Family Dollar Case Study

2463 Words Sep 16th, 2013 10 Pages


Executive Summary 2 History 3 Marketing Strategy 3 Family Dollar Growing 4 Battle of Walmart and Family Dollar 5 Re-engineering 6 Inventory Control 6 Strategy Evaluation 7 Family Dollar’s Code of Conduct 8 SWOT Analysis 9 Family Dollar SWOT Matrix 14 Works Cited 15

Executive Summary

Family Dollar Stores, Inc. operates a chain of self-service retail discount stores primarily for low- and middle-income consumers in the United States. Its merchandise assortment includes consumables, such as household chemicals, paper products, food products, health and beauty aids, hardware and automotive supplies, pet food and supplies, and tobacco; and home products comprising
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Mr. Levine felt that reducing their prices was the right thing to do to compete with Wal-Mart, but that was not the case for Lewis Levine. Lewis Levine was Leon’s first cousin, as well as the president and chief operating officer. Lewis felt Leon was not responding fast enough to Wal-Mart’s coming into Family Dollars’ market segment. This disagreement caused Lewis to ask for more control which was rejected by the board. In addition, the board also asked for Lewis’ resignation, and Lewis resigned his position.

After Lewis Levine’s forced resignation, Family Dollar searched for a new President and CEO. Leon found Ralph Dillion who was the head of Coast American Corporation. Once Dillion was appointed to the position, he started making changes to Family Dollar. His strategic plan was to re-engineer (Chapter 7 Re-engineering) Family Dollar by reducing prices even more and any product over $15 would have to be approved by top management. This strategic plan included going back to the basics, which had made Family Dollar what is was prior to all the changes. This also meant that he was now going to stock overruns, closeouts, their own labeled brand products, as well as stock irregular name-brand apparel. By implementing these new strategic management processes, Family Dollar was able to make it through the economic downfall. In the early 1990’s, they were

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