Conclusions:
As
stated in our methodology, we wanted to find out why Target ranked 16 out
of 100 in the category of Social Responsibility. After conducting our research,
it is now obvious why Target maintains such a high standing. The entire
culture of the organization is focused on being a contributor. Stephen
R. Covey states his number two habit as, “begin with the end in mind.”
(p. 42) That is exactly what Target Corporation does with its message to
be focused on doing what is right for its customers. The message starts
at the top, where management pushes it down through the divisions to the
functional managers of the operating divisions. From there, it is passed
down to the store managers, who in turn, reiterate and emphasize to store
employees the importance of giving back, in order to ensure the organization,
and the communities affected, are nurtured and continue to grow and prosper.
With numerous programs and $80 million earmarked for the year 2000, employees,
customers, shareholders, and the community
all
win because Target is committed to being the retailer of choice. We believe
Mr. Singer said it best, “Without guests, Target wouldn’t survive; therefore
it is imperative that Target give back to its stakeholders.” This attitude
is definitely beginning with the end in mind. (Singer, Interview, October
31, 2000)
Also
stated in our methodology was our objective to discover why Target was
ranked 100 out of 100 in the category of Quality of Management. The management
team at Target is committed to quality, growth, and innovation. Although
heavily processes oriented, Target encourages ideas and uses an output
control system that challenges and rewards its employees. We have first
hand knowledge through Paul Singer who said, “Retail is a complex business
and the supply chain gets very complex. Of course, when goals are accomplished,
the reward is a higher stock price, which compares with the darlings of
Wall Street. Employees see the impact of performance with the stock price
and 401(k)
contributions.”
(Singer, Interview, October 31, 2000)
Perhaps
one of the most telling observations about the quality of management comes
from the employees themselves. In a random sampling of interviewed employees
at a Target Store, the average ranking was 4 out of 5, when asked about
the quality of management. The same ranking was given in relation to whether
employees liked working for Target and whether they would encourage others
to work there as well. But the highest ranking by employees was 5 out of
5 when asked about job satisfaction. In fact, most employees stated that
they enjoy and appreciate working for Target.
(Employee
Interviews, October 22, 2000)
Target
Corporation has been in the retail business for 98 years and is continuing
to evolve as an organization and as a community. Target holds a solid position
in the retail industry and will most likely continue to maintain its number
two ranking in general merchandisers. There is a huge difference in total
revenues and stores when compared to Wal Mart, but Target exceeds Wal Mart
with respect to net profits using a store by store comparison. Target’s
management works efficiently, effectively, and it is constantly looking
to improve and change with the times. (Wayne, Interview, October 22, 2000)
Target focuses on being differentiated with merchandise that includes name
brands such as Martex and Calphalon. The quality of its home products and
commitment to be better than average, are evident with designs by Michael
Graves. Target is constantly reinventing itself to attract new guests and
to better serve its loyal customer base. With plans to continue expansion,
management intends to open 200 SuperTarget Stores during the next ten years.
Each of these strategies represents an effort to continue growth and Target’s
commitment to its shareholders. (Target Annual Report, 1999)
Our
team believes Target will continue to grow, maintain its high ranking in
future Fortune Magazines and realize its goal to become the retailer of
choice. We have also learned how a company can effectively and efficiently
manage its resources through planning, organizing, leading, and controlling.