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Crystal Horton
Joyce Williams
Antoinette Brown
Marin Kovacecic
Table of Contents
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General Information
Mission Statement
History of Dollar Tree
Production System
Strategy
Firm Infrastructure
Human Resources
Management
Technology Development
Procurement
Inbound Logistics
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Operations
Outbound logistics
Marketing and sales
Services
Value Chain Analysis
Core Competence
Strategic Group Map
Financial Statement Ratio
Analysis
Conclusion
References
General Information
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Dollar Tree is headquartered in Chesapeake, VA.
As of April 2014, Dollar Tree has 17,600 employees.
Interesting Facts: Between February 2013 – January 2014,
through its cardboard recycling project DT: collected 28,236
tons of cardboards; saved 480,012 trees, 197,652,000
gallons of water, and 112,944,000 kilowatts of energy. In
Chesapeake, VA, Dollar Tree has a Vendor Hotel Discount
Program.
In 2013, DT worked with Food bank of Southeastern
Virginia, and provided enough food, during its annual food
drive, for over 13,000 meals within its local community.
History
Our roots go back more than 50 years. To
appreciate how it all came to pass, you have to
rewind more than a half century to K. R. Perry and
a Ben Franklin variety store in Wards Corner,
Norfolk, Virginia, and to Macon Brock’s, Doug
Perry’s (son of K.R. Perry), and Ray Compton’s
adventure into $1.00 retailing. A highly successful
concept was created using this single price point to
build a national chain of stores.
Mission Statement
Dollar Tree, Inc. is a customer-oriented, valuedriven variety store operating at a one dollar price
point. We will operate profitably, empower our
associates to share in its opportunities, rewards and
successes; and deal with others in an honest and
considerate way. The company's mission will be
consistent with measured and profitable growth.
Production System
Input
Resources
Employees
Products
Customers
Store
Process
Transformation of
inputs into outputs
Employee Scheduling
Vendors/Wholesalers
Bargain Products
Locations
Output
Finished Products
Happy Employees
Bargain Shopping
Customer Purchases
Retail Chains
Strategy
Firm Infrastructure
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Dollar Tree’s (DT) is financial sound with a consolidated net
sales increased 9.5% to $2.03 billion from $1.85 billion in the
prior year’s second quarter.
Organizational structure - is the traditional hierarchy (top down)
management.
Organizational culture – committed to honor and respect for self
and company. They stress to do what is right for the right
reason. Having a positive attitude is key.
Intellectual property includes: Dollar Tree, Inc., Family Dollar,
company logos, designs, and trademarks.
Financial strength is sound. Stock currently at 57.11 as of close
business 9/18/14.
Human Resource
Management
 Dollar
Tree is a flexible organization that allows its
employees to deliver its best result.
 The career opportunities offered at Dollar Tree
range from in store clerks to corporate careers.
 Dollar Tree has a program called Core Benefit to
enhance their employees lifestyles
 Dollar Tree offers benefits to all its employees
Technology
Development
The optimal use of technology By Dollar Tree provides significant energy
savings and reductions:
Product testing programs-use independent laboratories to test toys and
candles since 2005
Working on ways to test standards that reduce or eliminate the use of
polyvinyl chloride (PVC) in their products
Virtualization-reduces the implementation of physical systems, reducing
energy cost
Video Teleconferencing –increases communication and reduces the need
for travel
Hardware recycling for end-of-life systems- places them back into
spare/ recovery/ re-use scenario instead of disposal
Electronic Benefit enrollment for associates- reduces the need for
supplying printed documents for thousands of associates
Procurement
 DT’S
vision is to make the procurement-to-pay
process as paperless as possible.
 DT utilizes the Ariba Spend Management Solution
as the technology platform to enable quick and
easy payments.
 A few benefits of the Ariba System is that there is
higher control over order processing, better
communication and visibility, and quicker invoiceto-pay process.
Inbound Logistics
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Utilize Power Transportation Management System (PTMS)
with an online tool designed to help their vendors, carriers,
and transportation. Associates work collaboratively to move
the merchandise from the vendor’s shipping locations to the
distribution centers.
The logistics is committed to providing exceptional service
to our stores through continual improvements in operating
cost, quality and safety.
The logistics encompasses the operation of 10 Distribution
Centers, management of inbound, import, and domestic
transportation, and management of outbound transportation
with distribution to thousands of stores across 48 contiguous
U.S. states and five Canadian provinces.
Operations
 Dollar
Tree purchase their products in bulk at lowcost in order to sell at low-cost.
 D.T. also purchase second hand products that may
have some undetectable flaws.
 Dollar Tree obtain and sale some products that are
closer to the expiration.
 One of their goals have been to sale products at a
dollar or less. This goal has been successful.
Outbound Logistics
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Monitor the execution of the daily routing by the distribution
center and dedicated.
Coordinate the execution of the delivery plan by the
dedicated carrier.
Facilitate effective communication between the dedicated
carrier, outbound transportation, the distribution center, and
the stores.
Monitor distribution center trailer pool to allow and adequate
number of trailers to complete loading schedules.
Complete other analysis, reporting, projects and duties as
assigned by transportation management team.
Marketing and Sales
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DollarTree.com website- sells Dollar Tree merchandise in
bulk to small businesses, individuals and organizations for
the same price ($1.00 or less) per item.
DT website also have customer rating and reviews available
so customers can read and write reviews about DT products.
DT offers free shipping to their stores on website purchases.
Bought Family Dollar for $8.5 billion creating North
America’s largest discount retailer with combined sales of
$18 billion.
Dollar Tree is usually not affected by diving economy slowdowns because the lower class and price conscious middle
class consumers gravitate towards discount stores in order to
save money.
Services
 Dollar
Tree does not offer any warranties.
 All products are sold as is.
Value Chain Analysis
Culture
Brand Recognition
Intellectual Property
Organizational Structure
Human
Resource
Health Benefits
Retirement Benefits
CORE Benefits
CORE Executive Development Program
Low Wages
Wide Variety of Product Testing
Technology Created ways to save energy cost
Development Maintained savings on customer products
Procurement
Primary
Activities
Strength
Weakness
Finding the right products
Getting the right price
Delivering extreme quality
Creating a low cost trading network
Inbound
Outbound
Marketing &
Operations
Logistics
Logistics
Sales
PTMS usage
Dedication to
providing
exceptional
service.
Coverage of
distribution
centers.
Bulk
purchases to
maintain
low-cost.
Some items
sold closer to
expiration
date.
Everything’s
a dollar or less.
Largest
discount chain
in North
America.
Margins
Supporting Activities
Firm
Financial Strength
Infrastructure
Service
No
warranties.
Only offer
as-is products.
Core Competence
Culture
Brand Recognition
Intellectual Property
Organizational Structure
Human
Resource
Health Benefits
Retirement Benefits
CORE Benefits
CORE Executive Development Program
Low Wages
Wide Variety of Product Testing
Technology Created ways to save energy cost
Development Maintained savings on customer products
Procurement
Primary
Activities
Strength
Weakness
Finding the right products
Getting the right price
Delivering extreme quality
Creating a low cost trading network
Inbound
Outbound
Marketing &
Operations
Logistics
Logistics
Sales
PTMS usage
Dedication to
providing
exceptional
service.
Coverage of
distribution
centers.
Bulk
purchases to
maintain
low-cost.
Some items
sold closer to
expiration
date.
Everything’s
a dollar or less.
Largest
discount chain
in North
America.
Margins
Supporting Activities
Firm
Financial Strength
Infrastructure
Service
No
warranties.
Only offer
as-is products.
Strategic Group Map
Pricing Category
$ High
A
Dollar
General
B
Dollar
Tree
$ Medium
C
Family
Dollar
$ Low
Discount Products
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Food Cleaning Supplies
School Supplies
General Dollar out performed Dollar Tree and Family Dollar in the last three
years. Their financial statements have been
removed but, statistics from those years show they were the industry leader.
Toys
Financial Statement
Ratio Analysis
Ratio/Metric
ROA
ROE
Competitor
2014
2013
2012
Dollar Tree
Dollar General
20.59%
8.90%
10.9%
Dollar Tree
36.54%
16..90%
4.31%
6.82%
29.81%
9.19%
6.16%
5.14%
21.72%
Family Dollar
22.17%
20.1%
7.34%
3.39%
5.70%
17.17%
15.61%
6.11%
2.20%
4.42%
15.94%
12.61%
3.30%
1.97%
7.25%
9.50%
3.30%
7.50%
5.54%
3.00%
2.48%
2.26%
1.63%
5.10%
Family Dollar
Dollar General
NET PROFIT
MARGIN
Dollar Tree
Family Dollar
Dollar General
% REVENUE
CHANGE
Dollar Tree
Family Dollar
Dollar General
Conclusion
Dollar Tree is the largest bargain retailer in North
America with the financial strength and vision to
continue to grow.
Dollar Tree is a great place to bargain shop.
Dollar Tree has good benefits for managers and above
which makes it a good place to work.
Dollar Tree has recycling and environmental safe projects
and gives back to the community.
If you want to feel good about saving money go to Dollar
Tree where your bargain shopping makes a difference.
References
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Dollar Tree – 2013 Sustainability Report;
http://files.shareholder.com/downloads/DLTR/3498359730x0x528909/9
105b6e5-7f3d-4ea7-b3bc-d90a537cfc2f/Sustainability.pdf
Dollar Tree – Corporate Governance;
http://www.dollartreeinfo.com/investors/corporate/
Wikipedia; September 22, 2014,
http://en.wikipedia.org/wiki/Dollar_Tree
Dollar Tree – Benefits;
http://www.dollartree.com/custserv/custserv.jsp?pageName=Benefits&p
arentName=Careers
Dollar Tree – College Recruiting Program;
http://www.dollartree.com/custserv/custserv.jsp?pageName=CORE&pa
rentName=Careers
Dollar Tree – Vendor Partners; http://www.dollartreeinfo.com/vendorpartners/