The Traditional Strategic Planning Model

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. The traditional strategic planning model always matches the model of strategy making, and its goal is to obtain a relationship between internal resources and abilities and external opportunities and threats. However, this attitude can cause overemphasis on existing resources and current opportunities. On the other hand, the strategic intent can lead managers concentrate on establish new capacity to explore further opportunities. Generally, strategic intent is a compelling statement about where a corporation expects that succinctly conveys a sense of what the company desires to accomplish in the long term. According to the article “Strategic Intent,” Hamel and Prahalad argue that “The strategic intent usually incorporates stretch targets, which force companies to compete in innovative ways.” Moreover, the strategic intent is more that unfettered ambition, and it incorporates an active management procedure that guide the corporation to the essence of winning. In Walgreens, the plan to win is a journey to innovate and reinvent the company for a new era of growth and value creation. For its future development, the corporation slows down the growth of new stores and invests more in existing store base. Meanwhile, Walgreens tries to investigate a new and innovative retail concepts in America. Additionally, in 2014, the company acquired several major organizations, involving Duane Reade in New York City and drugstore.com. In addition, Alliance Boots has become a strategic partnership with Walgreens, and established long-term strategic relationship with AmerisourceBergen. Because of this strategic intent, Walgreens achieved sales of $72.2 billion with adjusted net earnings rose of 16.4 percent to $3 billion in... ... middle of paper ... ... efficiency. “20” refers to the 20 percent of employees, who provide the highest performances, and will be rewarded with bonus, vocation, and stock options. “70” represents to the employees with middle performances, and the company will retrain them and offer positive feedback to them. Last “10” means the 10 percent of employees will be laid off because of their ineffective performances and reducing the growth of the company. In Walgreens, the managers not only oversee the chain with strong customer service and highly engaged workforce, but also pay more attention to the employees, who are poorly to address problems and not perform well. Just like Welch applies into the General Electric Corporation, Walgreens has the policy and the new expectation to its employees, so the company will lay off the employees, who cannot reach the standard performance in the workplace.
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