Gm 591 final course project

Topics: Customer service, Walgreens, Decision making Pages: 6 (1778 words) Published: October 17, 2013


DECISION MAKING AND ITS EFFECT ON BUSINESS PROFICIENCY

GM591 LEADERSHIP AND ORGANIZATIONAL BEHAVIOR
May 26th, 2012

TABLE OF CONTENTS
Introduction------------------------------------------------------------------------------------------------------Page 3 Problem Statement----------------------------------------------------------------------------------------------Page 4 Literature Review------------------------------------------------------------------------------------------------Page 5 Analysis-----------------------------------------------------------------------------------------------------------Page 7 Suggestive Solutions--------------------------------------------------------------------------------------------Page 8 Conclusion & Reflection --------------------------------------------------------------------------------------Page 9 Work Cited------------------------------------------------------------------------------------------------------Page 10

INTRODUCTION
Walgreens is one of the fortune 500 companies and among the fastest growing retailers in the country. Walgreens as of April 30 operated 8307 location in all 50 states including the District of Columbia, Puerto Rico and Guam. This includes 7855 drugstores, 146 more than a year ago, including 21 stores acquired over the last 12 months. The company also operates infusion and respiratory services facilities, specialty pharmacy and mail service facilities. They also have a take care health system subsidiary which manages more than 700 in-store convenient care clinics and worksite health and wellness canters. This research is based on the problem facing the company on how executive decision making in the company has caused a negative impact and low productivity level among employees due to their decision to discontinue having Express Script (ESI) as their third party provider. The result of this research is to determine how corporate decision has impacted employee morale and thus resulting in high employee turnover. Which as a result led to several questions arising as to how to deal with the Express Script debacle, which are as the follows? 1) How do we make up for the ESI loss?

2) How do we empower the employee by boosting their morale after taking drastic measures (Job elimination, reduction in hours, Extreme pay cut) to make up for the lost profit? 3) How has corporate decision impacted the morale of employee productivity and personal growth? Walgreens has always provided good customer service, but changes in the competitive environment and in consumer behavior and expectations have caused them to intensify their focus. Walgreens’ mission is to win the hearts and pockets of their customers by providing that “wow” experience and delight score from customer appreciations. As a manager with the company, my role is to support the strategy by focusing on the strategy to deliver an outstanding customer experience through enhanced employee engagement by encouraging actions that will advance the experience to extraordinary levels for all customers. Also, to help all team members adopt an extraordinary customer care by listening and acting out customer’s expectations for the care and commitment they want to experience. PROBLEM STATEMENT

With the tremendous growth and opportunity to expand, Walgreens was hit by hard times due to a proposed rejection by Express script (ESI) a major pharmacy third party provider. This decision led to different changes within the organization called “Rewiring growth” and field transformation. Walgreens took a stand and made a tough decision not to sign the 2012 contract with ESI. The result of this decision was a lost in the pharmacy sales with projected amount totalling almost six billions dollars’ worth of business lost to their competitors. (Walgreens Company Correspondent on ESI Debacle)

Even though, the company thought they made the right decisions on behalf of their customers, patients...

Cited: (El Paso times, May 19, 2012)
"Walgreens executives give no signs they will try to negotiate a new deal with Express Scripts and said Walgreens will weather the storm with cost cutting and going after new business."
(El Paso times, May 19, 2012)
As a result of this decline, a lot of changes have taken immediate effect to affect the store level employees, like, extreme pay cuts, reduction in hours, hiring freeze, position eliminations etc
(Hacker, 2000, preface p.xvii)
SUGGESTIVE SOLUTIONS TO THE PROBLEM
These are some of the ways Walgreens has planned to help fill the potential $6 billion revenue gap created when their negotiations with express scripts was unsuccessful.
(Walgreens World Magazine January, 2012)
Work cited
1) (Hacker, 2000, preface p.xvii)
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