Target Corporation Essay Example | Topics and Well Written Essays - 250 words

Target Corporation - Essay pillowcaseTarget Corp. used reference book lend as a form of ensuring there is return and loot from the credit. However, this happened at a time when there was an ongoing credit crisis. What comes forth, therefore, is a possible scrutiny of the clients who were offered the credit that made the company so confident that there would be a return even if the public economic status was not friendly (Palepu & Healy, 2012). Second, is the issue of getting rid of credit defaulters in a corporation? For quite sometimes, the company has been engaged in a defaulter eradication process that has left wing Target dealing with only trusted clients with whom it was easy and safe to trust the credit.The third point that comes out from the article is the credibility of the companys evaluation system that was able to predict returns on lending for a second time at a time when the credit market is in crisis. This trim back the losses because of clients payment problems as well as renegotiations of terms of receivable because of customers difficulty. The fourth point to reflect on is the future of a risky process worry this. Although Target showed considerably good profits from the process, there are concerns about the companys sales, which go been on credit rather than on cash. When a company keeps adding on the bad-loans reserve, the losses are certain to catch up with the credit losses that will make the process unsustainable and lead to failure (Kieso, Weygandt & Warfield,