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ASSIGNMENT NO 1
CASE STUDYDollar General: Heavy on organization, Light onsystems
Submitted to: Ms. Nida MumtazSubmitted 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, themain reason for the company’s success is the business strategy, the company believes inlocating Dollar General Stores within communities, targeting municipalities that arehome 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 eachstore at the lowest operating cost possible. It takes full advantage of this strategy bydeveloping a system for opening new stores that shapes the procedure down to a scanteight 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 theopening 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 fixturesand products in guidebook known as planogram, whish are detailed right down toinstructing employees organization maintains close control over every aspect of operation. The management is responsible for transmitting pricing and product codes tothe IBM as soon as the satellite link is established. The management trains the employeesworking as store manager and cashier jobs.Dollar general uses advanced satellite technology to communicate with headquarters. However Individual dollar general store has no automated method for keepingtrack of their own inventory. Dollar General Distribution’s center uses informationsystem, running catalyst warehouse management software to track the inventory theyreceive and subsequently ship to store. Dollar General also includes inventory deployingloss prevention software which identifies unusual cash register transactions.Question 3:How well do information systems support Dollar General Business strategy? Explainyour answer.Answer:The information system of dollar general supports the business strategy in such a waythat it helps in keeping all the activities taking place in the store in record by transferringinformation to the headquarters through the satellite link. The satellite link setup in the
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