Gap Analysis

Another performance assessment process used by businesses is the gap analysis. Gap analysis is used to examine internal processes by comparing a company’s actual performance with planned or potential performance goals. The gap analysis process can be applied to any aspect of a company’s business, such as total sales, profit performance, product performance, or the entire company’s performance.
Consider this simplified version of a gap analysis model, which identifies the four crucial steps in performance analysis:

1. Set Performance Standards. – Identify the standards to be used, such as total sales, profit margins, sales per square foot, inventory turn, unit transaction goals, and customer service.
2. Measure Performance. – Establish methods for measuring results against these standards and metrics. Compare to industry standards and other stores within the company (regionally, locally, and/or across divisions).
3. Determine Gaps. – It is simple mathematics to determine the gaps. However, once a performance gap has been identified, it is crucial to implement processes that analyze the data to take advantage of opportunities and run a profitable business.
4. Adjust strategy and tactics to influence performance. – New or adjusted strategies and tactics must be employed to move the needle on performance indicators.

In this assignment, you will examine performance results and conduct a gap analysis for Target. Business managers must identify, examine, analyze, and draw conclusions from yearly results to respond and adjust to opportunities and challenges in the business. Performance results are assessed against the performance standards or goals that have been established for sales, profit, and merchandise performance.
Instructions:
1. Click here ( https://investors.target.com/annual-reports?c=65828&p=irol-reportsAnnual) to access Target Brand, Inc./Target’s annual reports from 2005 – 2020. Review some of the recent annual reports to find important information about Target’s business over the last few years.
– Study the company’s overall annual performance over several years, paying particular attention to the company’s consolidated financial statements. These statements can be quickly located by clicking on “20xx financial” at the top of each report, then clicking on the “financial summary” tab at the top of the resulting webpage.
– Note any information regarding Target’s strategy or change in strategy, year to year.
2. Use the attached file, Gap Analysis Template.pdf . Use the template and the information gathered in part 1 of the instructions to complete the following:
– Set up a gap analysis spreadsheet for Target and enter the company’s performance results for the most recent two fiscal years (2019 & 2020) from the published annual reports. (You will find all of the information needed to complete the gap analysis in the company’s reports, including the various sections of the 10-K report.) Include the completed spreadsheet as an appendix to your paper.
– Complete a gap analysis using the information you compiled in the spreadsheet for each fiscal year, being sure to address all four crucial steps in performance analysis listed in the simplified version of the gap analysis model (above).
– Choose at least two gaps identified in your analysis, and make and defend specific recommendations for how Target should have responded to the gaps. Analyze and evaluate the information developed in your analysis to support your recommendations. The accuracy, relevance, logic, and objectivity of the information should be thoroughly examined for any flaws or issues.
– Conclude with a summary statement about gap analysis and its value as a tool for analyzing Target’s business performance. The conclusion should be a synthesis and logical extrapolation from th

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