- If customers are not satisfied with their shopping experience, cash flow is not likely to increase.
- Organizations must hear the customers wants and feedback and adjust accordingly to increase customer satisfaction.
- Listening to customer feedback is a major core competency and will increase customer satisfaction, therefore increasing company value.
SWOT and SWOT Analysis
- Consumer Preferences and Tastes (Rind, 2011)
- Consumer Preferences: Society and Culture (Kasi, 2012)
- Demographics (Bells, 2016)
- Technology (Kasi, 2012)
- Competitors/Incomes (Kasi 2012)
- Small Spacing and grid view of store (Rind, 2011)
- High marginal pressure on profits due to competitors (MBA Skool)
- Recently acquired debt (Bells, 2016)
- High operating costs (Market Mad House)
- Community Betterment Programs (Walgreens website, 2016)
- Increased Career opportunities (Walgreens, 2016)
- Introducing Private Label Brands to meet Consumers’ needs (Walgreens, 2014)
- Brexit’s impact on the UK’s reimbursement policy (Japsen, 2016)
- CVS’ acquisition of Target Pharmacy (Bomey, 2016)
- Non-Pharmaceutical products facing competition from grocery stores and other retailers (Faulkenberry, 2016)
Proposed Change and Rationale
Adjust Store Layout
- Customers focus on convenience when shopping.
- Customers are generally dissatisfied with the current layout of Walgreens stores.
- Customers feel the grid layout is unorganized and inconsistent, therefore they are not having convenient shopping experiences.
- Consumers would rather shop at a store that they are familiar with and that have convenient layouts that make sense to the customer.
- Adjusting layout would be cost-effective, simplistic, and shows a clear benefit to customers.
Kotter's Change Model Analysis
Step 1: Create a sense of urgency
- Customer Satisfaction will increase success of company
- Get employees behind the change
Step 2: Build a guiding coalition
- Team to plan changes
- Get customer feedback for best layout
Step 3: Form a Strategic Vision and Initiatives
- Specific plan to implement the new layout
- Present it to the employees
- After hours is best
Step 4: Enlist a volunteer army
- Store associates that support the changes
- Associates who are willing to help make the physical changes
- Those associates can help create a positive mindset with other employees
Step 5: Enable Action by Removing Barriers
- Remove any obstacles to the success of the new changes
- Current customers who are satisfied with the current layout
- Advertise the changes and the benefits of the new layout: convenience.
Step 6: Generate Short-Term Wins
- Celebrate the small wins as they change the layout
- Make employees excited about the success of the changes
- They will find internal strength.
Step 7: Sustain Acceleration
- Base of this step is tracking and evaluating past succeses
- The market and customer wants are constantly changing.
- Walgreens need to keep up with the changes and adjust the layout more as needed and suggested by customers
- Promotions to those who have done well during changes and been crucial in changes can keep the organization accelerated.
Step 8: Implement Change
- As the change process is completed Walgreens will need to implement the new store layout in all of their stores.
- When customers see the changes and are satisfied the organization will experience more success.
- Customer satisfaction is crucial in the success of an organization
- A current big weakness that can be turned into an opportunity by Walgreens is customer dissatisfaction with the current store layouts.
- If Walgreens takes the steps suggested by Kotter to make changes and changes their layout customer satisfaction will increase and therefore cash flow will increase.
- Walgreens needs to make customer satisfaction a core competency of their organization, their cashflow and success will increase.