Implementation and Evaluation of Strategic Plannin Essays

Implementation and Evaluation of Strategic Planning Leitch Quality Drug Company Contents TOC \o "1-3" \h \z \u I. Case Summary PAGEREF _Toc495559156 \h 1 II. Case Objectives and Key Issues PAGEREF _Toc495559157 \h 1 a) Case Objectives PAGEREF _Toc495559158 \h 1 b) Key Issues PAGEREF _Toc495559159 \h 2 III. Analysis PAGEREF _Toc495559160 \h 3 a) External Threats PAGEREF _Toc495559161 \h 3 b) External Opportunities PAGEREF _Toc495559162 \h 4 c) Internal Strengths PAGEREF _Toc495559163 \h 5 d) Internal Weaknesses PAGEREF _Toc495559164 \h 6 i. Financial PAGEREF _Toc495559165 \h 6 ii. Organizational PAGEREF _Toc495559166 \h 7 iii. Marketing PAGEREF _Toc495559167 \h 8 iv. Operations PAGEREF _Toc495559168 \h 10 IV. Alternative Strategies PAGEREF _Toc495559169 \h 10 V. Choice of Strategy PAGEREF _Toc495559170 \h 11 VI. Implementation PAGEREF _Toc495559171 \h 12 Financial PAGEREF _Toc495559172 \h 12 Organizational PAGEREF _Toc495559173 \h 12 Marketing PAGEREF _Toc495559174 \h 12 Operational PAGEREF _Toc495559175 \h 13 I. Case Summary Leitch Quality Drug Company is a partnership that operates three drug stores in the Orlando, Florida. As at the time when it was started, Orlando city had only a population of about a paltry over a hundred thousand. The partnership started as a result of a company that was called Quality Drug Store started having some challenges financially in the 1940s and the brothers who own it now purchased it from the owners of the Company as of then. The first people to buy it were two Leitich brothers; Carl and Richard and thus the name Leitich Quality Drug Company. Others who made an offer to buy it in addition to these two were Keith Steider and Martin Rhodes who later came to be replaced by Walter Neds and Norman Henry as they bought it from them. The partnership was completed late 1944 and became known as Leitch Quality Drugs with all partners having equal ownership. Orlando grew rapidly during the 1950s of which Leitch acquired two additional stores making the tot al three; Leitch also took on an agreemen t with Rexall of which business grew and profit rose with the high point being in 1967 and have since leveled off due mainly to the new super large discount stores, now they are faced with the decision to sell the company. II. Case Objectives and Key Issues a) Case Objectives To understand an established partnership form of business faced with severe competition. To understand an established partnership faced with fierce competition from a chan ging industry such as the super large discount stores. To understand an established partnership faced with severe competition from similar sm all drug stores and super large discount chains. To determine the future strategy of a small drug store partnership. To understand a partnership type of ownership and decisions they face. To determine best strategies of a partnership that manages their own individual store. To understand a partnership company that operates separately under the same name. To gain insight into the trouble faced with partnership and lack of central operations. To gain insight into lack of strategic planning of a partnership o rganization and how to meet the lo oming competition. b) Key Issues How to improve operations of the company. Whether or not to sell the company to the grocery chain. Whether to incorporate the partnership. How to best take on the new competition as well as the competition that had already ex isted between the similar small drug stores. III. Analysis a) External Threats The changing industry of new super large discount stores that is cutting into the profit o f Leitch. Carl Leitch explained why he thought Leitch was not growing as it should: "It's those new super' large dis count stores that have cut into our business." Two large discount drugstores have built at suburban shopping center in Orlando, o ne located just three blocks of Leitch store 2. These stores carry full line of merchandise ex. appliances, clothing, h ardware items etc. They do high volume discounts with drugs and cosmetics sold substantially lower than those of Le itch and most of the other drug firms. They are part of the new breed of giant discount stores in the industry. The se breeds carry a broad line of m erchandise including many