Dollar General Case

Dollar world-wide Case Study 1 Timothy Mayer Professor Perreira 02/01/2010 Executive Summary Dollar General Corporation is a leader in the discount retail industry, but clearly could use new information systems to further impart its nominal head and dominate the industry. The ability of Dollar General to set up new stores quickly, at a modest cost, and efficiently has enabled them to maximize their revenue, while keeping costs minimal. Dollar General is very dependent on the ability of the management they place in charge of each store granting, known as the setter, to organise the process and make sure the opening runs as smoothly as possible.The setter must be able to train the store manager to run the Dollar General store to the exact specifications presented by the upper management of the company. Dollar General does depend on some information systems to help open and establish its stores. They have contracts with companies, like IBM and Spacenet, which set up most of the te chnological requirements for their stores. These relationships allow for Dollar General to monitor and accelerate the creation of new stores in a way that is familiar and comfortable for them.However, erst the stores are up and running information systems are non utilized to their fullest extent. This has lead to numerous blood and employee issues that are costing the stores and company money. With the economy in the USA at one of the lowest points it has been in history, Dollar General is in a accurate position to append sales and establish a greater industry presence. They must adapt and assume though technology that can help establish this growth in order to continue to be successful. Case StudyDollar Generals use of information systems is a far from perfect system. They have the technology in place for the most part, but do not fully utilize its potential. They clearly do not fully embrace technology. They use a satellite system over a higher speed options and do not use n etworks to enhance their operations. Their reasoning for this is to keep the overhead costs down, but this increasing the overall deficiencies of their business. The of import process that suffers from the lack of information systems s their fund process. When inventory arrives at a store, it is not scanned nor is the total of goods verified or noted. This had lead to the shrink rate, the amount of loses in sales a store writes off, to sum up and develop a distrust between corporate management and the employees at the stores. Dollar General uses inventory information systems at their distribution centers already. By adapting this technology on the store level, Dollar General lead be able to solve one of the biggest problems they face.Dollar General clearly has found a nook in their industry that has worked for them for years. In order to keep their status and grow further they need to increase the budget they provide to each store for technology systems. The economy of the Uni ted States is at a perfect place for discount stores to flourish. The limitations and issues created by the lack of advanced systems will eventually catch up to them and occasion more losses of revenue. The initial costs might be greater, but over the long full term Dollar General will position itself in a better place.