Walgreens Corporation “C-Level Executives” will have to consider the Global Business and Political Forces associated with their Global International Expansion plans into the Country of Brazil during the period of (2014-2016). Analysis
The key issues Walgreens Corporation “C-Level Executives” pose to face would be attempting a massive global expansion and creating new value innovation within that new global market. The want and need to expand internationally into Brazil might potentially cause the Company to lose its current top rated status quo and therefore could risk their Company’s name and future success rate if prior strategic planning is not done properly. Current competition in the same U.S Market looking to expand internationally such as CVS could also pose and cause a potential threat to Walgreens expansion plans.
However, the Brazilian market is even more competitive because Brazilian Company’s already know how to operate in that country and are already familiar with the areas region. Therefore, their capabilities of gaining access to information and expertise about where the high demand for property expansion location sites would be at to open a new booming business, stands to be greater than that of other countries outsourced investors or foreign Company’s looking to expand.
Walgreens would have to be able to maintain a competitive advantage point globally, so creating an exclusive brand pertaining to that specific region of the country, as well as, maintaining or improving their current Prescription Savings Club program and product line seems essential to their international expansion success. In order to stay ahead of the game and beat out any competition Walgreens “C-Level Executives” will need to focus on its core competencies and strengths. These practices are going to be critical when serving a diverse Country, while maintaining Walgreens longstanding tradition of fairness, trust and honesty. ((2013). Company Overview). Alternatives
There are several alternative actions the C-Level Executives can take that would include the following: First, management must actively evaluate and manage any potential political risks involved when making global expansion investment decisions and then continue to monitor those associated risks on a routine basis. Political forces and risks that could impact Walgreens are going to be subject to change, so it won’t be considered enough to evaluate those risks only once before the decision to invest has been made.
Executives of Walgreens must take an active approach and monitor political risks all the time and use those findings to their advantage by applying those methods strategically towards any other investments, operational plans and any other future decisions. Therefore, management over political forces must be implemented into Walgreens operating business practice and processes, in order to protect their investments. (PwC Advisory and Eurasia Group.) Secondly, obtaining reliable, accurate information and interpretation of international business risks tend to be roads blocks at times for executives seeking to better their decision making through evaluation of political risk.
Therefore, the use of multiple world-wide sources in which provide up to date, extremely accurate information that has not only been analyzed but also prepared by top risk managers should also be considered as part of an ongoing systematic approach to political risk management. (PwC Advisory and Eurasia Group.) Thirdly, To avoid any future setbacks from competitors such as CVS and similar Drugstore/Retail chains, Walgreens will need to create and invest in a new value of innovation to enhance their diverse customer’s experience.
I believe Walgreens strengths lies in the fact that they have their own unique branding style and a high level of ethical quality in the way they perform their business practice, so by enhancing their current U.S. loyal customer connections over into their potential new global customers they stand a better chance to set themselves apart from CVS and any other competitors they might be faced with along the way. Evaluation
International partnerships increase challenges but also create new ideas in new markets that can then be translated back to US markets. Because all companies, even primarily domestic ones, are affected by politics to some degree, all need a baseline of political risk management activity. At a minimum, company management should be aware of how political risks affect business processes, and they should factor these risks into both investment decisions and general risk management.
My suggestion would be that the “C-Level Executives” when operating internationally should carefully analyze their current approach to political risk management and determine whether it is contributing to their current business performance strategy as efficiently or effectively as it could and should be or having and adverse effect, taking away from it instead. Once carefully reviewed and evaluated they should find areas for improvement and make changes accordingly to ensure a better business development plan for the following (2014-2016) timeline. Implementation
Long-term sustainable success internationally depends in good part on a company’s ability to grasp the implications of political risk and apply them to business risk. By embedding political risk considerations in normal business processes, companies enable management to make better decisions regarding global expansion, sourcing, branding, intellectual property protection, community and government relations, operational structures, and other business issues that arise in complex international markets. (PwC Advisory and Eurasia Group.) Conclusion
Ultimately, any company looking to expand globally has to be willing to take risks, but it’s also essential to their future developmental successes that before taking that huge leap to expand internally that they become extremely aware of the high stacks and potential risks involved. In general, the more a company ventures beyond its home country physically or through outsourcing the more it increases its exposure to political risk.
Companies should keep in mind, however, that even a minor investment involving a major risk or opportunity can have a material impact. Sustainable success internationally depends in good part on a company’s ability to grasp the implications of political risk and apply them to business risk. Mark Wagner, Walgreens Executive Vice President Operations & Community Management had this to say:
“Our customers come from all walks of life, and it would be impossible for us to serve them well if we developed identical, instead of individual needs. I’ve found the best way to recognize individuality is by taking time to learn about diverse interests and their background. Everyone has needs, wants and expectations and as managers, it’s our job to develop that strategy and exceed those expectations.” (Walgreens outlines strategy to analysts.)