Critically evaluate information from core business functions and the value chain to enhance knowledge of organizational strategic position and direction.

In continuation of my Walgreens Project…last paper was not Walgreens and I have to resubmit my order and pay all over again.

Having delivered the Strategic Frame Assessment, and the Strategic Fit of the Firm Assessment to the VP, we now turn our attention to the Strategic Fit With the Industry Environment Assessment, including the corporate strategies to expand the scope of the firm to penetrate the industry environment. Understanding the strategic position of the firm within the industry environment is critical to competitive analysis and an integral component of the due diligence required for strategic decisions on the direction if the firm—to diversify, vertically integrate, or internationally expand.

Industry analysis begins at a macro environmental level with strategic tools such as the PEST (Political, Economic, Social, Technological) model to forecast how an industry might change and evolve over time.

Strategic Fit With the Industry Environment Assessment

Click Assignment Introduction – Unit 4 to launch the audio presentation from Terri Bell, the vice president of strategy. This presentation will describe details and offer suggestions for success with this assignment.

Assignment Introduction Unit 4

Hi there – Terri Bell here again. This week, I’ll be expecting you to complete your report about the Strategic Fit with the Industry Environment. This assignment focuses on the firm’s fit with the strategic elements of the industry environment, the position and direction of the firm, and the ability of the firm to enable the execution of its strategy.

Here are some key questions to answer in your analysis:

Conduct a competitive analysis of the firm, using resource based theory, or value chain model. Are there vital PEST (Political, Environmental, Social, Technological) factors shaping the industry conditions? Which competitive forces (Porter’s 5-Forces Model) on the firm are most intense?

Analyze the strategic position and direction of the firm. Evaluate its corporate strategy. In which market segments does the firm participate? What are the buyers purchase criteria and basis of competition (Key Success Factors) for the market segment? Should the firm reposition its resources and capabilities (change its product scope, vertical scope, or geographical scope) in anticipation of changes in industry structural factors or competitive forces?

Analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. Go beyond description – give a good analysis. Go above and beyond by assessing the impact of industry environment issues on the strategic position or direction of the firm.

Evaluate how the organizational structure and management systems support the execution of the firm’s strategy. Consider the organization of functional capabilities and/or value chain capabilities of the firm. Assuming the firm employs a diversification or vertical integration strategy, could costs be reduced and/or revenue increased by economizing the scale of diversification? Could costs be reduced and/or revenue increased by downsizing or outsourcing activities in the vertical scope of the firm?

Compose a preliminary strategic fit report on the firm and its industry environment.

Submit your report in a business format, noting submission requirements that can be found in your courseroom assignment page.

I look forward to seeing your Industry Environment assessment. Thanks!

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

•Analyze the strategic elements of organizations and their external environments by applying theories and models of strategy. ◾Conduct a competitive analysis of the firm, using resource-based theory or value chain model.

•Critically evaluate information from core business functions and the value chain to enhance knowledge of organizational strategic position and direction.

◾Analyze the strategic position and direction of the firm.

◾Evaluate how the firm’s organizational structure and management systems support execution of the firm’s strategy.

•Create a comprehensive organizational strategy assessment.

◾Analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers.

•Communicate in a manner that is professional and consistent with expectations for members of the business professions.

Assignment Description and Instructions

Write a detailed report of your analytical findings and strategic issues from your analysis of the industry environment. Explain that this analysis focuses on the strategic elements of industry environment and concerns or opportunities of how the strategic elements fit with the strategy as reported in the Strategic Frame Assessment previously delivered to the VP.

•Conduct a competitive analysis of the firm, using the theories and models of strategic analysis. Are their vital PEST (Political, Environmental, Social, and Technological) factors shaping the industry conditions? Which competitive forces (Porter’s 5-Forces Model) on the firm are most intense?

•Analyze the strategic position and direction of the firm. Evaluate its corporate strategy. In which market segments does the firm participate? What are the buyer’s purchase criteria and basis of competition (Key Success Factors) for the market segment? Should the firm reposition its resources and capabilities (change its product scope, vertical scope, or geographical scope) in anticipation of changes in industry structural factors or competitive forces?

•Articulate concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers.

•Evaluate the degree to which the organizational structure and management systems enable the execution of the corporate strategy. Consider the organization of functional capabilities and value chain capabilities of the firm. Assuming the firm employs a diversification or vertical integration strategy, could costs be reduced or revenue be increased by economizing the scale of diversification? Could costs be reduced or revenue be increased by downsizing or outsourcing activities in the vertical scope of the firm?

•Submit your report in a business format, noting submission requirements below.

Submission Requirements

•Written communication: Written communication is free of errors that detract from the overall message.

•Business formatting: ◾Length: 2–3 double-spaced, typed pages.

◾Font: Times New Roman, 12 point.

•APA formatting: Resources and citations are formatted according to APA (6th ed.) style and formatting. Minimum of one source required.

Refer to the Strategic Fit With the Industry Environment Assessment Scoring Guide to ensure that you meet the grading criteria for this assignment.

Strategic Fit With the Industry Environment Assessment Scoring Guide Grading Rubric

Criteria Non-performance Basic Proficient Distinguished

Conduct a competitive analysis of the firm, using resource based theory or value chain model.

23% Does not conduct a competitive analysis of the firm, using the resource-based theory or value chain model. Competitive analysis of the firm insufficiently utilizes the resource-based theory or value chain model. Conducts a competitive analysis of the firm, using the resource-based theory or value chain model. Conducts a competitive analysis and synthesizes significant findings relative to the key resources, capabilities, and specific value chain activities.

Analyze the strategic position and direction of the firm.

22% Does not analyze the strategic position and direction of the firm. Describes, but does not analyze the strategic position and direction of the firm. Analyzes the strategic position and direction of the firm. Analyzes the strategic position and direction of the firm relative to the strategic elements of the industry environment.

Evaluate how the firm’s organizational structure and management systems support execution of the firm’s strategy.

23% Does not evaluate how the firm’s organizational structure and management systems support execution of the firm’s strategy. Describes, but does not analyze, how organizational structure and management systems support execution of the firm’s strategy. Evaluates how the firm’s organizational structure and management systems support execution of the firm’s strategy. Relates organizational design theory to organizational structure and management systems that enable the execution of the corporate strategy.

Analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers.

22% Does not analyze concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. Describes, but does not explain, concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. Analyzes concerns or opportunities about the firm’s strategic fit with its competition, suppliers, and customers. Assesses impact of industry environment issues on the strategic position or direction of the firm.

Communicate in a manner that is professional and consistent with expectations for members of the business professions.

10% Does not communicate in a manner that is professional and consistent with expectations for members of the business professions. Inconsistently communicates in a manner that is professional and consistent with expectations for members of the business professions. Communicates in a manner that is professional and consistent with expectations for members of the business professions. Communicates in an exemplary manner that is professional and consistent with expectations for members of the business professions.

Assignment #1 Walgreens

Walgreens is the United States’ largest drug retailing company, and it operates over eight thousand warehouses in all the states. It is headquartered in Chicago suburb, Deerfield, Illinois.

Executive summary

Covered below is the strategies that Walgreens company should put in place to maintain its position in the market niche. Walgreens, though it has a well-established market channels for distribution, is still surrounded by competitors (Bacon 2004). Therefore, the management should put strategies in place to keep it fit and sustain its competitiveness in the market. The SWOT analysis is so important to keep the management alert to the threats and try to reduce weaknesses. It should uphold its strengths and utilize the opportunities available for the purpose of its strategic fit. The SWOT analysis enables the company set its strategies.

Besides, the stakeholders’ decision-making concerning strategies for restructuring sustained growth are articulated. The matters in hand comprise enabling environment and strategic organizational issues.

Strategies of the company

Walgreens has established several stores in almost all the states in the United States of America. These stores act as the distribution channels that sell the end product to retailers and the final consumers of the drugs (Bacon 2004). Each store has an expert or experts who prescribe the drugs for the buyers. The company also has set up stores in strategic places that make it hard for other competitors to venture and overtake it in the market.

Secondly, the company has come up with various innovations that keep it on the competitive edge though it still has to do a lot. The company was the first to introduce containers that are child-resistant. It also made the prescription of drug not in English alone, but in various other languages. It can now sell their products globally by the use of e-marketing and satellite (Bacon 2004). This makes it easier to do sales and marketing of the product to a broad range of buyers.

There are opportunities that the company ought to utilize such as the growing rate of US population. This can be a strategy because, as the rate of population rises, the number of potential buyers increases also. The company, therefore, increases the sales volume thus increasing their revenue and hence it sustained growth. The increment of international marketing is also one of the best strategies of the company (Ketcham 2008). This enhances its strength and popularity, and customer awareness of the company’s products and services.

The stakeholders, beginning with the president of the company to that end retailer, should hold seminars to discuss the ways in which the company retains its competitive status. They should also consider the various dynamics in the modern ways of doing business, especially with the continuously changing technologies (Ketcham 2008).

Recommendation

Walgreens company despite being a market leader in the retail and sales of drugs ought to be careful in its ways of doing business. The management should be smart to keep the company firm and maintain its largest market share. The following measures are important to the company; some of which are ethical issues to retain the customer loyalty. First, the company should train its workforce like pharmacists and physicians who can prescribe drugs for their clients. Secondly, it should have follow-up measures so that in case of any defects in the drugs, or the customers/clients encounter some problems, the company should be there for them to give solutions or alternatives. Besides, the company should open its branches in other countries in various continents for its growth and expansion (Ketcham 2008). Lastly, the core stakeholders should be having regular meetings to keep in check the progress of the company’s performance in all the stores or branches.

References

Bacon, J. U. (2004). America’s corner store: Walgreens’ prescription for success. Hoboken, NJ: Wiley.

Ketcham, J. D., Simon, K. I., & National Bureau of Economic Research. (2008). Medicare Part D’s effects on elderly drug costs and utilization. Cambridge, MA: National Bureau of Economic Research.

Assignment #2 Walgreens

Strategic Fit of Walgreens Report

Currently, Walgreens is the most successful drugstore chain in America. The company operates a network of over 5500 stores. Walgreens success is widely spreading, and the firm opens up one store more than once a day. In 2005, for instance, the company had opened 371 new stores. Despite the overwhelming competition in the industry, Walgreens stands to be the unchallenged leader in profits, prescriptions sales per store, newly built stores, and profits per square foot. It is, therefore, clear that there is high consistency between Walgreens’ business strategy and its profitability goals. As much as the firm is facing stiff competition from CVS, it is still in the capacity to make profits and deliver to its customers adequately.

The firm is reliant in its retained earnings and accumulated capital to carry out its daily operations. The capital structure of the firm shows that the firm obtains its finances from retained earnings more than it uses debts in financing its operations. February 2015 capital structure of Walgreens stood at 35% for debts and 65% for equity. The firm owns several tangible assets in terms stores and other equipment that make achievable the large volume of business that the firm aspire to execute. The supply chain capabilities of Walgreens are found on both its supply chain function and the supply chain value. The coordination of supply chain functions from the supply to the final consumer makes the firm preferable to customers. The information function, for instance, is well coordinated, and it is for this reason that the firm is well conversant with the needs of its clients. Walgreens understands its customers well, and they consider convenience as key to their customers, and they are creating value out of it. The recent rebranding of projects in the makeup department is a response to customers changing demands. As a result, the makeup department has been transformed in terms of the store display and more importantly the improvement of serve with specialty train beauty advisors. The business strategy that is employed by Walgreens is sufficiently competitive and efficient in facilitating decisions on matters to do with resources allocation.

Walgreens exhibit a hierarchical management structure and the company’s president is the ultimate boss. The organizational and management structure of Walgreens facilitates precise definition and execution of roles. Every individual including pharmacist at the lowest level of the firm hierarchy understands their role and the company’s expectation in terms of duties and strategy executions. The company’s resources are distributed to the various departments as per the need of the department. The annual and preliminary budgets define the exact or the adjusted amount of the firm’s financial resources that every department gets. Every department and store managers are usually involved in every planning and budgeting process.

The primary stakeholders in Walgreens are its customers. The firm is sensitive to the demands of its customers making them the first in consideration of all the firm’s issues affecting them. Any costly strategy that is geared towards customers’ satisfaction significantly affects the distribution of profits. The profit sharing of the firm’s excess profits is of concerns especially in regards to corporate social responsibility expenditure and shareholders profits disbursement. The recent Walgreens’ project of transferring its corporate address to Switzerland is posing corporate responsibility dilemmas concerning tax. Several similar firms are raising complaints concerning the possibility of Walgreens to bypass $4 billion taxes for five years. The firms are worried that the tax burden of $4 billion will fall on them. The concern may be true because as much as Walgreens will extend to Switzerland, it will be controlled from U.S hence benefiting from the U.S roads, infrastructure in addition to large volume of sales in the U.S but paying its taxes to Switzerland government. Depending on how the firm’s move will be translated by the various stakeholders, the Walgreens may or may not face any impact from the dilemma of tax avoidance.

Walgreens opportunity is currently based on the sales volume increase and diversification. However, the firm’s strategy of providing new services and expanding on retail clinics into chronic cares is becoming a concern. The U.S health care system is already fragmented and the expansion of retail clinics to become chronic cares will not only lower the quality of health services but also raise costs. Furthermore, the increase will pose risks to patients having long-term clinical outcomes. It is also of the highest concern that retail clinics may lack the capacity to provide patients with specialty services for complex diseases. The resultant effect of retail supply chain is significant to Walgreens because its position and competitive advantage are embedded on its retail functionality.

In conclusion, Walgreens business strategy is consistent with the profitability and corporate responsibility goals of the company. Apart from thriving in the competitive industry, the firm is expanding in terms of geographical reach and growing in terms of sales volumes. Although there are challenges and stakeholders concerns regarding the business strategy of the firm, Walgreens is able to balance the interests of the various stakeholders of the firm hence achieving its strategic fit.

Reference

Zaefarian, G., Henneberg, S. C., & Naudé, P. (2013). Assessing the strategic fit between business strategies and business relationships in knowledge-intensive business services. Industrial Marketing Management, 42(2), 260-272.

Please it is For WALGREENS!!!