POLO RALPH LAURAN
Assignment #2:
Review the Company Analysis requirements. Prepare the following section for this assignment (note: the purpose of this assignment is to ensure successful progress is being made toward completion of the final Company Analysis and to provide a continued review by the professor of the APA requirements):
· What is this organization’s strategy to compete? Is the strategy working?
· Perform a complete, fully developed with explanations, SWOT analysis with the UT: Ultimate Threat identified: 10
correct
(this is the minimum) components for each SWOT element=C (70%), 14=B (80%), 18=A (90%), 22=100%. Posting less than the minimum results in zero points for that respective section.
· Document all sources properly (APA style is required–this is not an option), failure to do so, results in a plagiarized paper
(using MLA for this paper results in a plagiarized paper),
and the resulting grade is an F (zero points)–refer to the student dishonesty section of the syllabus. Make sure all sources are verified and acceptable—example:
Wikipedia is not an acceptable source for this project (and all other similar sources are not acceptable as well).
· Format the paper in APA: review the “A-paper” that is included as a guideline (posted in the Additional Resources section).
· APA requires source documentation at the end of each statement for every name, date, number, amount, event, etc.
· Paraphrasing also requires source documentation at the end of each statement when APA is required.
· Failure to cite the sources results in a plagiarized paper; i.e. zero points.
· Review the rubric posted in Blackboard for the assignments/analysis.
· Posting the assignment in any format other than Word results in zero points for the assignment, no resubmissions are available for the respective assignment.
· Websites that provide written assignments for students (e.g., Chegg, Course Hero, Fern Fort University, MBASKOOL, etc.) are not an acceptable source for student coursework. Use of these sites will result in an automatic ‘0’ for the assignment and may result in failure of the course.
·
Value = 50-points. Note: 5-points will be deducted for each statement missing source documentation (note this is plagiarism as well), each misspelled word, and each grammatical error; before the assignment/analysis is graded for content.
final company analysis
Include the following in your final company analysis:
· Cover page.
· Historical background of the company (3-5 pages)
Answer the following questions in full detail (minimum of 3 pages per question, i.e. question #1 must be a minimum of 3 pages, as is the same requirement for each question number–the final paper is typically 50+ pages) updating all information through research (note: minimum is defined as a “C”):
1. Discuss the distinguishing features (Market size, Market growth rate, Industry strength, etc.) of the industry that the company is in. (Update this section with corrections made from Assignment #1.)
1. Discuss the competition within the industry. Who are the main players? How intense is the rivalry? How attractive is the industry? What factors are critical to competing successfully in the industry? Porter’s Model of Competition must be used in this section.
2. Discuss how the industry is changing.
3. What is this organization’s strategy to compete? Is the strategy working? Perform a complete, fully developed with explanations, SWOT analysis. (A minimum of ten correct components for each element of SWOT, along with the identification and justification of the UT: Ultimate Threat is required. (10 correct components, this is the minimum, for each SWOT element=C (70%), 14=B (80%), 18=A (90%), 22=100%). (Update this section with corrections made from Assignment #2.) Posting less than the minimum results in zero points for that respective section.
4. Perform a financial analysis based on all current information available, highlighting the key profit ratios, liquidity ratios, leverage ratios, and shareholder ratios. Include in this analysis, a full comparison of these ratios for the respective company’s financials to a minimum of their top three publicly traded competitors (a minimum of 3=C, 4=B, 5=A). Posting less than the minimum results in zero points for that respective section.
5. Provide your recommendations (a minimum of 10=C, 14=B, 18=A) and a plan of action. A spreadsheet/matrix noting the connection of the recommendations to the SWOT analysis is required (Automatic 40-point deduction for failure to have the spreadsheet.) Posting less than the minimum results in zero points for that respective section.
· Note: Current information that must be reviewed: Current Annual Report, Current News, Current Research (beyond simple “internet search”), etc.
· Document all sources properly (APA style is required–this is not an option), failure to do so, results in a plagiarized paper
(using MLA for this paper results in a plagiarized paper),
and the resulting grade is an F (zero points)–refer to the student dishonesty section of the syllabus. Make sure all sources are verified and acceptable—example:
Wikipedia is not an acceptable source for this project (and all other similar sources are not acceptable as well).
· Format the paper in APA: review the “benchmarks” that are included.
· Posting the assignment in any format other than Word results in zero points for the assignment, no resubmissions are available for the respective assignment.
· (Note: This is an MBA style company analysis and all papers must be typed, double spaced, 12-font, in Word, typically 50+ pages of analysis, plus attachments
SWOT Analysis
SWOT analysis is tool used by organizations to determine strengths, weaknesses,
opportunities, and threats which can assist with their strategic direction. SWOT analysis can
provide a snapshot of a company’s overall health, and is a useful tool for modifying a strategy to capitalize on opportunities and defend against known or possible threats (Thompson, et. Al.,
2012, p. 106). While strengths and weaknesses are internal, opportunities are both internal and
external, and threats are external to an organization as noted in Appendix B. Additionally, an
WBA ANALYSIS 25 ultimate threat will be determined to assess which external threat could shut down all operations within Walgreens Boots Alliance immediately.
Strengths[WJL1]
1. Brand recognition is a prominent feature of Walgreens which is recognizable
throughout the United States and Europe. Walgreens was ranked nine out of 100 in 2019
by Brand Finance, which is a ranking system that examines the effectiveness of the brand
on the company’s bottom line in financial value (Brand,
2021).
2. Walgreens Boots Alliance has the ability to provide customers with convenient, omnichannel access through their vast portfolio of retail and business brands (Walgreens
WBA, 2021).
These include Walgreens, Duane Reade, Boots and Alliance Healthcare
(Walgreens WBA, 2021).
3. Walgreens Boots Alliance is a global leader in retail and wholesale pharmacy, with
over 21,000 stores in 11 countries, with over 425 distribution centers that deliver to more
than 250,000 pharmacies, doctors, and hospitals in over 20 countries (Walgreens WBA,
2021).
4. Walgreens Boots Alliance is the largest retail pharmacy, health and daily living
destination across the United States, with a presence in more than 25 countries with over
450,000 people employed (Walgreens WBA, 2021).
5. Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs
and other health items, which results in addressing the rising costs of prescription drugs
in the United states and nationwide (Walgreens WBA, 2021).
WBA ANALYSIS 26
6. Walgreens Boots Alliance uses in-house product research and development
capabilities, which results in products such as Well Beginnings, Sleek MakeUP, and
YourGoodSkin (Walgreens WBA, 2021).
7. Walgreens Boots Alliance has an extremely strong strategic partnership with some of
the world’s leading companies, which enables them to extend healthcare solutions and
services to the communities they serve (Walgreens WBA, 2021).
8. Location is a key element when targeting intended markets, and Walgreens Boots
Alliance has strategic locations where their stores are within five miles of 78 percent of
the Unites States population (Walgreens, 2021).
9. Economies of scale is a strong quality of Walgreens Boots Alliance, especially in
Europe where they rank in the top three pharmaceutical wholesalers and distributors
throughout the continent (Walgreens WBA, 2021).
10. Walgreens Boots Alliance has the ability to access generic pharmaceutical products
through its ten-year agreement with AmerisourceBergen, which results in lower costs for
consumers, third-party payers, and the organization (Walgreens WBA, 2021).
11. Walgreens has an established social marketing campaign, which targets local
communities who are in need of desperately needed services. Red Nose Day was
implemented to end child poverty, with 100 percent of donations going towards this fund
(Walgreens, Red, 2021).
12. Walgreens has a strong network of healthcare professionals, which accounts for more
than 85,000 healthcare service providers, pharmacists, pharmacy technicians, and nurse
practitioners throughout the United States (Walgreens WBA, 2021).
WBA ANALYSIS 27
13. Walgreens established a mobile telehealth program called Find Care, which connects
patients and customers with providers from the ease of their mobile device (Walgreens
WBA, 2021).
14. Walgreens recognizes its most valuable customers through its Balance Rewards
program, which includes 86 million people throughout the United States who received
points that can be instantly redeemed in store or online (Walgreens WBA, 2021).
15. Boots in the United Kingdom is one of the market leaders in the optical market, with
550 practices and 165 operated on a franchise basis (Walgreens WBA, 2021).
16. Walgreens has an extremely user-friendly pharmacy, with easy access to pharmacists
and clinicians with extensive knowledge and training. Walgreens also made pharmacy
pick-up much easier with their drive-thru locations throughout the United States
(Walgreens, About, 2021).
17. Boots UK, part of the retail pharmacy international division of Walgreens Boots
Alliance, have strong ties to their community and hit a milestone in February 2021 by
opening up one million jobs for individuals with criminal backgrounds (Boots UK, 2021).
150 other companies also joined Boots UK in their decade-long goal of providing second
chance opportunities as part of their corporate responsibility strategy.
18. Walgreens Boots Alliance has a reputation for setting benchmarks within the
pharmaceutical and healthcare industry, and recently invested in iA to provide automation
for the retail and international pharmacy divisions (Smulevitz, 2021). This will
completely automate their pharmacy department and allow for more in-person
collaborations with pharmacists.
WBA ANALYSIS 28
19. Walgreens Boots Alliance leases versus owning the majority of properties, which can
be beneficial since they receive tax breaks, the length of the contract can be negotiated,
and the upkeep and major maintenance is factored into the monthly agreement.
20. Walgreens Boots Alliance recently appointed an extremely well-rounded individual to
serve as their CEO beginning in 2021. Rosalind Brewer has extensive experience as the
COO of Starbucks, the CEO of Sam’s Club, with proven experience with strategic
planning and store development (Smulevitz, Appoints, 2021).
21. Walgreens Boots Alliance earnings per share is projected to grow to 5.33 within the
next year and a half, which is a strong indicator of the company’s future profitability
based on revenue (Mergent, Earnings, 2021).
22. Walgreens Boots Alliance has experienced a steady increase in sales over the past
year, to include their strategic alliances in the United States and abroad. During the last
report they had a sales increase of 5.7 percent over the previous year, totaling $36.3
billion in overall sales (Gradwell, 2021).
Weaknesses[WJL2]
1. Walgreens Boots Alliance is unable to determine if their recent acquisitions, joint
ventures, or strategic partnerships will result in an increase or reduction in revenue,
which has fluctuated over the past several years (Walgreens WBA, 2021).
2. Walgreens places too much emphasis on its expected revenue during the winter months
and flu seasons, and needs more focus on attracting customers for the remaining months
throughout the year (Walgreens WBA, 2021).
WBA ANALYSIS 29
3. Walgreens does not have a strong commitment toward attracting and recruiting a
talented workforce looking for full-time employment. As of 2020, 33 percent of all
employed by Walgreens were only part-time employees (Walgreens WBA, 2021).
4. Walgreens is not able to anticipate the current Covid pandemic as well as other
industries, and lagged when shifting their strategy to online and home delivery for their
retail products and pharmaceuticals.
5. Walgreens does not have strong relationships and alliances with pharmacy benefit
management (PBM) companies. This results in uncertainty due to overlapping contracts
with multiple PBM companies, and no guarantee on pricing (Walgreens WBA, 2021).
6. Walgreens lacks control over much of their administrative functions within the United
States, mainly due to outsourcing (Walgreens WBA, 2021). This results in disruptions
among third-party resources which causes unforeseen operational difficulties and
increased costs.
7. Walgreens Boots Alliance has difficulty in successfully managing organizational
change and their impacts on the organization (Walgreens WBA, 2021). This results in
reacting to their in-house decisions which delays or reduces their cost savings and
operating efficiency.
8. Walgreens does not aggressively pursue opportunities presented throughout the market.
After their VillageMD pilot stores were deemed successful in 2019, they recently
announced plans to open additional VillageMD stores in more than 30 markets by 2025
(Walgreen WBA, 2021). After a five-year lag, the market share may be extremely low
resulting in a lost opportunity instead of immediately capitalizing on the stores’ success.
WBA ANALYSIS 30
9. Walgreens Boots Alliance is unable to effectively manage risks associated with their
numerous operations, as well as regulations their organization must follow. The company
is currently under investigation by multiple counties in California for non-compliance
with state hazardous waste regulations (Walgreens WBA, 2021).
10. Walgreens lacks focus on succession planning, which leads to high turnover and
attrition among employees. Over the past three years, Walgreens spent $189 million in
severance and employee exit costs, alone (Walgreens WBA, 2021).
11. Walgreens Boots Alliance has the lowest current ratio of its top ten competitors in the
industry, at 0.67 (Mergent, Current, 2021). This indicates an improper use of assets and
the inability to cover short-term debts.
12. Walgreens does not align their mission, vision, or core values with alliances when
entering strategic partnerships within the industry. Walgreens Boots Alliance formed an
alliance with AmerisourceBergen at the height of the opioid crisis, which left the
company paying out over $6.6 billion in settlements during 2020 alone (Raymond, 2020).
13. Walgreens Boots Alliance does not have a clearly defined organizational structure
when forming partnerships within their industry. While Walgreens owned 28 percent of
AmerisourceBergen in August of 2020, AmerisourceBergen in turn acquired the majority
of Walgreens Boots Alliance Healthcare business in January of 2021 (Radelet, 2021),
which forms a separation between the two organizations who will now focus on different
markets.
14. While Walgreens uses in-house marketing and development for their store-brand
products, they focus on snack foods on limited beauty products, which causes them to lag
behind more innovative products and competitors (Walgreens WBA, 2021).
WBA ANALYSIS 31
15. Most Walgreens stores have a layout that resembles an obstacle course, causing
confusion among customers who are first or second time shoppers, or those who simply
need assistant at the pharmacy located at the back of their stores.
16. Walgreens was based on customer service and serving their communities (Walgreens,
About, 2021), and lack in this area when forming alliances with larger organizations.
Although they are making large investments with other companies within their industry,
cultures and visions are at times not aligned with those that Walgreens were based on.
17. Walgreens has little to no growth or recent following on their social media platforms.
While there has been a steady increase in users over the past several years, Walgreens
Boots Alliance has failed to capitalize, with their last posting on their WBA Facebook
page being August of 2020 (Facebook, 2021).
18. Walgreens Boots Alliance is behind the power curve when competing against
companies that recently entered the pharmaceutical market. While their main focus was
on mergers and acquisitions, they did not anticipate or plan for the need to provide
increased pharmacy services comparable to companies such as Amazon and Express
Scripts.
19. While Walgreens’ retail stores are spread throughout many communities in the United
States, many stores are less than two miles of one another (Walgreens, About, 2021). This
causes competition among their own stores, which could ultimately result in loss of sales
due to another location within walking distance.
20. Walgreens Boots Alliance has been unable to instill confidence in its shareholders
over the course of the past year, with many investors unsure of their direction or future
WBA ANALYSIS 32
(Forbes, 2021). This has resulted in undervalued stocks, with investors hesitant to fully
invest in their organization.
21. Walgreens’ retail stores are outdated compared to their competitors, with specific
emphasis on lack of self-checkout lanes which can be found at CVS, Kroger, and
multiple other competitors.
22. Walgreens Boots Alliance has caused confusion with the direction they are pursuing
in terms of strategic goals. With multiple mergers across three separate industries, they
have not been able to focus their attention on one particular market (Mergent, Company,
2021).
Opportunities[WJL3]
1. With the unemployment rate being at a higher percentage than in recent years,
Walgreens can focus on their recruitment strategy and target a more talented pool within
the labor force (BLS, 2021).
2. With the recent increase in online sales, Walgreens can capitalize through marketing
products online, with added emphasis on prescription drug deliveries through Uber or inhouse delivery systems (Davis, 2021).
3. Walgreens Boots Alliance should capitalize on their joint venture with Humana, and
expand their reach to consumers outside of the initial senior community proposal
(Walgreens WBA, 2021).
4. Walgreens Boots Alliance must analyze their partnership with AmerisourceBergen to
determine its full potential. If Walgreens continues on its current path, the result could be
decreased revenue and the diversion of management time and attention if their goals are
not met within the allotted timeframe (Walgreens WBA, 2021).
WBA ANALYSIS 33
5. Walgreens should focus on more independent product brands, which would reduce the
costs of shipping and allow for a more diverse selection for consumers.
6. While Walgreens merged with Alliance Boots in 2014 (Walgreens, About, 2021), there
is more potential to expand their market coverage through other alliances. This could
include tapping into the Middle Eastern market through new strategic partnerships.
7. With the recent influx of data breaches and cyber threats, Walgreens Boots Alliance
should place more emphasis on cybersecurity and protection of their information systems
(Walgreens WBA, 2021). This would prevent damage to their reputation, protect sensitive
customer information, and reduce or eliminate costs associated with repairs and fraud.
8. Walgreens Boots Alliance can implement a professional growth program for
employees, since the cost of employees exiting was $189 million over the past three years
(Walgreens WBA, 2021). Succession planning would greatly reduce these costs and
keep talented employees within their ranks.
9. With the economy improving due to the recent Covid pandemic, Walgreens can use
this opportunity to attract new demographics instead of focusing solely on the middle
class market.
10. After forming multiple strategic partnerships over the last several years, Walgreens
Boots Alliance can now focus on realigning their organizational structure to ensure their
leadership fully supports their mission, vision, and goals.
11. New consumer trends are emerging in 2021, which is a prime opportunity for
Walgreens to expand their market to capitalize on consumer
spending.
These include a
desire for old-fashioned products, contactless service, and enhanced use of digital tools
(Bosler, 2021).
WBA ANALYSIS 34
12. Now is the greatest opportunity for Walgreens Boots Alliance to further strengthen
their partnership with the federal government to disperse the Covid vaccines, as well as
utilize their current alliances with distributors to capitalize on this opportunity. This
would allow for a greater market presence and fortify their dedication to the health and
well-being of all people.
13. With a projected social media base of 4.4 billion users by 2025 (Tankovska, 2021),
Walgreens can use this opportunity to strengthen their customer base while extending
their footprint in the global market. With a zero percent growth on social media platforms
in 2021, now is the ideal time to develop and launch a new and innovative digital
marketing campaign (Unmetric, 2021).
14. Walgreens Boots Alliance should examine their previous year’s inventory and focus
on paying on their liabilities to improve their current and liquidity ratio (Mergent,
Current, 2021). This would also be the time to consider how much inventory is needed
based on current consumer intake.
15. Since staying healthy was a top priority of most of the population during 2020,
investing in in-store health clinics could prove highly beneficial for Walgreens. Many
stores currently have small seating areas reserved for flu shots and consulting, and
expanding this could present an atmosphere more people could find comfort and security
in.
16. Walgreens should focus on what initially set them apart from other competitors dating
back to 1901 (Walgreens, About, 2021). While the company can still take advantage of
online opportunities, their original retail stores and pharmacies had a warm ambiance
with the focus on customer service, which is an opportunity to regain the trust of
WBA ANALYSIS 35
customers through training their staff to focus on extreme customer service so they feel as
Walgreens in their hometown drugstore.
17. With the looming pressure for the federal government to increase the minimum wage,
now is a prime opportunity to conduct a competitive wage and salary analysis for all
employees and positions. With Walgreens’ starting wages below the possible $15 an hour
increase (Salary, 2021), Walgreens would not only need to address their starting wage
structure, but also the majority of positions within their organization, from team leaders
to lower and middle management to maintain competitive wages for all employees.
18. Walgreens Boots Alliance has the opportunity to enter into long-term contracts with
pharmacy benefit management (PBM) companies, many of whom have recently
consolidated. Since multiple PBM companies have overlapping contracts with Walgreens,
securing a longer single contract with a major company may help offset reductions in
reimbursement levels (Walgreens WBA, 2021).
19. With prescription medicine sales shifting to online platforms, Walgreens should also
use this opportunity to strengthen its pharmacy team. Many individuals still desire the
one-on-one communication with healthcare providers and pharmacists, which should be
emphasized
throughout the United States.
20. With the majority of competitors utilizing automated checkout lanes, Walgreens can
capitalize on this method by installing self-checkout registers to ease the process for
customers.
21. With technology advancing at an extremely rapid pace, Walgreens Boots Alliance has
the opportunity to capitalize on drone delivery, specifically to customers who are in rural
WBA ANALYSIS 36
environments. This would be a minimal cost for delivery of retail and healthcare goods,
while providing an attractive alternative to shareholders.
22. Since the CDC recently released guidance that loosen restrictions due to Covid,
Walgreens Boots Alliance should use this opportunity to market a grand reopening of
their retail stores and pharmacies (CDC, 2021). In anticipation of all restrictions being
lifted, Walgreens can launch a nationwide campaign showing happy, healthy, and
maskless customers engaging in activities throughout their stores.
Threats[WJL4]
1. Covid 19 adversely affected Walgreens Boots Alliance’s cash flows and financial
position, as well as the operations and results of operations (Walgreens WBA, 2021). The
pandemic impacted all aspects of operations in 2020, and uncertainty still exists in both
the United States and overseas.
2. Reductions in third-party reimbursement levels could adversely impact Walgreens
Boots Alliance’s results of operations (Walgreens WBA, 2021). These are obtained from
private and government agencies, and new prices or benchmarks in the pharmaceutical
industry could affect reimbursement.
3. A shift in pharmacy mix could adversely affect the operations of Walgreens Boots
Alliance. A shift from 30-day to 90-day prescriptions would offer a much lower
reimbursement rate, ultimately impacting the income and operations of the company
(Walgreens WBA, 2021).
4. Changes in prescription prices could adversely impact all operations of Walgreens
Boots Alliance where they would have to rely on retail sales to make up for lost revenue.
WBA ANALYSIS 37
5. Consolidation and strategic alliances within the healthcare industry could negatively
impact Walgreens Boots Alliance (Walgreens WBA, 2021). This would allow for
competitors to have greater bargaining power and leave Walgreens with a competitive
disadvantage.
6. Unknown risks associated with litigation and legal proceedings could adversely
impact liquidity and financial results of Walgreens Boots Alliance (Walgreens WBA,
2021). These could include investigations, arbitration, audits, inquiries, and litigation,
with no clear anticipation of their results.
7. Extensive government regulations could adversely impact all aspects of operations
within Walgreens Boots Alliance. These regulations could be imposed by the United
States, as well as other countries where the organization operates.
8. New entrants to the market could negatively impact Walgreens Boots Alliance’s
competitive edge. Since the level of competition within the pharmaceutical industry is
extremely high, timely and effective changes to strategy must rapidly occur (Walgreens
WBA, 2021).
9. Market dynamics, such as technology, human behavior, and market conditions would
cause Walgreens Boots Alliance to aggressively modify their strategic plan to adjust to
the changes in market dynamics (Walgreens WBA, 2021).
10. Whistleblowers are a threat that can give the entire organization a black eye. Even
when claims are false, sometimes consumers do not gather all relevant information,
resulting in a loss of their customer base.
11. Reduced consumer spending is a threat that impacted nearly all industries during
2020. Walgreens Boots Alliance experienced a decrease in revenue last year which
WBA ANALYSIS 38
dropped less than one percent (Macrotrends, 2021). While there has been a slight increase
within the past several months, there is still cause for concern due to the current
economic conditions.
12. Since Walgreens Boots Alliance’s performance is measured in U.S. dollars, the
exchange rate can be considered a threat to their overall profitability, with the exchange
rate of the British pound sterling being a key attribute to their overseas ventures
(Walgreens WBA, 2021).
13. The threat of political uncertainty within the United States and the United Kingdom
can be considered a threat, especially with the situation surrounding Brexit (Walgreens
WBA, 2021).
14. With the unemployment rate dropping 8.5 percent over the past nine months, the
threat of a smaller pool of a talented workforce could threaten recruitment efforts and
also impact the retention of current employees (BLS, 2021). While the economy
continues to rebound, the workforce has more options to select from in a highly
competitive industry.
15. Healthcare plans and health insurance companies can pose a threat when raising
premiums and deductibles, which could also coincide with the inflation of prescription
drug prices.
16. Tariffs placed on other countries, to include the United States could negatively impact
Walgreens Boots Alliance, especially since many of their pharmaceutical products are
sourced from China (Walgreens WBA, 2021).
17. A disruption in Walgreens Boots Alliance’s information technology and computer
systems could greatly impact their overall costs. Consumers would be hesitant to
WBA ANALYSIS 39
patronize the company due to the data breach of computer systems, and the cost of repair
could be quite significant (Walgreens WBA, 2021).
18. Adverse weather conditions could negatively impact sales of Walgreens retail stores,
which occurred throughout the United States in early 2021. Severe weather conditions
cause people to hunker down at home, and unanticipated markdowns on products
adversely impact profits (Walgreens WBA, 2021).
19. A federally-mandated minimum wage increase can be considered a recent threat to all
Walgreens operations within the United States. While they can still find part-time
employees for employment purposes, the wage increase would result in raising prices
across the board for their products and services, with reduced revenue from customer
spending.
20. Civil unrest throughout much of the United States has been and continues to be a
threat to Walgreens as a whole. During 2020, looting and vandalism resulted in a loss of
$68 million in losses and damages to their stores located in major cities across the nation
(Walgreens WBA, 2021).
21. Recent mergers and acquisitions have been on the rise in recent years, and the threat
of a hostile takeover by a major company would result in a monopoly of Walgreens’
retail stores throughout the United States.
22. Since home delivery and online shopping dominated the market in 2020 due to the
Covid pandemic, consumers may opt to use this method permanently which would
greatly reduce and possibly eliminate the need for brick and mortar drug stores
throughout the United States.
WBA ANALYSIS 40
Ultimate Threat
While recent civil unrest and major natural disasters have immediately shut down many
Walgreens locations worldwide, these were stand-alone stores that did not have a major
impact on the entire organization. The one threat that would immediately shut down all
Walgreens Boots Alliance operations worldwide is an orchestrated act of terrorism
focused on destroying their infrastructure at their base of operations. This would not only
cause all operations to cease, but supply and distribution chains would lack any and all
lines of communication, and all networks that provide lifelines to customers,
pharmacies, and all locations throughout the world would be totally inoperable resulting
in a total shutdown of all operations.
