The capital budgeting system of Target Corporation mainly involves the work of the CEC. Although the process starts early on the real work of evaluation involves the CEC after proposals are tabled to them. The CEC meets once a month and reviews around ten to twelve capital project requests in every sitting.
The meetings can take hours to finish. Generally projects take around 12 to 24 months before they are forwarded to the CEC. In many cases a real estate manager assigned to a certain geographic region is responsible for implementation of the proposal from the beginning to the end if the project involves the setting up a new store. Surprisingly this group or type represents the bulk of project requests. The Capital Expenditure committee is composed of a group of top company executives. The CEC reviews CPR’s in excess of $100,000. In cases where the capital expenditure request is in excess of $50 million then the approval of the board of directors is required.