Management Analysis of Boots UK: Strengths, Weaknesses, Challenges, and Strategies
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This article provides a detailed analysis of Boots UK, including its strengths, weaknesses, challenges, and strategies. It covers micro-environment analysis, PESTLE analysis, Porter's Five Forces, and issues faced by the company. The article also includes a reflection on the learning experience and a milestone for the project.
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Running head: MANAGEMENT Management
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MANAGEMENT4 Introduction Boots is one of the chains of pharmacies in the country UK.BOOTS UK is the largest company in the pharmacy that led health related business and the company also work as the retailer of beauty products. The company is the part of the Retail Pharmacy International Division of Walgreen Boots Alliance, Inc. The company is the first enterprise of health and wellbeing in the international market. The company has varied range of variety such as they provide innovative boots and they have the exclusive products in the skin care that has the large customer base. It is created around 165 years ago and still the brand is in the heart of the people.It is available on higher streets throughout the country. The company was introduced in the year 1849 by John Boots. The company expanded its business in manufacturing as well as more research of drug with its improvement of the Ibuprofen painkiller. In the recent scenario, the company faced some challenges due to change in some internal and external environment. The culture of boots takes significantly changed over the years. In the following part there will be detailed analysis of the external and internal factors that affect the performance of the company as well as challenges faced by the company that create hurdles to grow in the competitive market (Gholipour, 2016). Micro Environment Analysis Customer Analysis The customers of Boots are divided into two groups which include mail order consumers and walk-in customers. Mail order consumers: Such group save amount by ordering their medication through mail. In general, the consumers that order from mail are mostly older in age which is normally 60. Older people consume more medication as compare to young people (Boots, and Wilkins, 2018). Walk-in Customers: such groups of consumers are also looking for the cheapest prices for their medicines. Most of the times they purchase their medicine each month from local pharmacy sometimes even at higher price (Anderson and Thornley, 2016).
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MANAGEMENT5 Suppliers Analysis There are around thousands of stores are in UK and in which thousands of products of pharmaceutical and beauty products are available that is from bubble bath to nappies. It is important that the product that are sourced from should been trustable, responsible and ethical. Therefore the company has put that it on priority that the products that are produced by the suppliers must treat their workers fairly and they are responsible towards the environment (Morgan, allontire, and Foxon, 2017). Competitor Analysis There are various companies have emerged in the recent years that provides boots in the affordable prices and with a good market strategy. The tough competition to the company has beengivenbytheNORDSTROM,Debenhams,BergdorfGoodmanandMacy’s.These companies have also made a special place in the market and have affected the market of Boots Company in a large way (Gholipour, 2016). Performance Analysis The company’s performance is rapidly growing due to its global reach in the market through its mobile app and website that enable the customer to order globally. The website is very customer friendly that helps the company to have a more customer base (Gholipour, 2016). Strength The company has a good R&D team that provides optical offers or solutions to the customers Various innovative provides by company There are various brands of Boots that helps to hold a large customer base in UK. The product of the cost is low from the competitors (Gholipour, 2016). Weaknesses The retails stores of boots are not present globally as compared to its competitors The most of dependency of the company is on the UK market that leads to fluctuations.
MANAGEMENT6 Challenges The expansion of the company into other countries To tap emerging economies for the global operations (Gholipour, 2016). PESTLE Analysis Political There are various political decisions that are made by the government had impacted the operations of the business performance of the company in a huge way. For example the government has allowed some of the supermarkets to open various pharmaceutical stores within their stores. By this policy the government believes that it will improve the healthcare and will also increase the services of NHS. It has created a huge competition in the market (Weiner, 2018). Economical factors The healthcare industry has been highly affected due to the global recession. The prices of the healthcare products have changed the customers spending on the healthcare products which has affected the business badly (Aithal, 2017). Social Factors The social factors that are eating habit, exercise, type of good food that the company is focused on and has made several products that can fulfill these needs of a customer. Technological Factors The internet evolution has made the products online that has helped the company in expanding its market globally. The company earns three fourth of its revenue from the online selling of its products. Environmental Factors There are various countries that have been committed in generating green energy due to the risk of global energy. The company has played key roles in increasing the energy efficiency and reducing the carbon footprint (Gauld, Kelly, Emmerton, Kurosawa, Bryant, and Buetow, 2019).
MANAGEMENT7 Legal Factors The company is facing various legal issues as Alliance Boot for the case of sex discrimination case in UK and European Courts. This is the biggest legal challenge that the company is facing (Ramanathan, Black, Ghobadian, and Gallear, 2017). Porter Five forces The five forces that are used for making the analysis and for the attraction of the business organization that are:- Supplier Power:The competitive plays an important role where more suppliers leads to increase in the bargaining power. The company has bargained with over the 80 of the suppliers which has lead to decrease in the price Buyer Power:The loyal customers are the reason that reduced the power of the buyer. The company provides a nectar card through which the loyal customers are rewarded. Threats of New Entrants: The entrance of new companies in the market which leads to heavy competition. This will affect the company’s monopoly in the market and will decrease the market share in the company (Maple, Civera, and Casalegno, 2015). Issues Faced There are various issues that the company is facing which are:- The price of the product is higher than the competitors in the market The global reach of the company is less than its competitors The company is facing a tough competition Various legal issues that the company has been facing The company is facing from the slow rate of expansion in the global market The financial issues due to the recession in the global market (Moro Visconti, 2016) Conclusion It can be said that Boots is the largest company of pharmaceuticals and beauty products. The company has various stores all over the UK and it has been analyzed that the company has
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MANAGEMENT8 various strengths and weakness in the market. There are two types of customers of the company one is mail order customers and the other is walk in customers. The company has strong R&D and innovative product but the company also has weakness of the reach of the customers in the worldwide. The company has been widely affected from the political decisions of the government and the economical condition of the World due to recession. The company has faced various legal issues and the company has used technology in a very good way. 0 The supplier and buying power greatly affects the pricing of the company. Thus the company faced many issues which are needed to be improved.
MANAGEMENT9 Reflection DateBackgroundto activity/experience What happened?Reflectionsonwhat your group learned 11thJulyCommunicationIngroupwehave lacked in certain areas therefore some points hadeitherbeen missed or overdone In team various task hasbeenallottedto different persons like few people had done field work while some havemaderesearch on the basis of various journals.Butdueto lack of some task had either been missed or wasdonetwotimes which is not required. Thereforewehad learnedthat communicationisan importantpartof doing any project or anything. This gives a great learning to me. 12thjulyCoordinationWe haveworkedon thecompanyBoots UKandvarious analyseshadbeen made on the company We in the team had variousseveral researches and found that the company has variousstrengths
MANAGEMENT10 thatwhoarethe customersofthe company and how the companytargetthe customersandwho are the competitors of the company. In this work the coordination isrequiredofour teamthatwhowill target which part but incoordinationwe havesuccessfully reachedbutdueto technicalerrorsand poor planning of our we failed to reach the loyalcustomers initially whereassome weakness.Igotto realized that there are some skills which has enhancedin melike graphicalskillsand my numeric skills that I compared this skills with one another and considerthings numericallyand graphically(Lejeune, Beausaert,and Raemdonck, 2018 27thJulyLack of leadingAllteamsrequirea leader who can push andcoordinateand guide.Butthe problem happens with ourteamthatthere weremore dependencyoneach other and no one has taken. Welearnedthatthe importance of a group leader who can guide the team and lead the team from the front.
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MANAGEMENT11 Things I have learned I had learned a lot of things from my seminars and other that there are various things that I have learned about the Boot companies and there are various important topics were discussed in the seminar. The learning’s we had made through the seminar and on the basis of that in the group we have lacked in various areas therefore through some areas we have lacked and therefore the research becomes time consuming and found that the strengths of the company are more than the weakness and the company has taken various steps in removing the weakness. The boots company has enhanced their market through their website and application from where I learned that how website and type of website can enhance the skills of a person and from there I have realized that there are lot of things that I can learn is my Information communication skills will be enhance from this research and various other skills will also be enhanced and therefore I have found that these skills are very important for one to reach an milestone. We have decided a timeline for each task and which task has to do in what time and in between the task what hurdles can come and how to overcome that hurdles in limited time and from there I have learned that how I can manage the team (Twigg, Wright, Kirkdale, Desborough, and Thornley, 2017). To reach the milestone we have read the tuck man and berlin theories where they has stated that not only coordination will work but it is also required that the employees or the team working should have mutual trust and therefore we take this learning into our work and started to trust and learned each other strengths and weakness. Where one group is lacking must push them or simplify his work by helping and use each other strengths in completing the task. This work highly helped me in enhancing my employee skills that what are the qualities require in an employee and also my leadership skills also been improved that how to lead a team and how to utilize the maximum Milestone We will visit the company stores in different areas and we will found that the company has various loyal customers that have made the company stable in the market. We will also take various reviews from the customers of the company from which I got the mixed reviews but
MANAGEMENT12 most of the reviews are good. The customers stated that although the products are good but are costly according to the other brands which have recently emerged in the market. We have also found that the customers are loyal for the company because of its maintained quality and innovative products which the other companies in the market have failed to do so (Gupta, Gupta, and Gupta, 2019). This is due to the strong R&D of the company that has made the innovative products in the company. We have the company invest a huge amount in R&D that has made the company innovative and different from others. The company has a large number of highly qualified employees in the R&D branches. The company generates incomes not only from a single brand but there are various brands of the company that creates a huge customer base and that has created a big market base for the company. The milestone we have to reach that the company is the largest producer and supplier of the pharmaceuticals and beauty products. We have to found that the company is facing the issues that most of the revenue is from the UK market and as researched we found that the other companies in the market is generating income from the most of the outside the UK markets that provides power to invest more in the expansion and in the promotion of the company. The company has facing the certain issues such as the there is the communication gap between the employees and top level managers that results into failure of operations. We will talk to the team with some of the ex employee of the company as per their reviews we will find that the company will fail in certain areas due to the communication gap between the employees (Gould, 2017). In the research we had found that there are number of entrance in the market of pharmacy and that has damaged the market of Boots in a huge way and as the price and the quality of the product is very good. Therefore from the issues hi have analyzed that the company is required to change its marketing strategy and try something innovative so that they can compete their competitors. On the basis of some reports we have analyzed that the company is required to make the company globalize by expanding its market to more countries that can help the company to have more consumers and that will increase the revenue of the company and has the make the company that there are various laws that has generated that the company that can help the company in making the company worldwide. I have found from various reports that has given the idea of the companywhichIhavereferredinthereferencesandmyresearchedisbasedonthe communication from various people like employees, consumers and suppliers of the company and from there I found that what the problems the company is facing. There are various
MANAGEMENT13 customers who had purchased the product had given a good review about the company rather than the bad reviews (Gholipour, 2016). The company has various suppliers and buyers and we have to find that the product quality, price, customer following are the important factors from which the price and demand depends. If there are large suppliers of the product than the price of the product will decrease and the customers can easily bargain as researched by our team. The buyer will lose the bargaining power if the company has the loyal customers. We have a plan to complete this research and action till the end of August (Hammad, 2015).
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MANAGEMENT14 References Aithal,P.S.(2017)IndustryAnalysis–TheFirstStepinBusinessManagementScholarly Research.International Journal of Case Studies in Business, IT and Education (IJCSBE),1(1), pp.1-13. Alderson, A.J., Green, A., Whitaker, D., Scally, A.J. and Elliott, D.B. (2016) A comparison of spectaclespurchasedonlineandinUKoptometrypractice.OptometryandVision Science,93(10), p.1196. Anderson, C. and Thornley, T. (2016) Who uses pharmacy for flu vaccinations? Population profiling through a UK pharmacy chain.International journal of clinical pharmacy,38(2), pp.218-222. Boots, J. and Wilkins, R. (2018) Three New Technologies Whose Time Has Come in Equipment Finance.The Journal of Equipment Lease Financing (Online),36(1), pp.1-6. Gauld, N.J., Kelly, F.S., Emmerton, L.M., Kurosawa, N., Bryant, L.J. and Buetow, S.A. (2019) Medicinesreclassificationfromapharmaceuticalindustryperspective:aninternational qualitative study.Research in Social and Administrative Pharmacy,15(4), pp.387-394. Gholipour, A. (2016) Human resource development by means of personal development plan in project-based organizations.Journal of Public Administration,8(1), pp.15-32. Gould, J. (2017) Career development: A plan for action.Nature,548(7668), pp.489-490. Gupta, A., Gupta, N. and Gupta, M. (2019) British Airways-A SWOT and PESTLE Analysis- The impact of Europe 2020 policy.NOLEGEIN-Journal of Corporate & Business Laws, pp.1-11. Hammad, A. (2015) Strategic Change and Its Management to Expand Business Through Implementation of Models: A Case Study of Boots UK.Available at SSRN 2676800. Lejeune, C., Beausaert, S. and Raemdonck, I. (2018) The impact on employees’ job performance of exercising self-directed learning within personal development plan practice.The International Journal of Human Resource Management, pp.1-27.
MANAGEMENT15 Maple, P., Civera, C. and Casalegno, C.G. (2015) An investigation of ‘The Spectrum of Corporate Social Responsibility’. Or to be more precise: Over-communication-a comparative analysis of the UK and Italian banking sectors from the customers' perspective. InISIS Summit Vienna The Information Society at the Crossroadspp. 5-5 Morgan, E., Tallontire, A. and Foxon, T.J. (2017) Large UK retailers' initiatives to reduce consumers' emissions: a systematic assessment.Journal of Cleaner Production,140, pp.227-238. Moro Visconti, R. (2016) Healthcare public-private partnerships in Italy: Assessing risk sharing andgovernanceissueswithPESTLEandSWOTanalysis.CorporateOwnershipand Control,13(4). Ramanathan, R., He, Q., Black, A., Ghobadian, A. and Gallear, D. (2017) Environmental regulations, innovation and firm performance: A revisit of the Porter hypothesis.Journal of Cleaner Production,155, pp.79-92. Twigg, M.J., Wright, D., Kirkdale, C.L., Desborough, J.A. and Thornley, T. (2017) The UK Pharmacy Care Plan service: Description, recruitment and initial views on a new community pharmacy intervention.PLoS One,12(4), p.e0174500. Weiner, N., (2018). ‘Put on your boots and Harrington!’: The ordinariness of 1970s UK punk dress.Punk & Post Punk,7(2), pp.181-202.