Target Is a Major American-Based

Target is a major American-based retailer and general merchandiser whose primary competitors include Wal*Mart and, to a lesser degree, Costco and K-Mart. However, Target has differentiated itself from its competition with successful branding strategies. In particular, they have been described as an "upscale discount department store," (Jensen & Nichols, n.d., p. 1) and as the "the king of cheap chic," (Schlosser, 2004). Based in Minnesota with roots back to the early 1900s, Target ranks consistently high on the Fortune-500, and has received widespread recognition for its corporate culture. This paper analyzes Target's methods of creating and sustaining organizational culture from the perspective of a consumer.

Organizational culture describes the shared values and practices exhibited by members of a company, including both management and staff. It can manifest in numerous ways: from the creation or dissolution of power distance to the embracing of a formal or informal dress code. Although organizational culture can be dictated officially and modeled by management, it is sustained and reflected by employees. As a customer, I have only contact with Target floor managers and hourly wage employees. It is impossible to know the totality of Target's organizational culture without learning about its corporate culture as well.

Target has been "consistently recognized for its comprehensive team member benefits, training and education systems, productive and efficient work environment…and for its efforts to support the communities in which it operates," (Jensen & Nichols, n.d., p.1). These are all aspects of corporate culture, revealing that Target maintains at least a theoretical commitment to teamwork, employee education and personal growth, and social justice. On Target's official company Website, teamwork is the first and foremost topic mentioned in their section on organizational culture, which is written for the prospective employee. Corporate culture also impacts issues like job security. One analyst notes, "they hire the right people and they KEEP them," ("A Peek into Target's Corporate Culture," 2008). As part of an organizational culture, a commitment to keeping good employees imparts a sense of trust in management and creates camaraderie.

Another manifestation of corporate culture in Target is to "de-emphasize the egos and personality of their leaders in favor of the company and the brand, and stray away from high profile media coverage," ("A Peek into Target's Corporate Culture," 2008). This is a two-part statement, the first of which is de-emphasizing the egos and personalities of their leaders. A comparison could be made to corporate superstars like Bill Gates or Steve Jobs, who are charismatic personalities that subsume the organizations they lead. At Target, the integrity of the brand is more important than the personality of the company's senior executives. Extending from this is the second part of the statement related to Target's methods of dealing with the media. How a company represents itself to the general public through the media is a reflection of its organizational culture.

On its Website, the Target corporation claims to foster a "friendly, fun, and collaborative" organizational culture. "The pace is fast, the atmosphere is fun and the people are friendly." Not having actually worked at a Target store, I cannot say for sure whether most employees feel that Target is living up to its statement. However, as a customer I can say that staff at Target are friendly and certainly seem more satisfied and happy than their counterparts at competitor retail outlets like Wal*Mart. At the same time, I would seriously question Target's assertion that "every team member is encouraged to innovate, contribute ideas and discover solutions as an important part of a world-class team."

Organizational culture is created, sustained, and communicated via stories, rituals, symbols, and language (Text). Few stories are as important to Target's organizational culture than that of its humble origins as a discount retailer in Minneapolis. Before it was called Target, it was called the Dayton Company (until 1954), and after merging with the Hudson Company, the Dayton-Hudson Company. The Dayton Company opened a single branch called Target in 1962. The flagship store's mission was "to take the best-quality merchandise of a high-end department store's 'bargain basement' and sell it in a standalone shop," (Schlosser, 2004). Right from the start, Target branded itself as a cut above other discount retailers and set their prices accordingly. Within eight years, the company was able to open 17 stores totaling $200 in sales (Scholsser, 2004). Target could not have been so successful even in its early years without establishing a strong company culture. That company culture continued to define Target's identity as being essentially distinct from that of Wal*Mart or K-Mart. The story of Target's beginning and evolution as a retailer is one of the key ways the organizational culture is perpetuated and new employees socialized.

Rituals are another way that organizational culture is sustained. At Target, there are rituals that introduce new members to the organization, via training programs. There are also rituals when employees are recognized for exceptional performance or offered a promotion. Rituals related to customer relations might not be as famous as the "Wal*Mart greeter" phenomenon, but Target also has a similar ritual that defines its treatment of customers.

In fact, Target management calls its customers "guests," not customers. This reveals the use of language as a key part of creating and sustaining organizational culture ("What's the Company Culture at Target?" n.d.). The symbols of Target go beyond its iconic logo and branding; even the color red connotes the high-paced environment in which Target employees are expected to work. Use of language and symbols is a strong point in Target's organizational culture, and it does not need to change its culture on these measures.