yees, especially the pharmacists, is a vital weakness in the growth strategy. Walgreens will have to focus on recruiting and retaining key employees to continue their growth. This is especially important now, when there is a general labor shortage in every market. An organization straying from set strategies that are based upon the strategic vision and objectives. As a company experiences rapid growth, there is a tendency to lose site of the mission and objectives due to new employees entering the business. The key is to maintain consistent control and train these new employees. Loss of growth percentage as the company grows in size. The larger a company becomes, the harder it is to maintain a high growth percentage. Currently the company is growing in net income at a rate of 22%, 17%, and 17% for 1999, 1998, and 1997 respectively while growing the percentage of stores by 14%, 12%, and 10% for 1999, 1998, and 1997 respectively. As the company expands, it will be more difficult to maintain these higher percentages and expect growth. Due to Walgreens past success, the growth concentration strategy discussed above has landed them the number one position in the retail drugstore industry. However, an alternative growth strategy, diversification, is an option, that needs to be analyzed carefully and thoroughly. In the past, Walgreens has prided its company by providing a convenient shopping experience for the consumer. Diversification would shift the focus from the key factors of their success toward that of the new expansion. The disadvantages of diversification outweigh the advantages. Realize that these advantages and disadvantages are specific to Walgreens, and are why Walgreens has chosen to avoid this strategy. Advantages (growth diversification):The advantages are as follows: Due to a shift in the economy and customer demand—a form of protection. One of the main reasons for diversification ...
