ASSIGNMENT NO 1

CASE STUDY

Dollar General: Heavy on organization, Light on

systems

Submitted to: Ms. Nida Mumtaz

Submitted 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.