ASSIGNMENT NO 1

CASE STUDY

Dollar General: Heavy on organization, Light on systems

Submitted to: Ms. Nida MumtazSubmitted by: Mehreen Raza (419.06)

Quratulain Riaz (146.06) Date : 26-01-2009

Question 1:Describe Dollar General’s business strategy. Why has the company been so successful?

Answer:Dollar General is an aggressive competitor in the deep discount retail industry, the

main reason for the company’s success is the business strategy, the company believes in locating Dollar General Stores within communities, targeting municipalities that are home to fewer than 20,000 residents. The company believes that filling the role of neighborhood store is a big part of its success.

Dollar General accomplishes success by rapidly opening stores and running each store at the lowest operating cost possible. It takes full advantage of this strategy by developing a system for opening new stores that shapes the procedure down to a scant eight days. Dollar General views this system very important for its business success.

Question 2:Describe the role of management, organization and technology in Dollar General’s business strategy?

Answer:Management plays a vital role in the business strategy of Dollar General, with the

opening of a new store the management starts working for hiring the construction team to perform all the work required to bring the Dollar General store on the floor.

The organization outlines the proper positioning and placement of for all fixtures and products in guidebook known as planogram, whish are detailed right down to instructing employees organization maintains close control over every aspect of operation. The management is responsible for transmitting pricing and product codes to the IBM as soon as the satellite link is established. The management trains the employees working as store manager and cashier jobs.

Dollar general uses advanced satellite technology to communicate with head quarters. However Individual dollar general store has no automated method for keeping track of their own inventory. Dollar General Distribution’s center uses information system, running catalyst warehouse management software to track the inventory they receive and subsequently ship to store. Dollar General also includes inventory deploying loss prevention software which identifies unusual cash register transactions.

Question 3:How well do information systems support Dollar General Business strategy? Explain your answer.

Answer:The information system of dollar general supports the business strategy in such a way that it helps in keeping all the activities taking place in the store in record by transferring information to the headquarters through the satellite link. The satellite link setup in the

terminals keeps control of the surplus inventory as well as the amount of inventory they received and the amount that has been shipped. The information system keeps the organization updated with the pricing strategy and the product codes.

Question 4:Does Dollar General miss out on any business opportunities as a result of its approach to information technology? If so, what are these opportunities?

Answer:Yes, in my opinion Dollar General has miss out on business opportunity as not being able to keep themselves updated with new information technology techniques and systems such as the company believes that the company lost its merchandise during shipping because there were no scanning upon receipt. Similarly, the company still relies on the use of paper on clipboard for tracking cash deposit logs, employee contact information and arrival of goods into the stores instead of using handheld devices for this purpose. And the company relies on using private voicemail system instead of using email feature, which can make the process more reliable, efficient and easy.

Question 5:Do you think Dollar General can continue growing at its current rate? Explain your answer.

Answer:The business of Dollar General can continue to grow at the current rate, as the company intends to grow 20 more new stores and it aims to achieve growth through new stores and from increases in same store sales. And they same strategy can work for dollar general if they keep on updating themselves with the new and efficient technology.