers to enter the market, and for current foreign retailers in China to expand (1). Many retailers from all over the world will seize this golden opportunity, and Target should do so too. Target, a Minnesota based national retail company, has come a long way from being Daytons department store back in 1961 to being one of the biggest players in United States retail market, as we know it today. Over the last ten years, Target has experienced a continuous incline in growth year after year. Sales reached over $48 billion this past year, a 10 percent increase from the year prior (2). Just like its revenue, the number of stores across the United States has been on the rise. Currently there are 1313 Target stores operating in 47 states, including 136 SuperTarget stores in 20 states (3). Not surprisingly, Target ranks number four in Triversitys Top 100 Retailers in the United States behind Wal-Mart, Home Depot, and Kroger (4). Globally, Target is ranked number 7 in the top 100 retailers worldwide (5). With this kind of statistics, Target has the potential and the resources to begin expanding into the international market, such as China. Comparing to Metro AG, a German retailer, which ranks a couple spots ahead of Target on the worldwide list, is not that much ahead of Target in terms of sales. And yet, Metro AG is one of the largest foreign retailers in China, along with  Wal-Mart and Carrefour (6). Not only should Target continue to expand domestically, but it should also start looking to expand in other markets around the world as well, such as China. This will allow Target to become a multinational company and begin creating a global recognition for itself in the retail sector. Now of course Target cannot dive right into the China Market and expect everything to just work out. Like any other company entering a foreign market, there are challenges and factors that Target must consider and evaluate before doing business in China. In this report, different reasons why Target should enter Chinas retail market and the benefits it offers to the company will be presented. Chinas economic status, political status, and economic status, along with options of entry and other factors that will affect Targets business, will be discussed. Chinas Economic Status China is currently the worlds most potential market for consumer goods. Its average annual GDP growth rate of nearly 10 percent for the last 10 years is the strongest among other major economies around the world (7). This is mainly due to the increase in manufacturing investment from foreign companies over the years because China is full of resources and cheap labor. Many products we see today are labeled Made in China since China has essentially developed into a manufacturing centre for the worlds consumer goods production (8). With a population of 1.3 billion people and having more consumers than Europe and the United States put together, it is obvious that China is by far one of the most attractive markets to invest in for foreign companies that are in the retail and consumer sector (8). When combining the strong, continuous growth of the economy with a population of this magnitude, the results are more money in consumers pockets, meaning more money to spend on goods. According to PricewaterhouseCoopers, the retail sales of consumer goods in China quadrupled with a span of 10 years (7). With this kind of statistics, it will be Targets best interest to pursuit an expansion into Chinas retail market. Chinas economy and consumer market will continue to grow. The more people there are in a  market, the more money will be spent. Everyone will always need food and daily accessories regardless of how much money they have, and those that have more money to spend will spend that extra money on other goods. So by setting up operations there, Target will have a chance to go along with the ride and reap the promising rewards that Chinas consumer market offers, which is what other foreign retailers are looking for. Chinas Political Status One of the major milestones for China, which made a global impact, is its accession to the World Trade Organization in 2001. This is the main reason why the forecast of Chinas growing economy remains strong. Since then, Chinas has begun to ease up restrictions on imports and exports, and also for foreign businesses entering Chinas market, most significantly the retail sector. By December 11, 2004, all restrictions on foreign retailing in China will be lifted, including restrictions on foreign ownership, number of branches, and geographic locations for where to set up stores (9). Currently, there are limited foreign investments in Chinas retail sector. In 2000, the Retail and Wholesale sector only accounts for 2 percent of the total foreign direct investment in China (7). Today, this percentage is not much higher than it was in 2000. This is because prior to Chinas accession to the WTO, there were many restrictions and regulations for foreign companies entering China. Some of the main restrictions were the annual sales volume requirement, assets requirement, and the minimum registered capital requirement. Before, in order to enter Chinas retail sector, a foreign company must have annual sales volume of at least US $2 billion, assets of at least US $200 million, and minimum registered capital of at least RMB 50 million, or about US $6.1 million. Also, they were only allowed to enter the market with approval, and in a form of a joint venture with local partners with no more than 49 percent ownership (10). This limited Chinas retail market to only the big international players such as Wal-Mart, Carrefour, Metro AG, etc, who all have already established a presence in China. But after China starts to comply with WTO rules next month; dramatic changes will take place in Chinas retail sector. Once all the restrictions for foreign retail companies are lifted by China, the number of foreign retailers entering China will increase sharply, both small and medium retailers. All a company will need is a good reputation and a minimum registered capital requirement of US $36,000. Other than a joint venture, a wholly foreign-owned enterprise will become an option (10). Also, the foreign players that are currently in the market will be able expand more rapidly under the new rules. This is another reason why Target should enter Chinas retail market, and soon. The percentage that the retail sector represents in the total direct foreign investment is still low, meaning there is a lot of room to grow. The sooner Target steps in, the more market share will be available for Target to gain. If Target delays its entry, other foreign retailers from all over the world will start to swarm in and the big players that are currently in the market will expand quickly; therefore making it more difficult for Target to create a significant presence. If Target decides not to enter this goldmine, then an incredible opportunity will be missed. WFOE or Joint Venture There are two options for Target to start business in China, establishing a wholly foreign-owned enterprise (WFOE) or a joint venture with a local Chinese company. There are advantages and disadvantages for both options, and it will be important to understand each. Joint ventures were the only way to enter China for any foreign company due to the restrictions set by China prior to joining the WTO. With joint ventures, foreign companies were able enter Chinas market easier. It really helps to have a local partner that is already familiar with the market and know the laws of doing business in China. Also, with a joint venture, it is much less capital intensive since the local partner will be contributing to the business. The downside of a joint venture is that it is difficult to find the right partner, and it requires a lot time because a good relationship must be formed before any negotiations take place. In China, a good relationship is the key to doing business. Some major causes of joint  venture failures have been overestimation of the partners capabilities, differing expectations, and different management styles (11). These are some of the reasons that limit a foreign companys desire to expand. WFOE, an option that will be open to foreign retail companies doing or planning to do business in China after next month, would probably be the direction that most foreign retailers will choose. It should be Targets choice as well when entering China. But before a WFOE can be set up, an application must be submitted to MOFCOMs (Ministry of Commerce) provincial-level counterparts. The applications will then be forwarded to MOFOCOM for approval. The approval process takes about three to four months, but approval is only granted if the proposed business will help the development of Chinas economy (12). Target will have no problem getting approved because it will help create more jobs in China, bring in more sophisticated technology to run its stores and operations, and increase manufacturing production in China since a good portion of the products that will be in Target stores will be made in China. The disadvantage of setting up a WFOE is that it is much more capital intensive. Foreign companies do not have anyone to share the investment costs with in the country. China only allows money coming from outside of the country when foreign companies want to set up a WFOE (12). However, the advantages that WFOE offers outweigh the disadvantages. A WFOE can enjoy the exclusive management control and operational controls with less interference from the Chinese government (13). A foreign company can bring in sophisticated technology without having to worry about losing its intellectual property or figure out how many shares the technology is worth in a joint venture (14). Because of all this, a WFOE can expand into other areas more freely. Although WFOE would be a capital intensive option for Target, it will pay off in the long run. Having complete control over its management and operations, less governmental interference, and less limitations to expand will be beneficial for Target. Chinas Social Status There are some other things that it must take into account before Target jumps into Chinas retail market, one of which is the social landscape of China. Just like in the United States, knowing where the customers are and where to set up stores are important strategies. The more wealthy cities are concentrated in Chinas east and south-east coastal provinces. The top ten most prosperous provinces in China are: Shanghai, Guangdong, Beijing, Zhejiang, Tianjin, Liaoning, Fujian, Jiangsu, Shandong, and Chongqing. These areas are obviously where foreign investors want to go because of higher per capita income and consumer spending in those areas. Consumer activities in some major inland cities are slowly on the rise, but are still fairly undeveloped compared to the east (7). But it may be a good idea to start investing in those areas and capture those markets while competition level is still low. Target should obviously start with investing in a couple of the more prosperous areas, such as Shanghai, Beijing, Tianjin, or Zhejiang. These four provinces have the highest per capita income and household consumption, which means there are more money spent by consumers (8). Besides this, Target should start investing in the major inland cities that are beginning to develop, such as Wuhan, Chengdu, Changsha, and Sichuan. Almost half of Chinas population lives in the central and northwest provinces (7). Take advantage of the new rules that will lift restrictions on locations and the number of stores, and enjoy the benefit of being able to expand easier by being a wholly foreign-owned enterprise. The developing areas should be Targets concentration. It may be a little more risky, and sales may be lower at first, but it will be beneficial in the long run. The biggest competitors, both domestic and foreign, are mostly located in the prosperous areas (8). It will be more difficult to establish a solid foothold in Chinas retail market if Target starts off trying to compete with big foreign players such as Wal-Mart and Carrefour, or big domestic players such as Lianhua and Hualian, all of which are much more familiar with the market. So it will be a good idea for Target to tap into the less developed major  inland cities and create a niche market while competition is still very low in those areas. This can help them develop a presence in China, and become one of the major foreign players in Chinas retail market. U.S. Commercial Service After understand all the details described previously throughout the report, Target still needs some help entering Chinas retail market. Target is very successful in the United States, but China is a totally different market. There are different consumers, different languages, and different laws. Target needs to find someone that is familiar with the languages (Chinese and English), the Chinese retail market, and all the rules that foreign business must comply with. It would be the best if Target has some managers that fit these criterions within the corporation because then those people can be assigned to assist in Targets plan to enter China. They will be familiar with Chinas market and rules, as well as Targets objectives and operations. But if there are no qualified candidates within Target, then this is where the U.S. Commercial Service comes in play to help. The U.S. Commercial Service offers customized solutions to help US companies enter and expand in the China Market. They have six offices in China: Beijing, Shanghai, Shenyang, Chengdu, Guangzhou, and Hong Kong. There are several services that a US company can purchase, one of which is the Gold Key Service (GKS). This service identifies and arranges appointments with the people that the company will need to meet in order to break into the China market successfully. The U.S. Commercial Service will tailor the service to the companys needs. They can assess the competition, and/or find lawyers, consultants, government officials, agents and distributors, etc (15). This is a great service that Target should use if they do not have people to use internally. Going into a foreign market, especially China, without being knowledgeable in the countrys laws and regulations, competition, consumers, and business environment is very risky. Any company that does this is essentially setting up for failure in the new market. This is why Target  needs to find experts that know how to do business in China. By being able to access competition, access the business environment, and working with a consultant or lawyer that knows the business laws in China will definitely help Target develop a safe and successful entry into Chinas retail market. To order the Gold Key Service from the U.S. Commercial Service, all Target have to do is contact the nearest U.S. Commercial Service assistance center, call 1-800-USA-Trade, or email their FCS Beijing Office at [emailprotected] (15). Other Factors In the Chinese culture, the colors red and gold are favorable colors. They represent happiness, good luck, and good fortune. During festive holidays, such as Chinese New Year, red is seen every where. All businesses, as well as households, would put up red lanterns and decorations. This may be beneficial to Target since red is Targets color. By having red in the stores in China, it may attract more consumers because people may associate the Target stores with the same meanings that they associate with the colors, especially during festive holidays. Aside from culture, Target should look into other things, such as education in China. Education is very important to Chinas future development if it is to be sustainable, but it is not an easy task. The government has been focusing on the countrys economic development, and has neglected to improve the education system and health. However, the governments new goal is to raise education spending to about 4 percent of GPD, with help from the private sector (8). In the United States, Target currently have a Community Giving Program where Target gives back over $2 million a week to neighborhoods, programs, and schools across the country (16). If Target sets up a similar program in China, it may help build its reputation in the China market. By helping the community receive better education, improving living conditions, and improving living standards will help Target gain favoritism from both consumers and the government, which can only help Targets goal for success in the market. Conclusion China offers a golden opportunity for foreign retailers, such as Target. Target should take advantage of Chinas accession to the WTO and seize the opportunity by entering Chinas retail market. There are many factors that Target must review and consider before entering China. Main factors like Chinas economic status, political status, and social status. As well as evaluating options of entry (WFOE vs. JV), understanding the culture, assessing both foreign and domestic competitions, and become knowledgeable in business rules and regulations in the country. Target will be very successful in establishing a foothold in Chinas retail market and become a major foreign retailer in the country as long as all aspects are carefully reviewed, planned, and understood. Targets presence and success has been well established in the United States, and now it is time to expand to the next big thing China. End Notes (1) http://www.chinabusinessreview.com/public/0401/01.html (2) http://quicktake.morningstar.com/Stock/Income10.asp?Country=USASymbol= TGTstocktab=finance (3) http://www.targetcorp.com/targetcorp_group/investor-relations/investor- relations.jhtml (4) http://www.stores.org/pdf/04TOP100chart2.pdf (5) http://retailindustry.about.com/library/bl/03q2/bl_rf100603.htm (6) http://www.bjreview.com.cn/200414/Business-200414(C).htm (7) http://www.pwchk.com/home/webmedia/1024303622085/RetailMarket_ China.pdf (8) http://www.pwcglobal.com/gx/eng/about/ind/retail/wef%20jan04_external.pdf3 (9) http://en-1.ce.cn/subject/RetailinginChina/RegulationPolicy/200409/29/ t20040929_1882374.shtml (10) http://www.osec.ch/~0xc1878d1b_0x0001b994/Investments/foreign_investment_ restrictions_in_trade_and_retail_lifted/en/china_fipdf (11) http://www.sinomedia.net/eurobiz/v200404/story0404.html (12) http://www.isinolaw.com/jsp/fie/fie/FIE_wfoe1.jsp?LangID=0 (13) http://english.sohu.com/2004/07/04/81/article220848132.shtml (14) http://www.businessweek.com/adsections/country/asia/ (15) http://www.buyusa.gov/china/en/gks.html (16) http://target.com/target_group/community_giving/index.jhtml

Maria Isabella Boyd aka Belle Boyd Essay -- biographies bio biography

Have you ever dreamt of living an adventurous life? Well for me that was reality. I was a spy and actress, mercilessly charming Union officers into giving me information. Dubbed 'La Belle Rebelle' by a French war correspondent, I went by the name Belle Boyd instead of my original name, Maria Isabella Boyd. I have gone in and out of jail, marriages, and careers (three of each). Throughout the whole ordeal though, I have been constant in my loyalty to the Confederacy. Born on May 4, 1843, I was raised just like any other southern lady. My father was a merchant, and I grew up in Martinsburg, West Virginia with my parents, several brothers, one sister, and grandmother. I attended Mount Washington Female College of Baltimore from age 12 to 16. Ever since I can remember I?ve been getting into all sorts of trouble. Once when I was 10, I rode my pony into the hallway of my house causing havoc. I was known to be a fun-loving debutante. People described my voice as low and charming and my figure flawless. It was odd how I was considered either extremely beautiful or completely plain because ...

Categorical imperative Essay

Abstract Immanuel Kantis one of the most influential philosophers in the history of the Western philosophy. His contribution two metaphysical epistemology, ethic, and aesthetics have had a profound impact on almost every philosophical movements that followed him. Kant believe that, in knowledge originated in our senses and that the mind is a blank slate, that becames populated with ideas by its interaction with the world. Kant Influence on Criminal Justice In New World Encyclopedia (2013) states that Immanuel Kant was born, and spent the majority of his life in the city Konigsberg , the capital of East Prussia. His father was a German craftsman. His parents baptized him as Emanuel Kant, which he later changed to Immanuel after learning Hebrew. He attended the Collegium Fridiciaum at the age of eight. After eight years of study in there, he went to the University of Konideberg where he studied philosophy and mathematics. The death of his father affected him greatly, however, with the support of a friend he earned and received his doctrine in 1756. After befriending the English merchant Joseph Green, who instilled in Kant arespect for living in accordance to strict observed rules of behavior, he began to live a very regulated life. For the remainder of his life Kant remain unmarried and owned only one piece of art in his household, advocating the absence of passion in flavor of logic. He never left Prussia and rarelyventured out oh his hometown. He was a respected and very competitive university professor for most of his life. Historical repute did not come to him until he was in his late 50’s. In 1740, he went to the University to study philosophers Gottfried Leinbniz and Christian Wolff under the tutelage of Martin Knutsen , who was familiar with the development of British philosophy and science. It is there that Knutsen introduced Kant to a new system of mathematics by Sir Isaac Newton (1997). In 1746, Kant wrote the paper on measurements of reflecting Leibniz’s influence. In 1755 he then became a private lecture at the University, and while there he published â€Å"Inquiry into the Distinctness of the Principles of Natural Theology and Morals† in which he examines the problem of having a logical system of philosophy that was connected with the world of natural philosophy, a concern typically of the period. In that same year he published a piece titled â€Å"In Dreams of a spirit-seer Elucidated by Dreams of Metaphysics†. For the next 10 years, he work solely on the architecture of his own philosophy. Then in 1781 he released the † Critique of Pure Reason†, This work was to become the most influential, widely cited, and distributed work in Western philosophy. He then followed with his work † Ground of Metaphysic of Morals†. Then in 1788 who wrote † Critique of Practical Reason† then he finished and perfected his work on † Critique of Judgment† (2005). Almost all of his work was attacked and criticize seriously, practically his ideas on category, or, the place of free will and determinism, and weather we are capable of processing true and corrected knowledge of eternal reality. In his life Kant wrote a number of lesser known essays on history, politics and the application of philosophy of life. When he died in 1804, he was working on an incomplete manuscript that has since been published as† Opus Postmum†. Immanuel Kant had an interesting system of beliefs. It’s based on the beliefs , that reasoning is the final authority for morality. Actions of any sort, he believed, must be done from a sense of duty dictated by reason, and no action the form for expediency for solely in obedience to the law or custom can be regarded as moral. Moral , according to Kant, is apt done for the right reasons. Kant what are you that to make a promise for wrong reason is not moral, in other words, you might as well not make the promise. You must have a duty, or, correct moral inside of you, and for your folly of lying, your actions would only give you away. Kant described in common command given by reason: the hypothetical imperative, which dictates a given course of action to reach a specific end; and the categorical imperative, which dictates a course of action that must be followed because of moral rightness and necessity. It is also stated that Kant believe it to be irrational to perform in action if the action maxim contradicted itself once made into a universal law of nature (2013). In other words, before you act, you must decide what rules would be following if you were to act, whether you would are willing for rules to be followed by everyone. If you are willing to universalize the act, it must be moral; its not, then the act become morallyimpermissible. Kant police not the welfare of each individual should probably be regarded as in and itself, as stated in † Formula of the End† (2013) in itself: act in such a way that you always treating humanely weather in your own person or in the person of another, never simply as a means, but always at the same time as an end. Kant believed that the moral rules are without exception. Therefore, it is wrong to kill all situations even the case of self defense. This thought comes from the Universal Law Theory (2010). Since we never wanted to in order to become a universal law then it must be a moral in all situations. For what Kant’ s describe in his rules of absolut Killing, according to Kant, could never made universal law, therefore it is wrong and each in every situation. There are never any extentuating circumstance, such as self defense. Is out current laws were left to Kant , people would be prosecuted for everything since there is no extentuating circumstances. Kant cateorical imperative is a tri-dynamic statement of philosophical thought: (1) Actso that the maximum of your will always hold, at the same time as principles is stablished universal law. (2) Acts so as to treat everything with the upmost humanity, including your own person as well as everyone else, and always as an end but never as a mean. (3) Act according to maxim as a universal legislative member of a mere potential Kingdom of ends (2010). In other words Kant’ s argument that particular actions require constant thoughts for roll covering it, that the rule is acceptable for universal action should be adopted, its not, then it should be rejected. In order to understand whether or not actions follow Kant’ s category imperative, we must prescribe post normal what we wish to be universal laws. The norms that create to value judgement are based on issues involving justice between a few people or groups or nation. He further states that thought his cognitive development of peaceful interaction of building of Republic, we can create a community as natural result of unimpeded development of human facilities (1997). Kant states that because we must believe in all the things develop to the fullest capacity, then we could the theorize that, in summary, through congnitive processes we can create community, based on moral (ethical) action towards every person, thereby creating universal ethic throughout the community. Refrence Immanuel Kant . (2013). In Encyclopedia Britannica. Retrieved from World Wide Web. http://www. Britannica. com/EBchecked/topic/311398/Immanuel-Kant Immanuel Kant -Biography. (1997). In The Eurpean Graduate School. Retrieved September 30, 2013 from Immanuel Kant (2013, August 5). New World Encyclopedia,. Retrieved 00:44, September 30, 2013 From http://www. newworldencyclopedia. org/p/index. php? title=Immanuel_Kant&oldid=972023 Immanuel Kant -Biography. (1997). In The Eurpean Graduate School. Retrieved September 30, 2013 from http://www. egs. edu/library/immanuel-kant/biography/. Immanuel Kant (2013, August 5). New World Encyclopedic, . Retrieved 00:44 September 30, 2013 From http://newworldencyclopedia. org/P/index. php? title=Immanuel_Kant&oldid=972023 McCormick, M. (2005). Immanuel Kant: Metaphysics. In Internet Encyclopedic of Philosophy (April 17, 2001 ed. ) Retrieved September 30, 2013 from http://www. iep. utm. edu/Kantmeta/ Rolf, Micheal. † Immanuel Kant. † The Standford Encyclopedic of Philosophy. Ed. Edward N. Zalta. Fall 2010 ed. 2010. Stanford University. Web 30 Sept. 2013. References.

Why Is Attending A Four Year University - 753 Words

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