Dollar General: Deep Discount Retail Industry

INTRODUCTION

Dollar General is an aggressive, competitor in the deep discount retail industry. Recent annual sales figures totaling $6.9 billion across 29 states (close to 7,000 stores) has placed the chain at the top of the dollar store category of discount retailers, surpassing chains Family Dollar, Fred’s and Dollar Tree. The company also competes aggressively with chains such as Wal-Mart, Kmart, CVS and Rite Aid. The store currently offers a product line of general merchandise that includes housewares, cleaning supplies, health and beauty aid, clothing, packaged foods, stationery, seasonal offerings and other household consumables. Unlike its competitors, Dollar General place new stores within the communities. Dollar General feels
Suffice it to say, the senior managers at the corporate level are making long-term strategic decisions about the company, its products, operating procedures, product choices. At the same time, the middle managers are carrying out the objectives, which ultimately is passed down to the operational employees or as they refer to them “setters.” The company doesn’t employee a level of “thought leadership” which does not establish their leaders as experts in the field. With their aggressive strategy, Dollar General Executives might be very well poised to be “sources” to journalists, role models for other business executives and/or industry organizations. In my opinion, this tactic could bring a higher level of respect to Dollar General and its executives. The culture that’s surrounds Dollar General reminds me of the “worker bee” environment where the work needs to get down without any questions or rewards. Not explained within the text, but from personal experience, the company does not seem to invite lower level employees nor that of store manager’s opinions on how to operate their stores (I have a cousin who has worked at Dollar Tree in Jackson, Mississippi for eight years and this was always her
It is recommended that Dollar General also invest in skilled workers and/or provide training for its existing labor force. I would first recommend that Dollar General initiate a Fishbone Diagram to truly evaluate the processes that are working and not working for the company. After doing so, it will become apparent that the current process of receiving products could stand an overhaul. The company should first initiate a fishbone diagram analysis to review the methods that are working and not working for the company. It seems apparent that its current process of relying on managers to instinctly know what products are being received during shipment is not an accurate one. After reviewing its finding, the company will learn that it needs to develop a better system of receiving shipments. It is recommended that company employ some sort of enterprise resource planning systems to provide organizational-wide coordination and integration of key business processes. This process, in my opinion, will provide not only the store managers, but also the corporate executives, with more precise and timely information. It is also recommended that company develop a transaction process system to further refine its daily operation process. I would also suggest that Dollar General make use of electronic handheld devices at the receiving level to