Dollar Tree

Business Analysis Part 3

Cera M. Spallone

MGT/521

July 16, 2012

Jacob Nichols

Business Analysis Part 3

Economic Trends

The current market in long-standing economic down-turn has granted opportunity to Dollar Tree for increased sales as customers maintain a need for basic and consumable products (Dollar Tree, 2012). Dollar Tree will continue to modify the assortment of inventory carried in the stores for further customer-based placement. Though the economic down-turn creates risk Dollar Tree continues to see sales increase. The company has included the acceptance of the Supplemental Nutritional Assistance Program (SNAP) and also Food Stamps more than 3,500 of its current stores (Dollar Tree, 2012).

Strategies

Evidence through which strategic initiatives transpire visibly into practice exists in Dollar Tree’s 10-K annual form observing comparable store net sales and return on equity. Giving evidence of believability by using the previous year’s assets to calculate the current net income effect of the assets, Dollar Tree has invested in the return on equity ratios demonstrate healthy company growth, and strong strategic initiatives. Reviewing Dollar Tree’s 10-K financial information over the past five years from 2008 through current filings 2012, the company has a steady incline in their return on equity.

2012 | 2011 | 2010 | 2009 | 2008 |

34.8% | 27.5% | 23.9% | 20.5% | 18.7% |

(Dollar Tree, 2012)

Dollar Store considers the similar store net sales continual growth is progressively influence by the over-all initiatives in place. Dollar Tree is realizing debit and credit card saturation has sales influence increase, along with sustained delivery of frozen and refrigerated products to additional Dollar Tree’s locations. Dollar Tree continues to realize the important benefits to implementing the supplement of frozen and refrigerated products seeing an increase of sales and profits by with an upsurge of more customers.

Tactics

Dollar Tree...