...1. Describe Dollar General according to the different types of retailers discussed in the chapter. Dollar General is a discount retailer. In comparison the Walmart, Dollar General is considered to be a small box discount chain. They sale a small selection of products at low costs but remain a relatively small threat to big-box stores. 2. As a retail brand, assess the Dollar General strategy with respect to segmentation, targeting, differentiation, and positioning. Retailers must first segment and define their target markets and then decide how they will differentiate and position themselves in the market. Dollar General acquired the word “dollar” to differentiate themselves from their competitors and gain the attention of the consumers. Particularly, consumers with incomes less than $50,000. Dollar General’s decision to sell a carefully selected assortment of mostly brand name items has positioned them to sell $14.8 billion in revenues in 2013. In addition to low prices the company emphasized convenience and quality brands. 3. List all the reasons why Dollar General has been so successful over the past 40 years. Dollar General stands for convenience, quality brands, and low prices. They save consumers time and money by offering convenience and quality name brand products. They offer named brand items 20-40% less than grocery store prices. Their prices are roughly in line with big-name discount stores. They have opened more than 10,000 stores in 40...
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...1. Can you suggest what job Dollar General is doing for its customers? Most of Dollar General’s customers are from low, middle and fixed income bracket. Dollar General primarily operates in areas that are under-serviced rural and in urban neighborhoods in second-tier locations. Dollar General offers basic consumable products to meet the basic needs of consumers at low price, in a convenient environment, and make shopping for everyday items hassle free and simplistic. This can be evident from the fact that 30% of merchandise is priced at $1 or less, Dollar General operates on a small store format that are conveniently located in communities that have population of 20,000 or less, are within 5 miles of such communities. The stores are small and convenient for customers to look for products. Dollar General serves a niche market offers low prices by managing and implementing companywide low-cost strategy. 2. Who do you think Dollar General's real competitors are? There are several Price Point retailers, Close Out retailers and Limited Assortment grocery retailers that can be classified in to the dollar store market. But these do not operate on the scale limited to Everyday Low Prices (ELDP) retailers. The Family Dollar is the biggest competitors in the extreme-value dollar market. However, there are 23,000 such stores in extreme value retailers who can be called direct competitors of Dollar General. About 15 companies in this segment have acquired61% of the market. This shows that...
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...The Canadian Dollar The Canadian dollar has seen its ups and downs compared to the US dollar for many years. This summary will go over the trends and causes of the shifting exchange rates of the Canadian Dollar and its impact on export and import of Canadian goods. It will also go over what could possibly be done to level out the decline of the Canadian Dollar and what the expectation is for the Dollar in the next five years. 15 Year Trend between the Canadian and the US Dollar In the last 15 years the Canadian dollar has gone from being lower than lesser than UD dollar to almost equivalent and for a period higher to back to lesser than US dollar. In 2000 1 CAD was equivalent to 0.673519 USD; it continued downwards until around 2003 where it went up to 0.71 USD. From 2003 it continued to rise to a high of 0.944173 USD until 2009 where it dropped back to 0.880095. Since 2009 the yearly average has continued to rise one year and drop the next, in 2011 we had the highest exchange rate of 1 CAD to 1.011464 USD, unfortunately by 2015 it dropped to average of 0.794280 USD. (Canadian Forex, 2015). Causes of Changes in Exchange Rates There are 6 factors that influence exchange rates; difference in inflation, difference in interest rates, current amount deficits, public debt, terms of trade, and political stability and economic performance. (Bergen, 2015). Specific reasons for the drop of the Canadian dollar include the weak Canadian economy, falling oil prices, the Greek crisis...
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...The Dollar General Informal Analytical Report Professor XXX DeVry University June 1, 2014 999 West Big Beaver Road Troy, Michigan (USA) 48084 kfirst@kellyservices.com Dollar General is widely regarded as one of the chief discount vendors in the United States. Based in Goodlettsville, Tennessee, it has over 11,000 stores across 40 states, serving to customers with the idea of making shopping easier, and convenient, by carefully sorting out the goods, and selling them at spectacularly low prices, the store’s growth rate saw a decline Because the targeted audience of Dollar General looks for buying everyday household good at the lowest prices, they are suspended to growing more in periods of recessions. Such stores find themselves under pressure at times because they cannot increase the prices of their goods even when the costs of operations are on the rise. By analyzing the average earnings of household in the West of the country, as well as Upper-Midwest, there is room for growth courtesy of new stores. Opening of their stores in California could well be stressful for them, as the market is challenging, and there is little room for newcomers, unless they come up with impressive deals. On the other hand, their plan of having a merger with their rivals Family Dollar is on the cards, though it is hard to figure out the impact it would have on the two parties/the newly formed company. Also, Dollar General does not cater all departments...
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...created and destroyed, whether it is being physically printed or transferred electronically from the Federal Reserve. Let’s first talk about the history of the United States currency. The original currency of the United States was produced in 1690 and was able to be converted directly to gold or silver. Later, the Continental Congress of the United States chose the dollar over other suggested types of currency and this selection was formalized in the Coinage Act of 1792. The first dollar was issued on September 8, 1789. The United States banknotes are printed by the Bureau of Engraving and Printing, and the United States coins are produced by the United States Mint. This currency was guaranteed with gold and silver until 1861. In 1861, banknotes were introduced to help finance the Civil War and the first real dollar note was created by the Federal Reserve Act of 1913. “Since 1971, dollar notes have been the only form of money in the United States. With currency coins having no gold or silver backing, US dollars are to be backed by the “full faith and credit” of the US government.” (United States Dollar) One interesting fact is that the largest bill ever printed was worth $100,000. This bill was never circulated, but was used during transactions with the Federal Reserve Bank. It was printed between December 18, 1934 and January 9, 1935 and had a portrait of President Woodrow Wilson on the front. No longer is the Bureau of Engraving and Printing a handful of individuals...
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...Ever since 1959, when Family Dollar first opened their doors, it has been one of the major competitors in the small box discount retailers industry. It has had very successful years recently due to the economic recession that we are currently in. Consumers are rushing to these stores that offer high quality at a good value. The major concern for Family Dollar is whether or not it will be as successful in the upcoming years as we come out of this recession. These companies are afraid that as the economy comes out of this recession so will the people, resulting in them returning to the top quality stores. Family Dollar definitely has a lot of strengths within their company that they can build off of. Some of the major strengths include its prices, its family focus, its supply chain effectiveness, it is family owned, and it is spread throughout the country. Family Dollar can really benefit from this bad economy that our country finds itself in and needs to take advantage of that for as long as it lasts. The family focus factor is a great benefit for this company. The company’s family focus keeps prices low and it is determined to have their stores remain small in size in order to make their products easier to find. There are also a lot of major weaknesses within the Family Dollar Company. These major weaknesses include high competition, no online sales, only having one employee on the board of directors, inconsistency with brands within the store, and an image of being old...
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...Family Dollar Case Study The company that has been chosen for this case study is Family Dollar Stores, Inc. This company was founded by Leon Levine in 1959 and went public in 1970 with under 300 stores in 1977. Its first store was opened in Charlotte, North Carolina, and offered its customers good valued merchandise for under $2. The concept for this new store was, “The customers are the boss, and you need to keep them happy.” When the founder, Leon Levine, retired in 2003, there were nearly 5,000 stores and sales approaching $5 billion. His son, Howard Levine took his father’s place as CEO and he became chairman and CEO. Today the company operates more than 6,600 stores in 44 states plus the District of Columbia. Family Dollar Stores is ranked 359 on the Fortune 500. They employee 44,000 people, about 25,000 are full time and the rest are part-timers. Family Dollar’s revenues of $6.984 billion in FY2008, showed an increase of 2.2 percent over the previous year. The company continues to look for good locations and contractors to build and maintain the stores. The company continues to provide quarterly cash dividends to its shareholders since it began distributing dividends in May 1998. The company is divided into four broad product categories: • Consumables • Home Products • Apparel and Accessories • Seasonal and Electronic Family Dollars vision and mission statement are as follows: • Vision – To be the best small-format convenience and value retailer serving...
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...Dollar Tree Analysis Name: Date: Analyze the business-level strategies The sluggish economy has created a perfect storm in favor of the retail business. Dollar Tree, Wal-Mart, and Dollar General have generated significant profits as a result of the sluggish economy. These firms have embraced the financial opportunity amid consumer pessimism. This evaluation will disgust the business level-strategy practiced by Dollar Tree. We will discuss its strength, weakness, opportunity, and threats. The organization strength has made it possible to respond to realistic opportunities. The firm’s decision makers thrive to increase profit. Consequently, their proven ingenuity has shaped the strategic business model. In short, Dollar Tree has the ability to sustain long-term growth, and sufficient cash to invest in new ventures. As a result, company’s estimates have significantly increased. Organizations can maintain a competitive advantage only if they can provide their customers competitive products at low prices (Hitt, Ireland, & Hoskisson, 2013). Dollar Tree offers consumers this service, more value for 1$, no other competitor has been able to match this strategy. Dollar Tree operates as a discount variety store selling products at a uniform price of $1 or less. Dollar Tree operates 4,842 stores nationwide and 5 Canadian Providence (Dollar Tree, 2013). Moreover...
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...Background The value of the Jamaican dollar as of mid-2009 climbed to J$89 to the US dollar and settled in that zone for some time before making some gains, returning to J$85 mark in 2010. Currently, the Jamaican dollar is at $121.61 and has been in a declining state since it appreciated in 2009. The primary costs of the falling dollar are higher prices for imported goods and for Jamaicans traveling abroad. On the other hand, the benefit of a weaker domestic currency makes imports more expensive, but this could act as a barrier against imports, thus improving the country's trade balance. Domestic-currency depreciation helps attract more foreign domestic investment. This is so because international companies would find it more attractive to establish businesses in Jamaica (Seaga, 2014). The primary benefit therefore, is increased price competitiveness of Jamaican products, both for exports abroad as well as in the domestic market. The country currently has an enormous trade deficit (importing more than it exports), which represents a significant drag on efforts to spur economic growth and create jobs, and has led to an accumulation of foreign debt that will have to be repaid in the future. Given this trade deficit, the benefits of greater international competitiveness prompted by the falling dollar greatly outweigh the costs. This dollar decline was due to the Government’s decision on October 23, 1983 to devalue the Jamaican dollar to J$3.15 to the US dollar. The local currency reached...
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...Dollar General Analysis Ricky Rich MGT/521 10 Nov 2014 Dr. Bridges Dollar General Analysis Dollar General Corporation is a premier low-cost retailer organization in the United States. It is amongst the biggest retailers with over 11,500 stores that provide quality commodities made by American manufacturers. One of the Dollar General’s main objectives is to create an atmosphere that enables access to everyday items worry-free, rather it is a simple bar of soap or a box of detergent. This objective is achieved by offering a detailed variety of recognized labels at affordable prices in well-located and accessible locations (Dollar General Corporation, 2014). Multiple strategic and operational company goals were identified in the SWOT analysis. For this assignment, the discussion will be focused on providing customers a better life as a strategic goal and operating in an environmentally safe working atmosphereas an operational goal. Providing a better life for customers and excellent opportunities for employees A typical Dollar Generaloccupies close to 7,000 square feet of retail space and mainly provides service for patrons within a five mile radius of the store. The majority of the locations serve local areas with small residential populations below 20,000 (Hotstocked.com, 2014). Management knows that its preferred shoppers enjoy the luxury of a small, community store. The belief is also that Dollar General’s accessible money-saving store model will remain popular in...
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...There has been a revolution in US business practices. Several factors have combined to force significant change to the US economy, and the resultant changes on company production costs/techniques and location has forced a bifurcation of the workforce and the business community. The United States has been drawn into the world economy, and as such must compete globally for sales of its goods and services. So too, the labor force, once the highest paid and most respected in the world, has been forced to compete with lower-cost labor sources worldwide. Add the economic malaise of 2007-2008, and the years 2006-2010 reflect an economic upheaval never seen before, or likely, since. This exercise tracks the exchange rate between the US dollar and the Canadian dollar over that period, and , the author believes, tracks closely the macroeconomic conditions between the two countries during the selected period of 2006-2010. This paper will show that a review of economic history, followed by a review of the exchange rates for the fund, (symbol FXC), will show a close correlation. 2006-2007 saw the end of boom economics for many Americans. Loose credit policies allowed stock and real estate prices to expand rapidly. Real estate speculators would execute options on new condominiums, only to flip those contracts to another purchaser for profit before the property was built. Several forces combined to threaten collapse of the US financial markets, from rogue traders making huge bets that threatened...
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...Family Dollar Marketing Plan Shelley Hines King University Principles of Marketing BUSA 3240-0502 Executive Summary Family Dollar was founded by Leon Levine in 1959 (History). He wanted to create a discount store for what at the time was design for people looking for quality products at reasonable prices. Since the first store in Charlotte North Carolina, the chain has grown to over 8,000 locations across 45 states. He designed a floor plan that all the stores used as a main setup with an only a few modifications. Leon believed back then as any good manager will tell you “customers are boss, and you need to keep them happy” (History).This sentiment is still in place today. With the stores layout the same, customers can go to any location and easily find what they need. The philosophy that he started with the first store is just as strong today as it was then. Environmental Analysis External Environmental Forces One of the biggest forces Family Dollar must deal with is competition. They are in constant rivalry with competitors such as Dollar General, Dollar Tree, and Wal-Mart (Family Dollar Stores, Inc. Competition). Their strongest rival would be Dollar General with much of the same products and similar pricing. Therefore, it is becoming more and more important for Family Dollar to keep its competitive advantage with offering products the other competitor doesn’t or products at a lower price. Another factor that benefits Family Dollar is demography. Family Dollar...
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...Is Australian dollar is substantially overvalued? No. As we know, the BMI is based upon the price of a Big Mac in one country relative to another country, and comparing that with their exchange rate. However, is the BMI a reliable method? It has a major flaw; that of which it does not account for non-tradable goods. The index assumption that the costs of the goods are the same and purchasing power parity would hold, but that is not always the case. The BMI fails to account for non-tradable goods, such as tax, transaction costs, wages and rent. Even if the prices of tradable goods are said to be equalised via arbitrage, they are still subject to regulations, subsidies and trade barriers that might warp the costs. This biases can distort the perceived valuation. Another point that we shall look at would be in the following graph of the exchange rate within the last 10 years. As we can see, there has been an upward trend barring the financial crisis. This might point to the fact that the adjusted BMI that is using past data is might be biased towards a lower relative PPP, and does not account for the sustained growth trend that we have experienced. A new valuation of relative PPP should be considered, considering that Australia’s core commodities market is still going relative strong, despite China’s growth slowdown. <http://www.abc.net.au/lateline/content/2012/s3447302.htm> One could argue that the USD, having being shaken by the financial crisis, would be weak. As the...
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...What is the true value of the Dollar Bill? The idea of money is something that is relatively new to our world. Before we had a monetary price for items the entire world worked on a system of trade, where good or services were exchanged as a form of bartering. This system worked well until our trade started to become a global instance, and it was no longer reasonable to try and trade items in mass amounts and between many different countries. This is where the idea of currencies came into play. Today we use a system that we call an economy that determines the value of currencies across the world, and the value of goods. This is how we have arrived to the point we are currently at, using coins and bills to represent value, and to conduct trade. So, what is the true value of our money, and are our bills simple just paper? If we look at a physical definition of a dollar bill it is indeed just paper. This may not be completely true, as the material we currently use to produce a bill is no longer paper, but at one point is was. Paper is defined by its creation of wood fibers that have been separated and reorganized to create a thin yet strong material that can be written on. This is similar to what our current “paper money” is but it is not exact. Currently our bills are “composed of 25 percent linen and 75 percent cotton. Red and blue synthetic fibers of various lengths” (Treasury, U.S Department of the). Therefore it can be said that by a physical definition, our paper money is...
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...| REPORT | UNITED STATES DOLLAR | SUBJECT : FINANCIAL INSTITUTIONS AND MARKETS | | 6/9/2015 | | HISTORY In 1775, when the colonists were preparing to go to war with the British, the Continental Congress introduced the Continental currency. However, the currency did not last long as there was insufficient financial backing and the notes were easily counterfeited. Congress then chartered the first national bank in Philadelphia - the Bank of North America - to help with the government's finances. The dollar was chosen to become the monetary unit for the USA in 1785. The Coinage Act of 1792 helped put together an organized monetary system that introduced coinage in gold, silver, and copper. Paper notes or greenbacks were introduced into the system in 1861 to help finance the Civil War. The paper notes used several different techniques including a Treasury seal and engraved signatures to help diminish counterfeiting. In 1863, Congress put together the national banking system that granted the US Treasury permission to oversee the issuance of National Bank notes. CHANGES The Federal Reserve Note The Federal Reserve Board created a new currency called the Federal Reserve Note. The first federal note was issued in the form of a ten dollar bill in 1914. In order to lower the manufacturing costs of the currency by reducing the actual size of the notes by 30%, the same designs were also printed on all dominations instead...
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