Premium Essay

Operational Targets

In: Business and Management

Submitted By rr98
Words 649
Pages 3
Using the information in the case study and the appendix, evaluate how well you believe RyanAir has met its operational objectives (18 marks)
Operations management are the specific focused targets of the operations management function. They will set long to medium term goals and use different strategies and tactics in order to achieve these targets.
Ryanair's main underlying objective is low fares. They use this to stimulate demand from fare conscious leisure and business travelers. One way they met this objective is by selling seats on a one way basis, that reduces the need for minimum stay requirements and also they set fares on the basis of demand for particular flights. As a result, Ryanair have profited from an 8% rise in new customers and as a consequence their profit rises by 26% in 2011. This not only shows that Ryanair have been successful in meeting their operational objective but they have also met their corporate objective of profit maximization.
On the contrary, Ryanair have struggled to meet some of their objectives due to a variety of external influences. They struggled to meet their objective when a combination of volcanic ash, snow closures and ATC strikes led to 14,000 flights being canceled, this resulted in extra maintenance and equipment costs of $29 million. The increase in costs is unlikely to help Ryanair pay for the steadily rising fuel costs, their fuel bill rose by 37% to $1.2 billion, this is partially due to fuel per barrel costs rising from $62 to $73 however it is also a result of Ryanair taking in a hefty amount of new customers each year, this is indicated as their traffic grew by 8% to 72 million customers. These issues are going to severely dent Ryanair's ability to provide low fares and maintain quality customer service in the future, additionally the rising costs of sales for Ryanair is likely to result in them failing to…...

Similar Documents

Premium Essay

Target

...TARGET CORPORATION Executive Summary Target Corporation is the second largest retailer in the U.S. with over 1700 Target and Super Target stores. Targets around the country offer everything from household essentials to computer software to groceries, and sell many of their products under private label brands. In addition to their retail segment, the company also offers credit and debit cards to its frequent shoppers. In 2002 the Minneapolis-based Target Corporation became the United States second largest discount retailer behind Wal-Mart. Target has transformed its signature bulls-eye logo into a lifestyle symbol. The bulls-eye is recognized by 96% of American consumers and considered a brand icon. We analyze company's capital investment decisions. Their accounting disclosures and overall financial performance based on Darden School of Foundation’s case study. According to case there are 10 capital investment project $300 million in capital expenditure request. Five of the projects representing about $200 million in requested capital, would demand the greater part of the committee’s attention and discussion time during the meeting. The company is highly successful at promoting its brand awareness with large advertising campaigns its advertising expenses for fiscal 2005 were $1.0 billion or about 2% of sales and 26.6% of operating profit. Target executives do for the customer shopping experience, Target offered credit to qualified customers through its REDcards,......

Words: 2163 - Pages: 9

Premium Essay

Target

...While standing in the middle of a huge retailer such as Target, a person could easily observe one of history's greatest logistical triumphs. Target sells tens of thousands of items from all over the world. Target alone stocks items made in more than 70 countries, according to its corporate Web site. With those kinds of numbers, having an effective and efficient inventory control system, an inventory management system is imperative. Target's inventory system helps it maintain its signature slogan "expect more, pay less" guests (customers) can expect more of a better quality product while paying less for it. At any given time, “the Minnesota-based retailer manages an average of $32 billion in inventory,” reports Supply Chain Digest. The inventory system and the related cost of sales are accounted for under the retail inventory accounting method (RIM). Since a physical inventory is taken only quarterly or once a ye ar, Target uses the last-in, first out (LIFO) method. The inventory is stated at the lower of LIFO cost or market meaning if the cost of the replacing inventory is lower than its recorded purchase cost, this method is used to value the inventory. Cost includes purchase price as reduced by vendor income. Target’s inventory is also reduced for estimated losses related to shrink and markdowns. The LIFO method is calculated based on the inventory levels, markup rates and internally measured retail price indices. Under the inventory costing method, the inventory......

Words: 968 - Pages: 4

Premium Essay

Target

...Target Corporation’s supply chain helps drives its sales, reduces costs, and ensures the availability of products their guests most want and need. Target pursues initiatives that they believe will increase customer satisfaction and their profitability through continuous operational improvements. Target prides itself on being the first in the industry with new merchandise. Therefore, shortening their lead times is a way of maintaining their leadership position within the industry. The company has welcomed and taken advantage of information technology by using sophisticated online tools to design products, and negotiate terms for pricing, production and delivery. Target’s efforts in recent years have produced a crucial reduction in their supply chain length, and have committed to achieving further improvements. Target continues to expand its distribution ability and invest in cutting-edge technology. 90% of merchandise flows through its 19 regional distribution centers and import warehouses. They have also been expanding self-distribution of grocery products; therefore, 50 percent of the items have been handled in-house since 2003. The import warehouses permit Target to store seasonal and imported merchandise, and allow for the transfer of goods through regional distribution centers to stores on demand. The distribution abilities have led to the increase in Target’s effectiveness, and have allowed them to put a higher priority on highly demanded products. Technological......

Words: 335 - Pages: 2

Premium Essay

Target

...Case 19 – Target Corporation 1. Why does Target use different hurdle rates for the store and the credit cards (9% and 4%, respectively)? What process would you use to estimate these discount rates to see if they are reasonable? Target uses different hurdle rate for the store and the credit cards because they want to make as much revenue as possible. With the low credit card rate Target is able to get a lot of people to sign up for the credit card because the interest rates are extremely low. Since Target has such a low credit card rate they raise the store interest rate to make up for the difference. I would use the IRR, NPV, or the discount payback method to estimate these rates. 2. What is Target’s capital-budgeting process? Is it consistent with the company’s business and financial objectives? The Capital Expenditure Committee (CEC) stated that the capital-budgeting process of target was to add one hundred stores a year while maintaining a positive brand image. This capital budgeting method goes hand to hand with the company’s business and financial objectives. 3. Which of the five CPRs did you accept? Which project attributes did you consider as part of your decision? I first accepted the Whalen Court CPR. I chose this CPR because this location had the highest percentage of college educated people than any other project after examining exhibit 7. Since Target wants the college educated mother with children as the ideal customer, the Whalen Court project......

Words: 373 - Pages: 2

Premium Essay

Target

...necessity of bringing together a new set personnel to fill the organizational hierarchy especially the top level who would lead the entire team towards the fulfillment of its revised vision. One of the persons who filled a very important position is Ron Johnson, the company’s new CEO since November 2011. Johnson has a very competitive record in the field of retail business and he is the man behind the success of Apple Inc. and Target Corporation. Another personality is Michael Francis who became jcp.com’s president during December 2011. Having a successful experience in Target Corporation, Francis provided JCPenney with his skills in marketing, merchandising methods, and harmonization. For financing, relationship with stakeholders, company plans, budgeting, supply chain, management of resources, and technological innovations, JCPenney hired Mike Kramer as its new COO during December 2011. JCPenney’s Senior Vice President Michael Dastugue is its present Chief Financial Officer. This new organizational line-up was introduced by JCPenney to achieve its target sales figure and give its entity a new image that can help attract new customers. JCPenney has this new program statement that shows the entity is redoing things and is willing to recover from the negative effects of the past moves the entity made. It further announced that their organization wants to entertain clients the way they want to be entertained: fair and square. JCPenney wants to be of value to the community......

Words: 3430 - Pages: 14

Premium Essay

Target

...Target SWOT Strengths One of the strongest features about Target is that the consumer enjoys being there. There store is always clean and the way it is set up is so aesthetically pleasing it's as if each shelf were specifically shelved just for you. Even the setup of the store is maneuverable and the bright colors draw you into the store. What makes the experience even better is that there are great deals here. Things are cheap which is not so expected from a place that is so nice. Since this is still a mass merchandising place there are things from clothing to electronics. The way the aisles are set up too makes it easier to shop. Another thing that is great about Target is that they focus on design. They always have designers come in to work on a product for Target alone. This just proves that there is a great product here for a great price. These designs vary from home décor, to clothing to electronics. It's all about beautiful design at target. Weaknesses With their much strength also come some weaknesses. One of them is that they do not have as many stores as their competitor Wal-Mart. Even with Target's great advertising, it makes it difficult for the consumers to shop here when there aren't that many around. Another weakness with target is that although their prices are low, they just aren't as low as Wal-Mart's prices. AS a matter of fact, compared to Wal-Mart's prices, Target may even seem expensive. Another problem with Target is that they keep a low overhead......

Words: 455 - Pages: 2

Premium Essay

Target

...<div style="height: 56px;border-bottom: 5px solid black;margin-left: 9px;"></div> In this Chapter * Introduction * Make Today Better * Design The Future * Raising The Bar * Performance against Past Targets Infographics <h5 class="noicon">Infographics</h5> * Targets & Performance Introduction We are clear on our ultimate destination: To decouple profitable growth from constrained resources.  Our vision of the future is one in which we see a world in transition from an industrial economy to a sustainable economy – where renewable sources of energy flourish, water is borrowed responsibly and returned clean to communities, waste is a new asset, workers across the industry are consistently valued and environmental impact will be a critical metric of success. This is a future that will be good for business, economies and communities, and citizens, workers and consumers. And we are determined to set Nike up to lead and thrive, in this environment. In order to get there, we will need to move from incremental to disruptive innovation. Our aim of decoupling growth from constrained resources will require change at a systems-wide level. No single company can eliminate toxic chemicals from vast supply chains, nor improve living conditions of workers in low-income communities, nor eliminate waste from consumption. We need step change in collaboration to drive collective understanding of the......

Words: 8330 - Pages: 34

Premium Essay

Target

...UVA-F-1563 Rev. Jan. 22, 2013 TARGET CORPORATION On November 14, 2006, Doug Scovanner, CFO of Target Corporation, was preparing for the November meeting of the Capital Expenditure Committee (CEC). Scovanner was one of five executive officers who were members of the CEC (Exhibit 1). On tap for the 8:00 a.m. meeting the next morning were 10 projects representing nearly $300 million in capital-expenditure requests. With the fiscal year’s end approaching in January, there was a need to determine which projects best fit Target’s future store growth and capital-expenditure plans, with the knowledge that those plans would be shared early in 2007, with both the board and investment community. In reviewing the 10 projects coming before the committee, it was clear to Scovanner that five of the projects, representing about $200 million in requested capital, would demand the greater part of the committee’s attention and discussion time during the meeting. The CEC was keenly aware that Target had been a strong performing company in part because of its successful investment decisions and continued growth. Moreover, Target management was committed to continuing the company’s growth strategy of opening approximately 100 new stores a year. Each investment decision would have long-term implications for Target: an underperforming store would be a drag on earnings and difficult to turn around without significant investments of time and money, whereas a top-performing store would add value both......

Words: 6104 - Pages: 25

Premium Essay

Target

...Undrea Louis Allen University Undrea Louis Allen University E-commerce Target E-commerce Target  Targets primary center is focusing on supportive shopping at discount costs, also to make Target your favored shopping destination in all channels by conveying exceptional worth, ceaseless advancement and remarkable visitor encounters by reliably satisfying our Expect More. Pay Less. ® brand guarantee Target stays concentrated on giving a one-quit shopping information for guests by passing on differentiated stock and remarkable quality. Target uses a business to consumer transaction. Which means a business selling to customers. With 40 distribution centers and 1,924 store Target operates under click-and-mortar. Target entity is a partial entity because targets merchandise can be delivered to customers. Target has been extremely successful in assigning their web assets. They have blogs, wikis, and twitter and Facebook accounts, yet there are still approaches to better themselves. On target website they have great ways in marketing themselves, however to help enhance it they can include the recommendation emphasize that permits them to recommend things based off of past obtained things. They do have the choice to get restrictive offers and advancements, yet they can likewise incorporate an e- inventory for individuals. Additionally they ought to look into offering rebates to their reliable customers. Target should offer ways in getting customer more involved in purchasing......

Words: 1552 - Pages: 7

Premium Essay

Target

...Target Case Study Problem Statement and Objectives: Just like any major corporation, Targets’ push toward diversity is a work in progress. The current operational direction is not congruent within the diversity plan, specifically the areas of product, as being the most important, followed by marketing, customers, team members within the community. The significance of the problem in terms of strategic marketing to the firm is that Target’s merchandise and product offerings are not congruent with its diversity plan. Situation Analysis: Strengths Strong brand awareness. Exclusive partnerships with named designer labels. Donates huge amount of profits to charities. Higher quality and innovative products than is found in competitor big box stores. Celebrity endorsements in advertising programs Weaknesses Emphasis upon quality makes their products more expensive than competitors. No stores in Vermont Lawsuits which tarnish the firm’s reputation. Low global presence Opportunities Global expansion Expand presence online. Expand targeted consumers by diversification Threats Online retailers i.e. Amazon Tough competition with discount retailers such as Walmart Shifts in economy that may push customer to other competitors High rates of employee turnover Dependent on US market The Target Corporation is a strong brand name. It is the 2nd largest general merchandise retailer in America. The red and...

Words: 2072 - Pages: 9

Premium Essay

Target

...Target Corporation The Dayton Company opened the doors of the first Target store in 1962. In 1965, the first Super Target store opened in Omaha, Nebraska, and in 2000, the parent company, Dayton Hudson, officially changed its name to Target Corporation. By 2005, Target had become a major retailing powerhouse with $52.6 billion in revenues from 1,397 stores in 47 states. For the Target, Wal-Mart and Costco are the two important competitors. 1、Wal-Mart operated store formats similar to Target, and most Target stores operated in trade areas where one or more Wal-Mart stores were located. Wal-Mart had become the dominant player in the retail industry. Much of Wal-Mart’s success was attributed to its “ everyday low price” pricing strategy. In addition to growing its top line, Wal-Mart had been successful in creating efficiency within the company and branching into products lines that offered higher margins that many of its commodity type of products. 2、Costco, on the other hand, attracted a customer base that overlapped closely with Target’s core customers. But Costco used a membership-fee format. It provided discount pricing for its members in exchange for membership fees. Over the previous five years, sales excluding membership fees had experienced compound growth of 10.4%, while membership fees had grown 14.6% making the fees significant growth source and highly significant to operating income in a low-profit-margin business. A precondition for effective capital......

Words: 984 - Pages: 4

Premium Essay

Target

...provided in the Evaluation block on the course homepage). Read the case “Target: From ‘Expect More’ to ‘Pay Less’” on pages 103 to 105 of the textbook and prepare answers to the questions below. Do not answer the questions at the end of the case in the textbook. Question 1 (20 marks) Identify four actors in the microenvironment that have affected Target’s performance over the past few years. Over the past few years there have been many actors that have affected Targets Performance, the four major ones are, Competitors, Customers, Publics and The Companies Operations. The first major Actor in Target’s microenvironment is the Competitors. When the economic crisis hit in 2008 Target lost market share to its major competitor Walmart. The reason for this Loss was because Walmart positioned themselves in the marketplace as always having low prices on their products, whereas Target positioned themselves as having better brands than Walmart. In this case Walmart as the competitor is a major actor in Target’s microenvironment kick starting a change in philosophy to a more of a Pay less side of things. The second major actor is the customers. When the crisis hit it caused the customers to have a more “frugal” approach to their spending habits and be more responsible with their money. This shift caused them to lean towards cheaper products rather than fashionable ones. At the time Target was promoting fashionable brands with reasonable pricing, Where as Walmart was...

Words: 1237 - Pages: 5

Premium Essay

Target

...Wolf 1 Target is Making Gains Target is a Minneapolis-based retail chain in the United States that has over 1,700 stores with plans to open some in Canada starting in 2013 (Wohl). Target has tried to compete with Wal-mart, the largest retailer, with their “cheap chic” clothing and household items. In order to keep up with the times and grow their customer base, Target is utilizing social media, college campuses and making connections with a popular Italian designer along with adding a grocery department to their stores. Target reported a $555 million profit from their third quarter, which is up $20 million from this time last year (Talley). They are having a slow start to the Christmas season as far as toys are concerned due to Wal-mart bringing back the layaway program after five years for toys and electronics. College campuses have become one large marketing campaign for many retailers from American Eagle to Hewlett Packard to Target. College students spent $36 billion on items like clothing, computers and cell phones during the 2010-11 school year (Singer). Target is permeated 66 universities and colleges in 2011 with a private shopping event that they have created for college freshman. Target started this tradition at the University of North Carolina in 2007 and it has been a hit. Target student representatives wear red t-shirts that say “COLLEGE” punctuated by Target’s bull’s eye logo (Singer). Target sponsors a welcome dinner on the Friday of the first weekend......

Words: 1110 - Pages: 5

Premium Essay

Target

...PART I: Overview of the Corporation: The year 2012 marks Target’s 50th anniversary. In the years since the department store evolved, Target has “watched our innovations lead to retail revolutions, and our team, guests and partners build better communities where we live and work” (1). With a mission to “make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and exceptional guest experience,” (1) Target has become known as an upscale retail store that does in deed offer trendy, high quality merchandise at discount prices. They place a lot of focus on their brand promise, “Expect More, Pay Less,” in order to ensure customer satisfaction. “Expect more of everything. More great design, more choices and more designer-created items that you won’t find anywhere else. And pay less. Its as simple as that” (1). Target Corporation is guided by their commitment to great value, the community, diversity and the environment and this is held very close to their heart. In keeping with their “Expect More, Pay Less” promise, Target distinguishes itself from competitors by offering affordable yet upscale products. History: Target Corporations, formally known as the Dayton Corporation, was founded in 1902 by George Dayton. At the time of formation, the store was known for “Dependable merchandise, fair business practices and a generous spirit of giving” (1). Dayton had recognized opportunities for growth in this market and took...

Words: 7553 - Pages: 31

Premium Essay

Target

...minimal difference in the series’ 2010 and 2011 asset allocations. Target allocations in further detail by target year, illustrating trends Morningstar has observed for the past several years. Longer-dated funds from target-date 2040 onward (several firms now offer 2060 funds) show little substantive difference in their average equity allocation, which ranges from 87% to 92%. The range of allocations in long-dated funds look wider for many of the subsequent target years due to the Invesco series’ unusual structure, which involves levering up its bond holdings. Invesco doesn’t offer a 2055 fund, so the range of equity allocations extends from 85% to 100%. Certainly, there is a meaningful difference in equity risk between these allocation points, but it’s not extreme. Even at 85% in stocks, investors have heavy exposure to equities, with many years left to ride out periodic short-term losses. Such a vast gap reflects the divergent philosophies regarding how long investors are expected to remain invested in target-date funds (that is, should they remain invested after they enter retirement or reallocate into other vehicles when they retire) and thus the appropriate weighting in stocks when they retire. These data once again confirm that philosophical and risk-management differences among target-date series are most pointed in the years leading up to the retirement date. The problem is that many investors in target-date funds buy in during their twenties or......

Words: 345 - Pages: 2