INSC 20263-50
Business Information Systems
Dollar General
Strategic Global Project
Submitted to Layne Bradley
By
Linc Kendall, Tommy Jewett, Eric Powell, Reid Anderson, and Kaity Wegen
10/20/2011
Table of Contents
1. Executive Summary- TEAM (Add the page number for each heading. Number the pages)
1.1 Background
1.2 Alternatives
1.3 Recommendations
2. Analysis- LINC
2.1 Proposed Global Geographic Location
2.2 Country Research
2.3 Industry Research
2.4 Industry Environment-Porter’s Five Forces
Power
HIGH
LOW
Justify
Buyer Power
Supplier Power
X
Supplier Power is Low
Vendors:
Landlords:
For the industry and type of business Dollar General is associated with, Supplier Power is low. DG is not obligated to buy from one supplier considering we sell our products for the best value possible. For example, when it comes to selling household utilities, such as paper towels and toilet paper, there is more than one supplier out there, creating a competitive market allowing us to find the supplier with the best value for our business. Finding excellent suppliers, fits well with our financial plans.
Threat of Substitute Products or Services
X
Price is a strong basis for competition in the industry, because of the emphasis on value offerings. There is also competition outside the immediate industry because of discount department stores. Discount Department stores also offer a higher range of products leading to more opportunity for substitution.
Threat of New Entrants
X http://clients.ibisworld.com/industryus/competitivelandscape.aspx?indid=1093 IBIS states that it will be difficult for new companies to open. The four largest companies in the industry own over 60% of the available market. All other competition is small, local (individual) stores. It will be hard for them to compete with the larger, more well-known companies.
Rivalry Among Existing Competitors
2.5 Company Internal Environment
2.51 Culture
Our Culture
For people entering the workforce for the first time, Dollar General stores provide an ideal foundation of basic work skills along with competitive wages and benefits. Experienced workers are drawn to the opportunity to grow with one of the fastest-growing retailers in America. Celebrating excellence is a hallmark of Dollar General's culture, whether you work in a store, a distribution center or at the store support center.
Our Community
We promote a spirit of involvement, and we carry Dollar General's mission to serve deep into the communities we call home. Through our charitable outreach, we strive for a real and lasting impact on individuals and their families.
Literacy is the foundation for improving the quality of life for many Americans. Nationwide, more than 40 million adults can't read well enough to fill out a job application or read a book to their children. Inspired by one of the company's founders, who had only a third-grade education, Dollar General today helps thousands of individuals take their first steps toward literacy, a general education diploma or English proficiency.
(From Dollar General main site: http://newscenter.dollargeneral.com/company+facts/)
The culture at each Dollar General store heavily depends on the Store Manager. He or she sets the tone of the store. Many managers focus on respect, integrity, and treating other employees the way they would want to be treated. The stores run on a fast paced work environment. A typical day at DG is hectic. Employees must be flexible and willing to adapt to various situations. The company uniform is khakis and a black polo shirt with the DG logo. Employees are expected to be prompt for work and work hard. Many employees work full-time at Dollar General, averaging 40-hour workweeks. Dollar General contains a large variety of products, so the stores are well kept and organized. DG strives on maintaining a clean environment that makes shopping a pleasant experience for customers.
