algreens Stores Analysis Approach to Quality Management
Preface: Organizational Profile (Organizational Description & Challenges)
algreens deserves the fame and public recognition throughout America, after working on serving the community with health care products and information. Charles R. algreen, Sr. established the company in Gallesburg, Illinois, in 1901. The company was merely a small building, which then developed into the largest chain of drugstores.
algreen's unique strategy from the very beginning of its working process was giving the customers personal attention and reliability of order delivery. Since algreen Sr. started the store, he had invented the "two-minute drill," a famous strategy where algreen would take the order and engage the customers in friendly conversation while their orders were fulfilled. The orders were delivered to their door immediately, in minutes after they called.
The strategy gives the strong point on innovation, service or customer orientation and business reliability. algreen seems to know that innovation always works…...
mlaWorks Cited
Boston Business Journal. Walgreens Settles Hazardous Waste Claim. Jan 24, 2003. Boston Business Journal. Apr. 12, 2003. Web site: http://boston.bizjournals.com/boston/stories/2003/01/20/daily53.html
Business Week Online. Walgreen's New Pharmacist-in-Chief. Mar. 26, 2003. Newsmaker Q&A. Business Week. Apr. 12, 2003. Web site: http://www.businessweek.com/bwdaily/dnflash/mar2003/nf20030326_9189_db049.htm
Business Wire. ACNielsen Adds Walgreens to Category Business Planner Lineup. 2001. Apr. 12, 2003. http://www.findarticles.com/cf_0/m0EIN/2001_August_21/77358187/print.jhtml
Heller, Laura. Cornering America. 2002. Drug Store News.
algreens -- Compensation Analysis
Pay System and Benefits Package Overview
algreens has seen many changes in its industry and specific niche over the last decade. The rise of prescriptions by mail, ecommerce giants such as Amazon and EBay, the passage of the Affordable Care Act (ACA), and one of the worst economies since the Great Depression to name a few (agner & Orvis, 2013). ith this backdrop the company had an ambitious goal of reaching seven thousand stores in 2010 from just over four thousand stores in 2003; algreens was opening a store every seventeen hours at one point (agner & Orvis, 2013). The company's strategy was primarily based on location however the changes in the industry forced them to reinvent themselves and create a new strategy to remain competitive.
At the center of this strategy was using human resources to create a better customer experience. algreens looked at other businesses that were…...
mlaWorks Cited
Farfan, B. (N.d.). Company Mission Statements - Complete List of World's Largest Retail Missions. Retrieved from About Money: http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Walgreens-Drug-Store-Mission-Statement.htm
Tucker, G. (2014, May 1). Kathleen Wilson-Thompson Leads HR at Walgreens. Retrieved from SHRM: http://www.shrm.org/publications/hrmagazine/editorialcontent/2014/0514/pages/0514-wilson-thompson-walgreens.aspx
Wagner, M., & Orvis, W. (2013, August 27). Changing Structures and Behaviors at Walgreens. Retrieved from Strategy &: http://www.strategy-business.com/article/00195?pg=all
Walgreens. (2014). Benefits at Walgreens. Retrieved from Life at Walgreens: http://careers.walgreens.com/life-at-walgreens/benefits/#.VOXdLvnF8fY
WALGREENS The International Culture of WalgreensWalgreens is an American based pharmacy store that now operates in more than 25 countries. It provides medications, prescriptions, and other related health products. The pharmacy operations are both retail and wholesale all over the world (Bells, 2017). It came into being after a merger of Walgreens and Alliance Boots in 2014. The mergers opened ways to international market entry. The retail business is now in 11 countries, and the wholesale distribution network is seen in 19 countries. Within the US, there are over 8,100 stores and even more than 4,500 outside the region. The huge presence of Walgreens' stores can be seen in California, Florida, and Texas as 633, 831, and 713, respectively.The US has turned out to be the most lucrative market for Walgreens that has provided more than 70 percent of its sales. The international retail sales were $13.3 billion during 2016,…...
mlaReferences
Bells, S. (2017). Walgreens versus CVS: Comparing international presence. Market Realist. Retrieved from https://marketrealist.com/2017/10/walgreens-versus-cvs-comparing-international-presence/
Itam, U. & Bagali, M.M. (2018). Diversity and inclusion management: A focus on employee engagement. In N. Sharma, V.K. Singh & S. Pathak (Ed), Management techniques for a diverse and cross-cultural workforce. (pp. 149-171). DOI: 10.4018/978-1-5225-4933-8.ch009
Jayakrishnan, S.S. (2019). Diversity and inclusion. Seshadripuram Journal of Social Sciences, 2019. Available at Research Gate, https://www.researchgate.net/publication/338829272_Diversity_and_Inclusion
Alternatives for Walgreens Drugstore
strategic choice evaluation paper. Please selected organization ( Walgreens) research .
Best value discipline, generic strategy, and grand strategy
The best value discipline for Walgreens is that of consumer intimacy. This means that the company will tailor its products and services to meet the needs of the refined customer. This can be seen in the company's strategy of incorporating various other items into their drug store. For example, the company recently introduced ink-jet cartridge refilling stations in the drug stores so that their stores can feel like office stores inside the drug stores.
The generic strategy of the company should focus on several items. First is the overall cost leadership. This involves the company setting up a system that achieves the highest economies of scale through a low cost distribution system. The company should also introduce policies that institute tight controls on cost and structure the organization in the best…...
mlaReferences
Porter, M. (1987). From Competitive Advantage to Corporate Strategy. Harvard Business Review, May-June (3), 43 -- 59.
Porter, M.E. (1998). Competitive advantage: creating and sustaining superior performance: with a new introduction. New York: Free Press.
As the world becomes more globalized, international firms will have to focus on the complexities of creating culture. As with any international business element, no two solutions will illicit the same results. What may be acceptable in one country could potentially be shunned in another. Adding more complexity to the culture problem is the application of corporate standards and values within an international context. A country that emphasized individualism may not properly adhere to corporate culture of collectivism. It is therefore important to understand the culture influences that determine individual behavior with a particular country. It is then important to address any discrepancies and institute solutions that may overcome these cultural barriers. Walgreens was started in 1901 within the United States and has quickly grown into one of the world’s largest drugstore chains. Its overall size and scale allow the company to penetrate many of the world’s strongest and fastest growing…...
mlaReferences
1. Epstein, M., & Roy, M. (2003). Improving sustainability performance and Culture: Specifying, implementing and measuring key principles. Journal of General Management, 29(1), 15-312. Ginter, P., Ruck, A., & Duncan, W. (1985). Planners’ perceptions of the strategic management process. Journal of Management Studies, 22(6), 581-5963. Hollingworth, M. (2009, November/December). Building 360 organizational culture. Ivey Business Journal Online.4. Walgreens. (2010a). Mission statement. Retrieved from http://news.walgreens.com/article_display.cfm?article_id=1042
Forbes Magazine entitled, "In the Pill Box" discusses Walgreen's Drugstore and the challenge that it faces from Pharmacy Benefit Managers (PBM). The article begins by informing the reader of the astronomical growth of the Walgreen's company. The author explains that the company's stock has risen by 3,000% in the past 20 years and that the store plans to have over 7,000 stores by 2010. (Lambert) The article also asserts that the same-store sales increased by 9% in fiscal 2003. (Lambert)
The author contends that although the company is extremely success, there is a threat on the horizon. This threat comes in the form of Pharmacy Benefit Managers who show health organizations and employers how to make prescriptions drugs more cost effective. The article explains that PBM's often encourage these organizations to persuade patients to get long-term prescriptions through the mail instead of going to a pharmacy. Mail order pharmaceuticals are…...
mlaAt the other end of the debate there are consumers who like to order their prescriptions through the mail. Some consumers do this even if it is not mandated by their insurance providers. In many cases consumers just find it more convenient to order prescriptions through the mail. In any case, the PBM's and the drugstores will continue to quarrel over which method is less expensive.
In my own opinion, it seems that Walgreen's should not have the right or ability to blacklist customers because of the decisions that are made by their healthcare providers. In many cases people are in dire need of receiving their medication and may not have time to ride around to different pharmacies just to get a prescription fulfilled. It is apparent to me that all Walgreen's is concerned with is its bottom line and they are willing to sacrifice the health of customers just to prove a point to PBM's. The fact of the matter is that consumers have a right to purchase prescriptions in any way that they see fit. Some people prefer going to a traditional pharmacists, while other prefer for the prescriptions to be brought to their homes. Walgreen's has to be careful not to ignore the needs and desires of consumers in the quest for greater profits.
Lambert, Emily. 2004. "In The Pill Box." Forbes Magazine
The Congruence Model for Organizational Analysis appears thorough in terms of both the internal and external environment. The model operates on the basis of inputs, throughputs and outputs, with the external environment providing feedback on inputs and outputs. The organization is regarded as a dynamic system, which is influenced by means of a number of variables. Of all the models, this one appears to be the most applicable to Walgreens.
Tichy's TPC Framework and Diagnosing Group and Individual ehavior are also regarded as particularly applicable to Walgreens, as a result of the significant influence of the environment. Tichy's model increases the complexity of the internal environment by recognizing that some relationships among variables are stronger than others. Environmental influence is recognized through inputs, outputs and the feedback loop. Diagnosing Individual and Group ehavior focuses mainly upon human relationships within the internal environment. It is also assumed that there are minimal boundaries…...
mlaBibliography
Falletta, S.V. (2005)
Organizational Diagnostic Models: A Review and Synthesis. Retrieved at http://www.leadersphere.com/img/Orgmodels.pdf
Walgreens Health Services. (2009).
A www.Walgreens.com
The feeling that I was cut out for this role of a pharmacist came when I was fascinated in the chemistry classes about the medications, and the origin of bio-medicals. My fascination and the interaction with the patients where I work have made me known and liked in the current place of work. That would take this argument to the work experience and qualifications.
3. I am now a student for the masters in biomedical science at Midwestern University. Earlier qualifications include a bachelor's degree in computer engineering from Iraq in 2004. I also have completed the pre-pharmacy courses. Thus I have had a strong academic background. Further along with my academic background, I have had working experience as a pharmacy technician. I have found pleasure in working for the Walgreen's Pharmacy for three years as a pharmacy technician. Working with the employer namely Walgreen's allowed me to develop skills…...
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Pharmacy sales in the United States are positive with growth expected to increase 20% 2005-2008 according to data published by benefit management companies and a market intelligence firm. The rate of increase is lower than it has been in the past five years. Trends negatively impacting the market include consolidation, new store openings, increased mail order, drug importation, and the growth of generic pharmaceuticals. Further, if medicare covers prescription drugs at lower reimbursement levels, profitability of the industry could be adversely affected
Given that GDP and retail sales show moderate growth and that pharmacy sales have high growth potential, algreen represents a good investment opportunity. algreen is the top drugstore chain in the United States and is will well prepared to come out ahead in an intensely competitive market to capture a huge portion of the growing market.
orks Cited
GDP Data (Figure 1)
CBO data. Retrieved November 6, 2005 at http://www.cbo.gov/showdoc.cfm?index=5773&sequence=1&from=0
Survey of Professional…...
mlaWorks Cited
GDP Data (Figure 1)
CBO data. Retrieved November 6, 2005 at http://www.cbo.gov/showdoc.cfm?index=5773&sequence=1&from=0
Survey of Professional Forecasters data (overseen by Philidelphia FRB). Retrieved November 6, 2005 at http://www.phil.frb.org/econ/spf/index.html
Wachovia Bank data. Retrieved November 6, 2005 at http://www.wachovia.com/ws/econ/view/0,2705,00.pdf
When our family moved to United States five years ago, I began to see more opportunities for my chosen career unfold before me. Greater access to drugs and medicines, as well as improved treatments for my grandmother's condition, are the opportunities that led to my acquiring increased knowledge in pharmacy. I have fueled my passion in being a pharmacist while in Iran, and now I am ready to realize this goal in life by aspiring to attend in a medical school here in U.S.. Armed with my impressive credentials, field experience working as a pharmacy technician at Walgreen's, and personal history of being acquainted with the field of pharmacy through my grandmother's battle with Alzheimer's disease, I am now ready to start a new life as a pharmacist. Pharmacy as a career is the best path for fulfilling my aspirations to ease suffering among people, particularly the elderly, and…...
OTC
Communication & Price
Communication
The target market will be composed of major retailers like Walmart, Target, CVS, Walgreens, as well as, regional and national grocery chain pharmacies. Each of these retailers already contains a product mix for these products that is diverse and cost competitive. Thus the company will have to work to differentiate itself in every way possible. One strategy for differentiation could be the product packaging and the container.
The products should be packaged in a way that separates them from the rest of the crowd. One idea would be to offer a more portable bottle that would fit into someone's pants or purse much easier. Usually products in this niche are packaged in a child proof bottle or in an individually wrapped sheet in which you have to peel back some kind of plastic to be able to access a single dosage. There are many versions of the OTC products…...
There is virtually zero paper work involved in merchandising the goods to the shops.
The documents prepared when merchandize is sold are minimum and include only check for the customer which is very comfortable and time saving. The sales point prints of all the check kept electronically in the system, only in the evening at the end of the day. The company keeps perpetual track of the records in the system and only at aggregate levels. The company also with employment of the mentioned above electronic system monitors and analyzes the costs incurred to deliver the goods to their sales point. Physical inventory is carried out only once a year, which is reasonable for the company of this size and for electronic system the company utilizes. The physical inventory is done only for the purposes to single out volumes of sold or spoiled products. The company targets to be cost…...
Bargaining power of customers: Our main question here is whether al-Mart customers can walk away from buying a product at al-Mart and find it cheaper elsewhere. For the most part, the answer is no. al-Mart has built its reputation by providing products at a considerably lower price than its competitors (Is al-Mart good, 2005). Certainly, customers can try to find lower prices at other retailers; and the proliferation of the Internet also allows customers to visit several e-commerce retailers. However, al-Mart's ability to keep prices at rock-bottom, coupled with the fact that it has such dominant market share in America, means that the bargaining power of customers has been trending downward.
Bargaining power of suppliers: By most accounts, the bargaining power of suppliers is poor - al-Mart holds all the cards. If a supplier wants to sell to the U.S. retail market, it has to sell through al-Mart, given the company's…...
mlaWorks Cited
Bhatnagar, Parija (2004). "The K-Mart-Sears deal." Nov. 17, 2004. Retrieved Oct. 19, 2006 from the CNN Web site at http://money.cnn.com/2004/11/17/news/fortune500/sears_kmart/ .
Fishman, Charles (2003). "The Wal-Mart you don't know." Retrieved Oct. 19, 2006 from the Web site for Fast Company at http://www.fastcompany.com/magazine/77/walmart.html .
Gallagher, Scott (2004). "Business level strategies." Retrieved Oct. 20, 2006 from the Web site for James Madison University at http://216.109.125.130/search/cache?p=business-level+strategies&fr=yfp-t-501&toggle=1&ei=UTF-8&u=falcon.jmu.edu/%7Egallagsr/WDFPD%2520-%2520Business.pdf&w=business+level+strategies&d=LlNaGpIFNgHG&icp=1&.international=us
Global Ethics Office (2006). Retrieved Oct. 19, 2006 from the Web site for Wal-Mart at http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=8 .
Level 5 Leadership: Which is harder to cultivate within yourself: humility or will?
Level 5 leadership involves what Collins (2001) calls the "paradoxical blend of humility and will," (p. 13). As a result, Level 5 leaders are "a study in duality," as they exhibit other binaries, such as being both humble and fearless; both modest and willful (Collins, 2001). The complexity of human character makes it possible to hold two seemingly disparate qualities in check at any one time, knowing exactly when, how, and why to turn on one binary (like humility) versus the other. Collins expands upon the concept of Level 5 leadership in the opening sections of From Good to Great because Level 5 leadership is central to effectively motivating others and promoting the values of an organization.
Both humility and will are difficult qualities to perfect. All leaders possess both humility and will to a greater or lesser…...
mlaReferences
"Humility Key to Effective Leadership," (2011). Science Daily. Dec 8, 2011. Retrieved online: http://www.sciencedaily.com/releases/2011/12/111208173643.htm
Sears, D. (2009). Incentive compensation best retention tactic. The Ladders. Retrieved online: http://www.career-line.com/job-search-news/incentive-pay-beats-salary-as-top-employee-motivation-retention-tool/attachment/incentive-compensation-best-retention-tactic/
Van Herpen, M., Van Praag, M. & Cools, K. (2005). The effects of performance measurement and compensation on motivation: An empirical study. De Economist 153(3): 303-329.
Level 5 leadership is not enough
Company vision must be clear
Must be a belief in the future ( POW "Stockdale Paradox")
Change is often slow and incremental ("Flywheel")
Simplicity of direction and goals (hedgehogs, not foxes)
Judicious but forward-thinking use of new technology
Discipline
Level 5 leaders have tremendous personal will combined with a lack of personal self-serving egotism
Abbot Labs: ending nepotism, by company insider and family heir George Cain. Risky, radical move but resulted in Abbot outperforming Merck and Pfizer
Cork Walgreen turning the modern Walgreen's into a pharmacy rather than a general store/soda shop
These leaders made necessary decisions and risked their personal popularity for the sake of their companies
Level 5 leadership is difficult to embody: Difficult to change a person's character
Selflessness seems, in many ways, innate in these leaders
Many had personal turning-points before becoming Level 5, such as Smith's battle with…...
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