Essay about Dollar Tree Stores, Inc. (Dollar Tree) Company and Finance Analysis

Essay about Dollar Tree Stores, Inc. (Dollar Tree) Company and Finance Analysis

Length: 678 words (1.9 double-spaced pages)

Rating: Good Essays

Open Document

Essay Preview

COMPANY BACKGROUND & OVERVIEW

Macon Brock Jr., H. Ray Compton, and Douglas Perry were the founders of Dollar Tree Stores, Inc. (Dollar Tree) in 1986. Dollar Tree’s mission statement states,
“Logistics is committed to provide exceptional service to our stores through continual improvements in operating costs, quality, and safety. By providing solid leadership, superior execution of processes, acting with integrity, and demonstrating teamwork in all that we do, our mission will be accomplished through our most valued asset, our associate.”
Ever since the company went public on the NASDAQ under the symbol DLTR in 1995, Dollar Tree had become a highly successful business in the retail industry. In order to remain competitive in their industry, Dollar Tree continued to price all merchandises in their store at exactly $1.00 which gave them a distinctive positioning against competitors like Dollar General and Family Dollar Stores. This distinctive positioning gave Dollar Tree a competitive advantage which allowed the company to expand in number and size across the United States. By 2004, Dollar Tree had an annual revenue of $3.2 billion, and over 2,600 stores across 48 states. Over the years, Dollar Tree has expanded its stores ranging from 1,500-2,500 square feet of selling space to currently 10,000-15,000 square feet of selling space. In order to maximize sales, their stores are now located in strip shopping mall centers to capture customer traffic. Dollar Tree stores offered three categories of merchandise which included, consumable merchandise, variety merchandise, and seasonal goods.
For Dollar Tree to achieve a high inventory turn at a low cost, the company was geared towards having a well-managed logistics system that was strat...


... middle of paper ...


...fset qualitative and quantitative aspects associated with building a new distribution center. These factors include the time and money devoted into finding & purchasing land, construction costs, recruiting costs, training costs, and insurance costs. With the expansion of an existing distribution center, Dollar Tree will avoid incurring additional costs affiliated with building a new Hartford distribution center. Considering the time frame of three years for planning network capacity, the savings in transportation costs is not enough to counterbalance the additional cost that comes along with building a new distribution center in Hartford. Hence, it is not worthwhile for Dollar Tree to undertake option 2. Thus, Dollar Tree should expand Briar Creek distribution center to take advantage of high inventory turns at a low cost, which aligns with its’ business model.




Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Data Analysis Of Wal-Mart Stores Inc. Essay

- Data Analysis Of Wal-Mart Stores Inc. COMPANY BACKGROUND Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further expansion across the state, the chain was incorporated as Wal-Mart Stores, Inc....   [tags: Business Analysis Statistics Wal Mart]

Free Essays
1853 words (5.3 pages)

Essay on An Analysis of The McKinsey 7-S Framework Model

- The change objective for the Dollar Tree, Inc. is to ensure that all retail stores receive product and promotional materials in a timely manner. Product distribution is a main emphasis in the Dollar Tree’s operational processes. Management has decided to implement a change model system that creates interlinking communication and collaboration between departments. The McKinsey 7S Framework Model (2014) provides seven internal essentials the Dollar Tree can use to align communication and collaborative practices....   [tags: dollar tree, product distribution, retail store]

Good Essays
984 words (2.8 pages)

Essay about Miles Kimball A Subsidiary Of Blyth, Inc.

- Abstract While the Miles Kimball Company started off 70 years ago as an idea for printed Christmas cards the company has achieved many milestone goals. It has become the leading direct marketer of gifts, cards and household products. Miles Kimball was acquired by Blyth, Inc. in 2003 which helped to promote the Miles Kimball name and products along with securing another catalog company, Walter Drake, to become a division of Miles Kimball. This has added strength in sales and a reduction in expenses as the expenses can be split between the two catalog companies....   [tags: Maketing Company Analysis Case Study]

Free Essays
1234 words (3.5 pages)

Ratio Analysis : Financial Ratios Analysis Essay

- Ratio Analysis Financial ratios analysis is conducted by managers, creditors, and investors alike. Ratio analysis uses line items of financial statements, either alone in or conjunction, to help users understand and quantify raw data. Attachment 22 (page XXX) shows the formulas for the financial statement ratios; Attachment 23 (page XXX) presents many the financial ratios for both Dollar Tree and Dollar General. Dollar Tree: Looking at Attachment 23, Dollar Tree’s times-interest-earned (TIE) ratio should be noted....   [tags: Financial ratio, Balance sheet]

Good Essays
1380 words (3.9 pages)

Swot Analysis Of Proctor And Gamble Essay

- ... Company’s success is because of its Axe brand that led men’s toiletries in 2015 with 19% of value share. During NBA All-Star weekend it launched fresh world campaign for a television spot which highlighted Axe in the Canadian market in 2016. Furthermore, Men’s skin care was led by 29% value share in 2015 with Unilever’s Dove Men+ Care. To celebrate modern men’s caring character and vision of masculinity it launched new campaigns with which it recognized that how being caring makes them strong (Passport 2016"Men 's grooming in Canada")....   [tags: Marketing, Competition, Brand, Marketing strategy]

Good Essays
882 words (2.5 pages)

Company Analysis of RadioShack Essays

- Strengths • Concept Stores The company’s new concept stores are designed around collaboration. These new concept stores are RadioShack reimagined. Interactive displays, a speaker wall, idea centers, new display configurations, and different technologies that ease buying and encourage collaboration. The “Do It Together” idea center is part of the new campaign. Boston, Manhattan, and Lynwood, CA are three of the locations where concept stores were recently opened. Another thirty retail locations were also opened across the US and more in Asia, including China and Malaysia....   [tags: collaboration, franchaise stores, ]

Good Essays
1797 words (5.1 pages)

Marketing Analysis : Ross Stores Essays

- Introduction The retail industry has always been a very competitive environment when dealing with sales and maintaining up to date with the current trends. Ross Stores has become one of the most successful companies in the apparel business since established in 1982 by Stuart Moldaw. (Ross Stores, Inc. History, n.d.). Although there is much competition out there, Ross is different from other retail stores. The reason for this is that Ross acquires most of their merchandise comes from their competitors, such as name brand department stores who ordered too much of an item and have decided not to sell it anymore....   [tags: Department store, Retailing]

Good Essays
1711 words (4.9 pages)

An Analysis of Frost's Tree at my Window Essay example

-  An Analysis of Frost's "Tree at my Window"               The poem "Tree at my Window" was written by Robert Frost, an America poet who was born in 1874 and died in 1963 (DiYanni 624). The narrator in this poem appears to be speaking to the "tree at my window"; then, repeating the phrase in reverse order, he calls it the "window tree," as if to emphasize the location and nearness of the tree. Calling the tree a "window tree," might also suggest that this tree is something he sees through, perhaps to some higher truth, to something beyond the mere physical presence of the tree....   [tags: Tree at my Window Essays]

Good Essays
839 words (2.4 pages)

An Analysis of Frost's Tree at my Window Essay

- An Analysis of  Frost's Tree at my Window      "Tree at my Window" was written by Robert Frost, an American poet who was born in 1874 and died in 1963 (DiYanni 624). His poem will be the basis of the discussion of this brief essay. The narrator in this poem appears to be speaking to the "tree at my window"; then, repeating the phrase in reverse order, he calls it the "window tree," as if to emphasize the location and nearness of the tree. Calling the tree a "window tree," might also suggest that this tree is something he sees through, perhaps to some higher truth, to something beyond the mere physical presence of the tree....   [tags: Tree at my Window Essays]

Good Essays
849 words (2.4 pages)

Wal-Mart Stores, Inc.: On Becoming the World’s Largest Company (2002) Essay

- Wal-Mart Stores, Inc.: On Becoming the World’s Largest Company (2002) Executive Summary: Objective: This case’s objective is to be able to find out how Wal-Mart Stores positively responded to the time when they encountered a lot of problems and still end up to be the world’s largest company. Problem: Wal-Mart had experienced a very disappointing year. It was when sluggish consumer spending, rising unemployment, the energy crisis, and the terrorist events of September 11, 2001 all have unite to make the year a very difficult time in retailing....   [tags: Business Analysis Strategy]

Free Essays
1426 words (4.1 pages)