TARGET CORPORATION

Team No. 12

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

 Dayton Hudson Corp. - dates back 100+ years

 Joseph Hudson, 1881 & George Dayton, 1902
 1946 - Dayton’s donates 5% of profits to community
 1962 - first discount store opened: Target
 1969 - merger of Dayton Corp. & Hudson’s
 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

 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 manager’s 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
 General Research on Attribute #2: 4
Quality of Management

 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
 In-Depth Research on Target: 5
Quality of Management

 Theory Z - Target encourages individual & group contribution

 Managerial decision-making
 Programmed - Singer interview: heavily process-oriented
 Divisional Structure: Market
 Discount: Target’s Stores
 Middle – Market: Mervyn’s of California
 Department Stores: Dayton’s, Hudson’s, Marshall Field’s
 Organizational Control
 Output: Financial, organizational, and operation budgets
 Target heavily focused on goals & operational budgets
 Behavior: MBO’s and SOP’s
 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

General Research Target Corporation

 Theory X, Y, Z  Ouchi’s Theory Z
 Managerial  Decision Making
Decision Making Programmed decision making
Differentiated marketing strategy
Related diversification only
 Organizational  Divisional Structure
Structure Market structure with 3 divisions,
each using geographic structure and
functional managers
 Organizational  Target uses all three:
Control Output, Behavior and Cultural control
Focus on Organizational goals and
satisfying customer needs
 Target Corporation
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Summary -

 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
 Target’s management held accountable using MBO’s,
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
TARGET CORPORATION
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