Dollar General Corporation (B)

Abstract

This case follows the A case (UVA-BP-0253) by three years, chronicling the indigestion Dollar General suffers after the acquisition of the Eagle Store chain. The Dollar General organization, originally held together by a strong sense of "rural American" values, deteriorates because of (1) dramatically different cultures (Dollar General vs. Eagle); (2) massive internal theft, which spreads from Eagle throughout the Dollar General organization; and (3) an irreparable rift between Cal Turner, Jr., the president, and his brother Steve, the chief operating officer. The stock price has plummeted from 29 to 12. How can Cal regain control of his company and turn it around?

Keywords: acquisitions, leadership, managerial style, mergers, retail management, strategy implementation, diversity

JEL Classification: