Dollar General Executive Summary
Table of Content
EXECUTIVE SUMMARY 2
1. Background 3
2. Dollar General diagnosis 4
a. Financial analysis 4
b. Strengths and weaknesses analysis 5
3. External Analysis 7
a. Competitors 7
b. Opportunities and threats analysis 8
4. Problem identification 10
REFERENCES 11
EXECUTIVE SUMMARY
Dollar General is a retailing company, especially extreme value oriented.
Since its establishment in 1955, Dollar General has drastically grown. In 10 years, from 1955 to 1965, the Company grew to 255 stores with annual sales of $25.8 million. Today, Dollar General owns 6,300 stores in 27 states, with 2002 annual sales of $6.1 billion and more than 54,000 employees. This growth was extremely fast in the 1990's. The number of stores grew so from 1,461 …show more content…
Revenue growth was equal to 12.6% in 2003 for a total amount of $7.24 billion. Its net income was the largest of the sector with $319.9 million. In the same time, and over the last three years, the Company has reduced its long-term debt by $448 million.
Such a success can be explained by a really good positioning of the Company through its external environment and among its direct competitors. Dollar general knows very well how to manage the exploited niche and its opportunities. The main strength of Dollar General remains its ability to constantly open new stores, knowing that the key success holds in the proximity of small stores delivering convenience and value. It is in fact a kind of necessary comparative advantage on this market.
The new CEO, David Perdue has got no experience of retail industry. He has to choose in which direction Dollar General will go. He has to go on the expansion of the Company but with the arrival of new and very powerful competitors such as Wall-Mart or …show more content…
Gross Profit
The gross profit increased by more than 200 millions dollar in 2003 as compared with 2002 primarily due to the following:
The Company made progress in reducing the shrink at problem stores during 2003. Some of the actions taken by the Company to combat shrink beginning in 2002 included the installation and the implementation of software that improve the inventory management. They also invest in others technologies which help purchasing and store allocation decisions.
Current Financial Condition
The Company has also to deal with its accounting issues due to the uncertainty about their past financial reports. The Company is still under the investigation of the US Securities and Exchange Commission and has to provide solid proof for every financial figures published and for every transactions done.
b. Strengths and weaknesses analysis
STRENGTHS WEAKNESSES
One of the leading dollar store retailers in the US
Improved financial
EXECUTIVE SUMMARY 2
1. Background 3
2. Dollar General diagnosis 4
a. Financial analysis 4
b. Strengths and weaknesses analysis 5
3. External Analysis 7
a. Competitors 7
b. Opportunities and threats analysis 8
4. Problem identification 10
REFERENCES 11
EXECUTIVE SUMMARY
Dollar General is a retailing company, especially extreme value oriented.
Since its establishment in 1955, Dollar General has drastically grown. In 10 years, from 1955 to 1965, the Company grew to 255 stores with annual sales of $25.8 million. Today, Dollar General owns 6,300 stores in 27 states, with 2002 annual sales of $6.1 billion and more than 54,000 employees. This growth was extremely fast in the 1990's. The number of stores grew so from 1,461 …show more content…
Revenue growth was equal to 12.6% in 2003 for a total amount of $7.24 billion. Its net income was the largest of the sector with $319.9 million. In the same time, and over the last three years, the Company has reduced its long-term debt by $448 million.
Such a success can be explained by a really good positioning of the Company through its external environment and among its direct competitors. Dollar general knows very well how to manage the exploited niche and its opportunities. The main strength of Dollar General remains its ability to constantly open new stores, knowing that the key success holds in the proximity of small stores delivering convenience and value. It is in fact a kind of necessary comparative advantage on this market.
The new CEO, David Perdue has got no experience of retail industry. He has to choose in which direction Dollar General will go. He has to go on the expansion of the Company but with the arrival of new and very powerful competitors such as Wall-Mart or …show more content…
Gross Profit
The gross profit increased by more than 200 millions dollar in 2003 as compared with 2002 primarily due to the following:
The Company made progress in reducing the shrink at problem stores during 2003. Some of the actions taken by the Company to combat shrink beginning in 2002 included the installation and the implementation of software that improve the inventory management. They also invest in others technologies which help purchasing and store allocation decisions.
Current Financial Condition
The Company has also to deal with its accounting issues due to the uncertainty about their past financial reports. The Company is still under the investigation of the US Securities and Exchange Commission and has to provide solid proof for every financial figures published and for every transactions done.
b. Strengths and weaknesses analysis
STRENGTHS WEAKNESSES
One of the leading dollar store retailers in the US
Improved financial