Target

MEMO To: Bobby C. Vaught, Ph.D. Date: July 11, 2000 Professor of Management From: John Schindele Subject: Target Corporation (Formerly Dayton Hudson) The main issue facing Target Corporation is what it should do with its department store and Mervyn’s divisions. The company has considered closing or selling the divisions several times over the past few decades. Although both divisions continue to make a profit, the company could be better off focusing all of its attention on the Target stores. On the other hand, maybe the company needs to take a different approach with the divisions and try to make them more successful to generate greater profits. Target Corporation is going to have to sell its department store and Mervyn’s divisions if they do not show significant improvements in next year after the new strategy goes into affect. These two divisions are holding Target back and depleting some of its much-needed resources. In the short run the other two divisions are going to st! art conducting business in the same fashion as the Target stores. If after a year the new strategy, which is making the other two divisions more like the target division, has not produced more profit for the company, it will be time to either sell or c

They increased relative to the 1995-1998 expenses that stayed constant around 16-17. It continues to grow and introduce new ideas that make it more difficult for competitors. Target claims that the continued growth of its divisions are key contributors to its overall strategy. When the c!ompany claimed the Target Corporation name in January this year, it was acknowledging its dependency on the success of its Target stores. Suppliers for the general merchandise retail industry play a major role and could be an opportunity or a threat.