TARGET CORPORATION

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TARGET CORPORATION
1
Team No. 12

• Janet Boydell
• Mary Forthun
• Khuong Luu
• Tram Phan
• Sandra Sheffield
• Hung Tran

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Introduction
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• Dayton Hudson Corp. - dates back 100 years
• Joseph Hudson, 1881 George Dayton, 1902
• 1946 - Daytons donates 5 of profits to
  community
• 1962 - first discount store opened Target
• 1969 - merger of Dayton Corp. Hudsons
• 1998 - related diversification with acquisitions
  Rivertown Trading and Associated Merchandisers
• 1999 - Revenues of 33 billion and 1,245 stores
• 2000 - name change to Target Corporation
• Target discount stores represent 75 of annual
  revenues

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Selection of Two Attributes
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• Selected based on rankings in Fortune Social
  Responsibility ranked 16/100 Quality of
  Management ranked 100/100. Believed important
  and interesting
• 1 - Social Responsibility A managers duty or
  obligation to make decisions that promote the
  welfare and well-being of stakeholders and
  society as a whole
• 2 - Quality of Management Quality of management
  represents numerous aspects, including the four
  important managerial functions planning,
  organizing, leading and controlling, in order to
  manage resources efficiently and effectively

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General Research on Attribute 2 Quality of
Management
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• Behavioral Management Theories
• Theory X Negative, workers closely supervised
  and controlled
• Theory Y Positive, workers committed to
  organizational goals
• Theory Z William Ouchi, rewards individual
  within a group
• Managerial decision-making
• Programmed versus Non-programmed
• Organizational structures
• Divisional structures Product, Geographic,
  Market
• Organizational control and measurement tools
• Three types Output, Behavioral Cultural
  controls

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In-Depth Research on Target Quality of
Management
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• Theory Z - Target encourages individual group
  contribution
• Managerial decision-making
• Programmed - Singer interview heavily
  process-oriented
• Divisional Structure Market
• Discount Targets Stores
• Middle Market Mervyns of California
• Department Stores Daytons, Hudsons, Marshall
  Fields
• Organizational Control
• Output Financial, organizational, and operation
  budgets
• Target heavily focused on goals operational
  budgets
• Behavior MBOs and SOPs
• Cultural Control Values and norms, established
  by founders
• Mr. Dayton begins tradition of giving 5
  pre-profits to community
• Target includes employees and guests in social
  programs

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Comparisons
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• General Research
• Theory X, Y, Z
• Managerial Decision Making
• Organizational Structure
• Organizational Control

• Target Corporation
• Ouchis Theory Z
• Decision Making
• Programmed decision making
• Differentiated marketing strategy
• Related diversification only
• Divisional Structure
• Market structure with 3 divisions, each using
  geographic structure and functional managers
• Target uses all three
• Output, Behavior and Cultural control Focus on
  Organizational goals and satisfying customer
  needs

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Summary - Target Corporation
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• Fortune Magazine Target ranks 2 overall in
  category General Merchandising
• Target uses the four major functions of
  management planning, organizing, leading and
  controlling to efficiently effectively manage
  resources
• Targets management held accountable using MBOs,
  financial measures and operational budgets
• Target committed to a 15 return on earnings per
  share, and achieved 43 return for the last 5
  years
• 100 investment 5 years ago now worth 618
• Innovations Catalog sales, inputs e-Commerce
• Future plans include 200 new SuperTarget stores
  in the next 10 years

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TARGET CORPORATION
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