Target Corporation Guides for Growth

Target is known by many for its excellent inventory and prices, but many of its consumers do not know of its humble beginnings and the evolutionary process it has went through to become one of today’s leading retailers. Many do not think of “Tar-zhay” as a discount store as it does not resemble what we know such stores to look like (Rowley 9). Rather it is a clean, well-organized store where one can purchase clothes, groceries, electronics as well as a host of other items.

Today, Target is “one of the largest retailers with well established presence in U.S” (Data monitor 5). Target’s success is partly if not fully due to the company’s management style and its ability to retain productive employees. The company’s foundation has had a very strong influence on its current state. In the following pages, one will not only gain a better understanding of Target’s history and its early management style in comparison to its current management style but will also look at how the Target model differs from that of its largest competitor(s). Then, an explanation will be given as how the Target model relates to its current state of high productivity and performance. Lastly, we will offer some recommendations on how other companies, particularly struggling ones, can apply the Target model to their company as a means of improving productivity.

The Early Years

Founded by George Dayton in 1902 in Minnesota, initially known as Good fellow Dry Goods, and later became Dayton Company in 1910 (Target.com). The Dayton’s first retail store was known for its great merchandise, “low prices and excellent service” (Rowley 8). Upon Dayton’s death the company is then taken over by his son, Nelson Dayton along with his sons. At this point the company is worth around $14 million. It was not until 1962 that the Target chain is born. After merging with J.L. Hudson (Detroit-based) in 1969, the company becomes known as Dayton Hudson. The company later acquires two established department stores; in 1978 Mervyn’s (California-based) and Marshall Field & Company in 1990 (Chicago-based) (Target.com). By 2000, the company had three types of retail stores: “discount stores, upscale department stores, and a mid-range department store” (Rowley 9). In the beginning of that same year, Dayton Hudson saw that Target stores were doing the best out of their many retail stores and changed the company’s name to Target Corporation.

Early management style

Being that Target Company was originally a family business there were different personalities that contributed to its success. In 1970, Kenneth Dayton became CEO and his brother Bruce was named chairman of, then, Dayton Hudson. Kenneth had a passion for people where as his brother concentrated on the numbers. Kenneth established something he called “organizational surplus”, which he would