Dollar general
UNIVERSITY OF SOUTH FLORIDA
Case Study 1
EIN 6183 Engineering Management Policy & Strategy
10/11/2014
Abstract
Dollar General Corporation is United States largest small-box discount retailer headquartered in Goodlettsville, Tennessee [1]. Dollar General offers both name brand products and generic merchandise [2]. Its competitors include Family Dollar, Dollar Tree which also operate in deep discount segment of US retailing. The following case study discusses about the various political, economic, social and technological forces that Dollar General have faced and their impact on the company. The report also talks about the critical success factors of Dollar General. The report is concluded by summary of key learning’s from the case study.
PEST Analysis for Dollar General
Political: In the year of 2006, Janet Calvert, a former store manager, filed a complaint that she was paid less than the male storage managers because of her gender, in violation of the Equal Pay Act and title VII of Civil Rights act of 1964. There were other plaintiffs which were added to this case. This case resulted in Dollar General reaching a settlement in principle, by which it would pay $15.5 million to the plaintiffs and their legal charges costing around $3.25 million. The company was expected to receive reimbursement of $15.9 million from its Employment Practices Liability Insurance if these payments were approved by the court. This case did impact Dollar General Approach towards pay setting policies and procedures for new store managers [3].
Economic: During the recession period from 2007-2009, the customers of Dollar stores suffered from unemployment and lower purchasing power. And even the people from higher income brackets started purchasing the dollar store products for seeking larger bargains. This led to the increase in the customer traffic and larger sales for Dollar stores. Dollar general captivated upon this scenario and continually reviewed its
Case Study 1
EIN 6183 Engineering Management Policy & Strategy
10/11/2014
Abstract
Dollar General Corporation is United States largest small-box discount retailer headquartered in Goodlettsville, Tennessee [1]. Dollar General offers both name brand products and generic merchandise [2]. Its competitors include Family Dollar, Dollar Tree which also operate in deep discount segment of US retailing. The following case study discusses about the various political, economic, social and technological forces that Dollar General have faced and their impact on the company. The report also talks about the critical success factors of Dollar General. The report is concluded by summary of key learning’s from the case study.
PEST Analysis for Dollar General
Political: In the year of 2006, Janet Calvert, a former store manager, filed a complaint that she was paid less than the male storage managers because of her gender, in violation of the Equal Pay Act and title VII of Civil Rights act of 1964. There were other plaintiffs which were added to this case. This case resulted in Dollar General reaching a settlement in principle, by which it would pay $15.5 million to the plaintiffs and their legal charges costing around $3.25 million. The company was expected to receive reimbursement of $15.9 million from its Employment Practices Liability Insurance if these payments were approved by the court. This case did impact Dollar General Approach towards pay setting policies and procedures for new store managers [3].
Economic: During the recession period from 2007-2009, the customers of Dollar stores suffered from unemployment and lower purchasing power. And even the people from higher income brackets started purchasing the dollar store products for seeking larger bargains. This led to the increase in the customer traffic and larger sales for Dollar stores. Dollar general captivated upon this scenario and continually reviewed its
References: [1] Dollar General, Retrieved October 11 2014, http://www2.dollargeneral.com/About-Us/pages/Index.aspx [2] Dollar General, Retrieved October 11 2014, http://en.wikipedia.org/wiki/Dollar_General [3] Parnell, John A. (2014). Strategic Management: Theory and Practice. 4th edition. SAGE Publications. [4] Dollar General Case Memo Marketing Essay, Retrieved October 11 2014, http://www.ukessays.com/essays/marketing/dollar-general-case-memo-marketing-essay.php [5] Amway, GM, and Dollar General among corporations making ‘Good’ A Goal, Retrieved October 10 2014, http://www.forbes.com/sites/devinthorpe/2013/08/29/amway-gm-and-dollar-general-among-corporations-making-good-a-goal/2/