There are plenty of risks that are associated with the output from family dollar organization. In terms of delivering profitable sale growth, the following are some of the acute setbacks that the organization faced. Persistent fiscal issues affected the normal profit range that the company always achieves, this led to acute losses in the gross output of the company total income. The increase in the payroll tax was also another setback that was attached to the company. This brought about plenty of insignificance through cutting down on the total amount of the realizable profits for the company. Tax refund delays are some of the risk factors that the organization faced in the current financial output. This is also an aucte risk factor that the organization is prone to in the near future. Consistent tax refund delays will sabotage actual preparations of appropriate results for the company in a timely manner.
Competition from other competitors like, Wal-Mart stores is another risk factor that is proofing to sabotage the normal profits of the company. The organization is not able to achieve its maximum profits due to the competitive edges that the competitors are using to win over the customers base. Seasonality is also a risk factor that the management needs to take a close study in terms of evaluating the gross sales output. The management should consider using promotional strategies during the off-peaks seasons in order to heighten the profits of the company. The probability of occurrence of a high inflation rate is too much alarming towards affecting the gross profits that can be realized in the near future. The constant changes in the oil prices is also another major risk factor that acts as a potential blow to the volume of sales that the company is yet to realize in the near future. This will increase the cost of operations and generally the quality output hence closing down on the profit range.
Customer loyalty and experience that is associated with the company is an opportunistic advantage that aids its expansion program of stores. The current expansion achievement of opening up 500 stores across the states is a milestone achievement for the company. It shows dedication and hard work that the company. This allows the company to establish and operate its expansion program without any related hitch. It is prudential enough to point out that the company has expanded its services to the town of Montana. This depicts a milestone progress that the company is tasked to achieve in due time.
The qualitative customer feedback has also facilitated a network of relocating and expanding stores. This enables the company to establish solid trust on its customer base. Through this chain of feedback, the company has been able to relocate and expand a total of 830 stores across the states. This serves as a prudential approach that the company is strives to expand its business capacity and customer base.
The increasing share rate is also a major opportunistic advancement for the company. This generally increases the gross working capital that the company can be able to handle and regulate its operations. It is worth noting that this increase in the price of shares portrays solid customer relation to the total quality output for the company.
Callihan, Lawton C. ” Morgan V. Family Dollar Stores, Inc.: District Court Discretion In Determining Whether Employees Are ” Similarly Situated” Enough For Representative Testimony In FLSA Actions.” American Journal Of Trial Advocacy 34. 1 (2010): 195-216.
Frederick, Drew. ” Exempt Executives? Dollar General Store Managers’ Embattled Quest For Overtime Pay Under The Fair Labor Standards Act.” University Of Pennsylvania Law Review 160. 1 (2011): 277-329.
Gottfried, Miriam. ” Buyers Beware of Any Family Dollar Buyout.” Wall Street Journal – Eastern Edition 10 July 2014: C1.