Dollar General Corporation is a value discount retail chain who is operating over 8,000 stores in 34 states in the United States. Dollar General had opened a subsidiary company (Dollar General Global Sourcing Limited) in Hong Kong performing strategic global sourcing for its imported merchandises. Dollar General is committed to deliver convenience and best value on the basics to their customers in the United State. Dollar General is facing critical problems, the USA economy is weak to make the retail industry is difficult because people’s disposable income is reducing and also they need to reserve monies for gasoline due to the oil price increased a lot recently. Also, there are many CPSC recalls due to Lead content on products (such as Mattel toys recall cases), many people are having uncertainty about China-made products. However, most of Dollar General’s import products are from China. Dollar General is committed to keep the Everyday Low Price commitment and so it is 20%-30% of the merchandises in the stores is retail for US$ 1 and most of the merchandises in stores are retail for less than US$10 I am working as a merchandising manager in Dollar General Global Sourcing Limited (DGGS) in Hong Kong and I am responsible for the company’s sourcing activities such as formulate sourcing strategic and identify potential suppliers who could offer right products at right price and at right time, I therefore also need to work close with the US office buyer to understand the current market situation and their buy plan. It is very important for me to address the problem because I am working in a subsidiary of the corporation and DGGS is part of the corporation’s value chains and value network together creating and delivering value to our customers. Michael Porter (1985) proposed the value chain and value network as a tool for identifying ways to create more customer value to achieve competitive advantage for the organization ultimately. As a merchandising manager of the corporation responsible for global sourcing activities, this dissertation is important for me and the senior management to understand more of this topic to cope with the current situation that the corporation is facing. I am expecting to enhance my knowledge in this area; the senior management and I are also looking to improve the efficiency and effectiveness of strategic global sourcing work in our office gain from the study of this dissertation.