Strategic Management-Walgreens Internal Analysis Essay

Strategic Management-Walgreens Internal Analysis - Essay Example target of operating 7,000 stores by year 2010, Walgreen needs to manage its internal processes effectively and efficiently to maintain competitiveness and profitability. Assessing its operations to identify key business processes and areas of value addition allows companies to manage costs strategically. The concept of Value Chain Analysis presents a powerful management tool for identifying key areas of value addition and cost incurring with a business operation and by analysing Walgreens Value Chain, the report aims to establish areas of organisational strengths and weaknesses which would facilitate the strategic decision making process. An internal analysis of an organisation entails the assessment of its key business processes, the core competencies, organisational strengths and capabilities as well as weaknesses in alignment of business opportunities, which the organisation is perusing for its long terms success. Analysis tools such as Organisational Capability Analysis or OCP analysis, Value Chain analysis and SWOT analysis are few common tools available in conducting an internal analysis for a business. Value Chain analysis presents a strategic view of all company functions and activities, which are performed in carrying out its business and facilitates a comprehensive internal assessment in terms of not only the activity or function itself but also the manner in which they are interlinked in pursuing company objectives. â€Å"The Value Chain Analysis identifies separate activities, function and business processes that are performed in designing, producing, marketing, delivering and supporting product or a service† ( Porter 1985). The chain of interlinked activities, which comes together to finally meet a customer need in the form of a product or a service includes raw material sourcing, logistics, production, sales & marketing as well as other support services. AT each stage, the business objective is to create and add value and generate a component of the