Expansion of Target Corporation’s Operations, Essay Example

To: Michael R. Francis, Marketing Executive

From: {Inset your name}, Target Corporation employee

Date: July 08, 2010

Subject: Expansion of Target Corporation’s Operations

Over the past, Target Corporation has shown a decrease in its operations. This has been caused due to lack of additional funds. It is believed that through additional capital, Target Corporation can re-expand in its operations. This can only be made possible when additional capital is provided. Regarding the last advert, two companies (with different interest) have come forth to aid in the achievement of this. The first company is interested in having part ownership through new stock’s sale while the second is interested in providing loan to Target Corporation. With the differences in interests, it is therefore vital to provide the two Companies with appropriate information and hence the reason of writing (information to be provided). I feel that when the representatives of Target meet with the first Company, the following information should be provided.

1. Stock prices; The information (past data) should cover stock prices over the last five or three years. This indicates currency and the present financial status of Target Corporation. The Company will identify the risks, and expansion opportunities that might result.
2. Stocks permitted to give out; Their sales expectations can be calculated from this information and it will give clue to make judgments.
3. Dividend per share; The information regarding dividend per share is very important as it will indicate by how much the Company will receive per share sold. The history of stock sales should as well be provided. The information gives an opportunity to predict the future prices. Chances of obtaining profits and loses can hence be determined.

The following information should be provided to the second Company;

1. Assets and liabilities; The total assets and liabilities of Target Corporation should be availed to them. The information should be in details and positive to convince the Company that in case the Company will be insolvent and unable to repay, other methods would be used to recover the loan.
2. Profitability; The profit history and how Target has been managing its funds, the profits obtained, expected profits (in details and the reasons), expenditures, and net income among others. The information acts as a surety and explains for itself and the second Company that their loan would be re-funded as per their stated interest and duration.

The assets and liabilities won’t be important to the first Company as they are not connected to the price and sales of stocks. The information when provided to first Company will be irrelevant and won’t meet the scope of Target in obtaining additional funds/capital. With the expansion of Target Corporation’s operations, the Company will increase its profits and hence the importance and necessity of expansion. I therefore feel that the above information is essential. If there is any information you feel is missing, kindly adjust as I stand for corrections.

Thank you.

{Sign here}

Regards