Dollar General Case Essay

2. For each of the following scenarios, on the basis of the specific facts and circumstances,

Operating on very thin profit margins, players in the supermarket industry traditionally either focus on a premium segment or follow a discounter strategy at the low end. Premium players address educated and more price elastic consumers who value healthy, natural and organic food; the share of perishable items for these players is normally distinctly higher. Players that focus on a discounter strategy offer a higher share of simple necessity items and value price competitiveness over premium features like healthiness or organic origin. Independently of the focused customer group it is imperative for players in the supermarket industry to be cost efficient and optimize operations

to see where the company is now with the use of a brief Swot analysis.

1) Should Wal-Mart be expected to protect small businesses in the communities within which it operates?

Based upon the recent acquisition, I would categorize Dollar Tree as an analyzer in Miles’ Snow’s strategy typology. Parnell describes the characteristic of an analyzer as having tight control but the willingness to demonstration loose control over new undertakings” (Parnell, 2014, p.196). In many respects, Dollar Tree has often taken a wait and see approach to understanding the dynamics of Dollar General first mover approach. Well known for new store openings, “730 new store openings was the plan for Dollar General, and they opened 700 in 2014” (Bose & Ramakrishnan, 2015, para.4).

Wal-Mart is a world-wide active American retail trade company and currently the largest retail company in the world. Beginning in 1962, Wal-Mart has made the transition from a small firm in Arkansas to the largest employer with 3, 800 store units in the United States with record revenues today. But nevertheless, since Wal-Mart launched its online branch, it had to suffer from substantial setbacks from competitors such as Amazon.com or Ebay.

Divestitures of corporate asset have a variety of forms, including sell-offs, leveraged buyouts, and spin-offs. A spin-off is a pro-rata distribution of the shares of a firm’s the newly formed subsidiary to the shareholders of the original company (parent company). Unlike other types of divestitures, a spin-off doesn’t involve exchange of cash. In other words, there is no cash transaction taking place in spin off. Therefore, a spin-off is not generated by the company 's motivation of generating cash flow benefits. Nevertheless, spin-off is not a costless transaction. Since a spin-off is associated with the cost of registration, new share distribution and dividend payment. Both the parent company and spun off company traded separately as the consequence of spin-off. Also, the subsidiary operates independently from the parent company. After the spin-off, the shareholders of the parent company hold shares in both the parent company and the subsidiary. Therefore, the performance of parent company and spun off company can be analysing as separate entities.

DG has a current competitive advantage within its industry that is maintains through a unique cost-efficient approach. This low-cost structure is apparent through low inventories, low advertising costs, and location of stores in rural areas. Though profitable in the short-run, DG's current advantage is not

There's one problem, however: Going private may not be all that easy -- or help out the company in the end.

The most important factor that affects the value of a company is its net earnings.

Divestitures of corporate asset have a variety of forms, including sell-offs, leveraged buyouts, and spin-offs. A spin-off is a pro-rata distribution of the shares of a firm’s the newly formed subsidiary to the shareholders of the original company (parent company). Unlike other types of divestitures, a spin off doesn’t involve exchange of cash. In other words, there is no cash transaction taking place in spin off. Therefore, a spin-off is not generated by the company 's motivation of generating cash flow benefits. Nevertheless, spin-off is not a costless transaction. Since a spin-off is associated with the cost of registration, new share distribution and dividend payment. Both the parent company and spun off company traded

Considerable evidence has emerged which shows that only strategic divestitures are valued positively by the stock market (Montgomery, Thomas and Kamath, 1979). Announcement of such divestments that allow the firm to redirect its strategic mission create large positive abnormal returns to divesting parents. Bad divestitures are classified into 3 groups (Markides & Berg, 1992):

The prospectus shows the business plan for the company and relevant information about its growth. For instance, if the company grew 20 percent each quarter for six consecutive quarters, the prospectus should list this fact. Any information that demonstrates the sustainability of the company is included in its investment prospectus.

Yes, I do believe Wal-Mart is doing enough to become more sustainable. Wal-Mart is one of the most powerful companies internationally. As with all things that come with power, Wal-Mart’s business practices are scrutinized thoroughly. This includes their relationships with suppliers, employees, consumers, and the environment. In recent years, the environment has become such a big issue that Wal-Mart, as well as other companies have had to respond to this growing concern.

If the public company is limited by shares, it can become to unlimited proprietary company or a proprietary company limited by shares.