...Rite Aid Corporation-Long Term Debt Rite Aid is one of the leading drug store chains within the United States. Rite Aid predominantly operates on the east and west coast with a high degree of competition from other drug store chains such as Walgreens and CVS. As a result of both the weak economic conditions along with the high degree of competition Rite Aid faces, I would expect to see a large amount of debt on Rite Aid’s 10K report for fiscal year ending February 27, 2010. A. a. Secured debt is protected by assets given up as collateral by the borrower to protect the lender in the event of default. Unsecured debt is not protected by any such collateral and is generally more risky. Secured debt restricts the use of assets. The restrictions placed on assets are one rational for separating both secured and unsecured debt items. b. Guaranteed debt can be defined as debt that has a guarantor or a secondary promise to pay the debt in the event the borrower defaults. Rite Aid’s subsidiaries have provided the guarantee according to note 11 of the 10K report. c. Senior - senior debt describes the debt first repaid in the event of bankruptcy. Senior is simply a term to describe a position of repayment in the event of bankruptcy. Fixed Rate – fixed rate refers to the interest rate on outstanding debt. If debt is fixed the interest rate is set at a predetermined rate and will not change regardless of market conditions. Convertible – the term convertible debt refers to debt...
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...Johnson & Wales University Providence, Rhode Island Feinstein Graduate School Research Report: Company Resource Analysis A Research Project Submitted in Partial Fulfillment of the Requirements for the MBA Degree Course: MGMT6800 Business Policy and Strategy Professor: Trent Theroux Po Chiao Huang May 1, 2014 According to my research on company resource analysis in the drug store industry, I will select the CVS Caremark Corporation as my study company. Question 1: Whether the company's present strategy working? CVS pharmacy services business strategy centers on providing their customer and client high quality and innovative pharmaceutical solutions, while assisting their member managing overall health care costs by leveraging CVS expertise in core PBM services. (Form -10k) (1) Moreover, the retail pharmacy business strategy, base of the CVS pharmacy services model to maintain successful growth they focus on new store development by expanding the number of retail pharmacy stores and retail stores range in size in order to provide better service, help client lowers overall health care costs and improve health outcomes. (1) How these strategic working? Look into the financial performance in the Appendix 1, table 1. CVS compare well on these profitability ratios with industry averages. Most of ratios are better than the industry averages. Ventureline (2). Study the CVS’s financial report I found the company is “Solid and significant growth.” According...
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...Rite- Aid Accounting Fraud: How It Could Have Been Detected Abstract Martin Grass assumed leadership of Rite-Aid from his father in the mid-1990s. In the next 5 years Rite-Aid experienced rapid growth. The company was reporting higher earnings per share each year and a rise in stock prices only to discover it was all because of accounting fraud perpetrated by its senior executives. The SEC filed multiple charges listing the fraud perpetrated by senior management. There were warning signs to investors and creditors that things may not be as good as they seem. Accounting process and techniques could have detected the fraud and prevented Rite-Aid from having the largest financial restatement in history. In 1995 Martin Grass took over as chief executive officer (“CEO”) and chairman of the board of Rite-Aid Pharmacy, which is the third largest pharmacy in the nation. Under Grass, Rite-Aid started to acquire other pharmacy companies such as Perry Drug Stores, Harco Pharmacy and Thrifty Payless. Rite-Aid also purchased PCS Health Systems Inc., which was a pharmaceutical benefits management company. Rite-Aid had a generous compensation program for senior executives that included an annual bonus plan, stock option plan and long term incentive plan (“LTIP”). These programs were based on the company’s earnings per share (“EPS”) and stock price. If the EPS or stock price wasn’t met, then the executives didn’t receive the compensation. It was the company’s compensation program and...
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...Rite Aid Corporation which ranks as the third largest retail drugstore chain in the United states, control about 2,380 drugstores in 28 states across professionals pharmacy service, a full selection of health and personal care products, an assortment of general products in the nation and in the District of Columbia ( Rite Aid, 2007 ). Rite Aid has a great management team to help them with their success their team includes Chairman, President and Chief Executive Officer, Special Advisor, Corporate Strategy ,Chief Operating Officer ,Chief Administrative Officer ,Executive Vice President – Pharmacy, Executive Vice President, Store Operations ,Executive Vice President and General Counsel( Rite Aid, 2007). Differentiate between management and leadership is very different for example, response to its huge losses, Rite Aid has said it expects to spend more than $94 million to reassess and restate its financial results for 1998 and 1999( ). Furthermore, that includes rerunning mainframe-based accounting systems and paying IT people overtime to work with internal and external accountants and auditors during the process. Still, Rite Aid does not plan to replace its combination homegrown Computer Corp. accounting system.Rite Aide challenged by the complication and lack of standard interfaces the finance and accounting functions support throughout the organization. Data is not formats or transported in standard border or structure. Manual work is required to fit data within budget codes and...
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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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...SWOT Analysis Rickie Lieu MGMT303: Principles of Management DeVry University November 16, 2014 CVS/PHARMACY SWOT ANALYSIS In 1963 the Consumer Value Store (CVS) was built for your health and beauty needs, in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland. Through the next few years CVS started to grow and in 1967 pharmacies were being added to CVS’s in Warwick and Cumberland, Rhode Island (RI). After buying several small chain drug stores in the early 1970’s around the surrounding areas/states, CVS created small chain stores in shopping malls. In 1981, CVS broke ground on the Store Support Center in Woonsocket, RI. In 1988 CVS celebrated their 25th anniversary with a total of 750 stores. The 1990’s brought more stores in the new mid Atlantic, and Caremark set up in California. By the late 1990’s, CVS had stretched to 24 states totaling 4, 100 stores. 2001 was the year that CVS launched their ExtraCare Card Program, being the first national pharmacy retailer to launch a loyalty program. In 2005, CVS partnered up with MinuteClinic, and opened up three in their CVS/Pharmacy stores. The next year in 2006, MinuteClinic became the first retail clinic to be accredited by the Joint Commission. In 2008, CVS officially branched to California and Hawaii, by buying Long’s drugstores. In 2014, CVS announced they were deciding to stop the sale of tobacco, which was announced officially on September 3, 2014. With the end of tobacco sales,...
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...Transmercial. 1340 Tully Road, Suite 306-307 — San Jose, CA 95122-3055 — (408) 288-5500— (408) 288-5533(F)- © Transmercial. 2010 transmercial Commercial Real Estate Investment www.transmercial.com 3RD QUARTER 2010 Newsletter VOLUME 5 ISSUE 1 Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2011? By David V. Tran There are 3 major drugstore chains in the US: Walgreens, CVS, and Rite Aid. Below are some key statistics about the 3 major drugstore chains as of July 2010: 1. Walgreens ranks #1 with market cap of $29.33 Billion, $66.25 Billion in revenue, and S&P rating of A+. According to Walgreens, 75% US population lives within 3 miles from its stores. On Oct 1, 2009, Walgreens opened its 7000-th store in Brooklyn, New York. In April 2010, it acquired 258 Duane Reade drug stores in New York Metropolitan area. 2. CVS ranks #2 with market cap of $42.09 Billion, $99.1 Billion in revenue (CVS revenue alone is less than Walgreens if revenue from its Caremark group is taken out), and S&P rating of BBB+. CVS opened its 7000-th store in Little Canada, Minnesota on October 5, 2009 and currently operates 7025 drug stores. 3. Rite Aid ranks #3 with market cap of $869 Million, $25.53 Billion in revenue, 4780 drug stores and S&P rating of B-. Investors purchase properties occupied by these drugstore chains for the following reasons: 1. The drugstore business is very recession-insensitive. People need medicine when they are sick, regardless of the state of the economy. Both...
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...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Business and Management Jc Penney In: Business and Management Jc Penney 1. I feel J.C. Penney’s strategy is to do with away constant “sales” and have every day lower prices. I also feel that Penney’s will favor the promotion of brand names and doing away with in-house labels. 2. Yes I think Penney’s has a good strategy for growth. The new CEO Ron Johnson is providing direction and encouraging new ideas. By using the “apple” model for Penney’s he is incorporating new ideas. Mr. Johnson is trying to develop a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the game plan on how the mission will be accomplished. Mr. Johnson has clearly formulated his strategy by analyzing Penney’s internal problems along with the problems they have are facing from their competitors. Penney’s is currently n the strategy implementation part of the process this will take much investment but cost cutting and the elimination of sales have...
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...Company Analysis and Comparison: JC Penney (JCP) and Target (TGT) Becky Kennedy FINC 350 A Professor Mason February 1, 2015 JC Penney and Target are a huge presence in the retail industry. Both companies specialize in the sale of merchandise and service to consumers through retail stores and e-commerce. Target and JC Penney are companies that are part of an industry known for its competitiveness and few barriers to entry. They compete with other local, national and regional retailers for resources such as customers, employees, locations, merchandise, and other aspects of the retail business. Both companies have stores at several locations throughout the United States, with both company’s operating results depending on their ability to predict and respond to changes in trends and customer preferences by providing consumers with quality merchandise at competitive prices. Both companies face the same kinds of risks. The answers are in the way they are managed. The retail industry is risky with Target and JC Penney both struggling with issues resulting in lost revenue. Risks faced by companies in the retail industry most likely include competition, marketing, branding, employee/customer retention, supply chain management, financial management, data management and much more. Target suffered from a data breach at the end of 2013 that proved to be costly and they are still subject to investigations and private litigations costing them millions of dollars. JC Penney has suffered...
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...MGT 500 WK 7 ASSIGNMENT 2 To purchase this visit here: http://www.activitymode.com/product/mgt-500-wk-7-assignment-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 500 WK 7 ASSIGNMENT 2 MGT 500 WK 7 Assignment 2 - Management at J.C. Penney Company, Inc. Using the Internet research J. C. Penney Company, Inc. from its inception to current-day operations. Write a five to six (5-6) page paper in which you: 1. Evaluate two (2) key changes in J.C. Penney’s management’s style from the company’s inception to the current day. Indicate whether or not you believe the company is properly managed today. Provide support for your position. 2. Explain senior management’s role in preparing the organization to shift from a catalog-based retailer to an Internet retailer. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support for your rationale. 3. Evaluate management’s decision to use celebrities as key merchandise vendors and spokespersons. Indicate the organizational impact of these decisions. More Details hidden... Activity modeaims to provide quality study notes and tutorials to the students of MGT 500 WK 7 Assignment 2 in order to ace their studies. MGT 500 WK 7 ASSIGNMENT 2 To purchase this visit here: http://www.activitymode.com/product/mgt-500-wk-7-assignment-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM MGT 500 WK 7 ASSIGNMENT 2 MGT 500 WK 7 Assignment 2 - Management at J.C. Penney Company, Inc. ...
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...Rite Aid Corporation, as the third largest drugstore chain (behind Walgreen and CVS) in the United States, operates more than 4600 drug stores in 31 states and the District of Columbia, and engages in selling prescription drugs (more than two-thirds of sales), health aids, cosmetics, beauty supplies, convenience foods and other merchandise. It is headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill, and has about 90,000 employees including pharmacists and part-time employees, as of March 3, 2012. (Marketline.com) Rite Aid Corp. also had a long history, which helps it become a mature company now. In 1958, a businessman named Alex Grass founded Rack Rite Distributors in Harrisburg, Pennsylvania to provide health and beauty aids and other sundries to grocery stores. In 1962, he had his first drugstore, called Thrif D Discount Center, in Scranton, Pennsylvania, which was an offshoot of Rack Rite Distributors. In 1965, pharmacy was added in its stores, and this chain was officially adopted its new name Rita Aid in 1968. At the same time, this company went to public and made its debut on the American Stock Exchange. After that, Rite Aid started to make many diverse acquisitions. For example, in the 1970s, it purchased nearly 300 stores, and by 1981 Rite Aid was the #3 drugstore chain, and sales exceeded $1 billion. During 1980s, approximately 900 stores were added in Rite Aid, due to acquisitions. On the other hand, the cost of expansion eroded Rite Aid's profit...
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...Strayer University |Assignment for Course: | Business 508 – Contemporary Business | Date of Submission: December 14, 2011 Title of Assignment: Internet Technology, Marketing, and Security Executive Summary of Internet Technology, Marketing, and Security In society companies spent a lot of money on branding their company’s image. Due to the rapid growth in technology, the internet has become the fastest way to expand many marketing campaigns. Many companies number one priority is to ensure that their company’s image is maintained while making a profit. Security risks are more likely to take place on the internet because of many companies lack of safeguard focus of customer’s information. The Evaluation of JC Penney’s Production and Corporation Information J. C. Penney Company, Inc. is one of America's leading retailers, operates over 1,100 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com. Serving more than half of America’s families each year, the JC Penney brand offers a wide array of private, exclusive and national brands which reflect the Company’s vision to be America’s shopping destination for discovering great styles at compelling prices. Traded as “JCP” on the New York Stock Exchange, the $17.8 billion retailer is transforming its organization...
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...Corporate Strategy Benchmarking Composition By Kelli Schroeder I chose JC Penny and Harley Davidson as my two companies to research for this assignment. JC Penney was founded in 1902 with the opening of its first stores along the west coast in small mining towns. It was popular because it brought goods at “one fair price” and also led the way to bring east coast fashions to the west. In 1963 JC Penney mailed the first catalogs out to customers in eight states and paved the way for the mail order business. What made this company strong, fashion at a fair price, was lost among the plethora of items from cookware to scarves that they now sold by mail, and later in stores. ("International directory of," 199) The early nineties brought struggles of competition with lower end stores like Wal-Mart and midrange stores such as Kohl’s. JC Penney found their merchandise had become diverse like Wal-Mart; however, their prices were higher like their competing boutique stores. Product value was perceived by consumers to be suffering. Profits for the more than 1200 stores fell two percent in only one year, leading JC Penney in have the worst performance of its peers in 2011. (Clifford, 2012) Harley Davidson has also struggled with the same issue of losing itself amongst fierce competition and diversification. Harley-Davidson began in a shed in 1903 by two brothers who set out to make the best American made motorcycles that money could buy. As Harley-Davidson became more successful...
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...WAGIn the highly competitive prescription drug market, Walgreens is no longer competing only against the well-known traditional drugstores, but also with other new competitors that are increasingly proving to be strong competitors our two main traditional competitors are: CVs and Rite Aid. On the other hand, we are facing increasing competition from some discounters such as Wal-mart and target ------------------------------------------------- and also from, online pharmacies. First, let’s talk about Rite Aid.. Despite the fact that Rite Aid is the largest drugstore chain on the East Coast of the U.S, we don’t consider it, at least for now, a significant threat to us. After the acquisition of Brooks and Eckerd drugstores in 2007, Rite Aid is now financially the weakest compared to Walgreens and CVS ------------------------------------------------- , and as a result, Rite Aid added to itself a huge long term debt. Our second traditional competitor I wonna talk about today is CVS …as a matter of fact, we consider CVs our major competitor among all other competitors. It’s the second largest chain in the U.S. Also, it’s is the nation’s largest pharmacy service provider, having purchased Caremark group in 2007, which handles a good portion of CVS annual revenues. Although we might have similar operational activities, we, up to a certain extent, take different approaches to achieve our growth. While we choose to organically grow by opening new stores, CVS assumes...
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...Walgreens Co. is the largest drugstore chain in the United States in terms of sales, receiving most of its revenue from retail prescriptions. These drugstores sell prescription and non-prescription drugs, and general merchandise. Its general merchandise consists of beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items, convenience food and Walgreens offers an old-fashioned tonic for fiscal fitness. While Walgreen has fewer stores than its closest rival CVS, it is #1 in the nation in sales (Hoover's Inc, 2007). Walgreens operates about 6,000 stores in 49 states and Puerto Rico, and has three mail order facilities. Walgreen usually builds rather than buys stores, so it can pick prime locations (Hoover's Inc, 2007). Most of their stores are freestanding locations with a few outlets in mall and mini-malls. Throughout this paper I would describe Walgreens physical assets and technology and determine whether or not the organization has optimized its organizational resources for effectiveness and efficiency. In 1901 Charles R. Walgreens Sr. purchased the Chicago drugstore he had been working in as a pharmacist. A second store was bought in 1909 and by 1915, there were five Walgreens drugstore. By 1916, there were four additional stores that were bought, all on Chicago’s South Side. The stores were consolidated as Walgreen Co. with the aim of assuring economies of scale (Walgreens History, 2004). In 1919 there were 20 Walgreens stores...
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