Strategic Business Planning: Walgreens

Topics: CVS/pharmacy, Walgreens, Pharmacy Pages: 9 (2513 words) Published: December 4, 2010
I. Strategic Business Planning
A firm’s strategic business plan should consist of its mission, future direction, performance targets and strategy. Walgreens’ corporate strategy, as reflected in its mission statement1, is to provide the most convenient access to healthcare services and consumer goods in America15. To help facilitate this, the company employs such things as online sales, online prescription refill capabilities, offers community health care clinics and monitors the effectiveness of in-store displays to improve customer’s shopping experiences. 12 million people visit its website monthly 15. Example of Walgreens Website Capabilities

Walgreens is the nation’s largest drugstore chain and 70% of the population lives within 5 miles of a store. As illustrated below, Walgreens saturates many neighborhoods throughout the country with its stores. The company is making the Walgreens experience the most convenient option for most people. Map of all Walgreens stores near Durham NC 27703

By continuing to build new stores, monitoring comparable store sales increases, purchase pharmacy prescription files and making strategic acquisitions, Walgreens is solidifying its future. Examples include the acquisition of smaller retail drugstore chains such as Drug Fair in Fiscal Year 2009 15 and Duane Reade in 2010. With the three biggest specialty pharmacies owned by competitors CVS, Medco Health and Express Scripts10, Walgreens also acquired McKesson Specialty and IVPCARE in Fiscal Year 2009 to increase its market share15. While the company is still not ranked in the top 25 of specialty pharmacies, the company continues its organic growth in this sector of the operations. Also, a new regional distribution center was opened in Fiscal year 2009 15. The company thinks this will further improve its productivity. The company feels strongly about continuing to build its retail pharmacy business because of an aging population and the advent of drugs that improve the quality of life, control health costs and prolong life 15. Hoping to increase shareholder value, in October 2008, the firm announced a set of initiatives designed to reduce cost and improve productivity through strategic sourcing of indirect spend, reducing corporate overhead and work throughout its stores, rationalization of inventory categories, realignment of pharmacy operations and transforming the community pharmacy 15. Walgreens expects that following these strategies will enable it to improve its revenue.

II. Information Systems Assessment
Technical Resources
Walgreens currently employs Business Objects Enterprise business intelligence software for all of its HR-related activities12. Prior to this, Walgreens unsuccessfully tried to use an ERP system and then a subsequent database for its human resources reporting needs. Neither of these systems met the company’s needs. The company chose Business Objects because it was already being used by several other divisions. •The company has an agreement with GOLIATH Solutions to electronically capture when, how long and approximately where displays are placed in Walgreens stores. When combined with Walgreens point-of-sale information, the GOLIATH data will allow the drugstore chain to design and implement displays that are proven to drive sales5.

Technical Resources – Assumption
It can be assumed that Walgreens may still use, but not support legacy mainframe system for its Human Resources function. Also, given the nature of its retail pharmacy business, the IT infrastructure has to be centralized. Customers are able to have prescriptions refilled at any Walgreens store, if they’ve previously had a new prescription filled at a store.

Data and Information Resources
For a fee, Walgreens allows its suppliers access to near real-time to near real-time point-of-sale data by store/item, as well as store-level inven¬tory data. This new program provides the suppliers with greater...

Cited: 1. Unknown. Walgreens website, Mission Statement. April 16, 2010.
< http://news.walgreens.com/article_display.cfm?article_id=1042>
3. Unknown. “Walgreens Workshop Series.” MVI – Management Ventures, Inc. 2009.
April 16, 2010
5. Unknown. “Walgreens Makes Retail Technology Work for Customers.” GOLIATH website. July 23,
2007
January 8, 2010. April 16, 2010.
7. Unknown
8. Unknown. Walgreens website, Executive Bios. April 20, 2010.
9. Unknown. Walgreens website, Corporate Organization. February 2, 2010. April 20, 2010.
Meeting.” Walgreens website, Press Releases. October 30, 2008. April 16, 2010.
12. Unknown. “Walgreens Links Strategy and Execution with Business Objects Enterprise.” SAP website.
2008
2009. April 16, 2010.
14. Unknown
Wellness Solutions.” Walgreens website, Press Releases. March 1, 2010. April 16, 2010.
15. Unknown. Walgreens Form 10-K Annual Report. Walgreens website, Investor Relations. October 26,
2009
16. Unknown. Walgreens Operation Data Share Program. Retail Solutions website. April 20, 2010.
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