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Taylor Boucher - Ben Blackstone Alisha Cote - Orlando Melado. Table Of Contents . Opportunities Threats CPM EFE Internal Audit Organizational Structure Income Statement Balance Sheet. History Current Vision & Mission Statements New Vision & Mission Statements

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taylor boucher ben blackstone alisha cote orlando melado
Taylor Boucher - Ben Blackstone

Alisha Cote - Orlando Melado

table of contents
Table Of Contents
    • Opportunities
    • Threats
    • CPM
    • EFE
  • Internal Audit
    • Organizational Structure
    • Income Statement
    • Balance Sheet
  • History
  • Current Vision & Mission Statements
  • New Vision & Mission Statements
  • Existing Strategies & Performance
  • External Analysis
    • Industry Analysis of Major Competitors
table of contents cont
Table of Contents cont.
  • Internal Audit cont.
    • Financial Ratios
    • Strengths
    • Weaknesses
    • IFE
  • Strategy Formulation
    • SWOT Matrix
    • SPACE Matrix
    • GSM
    • Possible Strategies
    • QSPM
  • Final Strategy
    • Goals and Objectives
    • Projected Financials
    • 3 Year Agenda
walgreens history
Walgreens: History
  • 1901 - Charles R. Walgreen Sr. purchased the Chicago drugstore where he had worked as a pharmacist - and that started the Walgreen chain. His energy and enthusiasm soon led to new ideas and ambitious expansion. For example, he manufactured his own line of drug products to ensure high quality and low prices.
  • 1909 - The second Walgreen store opened.
  • 1916 - Nine stores incorporated as Walgreen Co.
  • 1922 - Walgreens invented the malted milkshake. Customers stood three and four deep around the soda fountain to buy the "double-rich chocolate malted milk."
  • 1926 - The 100th store opened in Chicago.
history cont
History cont.
  • 1927 - Walgreen Co. stock went public.
  • 1939 - Charles Walgreen Sr. died and Charles Walgreen Jr. became the company's president.
  • 1946 - Walgreens acquired its first foreign property when the company bought the Mexican retailer Sanborn's. In 1984, the company sold Sanborn's.
  • 1960 - Walgreens entered the Puerto Rico market. Walgreens filled its 100 millionth prescription, far more than any drug chain at that time.
  • 1968 - Walgreens became the first major drug chain to put its prescriptions into child-resistant containers, long before it was required by law.
history cont1
History cont.
  • 1969 - Charles Walgreen III became the company's president.
  • 1975 - Walgreens reached $1 billion in sales.
  • 1984 - Walgreens opened its 1,000th store, at 1200 N. Dearborn in Chicago.
  • 1994 - The 2,000th store opened in Cleveland.
  • 1999 - Walgreens.com, a comprehensive online pharmacy, was launched offering customers a convenient and secure way to take care of many pharmaceutical and healthcare needs online. In addition, the site provides Mayo Clinic Health Information, a trusted source in health and wellness information. Charles Walgreen III retired. L. Daniel Jorndt is named chairman.
  •  2000 - Walgreens reached the 3,000-store mark when its location at Halsted and Monroe in Chicago opened.
history cont2
History cont.
  • 2006 - In July, president Jeffrey A. Rein was named CEO while former CEO and chairman David W. Bernauer continued as chairman. Also in July, Walgreens acquired Happy Harrys drugstore chain, adding 76 stores, primarily in Delaware. In the fall, Walgreens began offering in-store health clinics, called Health Corner Clinics, with nurse practitioners treating walk-in patients for common ailments. During 2006, clinics opened in St. Louis, Kansas City, Chicago and Atlanta."
  • 2008 - Walgreens completed its acquisitions of worksite health care providers I-trax/CHD Meridian Healthcare and Whole Health Management. Jeff Rein retires as CEO, and Alan McNally is named the company's chairman of the board and acting CEO.
  • 2009 - Greg Wasson is appointed as CEO of the company. Walgreens opened its first store in Alaska, marking its presence in all 50 states. The company celebrated the opening of its 7,000th store nationwide with a grand opening in Brooklyn, N.Y. Walgreens offered H1N1 vaccinations at all of its pharmacies and Take Care Clinics nationwide to fight the flu pandemic.
  • 2010 - Charles R. Walgreen III retired from the company's board of directors after 46 years of service. Walgreens completed its acquisition of the Duane Reade drugstore chain in New York. Walgreens opened its first Well Experience format stores in Oak Park and Wheeling, IL.
current vision mission statements
Current Vision & Mission Statements
  • Vision: To be “My Walgreens” for everyone in America – The first choice in health and daily living… Owning the strategic territory “well.”
  • Mission: To be the most trusted, convenient multichannel provider and advisor of innovative pharmacy, health and wellness solutions, and consumer goods and services in community across America. A destination where health and happiness come together to help people get well, stay well and live well.
revised vision statement
Revised Vision Statement
  • Our vision is to be "My Walgreens" for everyone in America -the first choice in health and daily living- while providing a healthy work environment and making the world a better place.
revised mission statement
Revised Mission Statement
  • Walgreens strives to provide our customers (1) with a pharmacy/convenient store that is the most trusted, multichannel provider and advisor of innovative pharmacy, health and wellness solutions, and consumer goods and services in communities across America (2, 3). Consistently improving our technology ensures our customers have a great experience (4). Here at Walgreens we are dedicated to making all our operations efficient in order to protect the environment, be profitable, and stay above our competitors (5, 6, 7, 8). In our workplaces we encourage our employees to help us make their workplace a happy and enjoyable experience. Our philosophy is: happy employees equals happy customers equals a happy world(9).
existing strategies performance
Existing Strategies & Performance
  • Convenient locations on street corners in large metropolitan areas with high amounts of foot traffic.
    • 70% of America lives within 5 miles of a Walgreens- company serves 5.6 million customers daily.
  • Two major types of selling techniques used are suggestive selling and encouraging impulse buying.
    • 75% of Walgreens transactions come from female clients.
  • In 2010, 95 million citizens in the US will be over 50 years old, compared to 75 million in 2002.
  • EPS is rising which makes Walgreens look like a good long term investment, this can raise equity using stocks.
  • Physician shortage is expected to increase from 13,700 physicians in 2010 to 130,600 in 2025 across all specialties
  • The Baby Boomer population which is the largest market segment in the U.S. holds 2/3rds of the nation’s income.
  • Prescription drug use is at 12.5 prescriptions a year at age 60, increases to 20 at 70 years old, under 5 at 44 and under.  
  • Growing trend of in-store health clinics could cause an increase in Walgreens already existing 700 take care clinics.
  • 442,333 companies comprised the US drugstore industry, 50 of the largest companies generate approximately 70% of revenue.
  • The future of cheaper pills and the recession will cut spending for the average customer. 
  • Transformation of the Health Care system will provide challenges for not just the customers but the pharmaceutical companies
  • Every other pharmaceutical competitor can adapt the same changes that Walgreens does to keep up with them.
  • US Customs estimate that 10 million US citizens bring in medications land boarders each year.
  • High unemployment rates of approximately 9.5 % in 2011, which leads to job insecurity among the working population.
  • The potential of another stock market crash similar to August 4, 2011 which caused stock prices to crash over 512 points, this creates insecurity among investors.
  • 48 million Americans ages 19-64 did not fill a prescription due to cost in 2010, 66% increase since 2001.
  • Online retailer provides more than 3 million new online customers and 60,000 new products that Walgreens now distributes through its 7,700 drugstores.
  • 7.1 % increase in sales and 29.8% increase in net income is greater than industry average throughout every department throughout October.
  • Walgreens currently operates 8,210 pharmacies in deliberately chosen prominent and prime locations, often on busy intersections
  • Walgreens reported a 6.3 percent increase in prescription sales for 2011.
  • Walgreens also seeks entrance in the grocery business with fresh produce and has added up to 500 food items in their stores.
  • Increase in market share 19.5% 
  • Walgreens has 8,210 locations throughout all 50 states, plus District of Columbia, Guam, and Puerto Rico
  • Advertisement and marketing is weak in relation to the amount they spend compared to their competitors. 
  • Instead of acquiring existing store, they build a new Walgreens from the ground up costing more money
  • Walgreens does not own all its property (5 million sq. ft),  lease 40% of stores. 
  • Crowded parking lots make it tough for customers to have easy in and out access.
  • Failure to promote brands for baby-boomers and younger generations
  • Competitors like Walmart are beginning to operate 24 hour pharmacies.
  • Large discounters like Wal-Mart have drastic affect on Walgreens if they offer prescription medications at lower prices

Market Development

Market Penetration

Product Development

Forward Integration

Backward Integration

Horizontal Integration

Related Diversification

possible strategies
Possible Strategies
  • Increase marketing by 15% for Take Care Clinics & store sale prices.
  • Create a discount program for members including special discounts for senior citizens.
final strategy
Final Strategy

Design and implement a member discount program that will tailor to all generations.

goals objectives
Goals & Objectives
  • Increase sales by 10% in the first year of implementation.
  • Gain 5,000,000 discount card members in first year of implementation.
  • Advertise our discount cards in-store and online through the Walgreens’ websites.
3 year agenda
3 Year Agenda
  • Year 1: Research and develop discount card programs for customers.
  • Year 2: Update all Walgreens store computer systems to adapt to the discount programs and train employees on the discount programs.
  • Year 3: Advertise and implement the discount programs.
  • In Evanston, Ill, Walgreens launched the first ever net zero energy retail store. It has 2 wind turbines, nearly 850 solar panels, and a geothermal system.
  • Walgreens received a perfect score of 100 on the 2014 Corporate Equality index.
  • Walgreens now has special programs to help their customers get and stay healthy. In January, they launched a program called “Sponsorship to Quit” to help people quit smoking. They also have programs to increase awareness for HIV and AIDS.
  • Walgreens sales have been consistently increasing. In February there sales increased by 5%.
  • Walgreens consistently donates to different causes to help people. Recently they donated $100,000 to New York and New Jersey hurricane relief funds, $100,000 to the American Red Cross to help the people in the Philippines, and $25,000 to the American Red Cross Oso Mudslide Relief Fund.
  • http://www.drugchannels.net/2013/06/drugstore-industry-profits-rise-again.html
  • www.walgreens.com
  • http://economics-files.pomona.edu/jlikens/SeniorSeminars/Likens2012/reports/Walgreens.pdf
  • Strategic Management, By: Fred R. David