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The Organizational Structure Of Walgreens Essay

1284 words - 6 pages

The Organizational Structure of Walgreens
Georgeanna McLean
December 6, 2012
Yuvonne Richmond
The Organizational Structure of Walgreens
“At the corner of happy and healthy” is the snappy jargon that reminds all people of one legacy and business, Walgreens. Walgreens began in 1901 and was founded by Charles R. Walgreen Sr. This super conglomerate began in the south side of Chicago and now has over 7,000 stores nationwide, continues to re-innovate, and opens about 425 new stores a year (Tucker-McLaughlin, n.d.). With this company’s continual growth and constant upholding of a competitive edge with other similar companies, a strong organizational structure ...view middle of the document...

The responsibility of overseeing the numerous Walgreens stores is broken down into certain regions of the country, which are headed by senior vice presidents. The next level includes operation VP’s that superintend roughly 200 to 250 stores. These stores can have anywhere from seven to nine district managers, and each district manager is responsible for about 20 to 25 Walgreens stores. The individual stores themselves have a main store manager and a pharmacy manager that all employees report too. The pharmacy manager, however reports to a pharmacy supervisor that is in the same area as the district managers, which is also who the store managers answer too. One major factor that Walgreens prides itself on in the changing times is their emphasis on operation managers spending time with store managers to improve retailing and customer service (“Aggressive Growth Tempered with Experience,” 2000). This small overlooked attribute is what keeps the communication stable and even among the pyramid. Rather than delegating the work down to certain employees, which could cause a lack of responsibility and accountability, Walgreens has found a steady chain of command in its hierarchy structure.
Walgreens Organizational Functions
Walgreen’s has ten departments in its corporate structure that make up the organizational functions. First is the marketing department, which handles all the brand and merchandise marketing for the company. Since technology continually keeps evolving, an E-commerce, IT, and engineering department helps sustain all of the software and hardware for the company, and also aids in the technological advancements and processes being made in the industry. Since over 425 new stores a year are being produced; a new real estate team department helps locate new Walgreens construction sites for storefronts. Human resources, finance, legalities, corporate management team, procurement and supplying, strategy and sales, and future business development are the other functional corporate departments. Walgreens also has its own distribution division that includes five departments. With thousands of retail locations to allocate to, there are about 19 distribution centers nationwide, but the number continues to grow. The Walgreens corporate office oversees all of the distribution management teams, but unlike the other departments, the distribution centers manage all of their own production, stock-taking, human resources, and finances (Tucker-McLaughlin, n.d.). Each of these departments has an influential role in the structure of the company, and each department is specialized in its particular area of interest. The departments have been broken down into each of these specific areas so that basic concerns, needs, and improvements can be addressed with little conflict as possible. For example, grouping the departments like in marketing and human resources allows people with the same skills and knowledge to perform a task more...

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