Questions
1. Explain why the old, non integrated functional system created problems for the company. Be specific.
2. The new system cost several million dollars. Why, in your opinion, was it necessary to install it?
3. What other software should Dollar General consider to reduce its costs?
4. Another product of Lawson is Services Automation. Would you recommend it to Dollar General? Why or why not?
Dollar General (dollargeneral.com) operates more than 8,000 general stores in 35 states, with sales exceeding $9.5 billion in 2007, fiercely competing with Walmart, Target, and thousands of other stores in the sale of food, apparel, home, cleaning products, health and beauty aids, and more. The chain doubled in size between 1996 and 2002 and has had some problems due to its rapid expansion. For example, moving into new states means different sales taxes, and these need to be closely monitored for changes. Personnel management also became more difficult with the organization’s growth. An increased number of purchasing orders exacerbated problems in the accounts payable department, which was using manual matching of purchasing orders, invoices, and what was actually received in the “receiving” department before bills were paid.
