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 start
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 close the
companies. Target would much rather sell the companies, but that can only happen if
another company is willing to buy.
The goal for the new change is that within a few months the change will be in full swing.
After a year the companies should be making not only more revenue but also more profit.
Unfortunately, if the changes do not work as planned, Target Corporation will not be able
to keep the businesses.
Background
Dayton Hudson Corporation changed its name to Target Corporation in January this year.
The origins of the company date back to 1891 when Joseph Hudson opened a men's clothing
store in Detroit. In 1903 George ...