1. Scroll throughout the TJX website at www. tjx. com 2. On the “Investor Information” menu, click the “Annual Reports” link, and download (but don’t print) the TJX 2011 Annual Report. 3. Scan the publication to get an overview of what kind of information a public company has to document. 4. Answer the following questions by typing into the document. Please note the page references for each answer you find, as they may be useful during class discussion. 5. To submit the homework, upload the document on Blackboard’s Homework tab. PART 1
Mission, Vision, Corporate Values 1. What is TJX’s mission statement? More U. S. and international customers 2. What is TJX’s vision for itself in the future? They envision a marriage between stores and the web and plan to use $23 billion brick-and-mortar business and 700–person buying organization to increase the customer base and add incrementally to their top and bottom lines over time. 3. What are the values that TJX strives to incorporate as it conducts its business operations? Are these consistent with their stated mission and vision?
To stretch the boundaries of the off-price business model and take intelligent risks to offer consumers even greater value. Target Customer 4. Who is TJX’s target customer? Are you TJX’s target customer? A middle- to upper-middle-income shopper. No, I am not. Value Proposition 5. What are the four components of value that TJX offers its customers? Is this value proposition likely to appeal to the TJX target customer? Great fashion, brand, quality and price. Yes, they are. PART 2 Business Model 6. What does TJX sell?
It sells off-price apparel and home fashions. 7. What are TJX’s key retail concepts? How do these retail concepts enable TJX to provide the four components of value they offer TJX’s customers? Synergistic, 8. What is TJX’s business model? TJX’s business model is flexible, particularly for a company of size, allowing reacting to market trends. 9. How does TJX achieve flexibility in its business model? Their opportunistic buying and inventory management strategies. Competition 10. Who does TJX consider to be its competition?
The local, regional, national and international department, specialty, off-price, discount, warehouse and outlet stores as well as other retailers that sell apparel, home fashions and other merchandise that we sell, whether in stores, through catalogues or other media or over the internet. Strategic Planning: Risks, Goals & Objectives, Strategies & Tactics 11. Identify 5 risks that TJX faces that are beyond its control. Execution, Inventory flow, natural disasters, political instability and increasing cost. 12. What are TJX’s goals for the next fiscal year and beyond?
Do these goals coincide with TJX’s stated vision? I cannot find the information, sorry 13. What are some of the strategies that TJX plans to utilize to achieve these goals? For each strategy you identify, match it to at least one of TJX’s goals. By set the right goods in right stores, distribute goods to store effectively, maintaining an appropriate mix and level of inventory in stores, appropriately changing the allocation of floor space of stores among product categories to respond to customer demand and effectively managing pricing and markdowns. 14.
What are some of the tactics that is TJX using? Risk management strategies, inventory management strategies, PART 3 Business Operations 15. How is TJX organized? How many business segments and stores overall? Where are they? How many new stores do they plan to open in the next fiscal year? 16. How does this business model, organization, and growth plan support TJX’s vision and goals? 17. How many employees / associates does TJX have? 18. What benefits does TJX offer its employees? Are these benefits consistent with TJX’s stated corporate values? Supply Chain 19.
Does TJX have one centralized buying organization for all its business segments or does each segment have its own buying organization? How many people does TJX employ in its buying organization? 20. How big is TJX’s vendor universe? From how many countries? Why does TJX use such a large number of vendors? 21. How does TJX buy their inventory? 22. Does TJX operate any distribution centers in Massachusetts? PART 4 Corporate Stock Performance 23. How has TJX stock performed over the past five years, compared to the S&P 500? How has TJX stock performed over the past five years, compared to the DJARI?
What is the DJARI? Corporate Financials Refer to the financial statements beginning on page F-3 of Form 10-K. (This is approximately page 66 of the . pdf file. ) 24. How much cash did TJX have on hand at the end of the past fiscal year? 25. What was the value of TJX’s goodwill and trade name? 26 What is the difference in the number of common stock issued as of January 2011 and January 2012? What accounts for this difference? 27. How big is TJX in revenue (Net Sales)? What is their Net Income? What was the difference in revenue between the last two fiscal years?