Business Case Studies & Business Publications

Dollar General Corporation (B)

Bourgeois, L. J. I...

Case

Dollar General Corporation (B)

Bourgeois, L. J. III; Sharma, Anurag

BP-0296 | Published March 3, 1989 | 20 pages Case

Collection: Darden School of Business

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This case follows the A case (UVA-BP-0253) by three years, chronicling the indigestion Dollar General (DG) suffers after the acquisition of the Eagle Store chain. The DG 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 COO. The stock price has plummeted from 29 to 12. How can Cal Jr. regain control of his company and turn it around?