SWOT

Strengths
1. Sells essential items with relatively inelastic demand
2. Healthy gross proft margin
3. Accepts food stamps
4. Lower than industry average leverage ratio
. !eing a"le to raise its dividends
#. !etter than industry average total asset turnover
$. %ts return on assets of 1.&4' is higher than the industry average
&. %ts return on e(uity is 4') higher than the industry average
*. Appro+imately *,' of the company-s products are priced "elow .1,
1,.%n the past year) the company-s stoc/ has outperformed the average retail
industry
Weakness
1. 0oes not do much advertising
2. Limited mar/et) solely in the 1.S. only
3. %n the year 2,,&) the company-s mar/et share dropped from 1.&' to 1.$'
4. 2he company-s 34S is only $2' of the industry average and is not growing as
(uic/ly as the industry average
. Limited in variety of products "eing o5ered
#. 6or the year 2,,&) the company-s overall sales only grew "y 2.1&' whereas
the average industry sales grew "y .31'
$. 0oes not generate enough sales from its we" site due to limited technology
&. Higher than industry average (uic/ ratio) indicating lac/ of long term re7
investment
*. 2he company-s long7term de"t to e(uity ratio is only 31.4' of the industry
average
Opportunities
1. 2he income for the middle class is diminishing) causing them to "e more
cautious with their e+penditures
2. 2he average household income is dropping due to wea/ economy
3. 2he demand for low7priced items is growing
4. 2he unemployment rate is increasing
. Smaller retailers are closing their stores and some have fled for "an/ruptcy
Threats
1. High competition among large discount retailers
2. 0ollar 8eneral has higher mar/et share compare to 6amily 0ollar
3. 4er s(uare foot) 0ollar 8eneral is creating more sales
4. 2he industry is sensitive to economic conditions
. 9hange in demographics due to purchasing ha"its
#. %ncrease in tari5s and trade "arriers
$. Lac/ of (uality control in products due to "eing imported from 9hina and
other countries
External Audit
CPM

6amil
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0olla
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0ollar
8ener
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9ritical Success
6actors
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Score
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:eighted
Score
Store Locations
<erchandise
=ariety
Advertising
9ustomer
Loyalty
<ar/et Share
9ustomer
Service
4roduct >uality
4rice
9ompetitivenes
s
2echnology
2otal
EFE
?ey
3+ternal
6actors
:eig
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:eight
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Score
@pportuniti
es
1
2
3
4

2hreats
1
2
3
4

#
$
2@2AL
Positioning map
Internal Audit
Selected Financial Ratios
Financial trends
IFE
?ey
%nternal
6actors
:eig
ht
;ati
ng
:eight
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Score
Strengths
1
2
3
4

#
$
&
*
1,
:ea/nesse
s
1
2
3
4

#
$
&
*
2@2AL
Strategic ormulation
Strengths :ea/nesses

@pportunities S7@ Strategies :7@ Strategies

2hreats S72 Strategies :72 Strategies






SPACE MATRI!
6inancial Sta"ility A6SB 3nvironmental Sta"ility A3SB
;eturn on %nvestment 1nemployment
Leverage 2echnological 9hanges
Li(uidity 4rice 3lasticity of 0emand
:or/ing 9apital 9ompetitive 4ressure
9ash 6low !arriers to 3ntry

6inancial Sta"ility A6SB
Average
3nvironmental Sta"ility A3SB
Average

9ompetitive Sta"ility A9SB %ndustry Sta"ility A%SB
<ar/et Share 8rowth 4otential
4roduct >uality 6inancial Sta"ility
9ustomer Loyalty 3ase of <ar/et 3ntry
9ompetition-s 9apacity
1tiliCation ;esource 1tiliCation
2echnological ?now7How 4roft 4otential

9ompetitive Sta"ility A9SB
Average %ndustry Sta"ility A%SB Average
"rand Strateg# Matrix
Rapid Market Growth
Quadrant II
Market Development
Product Development
Market Penetration
Quadrant I
Quadrant III Quadrant IV
Slow Market Growth
Recommendations$
(Market Development)
Build additional stores in the U.S. urrentl!" man! stores are #losin$ and the pri#e o% real
estate has dropped" in some areas" as hi$h as &'(. )penin$ stores in lower pri#ed areas.
Build*a#+uire ,'' stores*!ear %or ne-t . !ears
Grow to /'''0 stores till ,'1.