Environmental Analysis of Chemist Warehouse: Challenges and Recommendations

BUSINESS
ADMINISTRATION

CONTENTS
INTRODUCTION...........................................................................................................................1
Quality of environmental analysis of organization......................................................................1
Analytical value of identified challenges within organization....................................................2
Recommendations........................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Pharmacy retailers and companies are highly bound to adhere its business operations as
per standardized the medical laws. This report will be based on the analysis of stakeholders’ and
impact of related environmental forces on organization named “Chemist Warehouse” which is an
Australian pharmacy retailer. The company was established in the year 2000 with approximately
8000 employees. The content will focus upon certain external stakeholders and business
environment factors to assess its loopholes and impacts on business. The study will further
provide certain recommendations to overcome identified challenges of company arise due to
certain external forces and elements.
Quality of environmental analysis of organization
External stakeholders
The principle stakeholders who highly impacts current business activities of Chemist
Warehouses are government and competitors (Kenny, 2014). External stakeholders of Chemist
Warehouse directly or indirectly affect its operations such as Government play a vital role in
decision making procedures of company. It continuously imparts a considerable impact on
organization by designing various policies related to drug distribution and manufacturing.
Government of Australia is continuously making different agreements such as Community
Pharmacy Agreement that affect Chemist Warehouse to enhance its accessibility and operations.
It affects regulatory actions of the company and also affects strategic decision making for
business expansion.
Along with it, competitors are also a considerable external stakeholder for the company
that affects its regular operations. For example, Australian pharmacies like Ramsay, Terry White
Chemists are delivering adequate competitions by adopting strategic business models. The
effective business measures and technological frameworks adopted by company’s competitors
affecting its decision making processes. Competitors are continuously delivering high standards
of competition of Chemist Warehouse in every aspect of pharmaceutical business and
components. Further, there is no switching cost for customers to shift to competitors and hence it
affects the sale of Chemist Warehouse.
Influential Environmental Forces