Rite Aid Corporation Case Study

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Rite Aid Corporation which ranks as the third largest retail drugstore chain in the United states, control about 2,380 drugstores in 28 states across professionals pharmacy service, a full selection of health and personal care products, an assortment of general products in the nation and in the District of Columbia ( Rite Aid, 2007 ). Rite Aid has a great management team to help them with their success their team includes Chairman, President and Chief Executive Officer, Special Advisor, Corporate Strategy ,Chief Operating Officer ,Chief Administrative Officer ,Executive Vice President – Pharmacy, Executive Vice President, Store Operations ,Executive Vice President and General Counsel( Rite Aid, 2007). Differentiate between management and leadership is very different for example, response to its huge losses, Rite Aid has said it expects to spend more than $94 million to reassess and restate its financial results for 1998 and 1999( ). Furthermore, that includes rerunning mainframe-based accounting systems and paying IT people overtime to work with internal and external accountants and auditors during the process. Still, Rite Aid does not plan to replace its combination homegrown Computer Corp. accounting system

.Rite Aide challenged by the complication and lack of standard interfaces the finance and accounting functions support throughout the organization. Data is not formats or transported in standard border or structure. Manual work is required to fit data within budget codes and corporate formatting standards. This manual system is error prone and open for possible scam and abuse.

Hardware, software, support and maintenance costs grow each year with multiple systems in each local region running different types of software and hardware. The application and hardware support teams are larger than could be possible with one integrated solution.

Rite Aide has choices in the solution that our organization can implement to solve these financial systems integration issues. The main issue facing it’s Financing and Accounting department is the lack of standardized systems, which includes software, data interfaces, and processes. Here are some solutions, Solution 1: Maintain and Enhance Existing Systems, the organization has three very different Finance and Accounting functions that need to be consolidating to provide a seamless environment that is able to grow with the business. One option would be to continue focusing the attention of IT and Financial Services Divisions on maintaining and enhancing the existing systems. This would require no upfront capital expense, but does not meet our short or long-term business requirements.

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