Introduction
The law requires all the publicly traded corporations provide reliable information that can be used to inform investment decision making process. It is because they raise capital from the public through the sale of shares and bonds among other means. As a result, they provide a better insight in the evaluation of activities that can impact on managerial success. Based on these grounds, this write-up examines various aspects including the implications of a company’s mission, vision, and stakeholders on its overall success and the five forces of competition as in the case of Dollar General. Moreover, it examines other aspects such as SWOT analysis, communication plans, corporate governance mechanism as well as ethical standards within Dollar General. Notably, Dollar General is an American neighborhood general store operating in 43 states and has over 12,500 shopping stores (Dollar General, 2016). It deals with a variety of commodities such as food, clothing, housewares, health and beauty aids, and cleaning supplies among others. This essay aims at contributing to the body of knowledge on the efficient management of corporations.
Impacts of A Company’s Mission, Vision and Primary Stakeholders on its Overall Success
A mission statement defines what the company does that makes it distinct from similar players while the vision statements provide the stakeholders with answers to why they are at a particular point (Ifinedo, 2008). In this case, it clearly indicates all the interested parties both from within and without to a definite direction which acts as a motivation. On the other hand, primary stakeholders refer to essential human capital and customers who define success or failure through their action. The three aspects have specific significance to the cumulative success of the organization. Mission and vision of a company such as Dollar General play two significant roles in its success. First, they enhance the implementation of strategy as well as the internal and external communication. For instance, the mission of Dollar General is serving others. In this case, it promotes a typical tradition and stability that remain even during changes within the company.
On the other hand, a company mission is used as a public relations tool. Moreover, the vision statement demonstrates the company’s dedication to offering a better life to the community and customers. It further assures the company’s employees opportunity and a better working environment. It implies that it asserts the desirable leadership, direct behavior, and clarifies priorities which are the basic tenets of success. Consequently, primary stakeholders such as the employees and customers operate under the umbrella of the mission and vision to achieve the desired success (Ifinedo, 2008). As a result, the overall outcome of the properly developed mission, vision guides the primary stakeholders and enhances the performance of the company.
Impacts of the Five (5) Forces of Competition on the Company
The Porters five forces of competition including competitive rivalry, bargaining power of suppliers, the threat of new entrants, bargaining power of customers, and the threat of substitute products have direct impacts on the company (Bull et al., 2016). Competitive rivalry is considered to be high when there are a few competitors in the market offering similar products such that consumers can readily switch to low-cost dealers. In this case, the only notable competitor is Wal-Mart General Stores which are currently being competed out since Dollar General bought several of its express stores (USA Today, 2016). However, other players in the market such as supermarkets still own a significant market share which results into price wars and increased advertising. As a result, there is still a substantial level of competition within the market.
The bargaining power of suppliers and consumers do not have a considerable impact on Dollar General. It is because there are many suppliers which limit their bargaining power since it is cheaper for firms to switch to alternative suppliers. Additionally, there are many customers with relatively few general stores. Moreover, there is no threat of new entrants in the industry because Dollar General already enjoys economies of scale with well-recognized brands. It implies that there are sufficient barriers to entry into the industry. In as much as there are several competitors, Dollar General is distinctly positioned being the leading general store with a wider market base. The general store offers quality products and services which expose it to fewer threats from substitute products and services.
SWOT Analysis of the Company
Strengths
In the case of Dollar General Stores, there is a remarkable strength as the leading General Store in the United States. The company has gained a huge market share with over 12000 outlets in 43 states (Dollar General, 2016). Therefore, it offers a wide variety of products and services to its customers. Moreover, it enjoys outspoken brand reputation which enhances preferences of its goods and services among customers. Furthermore, the wider market share avails the needed capital that can facilitate reinvestment (Bull et al., 2016). Other strengths include its unique approaches to service delivery, ability to offer products at low costs and the dedicated staff which make Dollar General a leader in the industry.
Weaknesses
Radical growth of Dollar Shops is likely to pose managerial challenges and expose the store to stiffer competition due to the expansion of product portfolio. Further flaws result from increased cost of operations which can compromise the quality of services.
Opportunities
The General Store has growth opportunities arising from its purchase of Wal-Mart Express Stores. As a result, it will face minimal competition which enables it to acquire a greater market share. The general store is also capable of widening the kinds of products and services offered especially perishables because it has a strong capital base.
Threats
The general store operates in a highly dynamic environment with constantly changing policies. As the management focuses on new outlets in new locations, they are exposed to unfamiliar regulatory measures some of which are detrimental to the growth of business especially taxation laws and other state instituted business constraints.
Ways to Build on the Strengths and Opportunities and Minimize Weaknesses and Threats
Strength and opportunities are internal factors that are within the control of Dollar General Stores. For instance, the quality of staff can be improved through learning while the overall output can be enhanced through programs that increase employee satisfaction and morale (Bull et al., 2016). On the other hand, the availability of capital for reinvestments and strong reputation which enhances brand recognition is within the control of the management. Conversely, opportunities and threats are external factors that are determined by other forces that are not within direct control of the general store. Such factors as intense competition, government policies, and market trends affect all businesses. Besides, the opportunity for growth also occurs due to these forces that the general store is not in direct control of that is competitor’s decision to exit the market.
Therefore, Dollar General Store should adopt a strategic management which allows for effective communication, clear goals, empower employees, and nurture talents for future leadership prospects. Effective communication will maintain a constant flow of innovative ideas among the employees while explicit goal setting leads into unity in purpose by all stakeholders. Moreover, empowering employees enhances output and increases morale and job satisfaction. On the other hand, nurturing leadership talents leads to integrative thinking which results in outstanding success in the general store. As a consequence of the strategic management, the general store will be able to overcome threats and seize more opportunities in the external business environment. Additionally, it enables the internal operating factors to interact for the general good of all stakeholders positively.
Levels and Types of Approaches for the Maximization of Competitiveness and Profitability
There are a variety of levels and types of strategies that the general store can employ to maximize its competitiveness and increase the profit margins. Some of the level strategies include diversification, cost leadership, and differentiation (Men & Stacks, 2013). In diversification strategy, Dollar General endeavor to widen its product and service portfolio to capture potential consumers and increase its market base. For instance, some of the Wal-Mart Express stores that Dollar General purchased can be used to establish other grocery options such as fresh meat. Diversification as a Strategy will enable the general store to increase its market share which in turn leads to more profits.
Cost leadership is also a level approach which is based on internal efficiency (Ifinedo, 2008). It involves setting prices that are relatively low compared to those of the competitors. To attract more customers, the general store has to reduce its cost of operations including overhead expenses, minimize cost of sales, and develop efficient techniques for service delivery so that prices are affordable to consumers. On the other hand, differentiation can also be used as a means of increasing competitiveness and profitability. In this case, the general store will create unique features in their customer services, enhance the quality of products as well as embrace technological advancement in the delivery of its services among others (Men & Stacks, 2013). As a result, its products will be distinctly positioned in the market leading to business traffic.
Communication Plan to Make the Strategies Known to Stakeholders
A well-developed communication outline will ensure that all stakeholders are involved in the decision-making process thus making them aware of the intended strategy implementation (Men & Stacks, 2013). In this case, the management will first develop the objectives for the planned communication which guides the communication efforts towards a specific goal. Second step is the identification of stakeholders which include Dollar General Stores’ employees, customers’ service teams, and policy formulators among others. In the third step, the communication objectives are made to be stakeholders-specific that is they are aligned to the needs of the targeted audience. Moreover, the management of the general store will then decide the relevant communication channels to use in addressing the specific needs. Some of the commonly used channels include emails, teleconference, newsletter, and notice boards. After deciding on the best channel for particular stakeholder, the message is designed following the set objectives. Finally, the management will monitor effectiveness through feedback and response from stakeholders.
Two Corporate Governance Mechanism used by Dollar General
The first set of control measures adopted by Dollar General Stores is its Internal Mechanisms. It implies that there are available control mechanisms to maintain organizational activities on track. There is board of directors entrusted with the policy issues besides other managerial activities. The general store also has a corporate charter which guides internal audit activities by setting up internal audit committees to facilitate financial accountabilities. Secondly, the organization also employs external governance mechanism through submission of the required information to Securities and Exchange Commission (EDGAR) database for scrutiny by external auditors. Both the internal mechanisms and the external mechanisms are effective in controlling managerial action in several ways. First, internal mechanisms guide the administrative actions by the set regulations (Men & Stacks, 2013). On the other hand, the external devices enhance public confidence thus attracting investors to the General store which is a primary source of capital.
Effective Leadership within Dollar General
Effectiveness in leadership is evidence of the continued business success. The current growth that has resulted in the purchase of Wal-Mart Express Stores is a clear indicator of effective leadership within Dollar General Stores. It is through the effective leadership that the general store owns over 12,000 shops and is currently an exclusive retailer of certain brand products such as Rexall among another outstanding achievement (Dollar General, 2016). Moreover, the general store has demonstrated its services to others through corporate social responsibilities whereby it raises millions of dollars to fight children’s cancer in association with St Jude Children’s Research Hospital. However, as a recommendation for improvement, the management should establish leadership learning programs through mentoring or other forms of organizational learning to maintain high standards of service delivery amidst expansion efforts.
Dollar General Corporate Responsibility
Dollar General embraces three aspects about ethics and corporate responsibilities that are provision of safe products, community support and environmental sustainability efforts (Dollar General, 2016). In regards to these facts, Dollar General has immensely contributed to the fight against cancer among children through vibrant financial campaigns. Moreover, it continues to assist students’ access to education through the Dollar General Literacy Foundation (DGLF) which provides grants to nonprofit organizations. Besides this community support initiatives, the general store are committed to reducing environmental footprints through recycling of wastes and volunteer programs aimed at improving the environment. These initiatives promote brand recognition which is beneficial to the growth of market share and customer loyalty. The current position of Dollar General Stores is attributed to corporate responsibility which is aligned with the mission statement, serving others. It is the expression of concern to the community that there are high confidence and trust among the customers on the products and services.
Conclusion
It is evident that Dollar General Stores is one of the leaders in the business industry due to the provision of quality services and products. The company mission which is serving others, the vision aiming at a better life for the community and opportunity for all employees unites the stakeholders towards the witnessed success. As a result, it can overcome the five forces of competition which include competitive rivalry, bargaining power of suppliers, and bargaining power of consumers, threats to new entry, and substitute services and products. Moreover, the company draws its strengths from unique and exemplary services which have created a vast market share. However, the commitment to leadership sustainability is considered as the weakness of the company. Other aspects revealed through SWOT analysis include an opportunity for growth and the threats of diverse policies regulating business operations in the new locations. Further examination of the level strategies showed that diversification, cost leadership, and differentiation strategies could be employed to maximize competitiveness and profitability. Conversely, such strategies could only be useful when the management uses proper communication outline. Notably, the general store uses internal and external corporate governance mechanisms which are useful in controlling managerial actions. Finally, the evaluation of leadership effectiveness and corporate social responsibilities demonstrates that the administration system is efficient though it should be accompanied by organizational learning as a means of creating future leaders. On the other hand, the general store is demonstrated as a responsible corporation through its support of children with cancers and contribution towards learning through the Dollar General Literacy Foundation. Therefore, when Dollar General Store adopts leadership programs and implements effective communication, then it will remain a leader in the industry.
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