BUS 599 CASE 4 OUTPUTS

BUS 599 Case 4 OutPuts

BUS 599 Case 4 OutPuts

The congruence model suggests that in order to fully understand an organization's performance, you must first understand the organization as a system that consists of some basic elements(Nadler, Tushman, 1980):

Walgreens has more than 3,570 stores in 43 states and in Puerto Rico. It offers an old- fashioned tonic on its credit for growth and fiscal fitness. Walgreen emphasize on quality rather than quantity. The company has always relied on unsophisticated growth, which is from within its resources, rather than through acquisition and this proves to be the best financial strategy that they are pursuing. It is still competing besides having fewer stores than its strong rivals like CVS and Rite Aid. Apart from this Walgreens enjoys a high status in terms of sales. As far as the sales composition is concerned, 60% (www.walgreens.com)of the sales comes from prescription drugs and the rest of the sales constitute general merchandise, over the counter medications, cosmetics and groceries. The best thing about Walgreens is that it builds its own stores rather than buying them. Due to this it picks prime and high-traffic locations. Apart from this, to add more convenience to its customers, more than 2/3 of its stores are drive through pharmacies and even offer one-hour photo processing.

Walgreens has different departments that are all necessary to run the organization. The different departments include corporate, district, and store level management. At the store level, they are required to deal with customer's everyday face to face. They are the ones who ensure that merchandise is stocked on the shelves, ad papers are full, store is clean, and the pharmacy is filling prescriptions in a timely manner. If a manager makes a bad decision then it can be costly. Not only do they have the potential to lose money, but they also have the possibility to lose a customer. Walgreens has something called "The Four Way Test."

Is it the truth?

Is it fair to all concerned?

Will it build goodwill and better friendship?

Will it be beneficial to all concerned?

At Walgreens, they care deeply about treating everyone with respect. As stated in the Walgreen Creed, "We believe in courtesy, in kindness, in generosity, in cheer, in friendship, and in honest competition." Walgreens believes this is right way to do business and it gives Walgreens a tremendous competitive advantage(www.walgreens.com).

Walgreens faces two levels of strategic ...