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Case Study Walgreens

881 Words4 Pages

Hello Everyone , 1. Describe Differential analysis to drop/keep customers Depending on the type of business there could be a need to drop a customer. I know in certain industries customers are always valued in numbers. In chapter 7 we read about an accounting firm Phillips Accountancy that has certain customers that are no profitable. Management was able to do a differential Analysis to determine that the best course of action is to drop unprofitable customers. By having data that is very black and white we can clearly see how the unprofitable customers are not benefiting Phillips Accountancy’s bottom line. I remember when I worked at Walgreens in the pharmacy. The company made the decision to not accept certain local government funded …show more content…

In chapter 7 we read about a Barbeque company. Management decided to use an income statement to determine the profitability of continuing to sell charcoal grills. In the analysis we take into account the fixed costs and direct costs of carrying charcoal grills. In the end we can see that the company should not eliminate charcoal grills. The analysis for product line takes into account many factors. Those factors include salary and department costs for those working in the charcoal grill department. Again I bring up my experience at Walgreens. The company had made the decision to carry more store brand medication products. This decision was made when there was a period of time where the shelfs were empty. The shelves were not stocked and product availability was limited. This limitation had to do with the 2010 recall of certain Johnson and Johnson products. After the recall was over and most patients had become familiar with store brand products, there was a decision to bring back a very limited amount of brand name Tylenol and Motrin. The decision was based off ales data and profitability using differential …show more content…

The decision to make a product requires appropriate production equipment, suitable personnel, material, adequate space, supervision, design standards and involves overheads, maintenance, taxes, insurances, management attention and other indirect and hidden costs. To outsource or buy products allows lower investment in facilities, smaller labor force, less handling, lower plant cost for building and upkeep, less overhead or taxes, insurance and supervision. There is also the option of purchasing certain completed parts from a outsource country and assembling them in house. This decision would all have to be made after a detailed analysis is done. There are a lot of factors to include in this analysis. I personally agree with outsourcing certain factory work to countries that can produce the product cheaper. The cheaper product production costs make the cost lower for me as a

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Sara Creek did not act ethnically because she did not comply with the contract. She had an agreement with Walgreens that it would be the only pharmacy store in the mall. However, one tenant in her mall faced bankruptcy, so she had to find a way to prevent losing money. Sara Creek breached the contract with Walgreens because she installed another pharmacy store with even lower prices products than Walgreens just 200 feet away in the same mall. Walgreens took this case to the court and Walgreens was granted a permanent injunction against the new lease between Phar-Mor and Sara Creek by the Seventh Circuit Court of Appeals.

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1095 Words | 5 Pages

1) What observations would you make about the various segments and how they contribute to profitability of the organization? I believe that in order to fully understand the various parts of Riverside Credit Union's customer base, it is necessary to examine data on demographics, account balances, and usage trends. This research could be used to draw conclusions about each segment's size, growth, profitability, and risk. To better serve its members and enhance its overall financial success, the credit union can use this information to help it make knowledgeable decisions regarding the products, services, and marketing plans that they employ.

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1. Discuss how you would classify the information of a national grocery store chain. Give your store a creative name. The classification of a national grocery store chain would be considered commercial.

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When outsourcing to non-developed or developing countries, we give those countries the power to make their economies better. By shipping products and services to be made in foreign countries we are reducing prices of products that Americans demand and help the other nations at the same time. Some companies who have had an interest in outsourcing would be a French IT company called Capgemini, which has expanded its horizons to different foreign countries over many years. Another would be the industry known as Sodexo, also a coordinating French company, that is a global food service industry.

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Outsourcing definitely has its cons, although it provides jobs for people, it also takes them away. Companies outsource their products because it is cheaper, faster and easier for them to be made in other countries and shipped across the world to consumers. For example, a brand of clothing is made in Canada, providing jobs to people here. The problem is that these clothes must be sold for high prices because of the wages and regulation laws in Canada.

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Customer profit (NI) contributes to corporate overheads and it determines the customers’ characteristics, behaviors and its existing relationship to the company. NI numbers (quarterly, annually, half-yearly) provides an insightful information to the decision makers about the factors that they should consider while making frequent decisions. Analysis on a transaction-by-transaction basis through NI identification gave a much clearer picture on its profitability and helps to gain true actionable insights. Considering the huge customer base it would be challenging for RBC to compute NI at individual customer account level, rather grouping similar customers in each customer segment and build a segment level strategy.

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Emerging Trends: Walgreens Leads the Way In 2008 Walgreens, one of the nation’s leading drugstore chains introduced a state of the art distribution center in Winsor, Connecticut. This was the second facility of its kind that was specially designed to employ individuals with disabilities which was modeled off the first building that opened in South Carolina in 2007.

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I own a Trader Joe grocery store. My objective is to sell delicious, creative, low cost foods that are very difficult to find. “Gluten-free” foods, “Kosher” foods and “Vegan” foods are some of the products I sell (Trader Joe, 2018) Yes, I would provide trade credit to customers, but would maintain a cautious and prudent mindset when I attempt to do so. I exist industry of multiple grocery stores, therefore I would research competitors to discover their trade credit protocol.

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Challenging the process involves searching for opportunities by looking outward for innovative ways to improve and taking risks /learning from experience (Kouzes, et al., 2007). The potential benefit is change will happen ; the outcome of change may not always be positive, however, leaders are persistent learners and they will not stop at learning until it generates a positive outcome for the employees and for the company. In 2013, the leadership at Walgreens challenged the process when Dr. Alan Landon announced that its clinics would go beyond treating common acute ailments to offer management of chronic health conditions (Chain Drug review, 2015).

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861 Words | 4 Pages

Nowadays, the concept of the customer service oriented companies is not a uniqueness. However, obviously, there exists a way one has to overcome in order to find a suitable company which is capable of satisfying the customer's needs completely. A great example of such a service oriented organization is CVS pharmacy company. The strategy of an approach of CVS lies in several key methods which help it to succeed. Among them are an accessibility, the diversity, profound and an intensive care, qualified personnel, an innovative technology, and this is not the entire list.

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From a manufacturing perspective, outsourcing to a large manufacturing plant overseas takes away issue of monitoring a in-house manufacturing operation on American soil. Once the final project is presented to the outside manufacturer, it becomes their duty to deal with any related equipment costs or problems. They can also add the product

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This can allow things to be brought easier. Even though they are trying to find morally sound factories overseas they would still be cheaper than if sourced from the

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Chick-Fil-A Case Study Despite being a fast-food restaurant, Chick-Fil-A is widely known for its exceptional customer service. Part of the reason they have incredible customer service is because they have made it their mission to “get better before getting bigger.” Even though Chick-Fil-A has thousands of less stores than its competitors, it has made business all about the customer and it is paying off in large profits and continual growth. Chick-Fil-A’s customer service plan is two-fold: to go the “second mile” and to give the customers something to do.

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682 Words | 3 Pages

If we where to this, it would bring jobs, more money for America, and China won 't have control over are companies. When I was little, my grandma use to work in sewing factories and they would make clothes there instead of China making everything. She ended up losing her job, when the company moved overseas. Our president talks about bringing more jobs in America, but he is allowing these companies to travel over sea for less money in order to make these items. However, if you stop and think about it the money we spend in order to ship the items over seas and them ship it back.

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1287 Words | 6 Pages

Sills explains how it is determined whether the company outsources production of a certain product or make it in America. Sills tells Davidson: “the main thing I think about is survival.” Parts that need skilled workers have to be made in America to assure quality. Standard Motors needs the highly skilled workers from the United States to assure quality of their parts, so “even if Mexican or Chinese workers could do Maddie’s job more cheaply, shipping fragile, half-finished parts to another country for processing would make no sense.” Parts that don’t need to be high quality are outsourced because the company simply can’t afford to make everything in the United States.

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