Walgreen Company Case Study

1169 Words3 Pages
bulb-icon

Recommended: Walgreens business analysis

Introduction to company
Walgreen Co., is one of the largest drugstores in the United States that was founded in 1901 in Chicago, Illinois. The company’s common stock is also listed in Chicago as well as New York. Where they received their state of incorporations in 1909. Their headquarters are located in Deerfield, Illinois. The President and Chief Executive Officer is Gregory D. Wasson and the Executive Vice-President and Chief Financial Officer is Timothy R. McLevish. The company is considered publicly traded, and is listed number 35 on the Fortune 500 list. It’s fiscal year end on August, 31 of each year. Walgreen offers convenient access to house hold items, beauty products, personal items, food and a pharmacy. Also, health and wellness …show more content…

Their inventories are purchased both domestically and foreign. The company’s inventories consist of current assets reported in descending order of liquidity. The current assets that they consist of are ; cash and cash equivalents, accounts receivable, inventories and other current assets. The method that the company uses to count inventories is LIFO in perpetual method. LIFO method is last in, which is used to dispense cost to the cost of goods based on the link with the last inventory. As for the first out meaning the beginning inventory of that period will be dispensed to the ending inventory value (8.2 Choosing an accounting …show more content…

Accounts receivables are the money that is owed to a company by its debtors. (Larry, 2016). Receivable accounts that Walgreen has is trade accounts. The company use a 3 month lag when reporting accounts.

Allowance for Doubtful Accounts
The company allows returns, but they are consider immaterial and are not recorded in allowances. Based on write off percentages & specially identified receivable. At the beginning of the year in 2014 allowances increased from last year 2013 by 55 million and the year before last by 53 million 2012 . In 2013 allowances actually decreased from last year 2012 by 2 million. In 2012 had higher allowance than 2013. In 2012 allowances, had decreased overall at the end of the year with the write offs and bad debt provisions.
Liabilities
The company’s liabilities and contingencies are recognized on a case-by-case basis. Contingencies could have a material contrary effect on the consolidated financial statements in a future fiscal period. The contingent liabilities include, legal proceedings, securities, and class action litigation 's . Antitrust, tax, contracts and intellectual property are other

Show More
Related

  • Loblaws Inc: Sales And Collection Cycle

    627 Words  | 2 Pages

    Sales return and allowances→ in the detailed Income Statement of Loblaws Inc this account is not present. I would assume that the sales return and allowances are very insignificant for the company or they are already incorporated in the revenue amount (gross sales – returns)

    Read More

  • Financial Analysis: Hydrogenics Corporation

    909 Words  | 2 Pages

    The Corporation has sustained losses and negative cash flows from operations since its inception. The Corporation is exposed to liquidity risk as it continues to have net cash outflows to support its operations.

    Read More

  • Case Study Walgreens

    1366 Words  | 3 Pages

    With the Walgreen's proposed acquisition of Rite Aid, we posed 3 questions to our members. Here are the questions and the results:

    Read More

  • Walgreens History and Background

    1476 Words  | 3 Pages

    Walgreens was founded in 1901 measuring 50 feet by 20 feet by Charles R. Walgreen, Sr.. Mr. Walgreen was born near Galesburg, Illinois and his family later relocated to Dixon, Illinois at town about 60 miles north of his birthplace. Mr. Walgreens’ father was a farmer who turned into a businessperson and saw a great potential of the Rock River Valley (Walgreen, n.d., p.1). At age 16, Charles Walgreen had his first experience working in a drug store. He didn’t always have pleasurable experiences but it was a job with pay. He had an accident at a shoe factory that cut off his left middle finger from the top joint. This injury also stops him from playing any sports at school. After a year and a half with the drug store, Mr. Walgreen left to pursue something bigger in the big city-Chicago.

    Read More

  • Wal-Mart: A Contingent Liability

    644 Words  | 2 Pages

    Critical Element IA A contingent liability is a liability account used by partnerships and corporations to classify pending losses from uncertain occurrences like damage estimates from potential lawsuits for example. Partnerships and corporations report their respective contingent liabilities based on the passing of two vital criteria: (1) determining the likelihood that the estimates owed will reach imminence and (2) whether or not the amount of the contingent liability is estimable. Financial reporting of contingent liabilities is further broken down into three levels (low, medium, and high) that designate the probability of the contingent liability actually occurring. After designating the level of probability to the contingent liability,

    Read More

  • Interview With a Walgreens Manager

    1872 Words  | 4 Pages

    Since 1901, Walgreens has had a strong passion for customer service. The founder, Charles Walgreens, goal was to create a drugstore that was like no other. He said that for as many drugstores as he had worked at, he had never worked for one that had a focus for good customer service and low prices. Walgreens has grown by leaps and bounds since 1901 and is now recognized as the leader in the market with over 7000 stores. Charles Walgreen had an eye for good managers. He said he was able to pick people that he knew were smarter than him so to promote them and make them the heads of his drugstores. As a store manager, not only is it your job to run a store which includes ordering, customer care, and inventory control, but also it is your job to manage the staff. As a part of managing staff, it is their responsibility to hire, train and develop, and terminate if need be. While there are many jobs to choose from when it comes to HR and employee staffing, I choose this one because it is by far to me the most intense.

    Read More

  • Walgreens Business Strategy Essay

    684 Words  | 2 Pages

    Walgreens ensures to have high quality products and solutions by making it convenient for clients to get in and out with what they actual need, enhancing its beauty products and stimulate the convergence of health care by putting everything together. In addition, by utilizing over-the counter health service and providing wellness products, the company helps its customer to find more seamless solutions. Employees are trained to make friends and build relationship internally with their customer. Beyond accelerating the products in the physical store, delivering well experiences to customers also need highly engaged employees offer superior customer care in every community. In addition to provide outstanding customer service in retail stores, the company started a piloting program where people are able to order their prescriptions through phone and takes advantage of convenient curbside pick up. In essence, this action partly shifts Walgreens from a retailer to a service based organization. As a result, through the functional strategy in the company, customers can undergo the differential shopping experiences compared to other drugstore in the industry, and the company can improve its positive reputation and customer

    Read More

  • Accounts Receivable Case Study

    951 Words  | 2 Pages

    Accounts receivable is money due to the organization from patients and third parties for services that the organization has already provided. Patients are sometimes not billed in a timely manner because the information they provide is inadequate or incorrect. There are also stages to developing a payment such as pre-care, care, and care completing phase.

    Read More

  • Case Study: Medtronic's Case

    1027 Words  | 3 Pages

    What were the performance issues in the 1970s and in what context? What were the root causes that Medtronic nearly lost its leader position in the 1970s and 1980s?

    Read More

  • The Pacific Healthcare Company Case Study

    736 Words  | 2 Pages

    There is an old saying in business that if something isn’t broken then don’t fix it, but that is very far from the truth. Sometimes when doing business managers get comfortable with their business partners, and do not take the time and effort to look at what the competition has to offer. Not taking the time to look at the competition could mean a few things, one that the manager is very loyal to their business partner, which sometimes happens in character base trust, or the manager is just to lazy to do the leg work to find the best prices for his company. Not allowing competitors to compete takes away from a business ability to maximize profit, it allows one business to set prices and not meet different competitive demands. Another mistake company’s make is having someone from outside a department make decisions that someone from that particular department should be making. Most of the time the outside individual does not have adequate experience and training to make the best decision in the interest of the company.

    Read More

  • Strategic Management of Wal-Mart

    1002 Words  | 3 Pages

    Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.

    Read More

  • Swot Analysis Of Wallgreens

    276 Words  | 1 Pages

    Remain strong physical presence: Walgreens tries to increase the number of their stores in the industry. Company will now buy 2,186 stores from small competitors.This deal has been valued at $5.18 billion in cash. Management belivies that this deal will allow company to expand and optimize their retail pharmacy network in key markets in the U.S. and add to adjusted earnings per share in the first full year after its close and generate savings of more than $400 million.

    Read More

  • Rite Aid Corporation Case Study

    1096 Words  | 3 Pages

    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

    Read More

  • Walgreens: A Case Study: Gregory Wasson

    204 Words  | 1 Pages

    Gregory Wasson worked out a deal with a PBM and created the SMART 90 Walgreen’s plan which allowed customers to order 90 day prescriptions through Express Scripts. He also focused customer centric retailing, which is a strategy that delivers Walgreens customers with whatever they want. To help with the Growth of Walgreens Wasson also introduced the Walgreens app for IOS and android platforms. The app allows customers to order prescriptions and receive a SMS alert when their prescriptions are ready. Walgreens also showed that they are an environmentally friendly company by installing solar panels at some of their stores and also electric vehicle charging stations.

    Read More

  • Case Study Of Walmart Stores, Inc.

    1478 Words  | 3 Pages

    Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But, perhaps the most revolutionary was the practice of unprecedented coordination with suppliers (Chekwa,

    Read More

More about Walgreen Company Case Study

Open Document