Dollar Tree was forced to settle with OSHA Occupational Safety and Health Administration for 825,000 for “safety hazards such as blocked emergency exits, obstructed access to exit routes and electrical equipment, and improper material storage” (Gonzalez, 2015, para.1). Additional had to put an auditing procedure in place. (Gonzalez, 2015).
The mixed signal on Wall Street about the stock, many contests if the acquisition with Family Dollar and the competitive landscape provides growth moving forward. Dollar General and other insiders within the Dollar Tree industry are purchasing large amounts of stock for diversity and investments (Williams, 2015). This investment by industry insiders may provide insight that positive gains are on the horizon.
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The strategic issues that are apparent are understanding and executing a competitive strategy that Dollar Tree will use to take market share away from other discount retailers.
Dollar Tree and discount retailers with a smaller footprint in lower economic communities often see growth in a downturn of economics conditions. It would be imperative for stakeholders at Dollar Tree to understand the impact as oil prices drop and the economy improves do consumers move to a higher cost retailer (Alava, 2016). Understanding how current economic uncertainty within the industry could impact revenues would be a concern at Dollar Tree.
The most compelling aspect in real time strategic issues is the closing of Wal-Mart Express stores in small communities. The supply chain method of “tethering” used by Wal-Mart proved to be ineffective (Levine-Weinberg, 2016, para.5). The announcement of the closure of Wal-Mart has become a trending topic in the media in recent weeks. However, for Dollar Tree, this reduces the scale of one of the large players in the market. In addition, if Dollar Tree can show growth and share gain it would be impressive to demonstrate a competitive advantage over the large conglomerate Wal-Mart (Levine-Weinberg, 2016).