TARGET CORPORATION Team No. 12 1 Janet Boydell Mary Forthun Khuong Luu Tram Phan Sandra Sheffield Hung Tran

Introduction 2 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

Selection of Two Attributes 3 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: Quality of Management 4 General Research on Attribute #2: 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: Quality of Management 5 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

Comparisons General Research Target Corporation 6 Theory X, Y, Z Managerial Decision Making Organizational Structure Organizational Control Target Corporation Ouchi’s 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

Summary - Target Corporation 7 Summary - Target Corporation 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 8 Thank you! Visit us at www.geocities.com/smart_mhr301