Almost all of us or better said all of us have at least one visited a Dollar Tree store at a point of our lives. I chose this company because of their great strategic planning and business strategy. Internal Performance: Strategy: Their strategies consist on: buying around 60% of the company’s stock from domestically and the remaining 40% are imported goods; this strategy helps maintain jobs in the United States, while being able to get the best prices and continue providing America with affordable merchandise.
Another important factor about their strategy is being in contact with manufacturers directly, this factor lets them pick appropriate products and sizes to meets customer needs and their profit expectations. Mission and Values: As stated in Dollar Tree website “Dollar Tree, Inc is a customer-oriented, value-driven variety store operating at a one dollar price point. We will operate profitably, empower our associates to share in its opportunities, rewards and successes; and deal with others in an honest and considerate way. The company’s mission will be consistent with measured and profitable growth.
Business problems Essay Example
” Vision: The company’s vision is to exceed the customers’ expectations over the so many products they can obtain for $1. 00, at the same time offer items that sell more expensive in other competing retailers. Stakeholders: It is part of the values and Vision of Dollar Tree to provide to all of their stakeholders the assurance that the business is being run “the right way”; and that the company is following the best practices while conducting all aspects of the business with honesty, integrity, and respect. Performance Indicators: Revenue and profit.
Accourding to GaleGroup since year 1991 when the company started their Revenue has been exponentially increasing. The first year the revenue was $190,000,000, while ten yen years later it was $1,987,300,000 and 2013’s revenue was $7,394,500,000. According to HamptonRoads by August of 2013 the company reported that its fiscal second-quarter profit rose 4. 6 percent from the same time period of the year before; Equivalent to a gross profit of $2. 65B; a total debt of $1. 02B and a debt/equity of $106. 34 for fiscal year 2013. Legal Issues.
Dollar Tree has experienced a broad numbers of lawsuits called off-the-clock lawsuits; for which a court order conditionally certified collective action concerning the plaintiff’s claims under the Fair Labor Act. The court’s order was on behalf Assistance store managers that had worked for Dollar Tree within the three years after the date of the notice or that are currently employed by the company; those assistance managers required to take 30 minute unpaid meal breaks or were required to work during those breaks and make bank deposits for Dollar Tree while being off-the-clock.
Industry Perspective: In the retail sector The Dollar and Variety Stores industry is one of the fastest-growing industries. IBISWorld reported increased revenue of such industries of 4. 8% through the years 2008-2013. The article the website www. prweb. com which primary source is data from IBISWorld, reports that during the recession households not only from low-income consumers but middle-income consumers that traditionally have not shopped at dollar stores were attracted and stayed as valued customers aiding the growth of the industry.
IBISWorld expected the industry’s revenue to grow 3. 8% in 2012-2013 and they were not mistaken. The industry major players, Dollar General, Family Dollar Stores, Dollar Tree Stores and Big Lots have been establishing new stores in order to obtain a larger share of consumer dollars. Even though Dollar Tree has been growing year after year in general term its competitors have reported greater revenue; Dollar General Corporation, reported revenue of $17.
22B in 2013, while Family Dollar Stores, Inc reported a revenue of $10. 47B in the same year and Finally Dollar Tree with a revenue of $7. 85B. Environmental Factors: The residents of Windsor, CT opposed in 2012 the construction of a 1-million-square-foot Dollar Tree distribution center adjacent to their neighborhood; those residents filed a lawsuit against the town’s approval for the project.
The two groups that opposed the construction are Save Windsor’s neighborhoods and residents Marc and Mary Ann Cheney, they filed a lawsuit in Hartford Superior Court; even though the property is zoned for industrial use, opponents charge that the construction harms two species of birds, other wildlife and the wetlands ecosystem. Another issue that was being charged by the residents was that company planned on building loading docks to close to residential land while ignoring local regulations.