...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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...In 1993, One Dollar Inc. officially changed its name to Dollar Tree. Dollar Tree is a leading discount variety store in the United States. Their inventory is priced at one dollar including food, toys, housewares, cleaning supplies, beauty aids, paper products and many other odds and ends. Dollar Tree is able to offer its customers a wide variety of products for just one dollar because of its purchasing power. The company buys products in huge quantities. Dollar Tree imports roughly 40 percent of its stock, purchases manufacturers’ overage and maintains a strong focus on controlling costs. However, Dollar Tree recently announced an $8.5 billion acquisition. The figure rose to $10 billion due to stock prices soaring. Dollar Tree agreed to divest 330 Family Dollar stores to private-equity firm Sycamore Partners. The combined organization will operate more than 13,000 stores in 48 states forecasting sales exceeding $19 billion annually. Dollar Tree anticipates the deal will result in an estimated $300 million of annual run-rate by the end of the mergers third year. Again, the merger levels the playing field for competition with a large retail store, Walmart. The dollar concept is once again gaining popularity in the U.S. due to changing shopping patterns. Dollar stores’ convenient locations give them a competitive edge over traditional Wal-Mart stores, which are usually located on the outskirts of cities. The retail giant has also ramped up its own small store expansion...
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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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...Dollar General MBA 7000 Business Policy and Strategy March 14, 2012 Indiana Tech Introduction and Overview Dollar General’s CEO, Cal Turner Jr., said, “Our customer doesn’t buy until she absolutely has to – she’s that stretched. Our agenda has to be to do everything we possibly can to be responsive to her needs. This is why Dollar General’s executive vice president for operations and merchandising, described the company’s customers as: “Our customers are salt-of-the-earth people who are savvy about spending money because they have to be. They have to balance their checkbooks every day, at least mentally.” (Appendix 2) So to me that displays why Dollar General has flourished during these past years even during the economic challenges in United States, Dollar General understands the target customers they are looking to attract. Therefore, internally the company must meet government regulations of health care coverage to meet upcoming government standards and expansion of the company globally while being consistent and not straying off its aggressive business growth plan in the United States can increase the company’s share of the market not just locally but globally, while increasing the company sales and awareness thereby increasing its position even more so in the industry. Dollar General serves the mid to lower income households with annual incomes of less than $50,000. (Case) Dollar General has the largest appeal to large families, low income, fixed...
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...Assignment ZipCar Evaluate this potential venture and the progress that Chase has made. For the purpose of evaluating the Zipcar business venture I made use of the format of the Salhman article named “How to write a great business plan.” Hereby, a business framework should systematically assess four independent factors critically to every venture namely; The People, The Opportunity, The Context and an overview of possible risk and the reward for coping with these risks effectively. After shortly explaining the factors I will apply this framework to the Zipcar Case and analyze the quality of its business model. This makes it possible to evaluate the potential of the venture; and its progress from scratch to start, from an investor’s perspective. The people The success of a product or service is dependent on the people developing them. “The people” refers to both the entrepreneurs developing the business as all other actors who have been actively involved in providing key resources or important services. The analysis The easiest way to analyze the people behind the business is by usage of the ‘Fourteen personal questions every business plan should answer’. Hereby, I looked at the completeness in providing the right information and the quality of the information that is provided in the Zipcar case. At first, both developers of the concept; Danielson & Chase were highly experienced and qualified within their field of interest. Danielson; having an educational background...
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...INTEGRATED BUSINESS EXPERIENCE – 1 Assessment – 2 Case Study Report Rahul Krishnasamy Student Id – 1838804 TABLE OF CONTENTS 1. Executive Summary 2. Introduction 3. Lego’s Turnaround and business model 4.1 Bringing Back the Bricks 4.2 Improving Quality and Logistics 4.3 Lego Turnover 4. Conclusion 5. Recommendations 6. References Executive summary: The purpose of this report is to analyze the Lego’s turnaround and business model in light of its competitive position from approximately 2003 – 2013. This report will includes the aspects such as new product launch strategies, new collaborations which contributed to the creation of superior value and changes to the business model. It also provides the solutions for Lego’s continues competitive success and recommendations for the future based on what will sustain competitive advantage. Introduction: In 2003, the Lego group was about to bankrupt, as many of its innovative efforts like Clikits crafts sets which were introduced for girls, theme parks and Galidor, an action figure supported by the television show were all unprofitable and were failed outright. The Lego group had a loss of over 400 million dollars...
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...Henry Ford Biography Assignment Econ 220 – Entrepreneurship Instructor: Geoff Malleck Submitted By: Salvatore Curcio ID#20300001 Jenna Ortwein ID#20383970 Matthew Montgomery ID#20338248 Fatima Munir ID# 20239890 Kyle Georges ID# 20298815 “People can have the Model T in any colour--so long as it's black.” - Henry Ford “All Fords are exactly alike, but no two men are just alike. Every new life is a new thing under the sun; there has never been anything just like it before, never will be again. A young man ought to get that idea about himself; he should look for the single spark of individuality that makes him different from other folks, and develop that for all he is worth. Society and schools may try to iron it out of him; their tendency is to put it all in the same mold, but I say don't let that spark be lost; it is your only real claim to importance.” - Henry Ford What made Henry Ford… ------------------------------------------------- Questions & Answers Question: From a very young age, what characteristics and events were significant in foreshadowing Henry Ford was a truly innovative engineer with a love for machinery? Answer: When Ford received his first watch at the age of 13, unlike most adolescents, he took the watch apart to analyze the mechanical components of it. Ford was seen to all people as inherently curious, which was a key characteristic for engineering the fuel powered vehicle. Another significant event that peaked Ford’s interest...
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...very popular. The sport industry is a billion dollars business. The corporate governance model owners act board of directors and the commissioner act as the chief executive officer (CEO). This system was created by Lentze in 1995. Because back than many teams organized themselves into a self-governance. The first professional league was the National League in North America it was created by Jennings. Being a Commissioner does not mean that you are control of a team or owners. The Commissioner has direct supervision and control the corporate board. Also his job is to make rules and regulations for the league. A commissioner must able to make decisions and sometimes they can be tough. Being a commissioner is a hard task because you’re dealing with all the teams in your league. The single-entity structure a model of league ownership in which the league is considered as a single entity to avoid antitrust liability and to create centralized fiscal control. I think it is a good structure because it allows players negotiate with teams. Also it protects MLS players to me that is very important. Franchise ownership are typically own my families that are very wealthy. The families that own a NFL team have been successful. The family investment money in the teams, so the team can be successful in many ways. Owners is on running the team like a business. I think when families own a NFL that is a smart move. Because they want their family...
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...Q1-1.What situation was Khemka family involve during the case? SUN Brewing was founded in 1992 by Shiv Khemka with Nand, his father, and his brother, Uday. The situation is set in March 1999, when the company was facing a major crisis. In 1998, the family had been planning to raise a $200-$400 million through equity and debt offering for the company on the NYSE (New York Stock Exchange), in aim to finance major investments because of the increasing competition from international beer companies in the Russian market. In August 1998, there was a massive devaluation of the rouble that led to a 90% decrease in the stock price of SUN Brewing listed on the Luxembourg stock exchange. The proposed NYSE listings have then been cancelled and there is a $40 million bridge loan outstanding that now needs to be repaid. Q1-2.What other options could they choose originally? Bring another strategic partner (and idea originally dismissed because the family didn’t want their power over the company threatened) Reinvest from the family pool (that option was highly overlook because the family already budgeted the project and they prefer to ensure a backstop reserve of capital for preservation and discipline, also for the family reputation. Quit the business (seriously consider if the best options for them is to move on to new opportunities in other industries. Q2.Why there are different financing ways in each period? There are many different stages of financing and operating...
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...The concept of a dollar store is very simple: customers come in expecting to find inexpensive items. Dollarama Inc., Canada’s own ubiquitous brand, has capitalized on this price-point retail model and has performed exceptionally well over the last 22 years it has been in business. “We treat it really well, that $1 item. I do not think anybody else in the world takes it as seriously as we do,” explains CEO, Larry Rossy (Cowan, 2011). In comparison with most value-retail stores, Dollarama’s strategy is relatively simple: keep clean and brightly-lit stores with a consistent array of inventory (Cowan, 2011). However, its success is not only attributable to the convenience and ambiance offered by its stores, but also their “ability to capitalize on seasonal demand is [also] widely admired” (Cowan, 2011). Indeed, Dollarama has had the time to acquire the experience in optimizing its stores’ layout for effective leverage of seasonal products. All in all, most would say that Dollarama has done really well in its industry and climbed their way to being the dominant giant. Even so, retail analyst John Williams speculates that this dollar store has reached its mature phase of growth in the industry (Cowan, 2011). With even more new stores on the way, will Dollarama Inc.’s consistent growth be sustainable? Description The very first Dollarama was opened in 1992 in the city of Matane, Quebec. Founder and current CEO of Dollarama Inc., Lawrence (Larry) Rossy, at 70 years old, is a third generation...
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...strategy: unrelated diversification, scope domestic or global for each division, what move have been made recently to add new business, rationale underlying recent divestures, the nature of any efforts to capture strategic fits and create competitive advantage based on economies of scope and other resource. Present Strategy Roger Enrico the CEO of PepsiCo (1996-2001) got involved in restricting PepsiCo’s business portfolio. Company had three business segments restaurants, beverages and snack foods. He found number of problems at PepsiCo. Company fall behind, Coca-Cola, the competitor by a growing margin in both domestic and international markets. The restaurant business declining and profit margin were slim. To get the company by on track Enrico developed a restricting strategy, which is: Related Diversification: The restaurants limited investment in the company’s snack food and beverage business and severely impaired the corporation’s overall operating and profit margin. The fact restaurant which included Pizza Hut, KFC, and Taco Bell were eliminated from the company’s portfolio of business and the three main restaurants were spun off as an independent publicly traded company, the divestitures was completed with a creation of Tricon Global Restaurants. Focusing on related diversification and spun off business unit which were unrelated to the core business of beverage and snacks. Maintain of one Culture: PepsiCo’s new strategy was to maintain a single culture which is dominant...
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...this one of a kind sports car are trying to obtain. In 1931 Ferdinand Porsche entered the car making market. For the first 20 years of business Ferdinand focused on his famous Volkswagen Beetle. It wasn’t until 1950 that the Porsche sports car came into the eyes of this rising businessman. The first Porsche cars, the 911 and 356 models, were unique and fast with their motors located in the back of the vehicle. This car screamed the words expensive and luxurious. Porsche purchasers dropped an enormous amount of cash to own one of these beautiful cars. Owners were a limited group of entrepreneurs and part of a small group that viewed their vehicles as an extension of themselves, much like their expensive suits and watches that were thousands of dollars. Porsche buyers enjoyed being “special.” Since Porsche was such an expensive car that caught the attention of a select group of buyers, the company began to struggle with the idea of expanding its market to a broader horizon. Ferdinand Porsche decided to create a cheaper model of his vehicle to appeal to a different class of people, a lower class, in the eyes of the faithful Porsche buyers. In 1970 the Porsche 914 was created. This car was considerably cheaper than the 911 and 356 models. The 924 and 944 models were also created. These cars were almost $20,000 cheaper than the 991 and 956 models. This did not sit well with the “special”, elite, original Porsche...
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...a company to an individual or group to market its products or services in specific territory. Definition of Culture: Ideas, customs and social behaviour of a particular people or society. (These definitions are from a dictionary, is that allowed?) LITERATURE REVIEW This literature review would discuss the evolvement of franchising as well as how it has spread on an international scale. It would further enlighten us on the benefits franchising brings to individuals and the economies of various countries. Lastly, it would highlight the birth of the McDonalds franchise as well as how this business medium has adapted to cultural differences in various countries in terms of the operations and its food menu. (Dnes, 1992) said “A franchise is created when one party, the franchisor, allows another, the franchisee, to use his trade name in operating a satellite business in return for fees”. Mendelsohn and Acheson 1989 go on to add that the “franchisor allows the franchisee make use of an entire package, comprising all the elements necessary to establish a previously untrained...
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...SWOT ANALYSIS ------------------------------------------------- THE DOLLAR STORE-BEND OREGON Abstract This is a SWOT Analysis of The Dollar Store out of Bend Oregon. ------------------------------------------------- SWOT Analysis Strengths * The greatest piece of their sales pie is working class families, so there is a need and not a cap on incomes. * Their demographic has been growing at about 10% * Future sales forecasts consistently trend upward. * Most of their product in purchased from overruns and secondhand so they can keep costs very low. * Financials in general are very strong. They tend to be better than peers or comparable with the best of them * Privately owned so there is no outside influence on company details. * Keeping market costs below 15% of sales. * Fifty percent of cash above a TBA amount will be invested into semi-liquid stock portfolios to decrease the opportunity cost of cash held. * Overall a very low loan amount versus assets. * Ownership has great experience in this field and rings a lot to the table, including but not limited too a great strategy for workplace ethics. * Overall structure from management down to the workers seems strong and well thought out. * Debt ratio seems to be at a steady drop. * Management puts great pride in respecting its customer base and looks for feedback to improve their business model. Weaknesses * Their day’s sale in inventory is somewhat weak...
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...April 26, 2014 Introduction This paper describes the online business venture of Triple H, Inc. Triple H, Inc. is a nonprofit organization dedicated to the orphans and children living in poverty around the globe. We strive to provide the basic necessities that many of these children are doing without – food, shelter, education and medical care. Through the generosity of our many individual and corporate donors, we are able to provide these essentials to many children every year. Triple H, Inc. is run by a staff of volunteers around the country who are compassionate about the work of Triple H, Inc. and are committed to caring for as many orphans and children of poverty as we can. Overview and Mission Triple H, Inc. is dedicated to the needs of orphans and children living in poverty and helping to transform their lives. Our mission is to provide relief in times of emergencies as well as to provide assistance in the areas that will make a difference to the children in the years ahead of them – areas such as the children’s living situation, physical, educational and emotional needs. We provide food and shelter for children in orphanages and those living in poverty with the help of our sponsors and volunteers across the world. Not an easy task but we aim to find a long-term solution to improve the lives of and reduce the number of children in poverty. At Triple H, Inc., we strive to transform the lives of these children in an effort to help them become productive, healthy...
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