Comparing Dollar General's Financial Performance with that of Family Dollar Dollar General has been performing well financially ever since they were established in 1955. In its first 10 years of existence, Dollar General had grown to 255 stores with nearly $26 million in annual sales. In 2002, annual sales were $6.1 billion and there were 6,300 stores in 27 states in operation. Strategy shifts as well as major acquisitions allowed for Dollar General to continue performing well financially over the years. Even despite major accounting errors in 2001, Dollar General continued to increase their sales.
After Sam Walton got his start, he surrounded himself with people that had big and great ideas for his company. In later years the company has achieved great levels of success financially and is continuing to grow. This company has great ethical integrity. They also promote ethical education and communication on a global level. According to Sam Walton, “personal and moral integrity is one of our basic fundamentals and it has to start with each of us (http://cooperate.walmart.com/our-story/).” This was a phrase that Mr. Walton believed and he strive to prove excellent customer service through his associates.
Nordstrom relies on its high quality products and superior customer service to attract and uphold its customers. Nordstrom should position itself in the industry as a high end retailer by selling top of the line products with an exceptional brand image that customers are willing to pay extra for. After a product is sold, the employees of Nordstrom will do nearly anything to satisfy customers after the actual point of sale. This is included in the superior customer service that consumers have come to expect from the company.
The international business unit has also seen an 11.4% increase in both sales and operating income. Key Issue Identification The key issues facing Wal-Mart is the dependency on team spirit in order to sustain success in the retail industry. Although the customer is the top priority, Wal-Mart’s success in the future is based on communication, implementation and accomplishing each task in the organizational chain. Analysis of Mission and Objectives Wal-Mart’s mission statement is fairly simple; “We save people money so they can live better.” Their objective is to provide customers with quality merchandise that allows them to be confident in the quality of the merchandise. Wal-Mart provides one-stop shopping where customers could buy a wide variety of quality merchandise at discount prices.
Intermediary competition offers the possibility of far more effective use of information. A retailer such as Wal-Mart gains a competitive advantage over the other retailer intermediaries through its well developed electronic data interchange system that allows it to pass on information about customer purchasing patterns to its suppliers. This gives Wal-Mart an edge in terms of supplier relationships and allows it to obtain favorable terms compared to competing retailers. Wal-Mart's marketing strategies have made them one of the largest companies in the world. The way they are able to compete with others gives them a competitive edge since most other companies cannot keep up with them.
1. Nature of the Business Environment Wal-Mart delivers a wide variety of goods at competitive prices to add value and low cost its costs, making it the strongest company in the retail sector. Over the years, Wal-Mart has attracted the attention of many analysts because of its huge international success and its ability to target a wide demographic of shoppers. Wal-Mart is a discount retailor founded by Sam Walton in 1962. This Company has grown to be a retail giant with over 11,000 stores worldwide from Canada, Brazil, Argentina, UK, and China.
In twenty years, $155.20 invested into two shares into today’s Walmart stock could make you no money to $150. There is only a good history in the stock of Walmart. Since the origins, to the continuous popularity, and to the great health of its stock today, Walmart has never failed their stockholders. Walmart has great creativity, atmosphere, and relative location. The company has grown exponentially within the last 52 years.
D. Glass not only beat that target by two years but also pushed revenues from 20.6 billion to 165 billion. When David Glass retired in 2000 H. Lee Scott took over his reign and has continued the dominance and growth of Wal-Mart with sales of 100 billion matching its growth for the first 35 years. S.W.O.T Analysis The greatest strength for Wal-Mart from its start in 1969 to this day has been the vision and dedication of the top level management CEO's David Glass and current CEO H. Lee Scott and no one can deny Sam Walton the founder for his great vision that he made become crystal clear. From the founding to this day Wal-Mart's top level management has been striving to come up with greater ways to bring Wal-Mart at level it is today and keep it at tops of all retailers and companies world wide. Wal-Mart's greatest strength after its management is its size which management has helped it to grow with increasing sales and net income since 1993.
The growth of this company is sky rocketing and leaving any room for competition to keep up. Based on the current sales Walmart is ranked as one of the top retail if not best retail store in the world. It roughly brings in 256,329,000 net sales a year and its net profit is around 10,803,000 a year. With the turn around rates, an accurate calculation of current employees is not attainable, however there is a documentation of 1.3 million current associates worldwide. This includes stores, clubs and 10 international countries.
The chance to expand to more developed countries and increase revenue. The investment in the human resources department is also an important opportunity for Walmart. The better people you have in the hiring progress the better worker you are going to hire. The last opportunity of Walmart is to improve the quality of its products while offering everyday low prices. The threats of Walmart are the following.