Background
Dollar General Corporation is a fast-growing retailer shop located in several states in the U.S. The company generates about 76% of its sales from consumable products and another 12% from seasonable items (Dollar, 2010). The stores also offer household products such as cleaning supplies, health and beauty aids. Dollar general targets low, middle and fixed-income shoppers pricing items at 10% or less. It also offers online retailing options for customers who are located in remote areas.
Challenges/Opportunities facing the organization being studied
There are several challenges that Dollar General is facing regarding its nature. First is the competition from other major companies in the country. From the business reports; it is evident that most customers tend to shop on renowned retailers which have got a high rating (Longenecker, 2017). As such, Dollar General is facing stiff competition as they are still trying to penetrate on other segments of the market in the country. In that light, the company is investing a huge amount of their resource in advertising to create more awareness of their products. Also, Dollar General is offering more discounts to most of their products as a way of appealing to the customers. Based on that, they are not making as many profits compared to other major retailer companies in the country.
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One of the opportunities that Dollar General is experiencing is the fact that is brings retailing shops close to the people. The company is believed to have more than 50branches in different parts of the country. As such, the local customers can relate to it more. Also, the discounts it offers to most of their products tend to appeal more to customers as every person wants to purchase the cheapest products in the market.
Another opportunity is that Dollar General has employed modern technology in conducting their business. Such actions have boosted their sales as it has created effectiveness in their operation. Also, customers are satisfied with their service delivery which has led to attracting more clients to buy from that company.
According to their recent reports, leadership is another major challenge that the organization is experiencing (Hartmann, 2012). Most of the managers are not effective in their performance based on the company’s reports. In that regards, the organization has replaced a huge number of their leaders in various parts of the country. Such actions have demoralized their employees reducing their productivity.
How the Organization studied met the Challenges/Opportunities
To maximize on technology, the company has invested a huge amount of their resources on researching new methods of service delivery (James, 2016). Their aim is to ensure efficient service delivery so as to satisfy their customers. Also, the company is researching of the change taste and preferences of their customers. The use of technology is also to act as a competitive advantage over other major firms in the market.
To reduce the changes of leadership, the company has established training centers where all their leaders must undergo a certain type of training and development programs to ensure that they are more skilled. Also, Dollar General is trying to outsource some of the competent managers in different parts of the world to bring in new ideas and information.
My read on the future of this Organization
Dollar general is likely to become one of the major retailer shops in the country. Based on the business reports, the company is increasing their profits margins each year indicating an increase in their customer’s levels (Scarborough, 2016). Also, Dollar General is likely to benefit from the online retailing market strategy.
References
Dollar, D., & Wolff, E. N. (2010). Competitiveness, convergence, and international specialization. Cambridge, Mass: MIT Press.
Hartmann, P. (2012). Currency competition and foreign exchange markets: The dollar, the yen, and the Euro. Cambridge, U.K: Cambridge University Press.
James, B. (2016). Business Management. Cengage Learning.
Longenecker, J. G., Petty, J. W., Palich, L. E., & Hoy, F. (2017). Small business management: Launching & growing entrepreneurial ventures.
Scarborough, N. M., & Cornwall, J. R. (2016). Essentials of entrepreneurship and small business management.
