...Walgreens Corporations Financial Analysis Introduction Walgreens operates 7,907 locations in 50 states, the District of Columbia, Guam and Puerto Rico with over 247,000 employees serving customers. The company has seen an increase in revenues, but an end to its contract to participate in the Express Scripts pharmacy provider network on December 31, 2011 poses a threat to revenues and profits for 2012 and future fiscal periods. This analysis will discuss Walgreen’s business strategy, provide a current financial analysis of the company, risks associated with the company, address prospective analysis of Walgreens and provide a decision on future investments in the company stock. Business Strategy Analysis A differentiation strategy serves a small market niche with products that are designed to appeal to the unique preferences and needs of the well-defined group of buyers. Companies that use differentiation strategies often enjoy high degrees of customer loyalty which discourages other firms from competing directly. This strategy usually targets customers who are not concerned about the price. Differentiation can reduce rivalry with competitors, and fight off the threat of substitute product because customers are loyal to company’s brand (Anzeletti, 2009). However, successful differentiation strategies require a number of costly activities, such as extensive advertising. Companies that purse a differentiation strategy need strong marketing abilities. One good illustration...
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...Running head: STRATEGY PLAN Walgreen Pharmacy Brigida L. Diaz Jones International University Prof: Dr. Sue Raftery Table of Contents Executive Summary…………………………………………………………………………........3 Walgreens Introduction...…………………………….……………………...............…………..4 Mission Statement…………………………….....………………………..………………………6 Walgreens Corporate Culture……………………………………………….………...…….…..7 Walgreens Stakeholders……………………………………………………………………….…8 Executive officer of Walgreens……………………………………….………………………….8 Walgreens Development Process………………………………………………………………...9 SWOT Analysis……………………………………….………………………………………….10 Goals ……………………………………………………………………………………………...15 Walgreens’s Implementation plan ………………………………………………………..........19 Walgreens’s Approval Strategies Plan:……………..………………………………….............20 References…………………………………………………………….…………………………..21 Appendices:……………………………………………………….…….….……………….…….23 An Executive Summary: With a variety of 70,000 health care service providers, Walgreen offers consumers and patients the support that reliefs them live a “well” life. Walgreen has more of 26,000 pharmacists at more than 7,500 stores across the country (Walgreen, 2011). The patients trust in Walgreen’s pharmacist in the moment, to take decisions. They provide information about health and wellness needs, and ensure they get their medication and immunizations in a timely and caring environment. At the same time, Walgreen is transforming and enhancing the role of...
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...Financial Reporting Project: CVS Health Corporation and Walgreens, Co. Financial Reporting Project: CVS Health Corporation and Walgreens, Co. Progress report two CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE Progress report two CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE 2015 2015 Table of Contents Module 4 Questions………………………………………………..pages 2-3 Module 6 Questions………………………………………………..page 3 Module 7 Questions………………………………………………..pages 4-5 Module 8 Questions………………………………………………..page 5-6 Accompanying Exhibits to Module 4……………………………...pages 7-9 Module 5 Questions (Exhibits six through eight)……………….....pages 9-11 Accompanying Exhibits to Module 6……………………………...pages 11-12 Accompanying Exhibits to Module 7……………………………...pages 12-14 Proxy Statement Questions………………………………………...page 15 Works Cited……………...………………………………………...pages 16-17 Return on Equity, Analysis, including the analysis of Operating and Non-operating Return (for a detailed analysis, please refer to Exhibit One, Two, and Three) In the fiscal years of 2012 and 2013, Walgreens Boots Alliance (WBA) had a higher return on equity (ROE) than did CVS; however, in 2014, CVS had a higher ROE than did WBA. (CVS and WBA 10-Ks) Both components of ROE (operating and non-operating) explain this above information. For the fiscal years of 2012 and 2013, WBA had a higher operating return, which is also called return on net operating assets (RNOA), than did...
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...Environmental Analysis Organizational Structure: According to the organizational structure (Figure 1), the executive team of CVS includes one President and twelve Vice Presidents. This team reports to the Board, which including nine directors. , CVS has established a management structure that is aligned to support the company's goal of providing quality services and quality products. Five Vice Presidents are in charge of products and services relevant functions and six are supervising supporting functions, such as accounting and human resource. Compared with the organizational structure in 2011, CVS has nominated its new CEO and changed six Vice Presidents. (The changes are highlighted in red in Figure 1.) The former CEO Thomas M. Ryan was also Chairman of Board. However, in 2013, CVS separated the CEO from Chairman of Board. Also, Helena Foulkes, who has been with CVS for over 15 years, has started a new position in Chief Health Care Strategy since 2011. This shows CVS’s attempt to intensify its ability of dealing with the ever-changing health care market demand and policies as well as its ambitious to keep leading the market. Customers and Services CVS’s business is comprised of Pharmacy Services segment, Retail pharmacy segment, and corporate segment. The Pharmacy Service provides a full range of pharmacy benefit management (“PBM”) services including mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management and...
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...Analysis of Goodwill and Walgreens Jean Johnson PHI 445 Personal & Organizational Ethics Instructor: Laticia Dezell November 16, 2013 Analysis of Goodwill and Walgreens Abstract: When it comes to business, ethics is very important. It is often different in not-for-profit and for-profit companies. Not-for-profit organizations use their profits to continue providing services that help mankind. For-profit organizations use their profits to share with investors or used for whatever the owner wants. Discussed here will be Goodwill and Walgreens, to show the differences between an not-for-profit and for profit companies. By presenting a case study on the two companies, will help the reader to have a clear understanding of the information that is addressed. This paper analyzes personal and organizational ethics and values between not-for-profit and for-profit organizations. The purpose of this paper is to identify key problems related to business ethics in these two organizations and how they use different ways to solve those problems. Introduction: The purpose of this case study is to provide knowledge of a analysis of personal and organizational ethics and values between not-for-profit and for-profit organizations. Goodwill Industries and Walgreens will be the not-for-profit and for-profit organizations that will be analyzed in this paper. The paper will be broke down into four parts. The first and second part is an analysis of Goodwill Industries and Walgreens including...
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...Walgreens Organization Project Julie DeGroot Principals of Management February 1, 2014 Professor Brad Bridges South University Online Walgreens in the past had been focused on opening stores and the layout of the stores for the customer’s convenience. They basically had managers and employees that did what they were told, almost like a command and control approach. They decided to do an organizational change which means the adoption of a new idea or behavior by an organization (Daft, 2014). Over the years, Walgreens has changed there management approach to the divisional structure. They now have different divisions with managers and employees under those divisions both in corporate and in store. They also changed their incentive programs to make sure that the employees were doing the best they could and were given an incentive to support that. They also started a loyalty program for customers to make them more competitive with the all the other drugstores. Walgreens organizational structure in the corporate offices has the president, vice president, CEO, HR, IT, employee relations, and finance; they couldn’t make all those decisions at the corporate level. District managers took on most of the HR, IT, employee relations and finance themselves which left them no time for the stores. Walgreens recognized this and created two new positions, vice president for markets and community leader. Vice president for markets is in the field for the 30 U.S. markets which take on...
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...Employee Turnover Problem in Walgreens Co. Jason Nguyen GM 591 Leadership and Organizational Behavior Professor Horst August 19, 2011 Introduction Walgreens Pharmacy is a drugstore chain that operates in the United States. This Company provides its customer with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communities across America. Walgreens has become a fortune five hundred company and a popular landing spot for new college gradates. Instead of becoming a permanent home for new employees, it has become a stepping-stone for better job opportunities. This study provides literature reviews, problem analysis, and solution recommendations for the employee turnover tendency problem facing Walgreens Pharmacy. Walgreen offers its products and services through drugstores, as well as through mail, by telephone, and via the Internet. It sells prescription and non-prescription drugs, as well as general merchandise, including household products, convenience foods, personal care, beauty care, candy, photofinishing and seasonal items. Its pharmacy services include retail, specialty, infusion, medical facility, long-term care and mail service, along with pharmacy benefit solutions and respiratory services. Walgreens corporate, located in Deerfield Illinois, is in charge of overlooking all of the operation within the organization. My role in the organization is a Business Analysis. I am responsible for summarizing...
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...Introduction Inventory turnover, the ratio of a firm’s cost of goods sold to its average inventory level, is generally used to measure performance of inventory management, analyze short-term liquidity, and assess performance improvements over time. In general, a higher value of inventory turnover indicates better performance in controlling inventory levels. And a lower value may be an indication of over-stocking which may pose risk of obsolescence and increased inventory holding costs. Inventory Turnover=cost of good sold/average inventory Average Inventory=(beginning inventory+ending inventory)/2 Gross profit percentage, the ratio of a firm’s gross profit to net sales, often used to judge operating profitability.The higher the gross profit percentage is, the healthier the business is. The gross profit percentage is a statement to measure how efficient the business is in making profit during the production process. Gross profit=revenue-cost of good sold Gross profit percentage=gross profit/revenue*100% Industries with higher gross profit percentages tend to have lower inventory turnover, and those two figures are different for different industries. There are several factors affecting those two ratios in different industries. First, the products’ price.High prices lead to high gross profit percentage, on the other hand, high prices lower the demand and sales, thus decrease the inventory turnover. Second, length of products’ life cycle. Businesses which produce...
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...Rite Aid ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current Price $5.68 ------------------------------------------------- Target Price $6.00 ------------------------------------------------- Market capitalization 5.268 B ------------------------------------------------- Shares outstanding 9.16 M ------------------------------------------------- ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current Price $5.68 ------------------------------------------------- ...
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...Introduction Walgreen Co. and CVS/Caremark are two of the largest retail drugstore chains in the United States, offering consumers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photofinishing, and seasonal items, as well as over-the-counter and prescription medication. In addition to their well-known retail pharmacies, both companies also operate a health services health and wellness division. Within the retail pharmacy industry CVS/Caremark and Walgreens continually battle for the retail position. This document will offer an overview and basic competitive analysis of the two companies. Background Location & Type of presence (brick and mortar, or internet) According to the CVS/Caremark 2011Annaul Report, page 23; as of December 31, 2011, the CVS/Caremark Retail Pharmacy segment operated 7,327 retail drugstores with 7,271of these retail stores operating a full service pharmacy. Their stores are located in 41 states and the District of Columbia and Puerto Rico. Additionally, within these retail stores operate 657 health care clinics conducting business under the Minute Clinic name. The retail pharmacy stores operate primarily under the CVS/pharmacy or Longs Drugs names. In addition, the Pharmacy Services segment operates under the names CVS Caremark Pharmacy Services, Caremark, CVS Caremark, Care Plus CVS/pharmacy, Care Plus, and Rx America to providing pharmacy benefit management services to employers, insurance...
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...Marketing Project: Walgreens Company Table of Contents Introduction………………………………………………………………………….3 Market Situation/External Analysis………………………………………………..3 Current Industry…………………………………………………………………….3 SWOT Analysis………………………………………………………………………4 Major Changes and Trends…………………………………………………………6 Key Success Factors……………………………………………………………….…8 Marketing Strategy………………………………………………………………….9 Segmentation Strategy……………………………………………………………….9 Target Market Description and Strategy…………………………………………..13 Positioning……………………………………………………………………………15 Marketing Mix Strategy………………………………………………………….….18 Marketing Objectives………………………………………………………………..18 Product Strategy……………………………………………………………………..21 Pricing Strategy……………………………………………………………………...23 Promotion Strategy………………………………………………………………….25 Distribution Strategy………………………………………………………………..27 Forecast………………………………………………………………………………29 Conclusion……………………………………………………………………………31 References……………………………………………………………………………32 Introduction Walgreens is established as one of the leading competitors in the drug store industry. Over the years, Walgreens has developed a very well-known and respectable name for itself through different marketing strategies and company strengths. Like any company in a competitive market, Walgreens has its share of opportunities and threats, and has continued to remain at the top of the industry. Providing such a wide variety of products and services to its very diverse customer base means Walgreens must stay up-to-date...
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...U.S. Companies Dodge $60 Billion in Taxes With Global Odyssey - Blo... http://www.bloomberg.com/news/print/2010-05-13/american-companies... By Jesse Drucker - May 13, 2010 Tyler Hurst swiped his debit card at a Walgreens pharmacy in central Phoenix and kicked off an international odyssey of corporate tax avoidance. Hurst went home with an amber bottle of Lexapro, the world’s third-best selling antidepressant. The profits from his $99 purchase began a 9,400-mile journey that would lead across the Atlantic Ocean and more than halfway back again, to a grassy industrial park in Dublin, a glass skyscraper in Amsterdam and a law office in Bermuda surrounded by palm trees. While Forest Laboratories Inc., the medicine’s maker, sells Lexapro only in the U.S., the voyage ensures most of its profits aren’t taxed there -- and they face little tax anywhere else. Forest cut its U.S. tax bill by more than a third last year with a technique known as transfer pricing, a method that carves an estimated $60 billion a year from the U.S. Treasury as it combines tax planning and alchemy. (See an interactive graphic on Forest’s tax strategy here.) Transfer pricing lets companies such as Forest, Oracle Corp., Eli Lilly & Co. and Pfizer Inc., legally avoid some income taxes by converting sales in one country to profits in another -- on paper only, and often in places where they have few employees or actual sales. After an economic bailout in which the U.S. government lent, spent or guaranteed...
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...in Accounting degree from DeVry University. My mission is to also enroll in Keller’s Graduate school to get my master in Business and Management. My goal is to work for a successful company in a management position to demonstrate my skills and help the company to drive for outstanding results. I am committed to becoming a successful manager in a retail store or corporate level. I am willing to go above and beyond to reach that goal. I am a driven, compassionate, and hardworking individual. My goal is to one day get marry and have a family. I will be loving and proactive in building and maintaining my relationships with my employees, family and friends, so that I may be considered a successful wife, mother, daughter, sister, aunt, friend, co-worker, and manager. Elevated Speech Hi my name is Carmelia Bell. I am a senior at DeVry. I’m graduating June 30 of this year. I have 4 years of an assistant manager experience. I’m currently working as a team lead at Target. There I have driven my team of becoming number one out of a group of 300 stores of having the highest guest experience score. Our goal was 88% and I led my team of getting a 99% score. I’m looking for company where I can contribute to their company success by driving for outstanding results for them as well. I am a dedicated and hardworking person with the mindset of being the best. I...
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...Introduction Consume Product Inc. (CPI) founded in 1951 with an annual revenue of $200 million is a publicly traded regional company based in Phoenix, Arizona. It is an U.S. based regional consumer products manufacturing and distributing company with excellent reputation, corporate culture and high quality consumer products in the business. The company has an extensive retail distribution channels throughout west region including Los Angeles, San Francisco, Phoenix, Portland and Seattle (CTU Online, 2012). CPI’s business is focuses around three major bands of products. They are Shades of Youth, Super Clean and Super White. Shades of Youth, is a line of hair care products which are well received and popular among older customer base. Super Clean is a line of detergent and bleach products and last but not least Super White is a teeth whiting tooth paste line of products. Even though our company is viewed as a safe and conservation investment by the Wall Street and the investor community, our future growth potential is been questioned especially our ability to compete with industry giants such as Proctor & Gamble. As a CEO of the company, my number one task is to grow the business and add shareholder value while maintaining best in class corporate ethic and culture (Ribero, R, May 20st, 2012). Potential Nationwide expansion Opportunities and hurdles CPI can achieve a growth model by utilizing our existing regional product strength and brand reputation and market...
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...Module 4 Analyzing and Interpreting Financial Statements QUESTIONS Q4-1. Return on investment measures profitability in relation to the amount of investment that has been made in the business. A company can always increase dollar profit by increasing the amount of investment (assuming it is a profitable investment). So, dollar profits are not necessarily a meaningful way to look at financial performance. Using return on investment in our analysis, whether as investors or business managers, requires us to focus not only on the income statement, but also on the balance sheet. Q4-2.B ROE is the sum of an operating return (RNOA) and a nonoperating return (the effective use of financial leverage – specifically, leverage multiplied by the spread). Increasing leverage increases ROE as long as the spread is positive. Financial leverage is also related to risk: the risk of potential bankruptcy and the risk of increased variability of profits. Companies must, therefore, balance the positive effects of financial leverage against their potential negative consequences. It is for this reason that we do not witness companies entirely financed with debt. Q4-3. Gross profit margins can decline because 1) the industry has become more competitive, and/or the firm’s products have lost their competitive advantage so that the company has had to reduce prices or is selling fewer units or 2) product costs have increased, or 3) the sales mix has changed from higher margin/slowly turning...
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