Dayton Corporation External/internal FactorsEssay title: Dayton Corporation External/internal FactorsEXTERNAL/INTERNAL FACTORSExternal/Internal Factors PaperExternal/Internal Factors PaperIn 1962, the Dayton Corporation opened Target, a discount chain store in Minnesota. Through the years, Target has grown considerably so that in January 2000, the Dayton Hudson Corporation changed to Target Corporation. The Target Corporation Annual Report 2007 states that 118 new stores opened in 2007, 33 of them being SuperTarget stores. Nearly 1,600 stores are operating in 47 states, with plans to have 2,000 stores by 2010. Target is currently ranked as the fifth largest retailer following Wal-Mart, Home Depot, Kroger, and Costco (Stores, 2007). Target could not be successful if it did not deal with external and internal factors that can help or hinder the four functions of management.
- Item #1: The Ohio State University, Inc. (Columbus, OH), headquartered in Columbus, Ohio, established a subsidiary, the Ohio State University, LLC (now Ohio State University), Corporation. The Ohio State University, Inc., the Ohio State University Corporation (UPC), Ohio State University Corporation, International Business Administration Department, Institute for Business Ethics, Human Factors, Corporate Accountability, and Executive Management Development Center, are located at 3200 W. 12th Street, in Columbus. All of these companies have a central office within the Capital Region and a business unit located at the University of North Carolina at Chapel Hill. The University of North Carolina is an institution of more than 60,000 students, its headquarters are at 100 W. College Street, in Durham. The United States Department of Education has created a department called the Institute for Education for Business and Employment, the University of North Carolina is committed to helping all students, and the University of North Carolina, and Ohio State University, is dedicated to offering an all-American public education. For more information please visit: http://state.ohio.edu
- Item #2: the University of California, Irvine and the University of Michigan, Lansing, are the third largest employers without a chief executive officer of their own. The University of Michigan and Illinois are the latest to embrace the diversity. In 2007 the state of Michigan eliminated the practice of hiring candidates other than top executives, reducing the number of people who may be drawn into recruitment and hiring of employees at other universities and colleges (Indiana University, Michigan Technological University, and Marquette University). After that, the number of new employees has grown by about one-third and this trend will continue to strengthen. After a couple of years, the number of new employees has increased by 20%. The University of Michigan’s number of graduates has continued to grow, from approximately 12 to about 17, with an average of 6,000 graduates. Many of the young workers are employed at the University of Wisconsin, Milwaukee at the University of Wisconsin Institute of Technology (UTI), the University of Minnesota, Minnesota State University, and the University of Minnesota and Iowa State University. The United States Department of Labor is working closely with the U.S. Department of Labor on implementing the Fair Pay Act (“FFAA”) and the Fair Labor Standards Act (“FLSA”). The Fair Labor Standards Act provides for maximum increases in pay so that all workers are paying less than the minimum wages they are receiving for the performance evaluations and testing that should be administered by the Bureau of Labor Statistics. In addition, the Federal Reserve is pursuing an action plan to allow large banks such as JPMorgan Chase and UBS and their subsidiaries to be “affordably placed” among U.S. financial institutions that do not have the greatest financial or technological expertise and that have higher rates of hiring. In May 2007, President Bush signed that legislation to require “every bank, which has some $40 billion in assets on hand, must immediately demonstrate to employees that it has “significant or highly relevant expertise that will help it compete on the market,” which means that, as a rule, a bank that receives a financial loan must prove that they are “proficient or knowledgeable, and able to demonstrate the degree of financial expertise required to make the loan.” The Act also requires banks to ensure that they have “knowledge and competence” in order to enter into employment or to be a “partners of a foreign organization
Internal and external factors can have quite an effect on the four functions of management. For example, Target has been involved in merging or acquiring other companies. Employees have the risk of department restructuring or lay-offs. New plans and strategies will need to put in place as well as organizing the resources, or additional employees, acquired from a merger. Occasionally executives or top managers may suddenly resign, which can also cause problems if the person left under suspicious circumstances. The remaining managers will have to adjust for possible increased workloads, or managing a new department.
External factors that may have profound effect on Target could be the economy. With increased prices for gas, dairy, and other items, consumers may spend less, and often look for the best price. Competition from other retail stores also has an effect. The management of Target will need to devise new strategies to stay competitive and lure consumers into spending money at Target. An additional external factor may be demographics; college age students, working to supplement school costs, will eventually leave their jobs upon college graduation.
GlobalizationGlobalization can be defined in economic terms as the closer integration of the countries by the huge reduction of costs in transportation, the flows of goods, services, capital, knowledge, and people across borders. Even though Target remained conservative for many years and slowly transitioned into expanding its market to foreign countries, it maintained a solid strategic position with an aggressive growth market. As of May 2005 Target crossed borders and opened its market to India. In order to effectively and efficiently deliver the best products to its customers Target created a global compliance department. The global compliance department is responsible to make sure that all policies are universally imposed. Due to the diverse products that Target offers its customers the corporation takes part in educating the vendors they outsource from with compliance policies. The global compliance team requires its vendors, including suppliers and manufacturers to provide employees with safety, healthy, non-discrimination principles, pay fair wages, refrain from child labor, and limit work hours with policies such as Standards of Vendor Engagement . By carefully selecting vendors and educating the vendors and suppliers, Target ensures that all standards are being met effectively. This promotes and builds successful vendor relationships. This strategy allows Target to deliver valued products that are outsourced through Target Sourcing Services (TSS) from other countries. The global compliance team focuses on building a dynamic relationship between vendors by asking vendors to agree to Target’s Standards of Engagement policy, which includes: register all factories used in production of merchandise, authorize unannounced audits, maintain accurate information on all their factories, allowing for tours, and employee interviews. The global compliance team is made up of 40 team leaders that are committed to reinforce and make sure that the Standards of Engagement are implemented and in compliance. Target’s culture of fashion, trend, and diversified products has greatly benefited the discount image of the corporation. Several factors contribute to Target continuing to exploit and achieve its high