Organizational Change Walgreen's Essay

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Organizational Change- Walgreens PAGE \* MERGEFORMAT 4
Running head: ORGANIZATIONAL CHANGE- WALGREENSOrganizational Change- WalgreensKelly BrutonUniversity of Phoenix OnlineOrganizational PsychologyPSY/428Mary FarmerFebruary 8, 2009IntroductionOrganizational change occurs when an organization changes its vision and strategy to drive success. Major change takes place to keep up with the technological advances of an ever-growing technologically based environment. Such change can add or delete a major section or practice, or wants to change the very nature by which it operates. It also occurs when an organization evolves through various life cycles, just like people must successfully evolve through life cycles (McNamara, 1997-2008). This paper will discuss the company Walgreens, which has undergone changes over periods of time moving from a traditional organization to a transformational organization. This paper will discuss some of the changes that have been made, the impact to the company's customers, and local communities, the skills workers and management needed to undergo to accommodate the changes, and finally the support systems in place to assure the changes are successfully implemented.WalgreensWalgreens was founded by Charles R. Walgreen in 1901 when it opened its first store. Initially opened up as a drugstore, Charles R. Walgreen realized that the store had more to offer than pharmaceutical drugs, but convenience as well. Over the course of the years, Walgreens had several milestones leading the industry in innovation. One example of such a milestone is in 1968, when Walgreens put its prescriptions into child-resistant containers, long before it was required by law (Walgreens, 2009). Another example is in 1981, when Walgreens installed the first Intercom computers in five stores located in Des Moines, Iowa. This was the initial step toward making Walgreens the first drugstore chain to connect all its pharmacy departments via satellite (Walgreens).Transformational Changes and Impacts to External StockholdersWhen Walgreens was created, the focus was on a profit per store basis. In other words, how much money was each store making and how much profit was being generated within each store. As time changed and technology advanced, Walgreens discovered a breakthrough theory which in turn moved the company from a good company, to a great company. The idea of a profit per customer by clustering many stores within a small radius was born. While Walgreens was initially founded as a drugstore, the realization of Walgreens being a convenience store led to the profit per customer foundation. Walgreens began to cluster many stores within a small radius. In addition, Walgreens began putting stores on corners which provided more convenient access with multiple entrances. Walgreens would scout locations and if a already profitable Walgreens was even half a block down the road from a promising corner location, Walgreens would spend the money, no matter...

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