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 community pharmacy. The Company has the largest retail network of pharmacists certified.
The Company expands the role of pharmacists to provide quality, accessible care. In addition to pharmacists and pharmacy technicians, the Company’s unparalleled network of trusted health care advisors includes nurse practitioners, doctor assistants, home care nurses, physicians and others all on the front lines of health care, offering information, solutions and support for millions of patients a year.
Walgreen has long demonstrated a strong responsibility to the communities it serves. Part of that authority is fostering an environment open to the development of various business executives. The organization's purpose is to promote wider vendor contribution to help develop the economic base of populations in neighborhoods across the country. Walgreen system is to employ a minimum of 8 percent certified Minority Business Enterprise and 2 percent other certified diversity classifications (Walgreen, 2012).
Walgreen does not discriminate based on ethnic group, color, sexual category, principle, origin, national descent, sexual orientation, or disability. In maintaining this system, Walgreen helps strengthen and develop communities. These practices are essential to serving a diverse America and maintaining Walgreen longstanding tradition of fairness, trust and honesty.

Introduction:
Walgreen has a history over a century. Charles Walgreen founded his first store in 1901. Walgreen operates the largest pharmacy chain in the United States. Walgreen operated 8,210 locations in 50 states, the District of Columbia, Puerto Rico and Guam. Walgreen has always maintained an easy method. With all the development and growth in technology, Walgreen Company plans to keep the market as the number one pharmacy chain forever. (Walgreen, 2006)
The basic idea was to obtain effectiveness, one of the organization's goals, by offering an economical value system and helpful assistance. This plan operated in favor of Walgreen. Its focused on exceptional client service and extended its market share. Walgreen brings valuable product value as a countrywide. Following a regular development plan has permitted the company to watch fully select the places where it starts other stores.
As a respectable business resident, Walgreen takes satisfaction that its group affiliates are leaders in their communities. The Yearly Statement of Financial 2010 shows a year of substantial growth in the renovation of Walgreen. The company has obvious of many continuous years of record transactions. Although a current undefined financial plan, Walgreen done forceful growth, controlled its costs and established new and unique methods to exceptional support customers, and patients in the neighborhoods where they reside and produce. All over the year, they chose fundamental movements in improving the change started in 2008, to realize its goal of being America’s most trustworthy and accessible provider of customer goods, pharmacy provisions, and health wellness sources. (Walgreen, 2010)
Walgreen’s competitors are Rite Aid, CVS, Wal-Mart Stores Inc., Target Corporation. Walgreen is the number one pharmacy leader. It is the market head in many groups; it follows CVS in quantity of stores. Walgreen vision is to be "My Walgreen" for everyone in America, the first choice in health and daily living. Its mission, to be the most main favorable multichannel provider and advisor of advanced pharmacy, health and wellness solutions, and consumer goods and services in Communities around America. (Walgreen, 2011)
Figure 1

Walgreen objective is serving its customers by providing them the best possible customer service. Walgreen Company looks to hold the qualities essential to stay the pharmacy business better-quality. (Walgreen, 2012)

Mission Statement:
Walgreen mission is to offer customers the best pharmacy service in America and Puerto Rico. They directed by an era old tradition of equality, believe and integrity as permit them to continue its stores expansion and propose profession opportunities to a fast expanding and varied group of men and women. (Walgreen, 2012).

Walgreen Corporate Culture:
Walgreen is a fast-paced and innovative company. It is part of the culture that they have created, and it drives their success. They respect all and each team member, as well as their opinions on how to make Walgreen more valuable to customers and communities. This open approach originates an innovative and proactive environment, which continues to evolve and be shaped by the positive relationships that fostered within their organization.
They are proud of its success as a company, yet remain a modest and down-to-earth association of persons who are continuously ready to give a hand to customers and co-workers alike. It is an indicative of support and respect, which makes Walgreen a prominent place to build a career.
The Walgreen culture is different from most retail chains, partly because never employ an external man, when there is one accessible already in the organization. The company breeds an unusual level of loyalty, as well as extraordinary endurance. The Walgreen trends were from soda fountains to self-service, from strip mall locations to free-standing convenience drug stores. The company has been use technology as a competitive advantage.
Walgreen believe in cooperation all along the line, from manufacturers who are giving its cooperation by promoting sales in stores, to the humblest employee in the organization. Cooperation is essential for a business success, and it takes more than one man to make a business prosper. Walgreen success is consistency and immaculate execution; obsessive dedication to customer service; a culture that fosters collaboration not egos; intelligent use of capital combined with astute frugality; continuing promise to investing in new technology; the capacity to adapt to changing times without losing its focus or identity.

Walgreen’s Stakeholders:
Executive officer of Walgreen elected annually by the Board of Directors and serve until a successor elected or appointed and qualified or until the officer's death, resignation or removal. There are no family relationships between any of the Company’s executive officers or directors.
The following table sets people are serving as an executive officer of Walgreen until October 25, 2011, (Walgreen, 2011).
Executive officer of Walgreen
Table 1
Name Position
Gregory D. Wasson President and Chief Executive Officer
Sona Chawla President, E-Commerce
Kermit R. Crawford President Pharmacy Health and Wellness
Mark A. Wagner President, Community Management
Wade D. Miquelon Executive Vice President and Chief
Financial Officer
Graham W. Atkinson Senior Vice President and Chief
Customer Experience Officer
Mia M. Scholz Senior Vice President, Controller and
Chief Accounting Officer
Timothy J. Theriault Senior Vice President and Chief
Information Officer
Kathleen Wilson-Thompson Senior Vice President and Chief
Human Resources Officer
Robert G. Zimmerman Senior Vice President and Chief
Strategy Officer
W. Bryan Pugh Vice President, Merchandising
Alan G. McNally Chairman of the Board, Walgreen Co.

Doug Egan Divisional Vice President, Retail Integration
Walgreen Store Operations

Walgreen’s Development Process Walgreen robust expansion is decelerating, to increase incomes and reinvest its money into its present, store portfolio. In a big change, new CEO Gregory Wasson publicize late last year that the company would cut its new store growth from 9 percent to 3 percent by fiscal 2011, (Shepherd, 2012).
The most popular strategy retailers as the economy became more of an interruption to growth allow the series to shore up its incomes while still adding new places. A reduce of store expansion can lessen the financial drag of a large number of new stores opening each year.
Further the growth slow-down, the company is trying to save money by shortening 1,000 corporate and field-management jobs through both voluntary buyouts and layoffs. In all, the company hopes to cut about $1 billion in annual expenses by 2011. (Shepherd, 2012)
With additional money available, the company intends to reinvest in its current store portfolio. Walgreen is redesigning 400 stores to reflect changes like lower shelves, and similar item grouping, informational signs. Walgreen also plans to add more in-store health clinics, called Take Care Clinics, to existing stores and expand its product offerings. The changes may be coming at just the right time.
The company’s plans to cut store growth boost profits and reinvest in existing stores, will make a substantial impact on profit or sales. The changes are necessary for Walgreen become a more adept, consumer driven merchant and give it a cost structure to be able to live within its means going forward.

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Walgreen SWOT Analysis
Strengths:
Technology: As a market leader, Walgreen committed to leading the way in innovation and technology. In 1981, Walgreen began taking steps to become the first pharmacy chain to have its drugstores connected by satellite. In 2002, Walgreen began to offer non-English prescription drug labels and was the first to do so (Walgreen Corporation, 2012). The business’s continued emphasis on developing and utilizing technology makes its business more efficient and serves its customers better. The successful implementation of technology in both the store and supply chain is the strength for the Walgreen Company. Through an affiliation with Hewlett Packard and its Snapfish equipment, Walgreen has successfully merged together convenience and technology to better serve its customer base. With the implementation of Snapfish, a customer can upload photos at their home computer and then have them printed at a Walgreen location.
A Strong Customer Well-Fare Focus:
Walgreen enjoys the advantages of a minor store format with a more singular focus than does a supercenter and, focus on not only convenience but service, as well. Programs such as their Rx Savings Advisor Walgreen have enhanced its focus on the aging population. The program is a tool for Medicare customers. It can identify the most compatible Part D prescription plan within their region. The program “Dial a Pharmacy” permits clients to speak with a pharmacist in one of fourteen languages thereby modifying its assistance to reach a broad client base in an exceptionally personal way. Through the acquisition of Medmark Specialty Solutions, Walgreen can now offer its customers prescriptions that are not regularly available in the average neighborhood pharmacy. This addition to the Walgreen family permits customers to have its routine medicament as well as specialty drugs without the problem of traveling to another pharmacy. The baby boomers, the fastest growing market segment in the country, Walgreen has aligned itself with AARP. Partnering together they have launched a multivariate program targeting seniors. There is also a website for this program which displays both the AARP and Walgreen logos. This joint venture has allowed Walgreen to enhance its image as a champion of service, and as knowledge oriented company while gaining access to members of the AARP affiliates, with the organization’s support and assistance.
Weaknesses:
Walgreen does have a weakness in their operation. The layout of most stores is in grid format. This layout should theoretically help customers find what they look easy, but this layout does not make finding products any easier; too many items crammed into too small of a space that finding the right product is often difficult. In the store exterior, traffic jams are prevalent. Some locations, the store occupy a corner lot, with parking spaces adjacent the structure. These lots are not wide sufficient, making it difficult to pull in and out of the parking spaces. The medicine industry is regulated by volumes of technical rules. Walgreen must constantly stay up to date with all of the latest regulations of the drugs. They must also be experts on the drugs themselves in order to effectively counsel their customers. In an effort to become experts of the medication industry, Walgreen must assign more incomes to this task, thus assigning minus to directly satisfying customers. If Walgreen fails to be up to date on even the smallest industry standard, the threat of a serious lawsuit will surely result. Prescription medicines are so expensive that insurance companies needed to pay for the drugs. The other drug store chains have many of the same problems as Walgreen, but they are able to address these weaknesses, then these problems become competitive advantages.

Growth:
Walgreen grows organically rather than through acquisition. Walgreen spends its capitals building its stores from the ground up. Walgreen prides itself on its service and personalized care. Walgreen enters to the market location by building its own stores.
Market:
The quantity of pharmacies in the United States is ever rising. CVS is the nations’ leader. The constantly growing quantity of pharmacies proposed in super-centers and grocery stores has expanded the market even more. Walgreen, along with the others, run the risk of cannibalizing their market. Statistically, there is at least one Walgreen within a two mile radius from each consumer’s house. In addition, they run the danger of going into markets that cannot sustain any more pharmacies.
Opportunities:
The Aging Baby Boomer Population:
United States biggest rising market segment is those 50 years and older. They constitute one third of the state’s population while directing two thirds of its one-use revenue. Walgreen capitalizes the baby boomers’ demand, with more convenient and accessible service, especially those who require walkers, canes, and wheelchairs.
The aging population is proactive when it comes to their health. Walgreen was to increase their inventory of generic products they could see a rise in client purchases while widening their customer base. They take benefit of preventative measures to dominate the aging process, such as foot and skin care. With the use of the Internet, they are able to investigate other therapies such as supplements and vitamins to promote and sustain their health. Walgreen has an opportunity to actualize the consumer demands.

Mail order Prescriptions: Walgreen increased by four times its previous size. Walgreen Health Services, a branch company that handles mail-order prescriptions. This significant increase coupled Walgreen intention to hire more pharmacists, technicians, and computer programmers. Walgreen Health Services also operates Walgreen specialty pharmacy and home health care. (Walgreen, 2012). In 2004, Walgreen Health Services introduced their Advantage90 program. This program permits customers to supply 90 days’ worth of prescriptions in the store, at one time. This service has served as a cost saving program for Walgreen while enhancing customer convenience. Walgreen Health Services offer services while saving money for the company in the process.
Expanded Merchandise Offerings: Walgreen has brought in beauty lines such as the European Beauty Collection to 1,000 of their top marketing stores. Walgreen Co has added make-up test stations, and counters to their stores to promote their expanded beauty concept In the US; Walgreen is the second largest beauty retailer in the industry. Sales from beauty products contribute 12% of Walgreen Co. total sales. (Walgreen, 2012). This figure is significantly higher than the average within the industry. Walgreen has teamed up with Toner Head, in a joint venture, to put equipment in Walgreen stores that will refill ink cartridges, for its customers. This service provides consumers with convenience and a service that office supply stores are not willing to implement out of fear that they will cannibalize their own profits. The refilled ink cartridges may not be as plentiful as a new cartridge, but Walgreen customers are cost and convenience oriented, and the stores have found that their refill stations meet their customer’s needs. These additions to Walgreen services have positioned the company to be a future destination for products other than pharmaceuticals.

Threats:
As a leader in the medication store industry, Walgreen expects to be the object of many threats. Their response to these risks is a primary reason Walgreen remains an industry leader. First of all, Walgreen faces a threat from serious stores like Wal-Mart and Target, who have commenced generic drug reduction programs. Medicaid cuts funds leaving Walgreen with less incentive to fill these prescriptions because of the cut in profit margin. Lawsuits are a possibility for anyone; however, due to the nature of pharmaceuticals, the likelihood of a liability suit is higher. As a member of the supply chain, Walgreen can expect to be served just because by selling the product, they endorse it. Walgreen needs pharmaceutical companies for their business. These companies can also negatively affect Walgreen bottom line.
Walgreen generic drugs have lower profit margins. Finally, Walgreen faces a more traditional threat direct competition. In conclusion, they are many threats to the success of Walgreen; ranging from direct contest from retailers such as Wal-Mart and CVS, economic slowdowns affecting front end sales, and mild winters maintaining customers’ health.

Goals:
Goal 1: Develop people who treat customers and each other with respect and dignity to achieve the pharmacy success and help continue expansion.
Objectives:
1- Employees and executive employees achieve innovative thinking.
Tactics:
The Company may offers job training for in-store and supervisory positions. The Company offers opportunities for a professional career development. The Company provides ongoing career development opportunities, such as continuing education for pharmacists; a pharmacy technician Certification program and advancement opportunities
2- Give an exceptional customer services.
Tactics:

One patient at a time- they need to work harder to educate patient, and give their counseling. They use more time for more counseling. Walgreen Wellness Tour buses- provide free health screenings and build community relations across America. Based on customer feedback, they are upgrading packaging for Walgreen brand products to a fresh, streamlined design under the new “W” brand.
3- Expanded its workload balancing technology.
Tactics:
Integrate tools and technology to optimize Walgreen health and wellness products, tools and services. New digital system to spread prescription background work, such as insurance verifications, among stores and determines which store needs assistance and which can provide it. VISION technology in pharmacies lets scan paper prescriptions and store the images in its database.
Goal 2: Walgreen success achieved in build long term financial security for theirs employees and shareholders.
Objectives:
1- Expand into new markets and increase penetration in existing markets to achieve financial security for employees and shareholders. Tactics: They are investing in prime locations, technology and customer service initiatives Continue it does expand, focused on retail growth, and consideration given to retail and acquisitions that provide unique opportunities. They need to fit its business objectives.
2- Walgreen enhances shareholder value to achieve financial security for employees and shareholders.
Tactics:
They are investing in prime locations, technology and customer service initiatives. They continue with expand focused on retail growth and take in consideration to retail and acquisitions that provide unique opportunities. They need to fit its business objectives.
3- The participation in auction rate securities, where the interest paid to the investor to achieve financial security for employees and shareholders.
Tactics:
Walgreen invests in municipal bonds and student obligations. The company had outstanding letters of credit guarantee foreign trade purchases. The company needs to continue the program of sells Walgreen gift cards to its customers in stores and through the website.
Goal 3: Increase Walgreen market share reduce the overall budget costs and increase the customer satisfaction. Objectives:
1- The company growth will continue to increase Walgreen market share.
Tactics:
Providing unbiased market-centric strategic direction for achieves their initiatives. Participation for everyone from their Real Estate Managers to its Mergers and Acquisitions team to interact across numerous departments and levels, including top executives. A rollout of its Customer Centric Retailing initiative completed across the chain.
2- Continue with program light-years of energy savings to help to reduce the overall budget.
Tactics:
Walgreen has been one of General Electric’s early adopters of energy-efficient technologies Walgreen introduced a light-emitting diode solution for refrigerated display lighting in all their new stores. Walgreen need more promotion of Walgreen’s bulbs that are more energy efficient than traditional bulbs.

3- Accurately and efficiently in service to increase the customer satisfaction.
Tactics:

More technology advances which help Walgreen to fill prescriptions efficiently. They have a permanently pharmacist to give patient’s service and safety They are developing new systems, which allow their, to help patients.

Business Strategy
Figure 2

Walgreen’s Implementation Plan
Using the base of Walgreen strengths, weaknesses, opportunities, and threats there are several areas on which Walgreen can focus in order to maintain its position of market leader and ensure superior company presentation and continued growth. Walgreen must further focus on that which distinguishes it from competitors, customer convenience. This is especially prominent in setting Walgreen apart from large discounters and supermarkets. Accessibility is the principal reason why customers choose Walgreen, and Walgreen must do its best to utilize this advantage.
The company can enhance customer services, especially for its ever necessary pharmacy customers. Walgreen can better serve customers who want their trip to be as quick as possible.
Additionally, this would create an opportunity to increase impulse purchases by strategically placing promotional materials and displaying impulse items near to its waiting area. In order to focus on convenience and maintain its number one market position, Walgreen must also concentrate on expanding its online services. Online services add convenience and contribute to Walgreen brand image while allowing the company to achieve the benefits of a multichannel strategy.
To achieve a successful outcome of this strategic plan is extremely significant that all employees are cashiers, pharmacists, pharmacy technicians, responsible for the storage and management, working hand in hand order to achieve its goals.

March 30, 2012

Walgreen’s Board of Directors,
Chairman of the Board President,
Chief Executive Officer

RE: Approval of Strategic Plan

In the last reunion on March 24, 2012, we joined with some Walgreen department heads with the object of consider the goals and objectives that would create a Strategic Plan. The plan provide a diagram of where combined efforts in the upcoming fiscal year.
In the attached, will see the specifics goal clearly defined and objectives to meet the goal outlined. Each of the members has an assigned goal, with your leadership and the dedication of the Walgreen employees; we should see marked improvement in the next six months and will show we are able to carry services to people and business community members.
If the Walgreen Board of Directors in agreement with this document and desires formally adopt it as the Strategic Plan, the following resolution would be appropriate: BE IT RESOLVED, Walgreen Board of Directors hereby incorporates and implements the enclosed Fiscal Year 2012/2013 Goals and Objectives as new Strategic Plan.
Respectfully submitted,
_________________________ _________________________
Gregory D. Wasson Doug Egan
President and Chief Executive Officer Divisional Vice President,
Walgreen, Co. Retail Integration Walgreen Store Operations

________________________
Alan G. McNally
Chairman of the Board
Walgreen Co.

References:

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