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

2. Introduction 2 Dayton Hudson Corp. - dates back 100+ years
Joseph Hudson, 1881 & George Dayton, 1902
Dayton’s donates 5% of profits to community
first discount store opened: Target
merger of Dayton Corp. & Hudson’s
related diversification with acquisitions: Rivertown Trading and Associated Merchandisers
Revenues of $33 billion and 1,245 stores
name change to Target Corporation
Target discount stores represent 75% of annual revenues

3. Selection of Two Attributes3
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

4. General Research on Attribute #2: Quality of Management4
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

5. In-Depth Research on Target: Quality of Management5
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

6. 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

7. Summary - Target Corporation7
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

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