Target Canada: The Effect Of Organizational Change

2335 words - 9 pages

Target, a high-end discount department store, hoped to continue expanding and adding to the company’s 1,752 stores, by purchasing 200 Zellers stores, located in Canada. One of Target’s, longtime goals was to expand into Canada , and after a decade, the company took a jump across the border (Shaw, 2011). Because many thousand Canadians hold a Red Card, Target’s reward card, Target assumed this would be a successful expansion, increasing the amount of US brands that encompass Canada’s market. Target spent a year converting the Zeller stores, altering and renovating them to transform them into Target Canada, a subsidiary of Target (Shaw, 2011). They opened 124 stores in locations all over Canada, hiring back only one percent of the former Zellers employees, desiring to make a fresh start for the department store chain (Target Refused Zellers Workers).
John Kotter, an expert on organizational change, conducted thirty years of research, coming to the conclusion that because companies do not completely investigate the whole picture when it comes to change, seventy percent of businesses crash by not finishing the change through to the end. For the reason that many businesses fail because of this reason, he created an eight-step process to help businesses succeed and move forward with their change (The 8 Step Process). This paper’s objective is to explain Kotter’s change process and link it to Target Canada’s decision to open in Canada, discussing what decisions fared well and the decisions that produced failure.
Step 1 in Kotter’s 8-step process has to do with the reason or sense of urgency for why a company is making the change (The 8-Step Process). In Target's case, there was no urgent need for change but they had good reasoning’s to do so. Target was a prime destination for many Canadian shoppers. Before even entering into Canada, Target already had a consumer base of 10% that were crossing the border to get there (Austen, 2014). Thus, Target operations thought that opening over 100 stores all over Canada would be a great opportunity for the company to expand its profitability. However, the exact opposite happened. Instead of reaching their profitability goal, there is an estimated loss between $800-$900 million, since the opening of stores in Canada (Austin, 2014). The cause of this failure was due to a lack of inventory in most stores; leading to empty shelves and many of the favorable brands from U.S. Target’s did not make it to the stores in Canada. Another problem was that prices were higher in Canadian stores compared to U.S. store prices due to shipping costs and tax (Austin, 2014). Target failed to think this whole process through before acting on it. Starting with the 124 stores who all had to be remodeled and up and running in less than a year due to Canada’s policy of not letting any store stay vacant for any longer than that; to having the ability to furnish and fill the stores with all of their merchandise (Nolan,...

Find Another Essay On Target Canada: The Effect of Organizational Change

Drivers of Organizational Change and the Keys to Successful Organizational Change

1534 words - 7 pages Change The term change driver connotes that there is a cause-effect relationship between the change variable and the change outcome. Statisticians would look for a high degree of correlation to determine the existence of such an effect. The survival of any organizational is change which must be constant, organized and well manage because there are drivers that institute the change. Drivers to change are both internal and external. Internal

The psychodynamics of organizational change in the work place

2168 words - 9 pages Organizational changes are not something to direct, control or even manage. These are results of changes in the relationship between the people in the organization. If this relationship gets stuck, change will also get stuck.The result of the growing recognition that changes cannot be imposed is the increases of desire of get the whole system in the room for facilitate organization changed. Approaches such as open space technology and future

The Kyoto Protocol & The Effect on Canada

2157 words - 9 pages SummaryThe article I have chosen for this assignment is entitled "The Energy Wars Erupt Again" by Mike Byfield from The Report Magazine dated September 25, 2002. The core focal point of the article is based on the Kyoto Protocol, Alberta's role versus the Federal Government and how it could affect Canada and Canadians as well as the International community.The article also focused on (then) Prime Minister Jean Chrétien's opposition

History of The Target Corporation

1481 words - 6 pages operating and merchandising positions in his tenure. He would go on to be named to the board of directors in 2007 shortly before becoming president and chief executive officer in May of 2008 and then later appointed chairman of the board of directors in January 2009. Anthony Fisher S. Fisher is the president of Target Canada and is responsible for leading everyday operations of the first international retail expansion. He joined the company in

Government of Canada - Climate Change Submission

3281 words - 13 pages second, such a plan must be developed in full consultation with provinces, territories, stakeholders and Canadians.1.4 The Climate Change Plan for Canada builds on a solid foundation for achieving Canada's overall target from actions taken in Budget 2000, Action Plan 2000 on Climate Change and Budget 2001. Many of the measures that have been taken, or that are being proposed, draw from the ideas that emerged from the National Climate Change

The effect of humans and industry on climate change

1307 words - 6 pages change and the amount that humans actually affect the environment. While humans have had an effect on our environment for thousands of years, our post-industrial lifestyles have accelerated the impact significantly. Our history shows that our Earth and humans are interconnected and both have the ability to destruct the other. The data contributing to the climate change debate that continues today is clear and undeniable. If we continue to use our resources in the same way as we have done for the last several decades, will undoubtedly run out of resources and cause further irreversible damage to the planet.

High Technology, in Canada areas of growth and positive change including the synchrotron

5527 words - 22 pages (biochemistry analysis), medications may be tailored to specific patient's needs and physiology, yielding a greater chance of improved outcomes, rather than using traditional trial and error studies which was not as infallible (Walker 7) .Canadian Health's target is to have an Interoperable Electronic Health Record in place across 50 percent of Canada (by population) by the end of 2009. In simple form this means that your health record will follow you

A Comprehensive Discussion on the Similarities of Change as discussed in The Heart of Change and Organizational Behavior and Management

2201 words - 9 pages field, where all competitors around the globe have equal opportunity to compete,” in a global market that historically and geographical has been impossible several decades ago (Ref #1). In light of this, the authors of “The Heart of Change”, John Kotter and David Cohen (2002) and “Organizational Behavior and Management” textbook by Ivancevich, Konopaske, and Matteson, (2011) authored respective books on implementing effective change in an

The Bank of Canada

1619 words - 6 pages government spending to counter high inflation, or to reduce interest rates and increase government expenditures to help the economy back to its feat in the case of recession (Bank of Canada: Monetary Policy). In other words, it makes quick changes to the Bank Rate and consequently the target for the overnight rate, which we will see in the following paragraph, which in turn affects the spending tendencies of the people and institutions that are

The Natives of Canada

1149 words - 5 pages The Natives of Canada I believe the rising anger and determination by native peoples towards land claims and equal rights has created a situation which must be addressed immediately. Man has come a long way in time, as he has learned to master the powers of fire, and to hunt and fish for food. All of this was done by a collection of knowledge. With these thought patterns, he reached a way of life which was suitable and

The Americanization of Canada

2755 words - 11 pages minnows stronger. It leaves you behind faster and faster, and it catches up to you faster and faster. While it is homogenizing cultures, it is also enabling people to share their unique individuality farther and wider." Without the role of globalization it is not possible to speak of a term called American dominant culture. The dramatic effect of globalization has and will be strengthening this term. People around the world have become less like

Similar Essays

The Quasi Legislative Effect Of The Supreme Court Of Canada

2636 words - 11 pages The Quasi-Legislative Effect of the Supreme Court of Canada Daniele Zerbo 300119020 25 March 2014 INTRODUCTION The Charter of Rights and Freedoms, 1982 symbolized a new era for Canada. Championed by Pierre Elliot Trudeau, the charter entrenched the fundamental rights and freedoms of Canadian society, and allowed for those rights to be enforced by any individual should they be infringed upon. The enactment of the Charter of Rights and

Dracula: The Effect Of Women’s Role Change

1231 words - 5 pages from “True Woman” to the “New Woman” that surfaced in the late nineteenth century. This new idea made women more independent, with their lives no longer revolving around their husbands, and most importantly created a big change in social expectations. The characters Lucy, Mina, and the three brides of Dracula play a part in revealing Stoker’s belief that social status is changed for the worse with this change in women’s roles. The concepts of

The Battle Of Vimy Ridge And Its Effect On Canada

1317 words - 5 pages Contrary to what any believe, the Battle of Vimy Ridge was more than “another bloodshed” to Canada as a nation. This battle confirmed Canada’s eligibility to participate on the world stage and that they are not to be trifled with by other nations. The accomplishments of the Canadian army brought respect from other countries to Canada. The Canadian army gained confidence in themselves after the victory at the battle Vimy Ridge The Battle of Vimy

Effects Of Climate Change On The Boreal Forests In Canada

2017 words - 9 pages Climate Change). Land Use, Land-Use Change and Forestry. R.T. Watson, I.R. Noble, B. Bolin, N.H. Ravindranath, D.J. Verardo, and D.J. Dokken (eds.). Cambridge University Press, Cambridge, U.K. 2000. Randerson, JT et al. The Impact of Boreal Forest Fire on Climate Warming. Science, 2006. Vol. 314: 1130-1132. Riley, J.L. Flora of the Hudson Bay Lowland and its Postglacial Origins.NRC Research Press, Ottawa, Canada. 2003, 236. Tarnocai, C. The effect