Kava Expansion: Synthesis Phase
MGT/350
Kava Expansion: Synthesis Phase
The Walgreens Company is opening a store location on the Pacific Island of Kava. In the analysis phase several problems were identified including how the land and building will be acquired, where the employees will come from and who will provide security are all issues that must be addressed. Walgreens used decision-making tools and techniques to perform the required analysis identifying problems and possible solutions.
Brainstorming
Decision-making tools and techniques are methods used to help guide one in making decisions. According to University of Phoenix’s decision-making model, framing the problem includes identifying the problem, establishing goals and objectives, and evaluating the impact of the problem (University of Phoenix, 2009a). The executives of the Walgreens Company chose the brainstorming technique to come up with the following options for entering the island country of Kava.
Option #1
The first option will analyze the effect of buying bare land and building a new free standing store on the island of Kava. Hiring and training native employees to staff the stores and hiring a private security company are also included in option number one. Table 1.1 outlines the projected costs over the next five years associated with the choices.
The building will have an initial cost and in subsequent years an accrual amount to cover general repairs and upkeep. Once the land is purchased local property taxes are paid annually. Cash registers, trash compactors, computers, and all other equipment required to operate a Walgreens location is included in the equipment cost. Once all equipment is installed, yearly costs include replacement parts and equipment and software updates. Salary projections reflect a standard 3% cost of living raise per year. Salaries included are store employees, managers, and pharmacists. Security is provided by ABC Security Company....