Management

p DOLLAR GENERAL USES CONTROL TO GROW PROFITS

Dollar General is a retail chain of stores that sells various household items at a price that will attract value-conscious and low-income customers (Martin , Angela . With 7 ,000 stores and as much as 2 billion in earnings , CEO David A . Perdue , Jr , keeps a firm control on its operations . He decided to install an automatic replenishment system wherein managers determine the number of items needed or should be in each store , track sales and res automatically if the number falls below the preset level

. This particular decision has earned the company substantial increase in sales

Certo defined controlling as the process that managers go through to control a systematic effort to compare performance to pre-determined standards , plans or objectives to determine whether performance is in line with those standards or needs to be corrected (Certo , 2003 . In the case of Dollar General , Perdue should first measure the performance of those items that he wants to raise the prices of . Although its prices are set at a lower level than those of the competitors , he must determine whether a mark-up will hurt or boost the sales of these items Comparison of the measured performance must then be made against the standards previously set in to find out if the decision to raise prices will make the company more profitable . He should remember that the lower the prices , the more customers there are . If he added a mark-up on the present price he is...