Case Study of Alliance Boots Plc

ALLIANCE BOOTS PLC INTRODUCTIION bond paper Boots is a spark advance argonna-wide pharmacy-led wellheadness and beauty group serving a wide stray of ingatherings and wait ons to customers over 100 years in the UK. We argon laborious to identify how the Boots industrial plant intern eithery and outside(a)ly to reach its goal. We be withal trying to find out how the Boots motivates its employees to be productive. We leave overly wrangle its organisational structure and design to communicate each otherwise billet of the organization. We bequeath discuss its appraisal dodge and organizational record keeping.We will in any case find out closely its brand image to the s tampholder. Customers be at the heart of their furrow and they are devoted to providing extraordinary customers and patients consider by offering innovative products Only at Boots with exceptional values. populate are their strength and tell us that Boots is a excellent govern to function. They constantly aim to be the employers of choice by attracting and retaining the most adroit and passionate nation. BACK GROUND OF THE COMPANY Boots had established its roots in the mid-19th century by John Boot, an agricultural make believeer, at Nottingham, in the UK.He opened a sm all in all herbalist store on goofball Gate in 1849. After Johns death in 1860, his widow, Mary, continued trading, with the help of her young son, Jesse, who became a full partner when he was 21. The store continued to thrive. In 1877, Jesse took sole control of the Boots. In 1920, he sold Boots to the United drug Company of America. In 1933, the United Drug Company sold its holding in Boots to a group of British financiers led by John Boot, Jesses son. down the stairs Johns chairmanship, the first overseas store opened in New Zealand in 1936 key brands No7 and Soltan was both launched in the 1930s.He also continued his parents impost of staff welfare improving on the job(p) conditions, trim ho urs and introducing pensions for all employees. much recent decades, the introduction of successful brands such as 17 cosmetics and Botanics and bran- clean business ventures such as Boots Opticians are more popular to the customers. A new chapter in Boots history started on 31st July, 2006with the merger with hamper Unichem, to become part of Alliance Boots, an worldwide pharmacy-led health and beauty group.Their product and services are Health and beauty, Personal care, Cosmetics and toiletries, Baby care, Dental & health care, OTC and Prescription medicines, Perfumes, and Skin care. (www. bized. co. uk,) MISSION Their mission is to be the creative activitys leading pharmacy-led health and beauty group. They foolk to develop their centre of attention business activities of pharmacy-led and beauty retailing and pharmaceutic wholesaling and distri merelyion across the world and become a signifi rumpt player in many a(prenominal) leading international markets. PURPOSE Their p urpose is to redeem products that help large number attend to and feel their best.VALUES They believe in making a exit for the well being of the communities they serve. The shopping center values are described below. * confederation It includes respect, on a lower floorstanding and running(a) to use upher. They create and build value through partnerships and alliances, in spite of appearance and outside the business. * TRUST The essence of the room they do business. People boldness because they deliver on their promises. * SERVICES They hold higher(prenominal) standards of care and service for customers and their people. * ENTREPRENEURSHIP They are innovators, seeking new challenges and having a winning entrepreneurship. SIMPLICITY They are proud of being lean and efficient, uncomplicated and easy to do business fairly. (www. allianceboots. com) AT A GLANCE * in operation(p) over 20 countries. * It has115, 000 employees. * Operating more than 3,250 health and beauty ret ail stores. * Dispensing more than 245 million items each year. * 1500 Stores in the UK and Irish Republic. * Serving 420 million customers (pa). * Operating over 360 pharmaceutical wholesale distribution centers. * Cash generated from operation ? 1130 million. * Revenue is ? 22. 5 billion. * EBITDA is ? 1,360 million. * traffic Profit is ? 1,074 million. www. allianceboots. com) BUSINESS ENVIRONMENT OF THE BOOTS The organizational environment consists of internal and external environment. Alliance Boots operates in highly attractive markets with potential for signifi crowd outt keen-sighted term growth. The Company expects to increase life expectancy and product regeneration to continue to drive demand for prescription medicines and related healthcare services. At the same clip, they believe that a growing customer focus on personal well being will drive demand for health and beauty consumer products and related services. Fig The Organizational purlieu of Boots profound enviro nmental Technological Political Social Economic External Environment confabulation External Environment - Innovation Strategy Change Internal Environment (Writers observation) INTERNAL ENVIRONMENT In order to sustain an organization, it is unavoidably to adapt internal structures, process and behaviors to enable to cope with complexity and the tread of external change. It is concerned about organizations strategy, teamwork, steering, leadership style, working practices, empowerment, employment patterns, and so forthtera * STRATEGYJohnson et al (2008) say that strategy is the vigilance and scope of an organization over the long term, which achieves advantage in a changing environment with the finishing stakeholder expectation. The Boots strategy is to focus on its ii business activities of pharmacy-led health and beauty retailing and pharmaceutical wholesaling and distribution, term increasingly growing and internationalizing product brands to create a third dimension. * deviate According to Mullins (2007), every change becomes welcomed as an opportunity for increasing cogency and building new organizational success.Boots increased female participation in the workforce and growth of services. It also changed the sophisticated instruction technology where cognitive skill demands. It has created fast flat and flexible organizational design. The company plans to barely increasing the number of Boots stores through new openings and pharmacy acquisitions and have also just commenced a trial with Waitrose to sell selective product ranges in each others stores. * INNOVATION According to Mullins, innovations arise from scientific advancements, new processes, and improvements in all major areas of organizational activity.Boots concentrates in expanding their core business in active markets, continuing to deliver productiveness improvements and other cost savings, pursuing growth opportunities in selective new high growth markets. Boots is continuously launching products in the new markets. * COMMUNICATION Boots always focus on customers/patients take ons and services. Their communication and distribution channel is well updated which improves productivity. EXTERNAL ENVIRONMENT The external environment is the pressures of the organization from outside that can influence and affect the performance of the organization.The significant environmental pressures are the PESTEL which locates for Political, Economic, Social, Technology, Environmental, and Legal factors. * POLITICAL The governmental environment of a verdant predisposes by the political organizations such as philosophy of political parties, ideology of government, legislation, taxation, employment law, address union policy and activities. Boots are also affected for political close in the UK. The UK government is cutting the employees from most of the sectors. As a result, people will have no enough m onenessy to spend on health and beauty. ECONOMIC It is mainly concer n about total gross domestic product of the country as well as consumers expenditures and disposable income. It is also include currency exchange rates, tax regime, wage rates, raw material prices etc. Boots is a multinational company. So, during recession, UKs currency rates fell polish up and Boots lost lots of money to exchanged currency from other country to UK. * SOCIAL It concerns about demographic trends, lifestyle preferences, social values, distribution of incomes, procreation and health, labor mobility, attitude to work, discrimination trends, skills availability, etc.Boots never discriminates any employee. Boots always tries to adopt different life style in different countries, languages, traditions, people expectations etc. * TECHNOLOGICAL The technology adopted by the industries determines the type and feel of goods and services to be produced and the type and quality of plant and equipment to be used. The expert environment influences the business in terms of inves tment in technology. It refers to the innovations of IT, na nonechnology, new production methods and process, level of expenditure on R&D by organizations rivals etc.Boots uses to invest more money on research and development of its cosmetics and medicines. ENVIRONMENTAL It links to the Green issue of the environment, reducing toxic emissions, pollution, spills, hazard prevention, disposable of wastes or rubbishes etc. Boots dedicates to reducing the century intensity of their business and continued to launch specific speed of light reduction initiatives. For example, Boots UK launched in August 2009 an awareness campaign aimed at reducing susceptibility use in its retail stores.In February 2010, Boots UK received the Carbon faith Standard in recognition of recent achievements in reducing its carbon footprint. Over 50% of the waste, they create as a spieling re wheel arounds. * LEGAL It deals with international law, legislation and taxation, human rights concerns, local regula tion. It also concerns international trade agreements, employment and safety law, and product safety issues etc. Alliance Boots operates in regulated markets. It could be adversely affected by changes to existing regulation, new regulation such as licensing regimes for pharmacies, prescription processing regimes. www. boots. com) organizational STRUCTURES OF BOOTS theatre director Director Director Finance Director Chief executive Health & Beauty Chief executive director Legal Chief Executive Health & Beauty CEO Chief Executive Pharmaceutical sell Division Chairman of the Board Director Director Director Director Chief Finance Director (www. theofficialboard. com) Organizational structure is the formal system of task and reporting relationships that controls, coordinates and motivates employees so that they work together to achieve organizational goals. (Buchanan and Huczynski, 2004. P. 874)It is the pattern of relationships among positions in organizations and among members of the organization. Structure makes possible application of the process of heed and creates a framework of orders and commands through which the activities of the organization can be planned, organized, enjoin and controlled. Mullins (2007, p. 564) Alliance Boots has a flat organizational chart. In the structure, we can see that there are eight directors including Board of Chairman and non executive directors. Under Board of Chairman, there are six Chief Executives who are trustworthy to report to Chairman.All the Executives are the same level in ending making. This structure helps Boots to do better communication between spend management and employees as well as increased team spirit too. Hence, we can see less bureaucratic power which helps to make decision easily. It also improves sound coordination and timely passing information among the different department at bottom the Boots which increases productivity. This flat structure is mostly helpful to do faster responses to cha nging condition. This flat structure has demerits in Boots.Here, workers may have more managers for one job which creates confusions. It is mostly helpful for a small organization but Boots is such a large organization, where it will have demerits. As a result, this will reduce the growth of the organization. (www. learnmanagement2. com) (www. blurtit. com) MOTIVATIONAL FRAMEWORK MOTIVATIONAL person Colleagues The Manager Customers Organization FRAMEWORK (www. ashridge. org. uk) ORGANIZATION The organization will offer up the structure and processes such as performance management and reward schemes, train, evoke work.In the organization, leaders and managers must earn the respect of others, create an inhibit working environment and succeed opportunities for people to grow and develop. THE INDIVIDUAL Individuals regard to be more open about share values with colleagues and managers. Organizations need the accurate strategy and processes that make it abundantly perish that re spective(prenominal)s have a responsibility for their own development. THE MANAGERS The Boss interprets a crucial role in the indigence process not only acting as a role model but valuing each of colleagues in a way that makes them feel motivated.COLLEAGUES Colleagues can play a crucial role in motivation at work. By sharing skill and ability, every employee will be motivated in the work place. THE CUSTOMERS People will be motivated by feedback from both internal and external customers and clients. We should regularly get word backward and share the results of feedback with staff. FACTORS AFFECTING EMPLOYEES PRODUCTIVITY The proportion that measures the efficiency of the resources concerned in production of products and services is called productivity. It is also the ratio of inputs and outputs of the production. (www. ayushveda. om) The factors that affect the employee productivity are as follow * TRAINING AND DEVELOPMENT If the employees are not learn properly in their particu lar job role, then the organization cannot get the benefit from the employees. Sometimes Boots cannot get enough time to schedule the training timetable. COMMUNICATION on that point will be constant communication among top management, middle management and the employees. But sometimes there is miscommunication or take time to communicate within the Boots because of managers holiday, Internet break down etc. * WORK LIFE BALANCEIf the husband or wife works together and there are kids, there will be a problem to match the time table. Boots gives priority to those families. * PAY AND BENEFITS If the employees get under pay, a late payment, or wrong payment, then they will not be come ond to perform better the job. * REWARD AND RECOGNATION Sometimes employees are not rewarded for meritorious services which create employees opposition to complete the job. * works ENVIRONMENT If the working environment is not suitable for employees or the coordination and cooperation is lacking, the prod uctivity will be low. EQUALITY AND DIVERSITY If there is any discrimination, the productivity will decrease and employees will dissatisfy. Boots strictly follows the rules and regulation about equality. * OTHERS There are few more factors which affect the productivity, such as despicable management, slow decision taking, lack of trust, stress level, conflict, frustration, etc. WAYS OF prompt KEY EMPLOYEES IN BOOTS An organization has many attributes to its success one of which is motivation of staff of the organization.Boots has various ways of motivating their workers leaving them satisfied which encourage them to go ahead and deliver. * TRAINING AND DEVELOPMENT Boots provides an on declension module and training for their staff. This enables them to fulfill their potential at work. The organization makes a significant investment in the development of a range of training. This helps new employees of the organization feel as part of the team and makes them more confident. This yea r, Boots put additional investment into developing their pharmacists and registered technicians supporting them with their continued professional development. DISCOUNT FOR STAFF PURCHASES Employees get discounts for purchases on Boots and non-boots products. They obtain 12% discount on Non-boots products and 25% discount for boots products. all(prenominal) employee, within a year gets double discounts for 2days, which means 25% and 50% for non-Boots and Boots products respectively. This makes them want to expect in the organization. * HEALTH INSURANCE Boots believes that their responsibility is to look after their colleagues health which will help them deliver better customer service.This is particularly beneficial to the employees though this is not compulsory. It encourages them to stay with the organization hence longevity of service, intimate working knowledge and greater output. (www. boots. com) * RETAINING AND PROMOTION The organization is decidedly particular about recruit ing, retaining and promoting diverse employees in the organization. Therefore they strive for this through hard work and hence feed enormously to the success of the organization. * ATTRACTIVE REMUNERATION Salary is also some other factor that encourages employees to work.If they are well paid they feel like approach path to work coupled with a enjoyable working environment at Boots, their employees get an increase in salary every year oddly when the economy is stable or growing. * HEALTH AND SAFETY Boots always provide the right equipment to do the job. All the training regarding health and safety provide every employee to protect them as well as customers. (www. allianceboots. com) APPRAISAL SYSTEMS OF BOOTS As mentioned above Boots appraises its employees once a year. They are informed when they are liberation to be appraised and what is expected of them.A form is given to each line manager for every employee just to tick the most suitable one. It describes the employees work performance. Feedback is given to employees, so they will know where to improve. The performance management cycle of Boots Plan for performance appraisal Informing employees about appraisal Feedback and working to achieve goal Performance appraisal of employees Appraisal systems depend upon the individual performance which includes quality of services, customer care knowledge, flexibility of working time, competences, skills, encyclopedism achievement, relationships with colleagues etc.ORGANISATIONAL RECORD KEEPING It is where an organization records information from the time it creates to the time of its disposal. Record keeping is truly essential for an organization because it helps keeps the organization on track and thus achieves organizational goals. Record keeping helps the organization to monitors its fiscal transaction. In Boots, record keeping uses for verification financial transaction and arrangement information about employees such as employees personal data, training records, how many times an employee has been absent.Boots keeps its records for two years then at the end of the two the last year records destroyed and a new one is started again. (http//en. wikipedia. org/wiki/Records_management) Boots always keep employees personal data secretly and maintain the rules and regulation of the information Act. All employees have personal record file where all the information are stored in secret. (www. 123helpme. com) CONCLUSION Boots has a outstanding reputation about health and beauty products at the UK as well as all over the world. It is a delightful place to work everyone says.They have to work closely with manufacturers and pharmacists to improve health among the local communities as well as national level. Boots should give priorities about customers loyalty, retention, communication and in store marketing. In the current economic recession in the UK, they have to monitor all the financial activities to minimize the cost. There will be commi tment and clear indicators from top level to lower level. Motivation is essential to business success. Boots require to pay more attention about employees learning and development to meet the future demands of the organization.