Boots UK limited is commonly known as Boots is a pharmacy chain in the United Kingdom. It was founded by the infamous John Boot who was an agricultural worker who moved to Nottingham to start a new business where he opened on Goose Gate, a small herbalist store in 1849. There, he prepared and sold herbal remedies. The business soon became popular even after the death of Boot, his wife and young son, Jesse continued the business. When Jesse turned 21, he became a full partner to his mother on the business. This store continued its business which later in the 1877, Jesse took over the business as a solo. Jesse's talent for the business gave the business its advantage which gave him the hand into expanding the product range. He created a strategy of wholesale purchasing and sold his products cheaper than his competitors. He advertised his products under the slogan "Health for a Shilling". A number of customers were consistent and continued buyers. The number of customer increased and the profits increased and Jesse was able to move into larger premises in 1881 on Goose Gate. This continued profit allowed Jesse to expand into more shops in around Nottingham.
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In 1884, shops were expanded to Lincoln and Sheffield then in the same year he employed his qualified pharmacist to dispense medicines. Jesse had a policy for superior products at competitive prices which are also delivered with expert care. The Boots name became rather popular in an instant for its great quality, value and service to the customers. Jesse had in mind for all the great opportunities arise for his family business. Therefore he wanted Boots to be a nationwide chain and for Boots to be known globally for its products and services. He enquired new premises and chains of chemists to be employed. The network of the store grew tremendously. In 1890 he had only 10 stores as the business grew larger. By 1914, there were over 550 stores throughout the whole of England, Scotland and even Wales. The product range also transformed to a much bigger scale, running from stationery to silverware and picture framing. New services like Booklovers Libraries and Cafes in the larger stores extended the business taking. Many of the new lines were administered by Jesse's wife, Florence. He married in 1886 and they have three children named, John, Dorothy and Margery. Manufactures of Boots own brand products and research was fostered under the retail side of the business. New chemicals and pharmaceuticals were also administered. Nottingham had Boots growing factories, warehouses, laboratories, offices and such on the Island and Station Street. Jesse and Florence were not only good business partners together. They were also respected employers who took the wellbeing of their employees as part of an importance to the successful business. They provided them with education, sports, social facilities, welfare was employed to take care of the health of the employees and a section was organized at the Island State for the health of the workers. A Day Continuation School was built in order to provide extended academics and vocational education for the younger employees. The school was then later renamed as Boots College. Jesse and Florence organised and hosted social events, outings, trips to the seaside, tea parties, musical concert at their house on the banks of the River Trent and they enjoyed and were glad to do such things for their employees. The number of employees grew as well the belief that a healthy and happy environment for the employees would produce a better work performance and work place.
After the First World War had taken place, Jesse who was reaching the age of seventy who also had arthritis decide to retire. In 1920, Jesse sold Boots to the United Drug Company of America. During the thirteen years of the American ownership, Boots continued to profit and expand. Hence for its expanding business, a new site for manufacture had to be in reach at the Beeston in 1927. In the year 1933, Boots' store was accounted for the 1000th store was finally opened. The United Drug Company sold its share in Boots to a group of British financiers which was led by Jesse's son named John Boot. John continued the reign of the business. The first store that was opened internationally was in New Zealand in the year 1936. The key brand of No7 and Soltan were together launched in the year of 1930's. John believed that Boots should offer exceptional customer service. Therefore he also introduced yet another idea to extend the business' services which was a 24/7 opening time to serve the public better and to hereinafter maximise the thoughts of the public when knowing that the service is available at any time of the hour and the availability of the product when needed. This creates a greater bond with the customers. John knows what is needed for the public as well. His parents' tradition of staff importance was not forgotten when John took over. He continued his parents' great work for the employees along with improving working conditions, introducing pensions for all employees and reducing hours of work. After the Second World War, the business continued its glory in expanding manufactures and researching abilities. The foundered National Health Service in the 1948 advantaged in a fast increase in dispensing. In 1950's self-service was also introduced and the international market of export and manufacturing was reinforced.
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According to the case study Boots has launched its advantage card scheme in September 1997, after two-years of research programme. The idea of a card scheme was created in purpose of holding onto loyal customers and to identify the needs and behaviours in buying the product. By using this scheme, it can be used into monitoring the customers' behaviour on purchasing. In the first year in using the card holder system was accounted to a number of 10 million customers.
Along the years, the business brand expended to levels of cosmetics in 17 ranges and also in Botanics. New business ventures such as Boots Opticians was also created. Another segment to be added in the history of Boots business is that on the 31st of July year 2006, the business united with Alliance Unichem which then became a part of Alliance Boots. Alliance Boots in an international pharmacy-led health and beauty team. In 2006, E-Leaning was scheduled for the employees in order to receive specific training and purpose to increase performance knowledge on their job requirements and duties. In June of year 2007, AB Acquisitions Limited attained with Alliance Boots and their shares in the London Stock Exchange was detached.
The SWOT analysing of the organisation has been identified as four parts which are Strengths, Weaknesses, Opportunities and Threats. There are internal and external attributions to the organisation and with its helpful and harmful effects that can affect the achieving of objectives.
Strengths are known as the helpful effect in achieving objectives and advantage attribution of the organisation which is also found in the internal origin of the organisation. Strengths comes to terms with the services and range where Boots is one of the first organisations that have been established in pharmaceutical businesses in the whole world, so it will be on a first known basis and is easily accepted by many customers. Along with its advantages of having variety of branded and good quality products gives the organisation the power of attracting new and more customers while enhancing the existent loyal customers. Since Boots is a well-known organisation therefore it would be much easier for the organisation's business to expand into other ranges of medical line. With an upright position of introducing new products to the market, the marketing plan has developed many latest schemes into attracting customers. A broad range of health and beauty products and services to be market to the public such as advertising new methods for the healthcare plan and offering a special consultant for advice giving for the customers. The customers would also be given general practitioner for the customers if concluded medically necessary by the consultant and GP surgeries would be provided for acute and chronic illnesses. Boots is also willing to be the healthcare provider as one of the goals of the organisation's structure planning. Boots is also planning to increase working hours for the stores to improve the services of the convalescent homes. Under the division of Pharmaceutical Wholesale, Alliance Boots steered as one of the top three wholesalers and distributors in almost all of Western European markets. It provides high centralised service standards of the regularity of delivery, the scope for product, accurate delivery, opportunity, reliability at competitive prices. The organisation keeps on record of large data's on the customers which gives them an upper hand in providing quality products for the customers.
In the aspect of Weaknesses which is known as a harmful effect that would imbalance the growth of the organisation. It is found in the internal origin of the organisation where it states the weaknesses found in the organisation's system. A few of the weaknesses is that Boots lack material goods and the skills to become a Services Major. The personal healthcare and lifestyle requires a certain flow of expertise in handling the consistent work of producing and consuming hence, this is what Boots found hard to reach. Unable to avoid, Boots customarily fell off its governing market position. For example, in year 2000Â to year 2009 the percentages of profit decreased in number from 54% to 50%.
Opportunities are known as the floating chances that have the ability in helping to achieve the wanted objectives. This is found in the external attribution of the organisation's structure whereby, the finding ways into expanding its service' backbone in healthcare to its symmetry market. Entitling to its increasing investment in its beauty offers along with exclusive brands such as 'Model Me' by Toni and Guy and own brand such as 'No. 7' with its beauty spa trial package. The business is prevailing on improving the beauty proposition by offering beauty specialist to be in the shops to give advice to the customers. All in all, the method taken place is merely to extend Boots' range of products to go beyond the reach of the supermarkets. Apart from that, the opportunity of media target, to grab hold of the customers attention by using visual aids as well such as promoting the brand and product and special promotions for the customers using the card system. So, the cardholder customers' would increase in number to attain profit and hand out good services. The organisation has also decided on creating a beauty spa under the brand 'UR BEAUTIFUL' where it will have its own entrance which is separate from the main store.
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The last part of SWOT is Threats. This is found at the external attributions of the organisation which entitles on about the dangers of possible business threats that could affect the wanted expand of the business. This is cornered as the harmful effects that could harm the growth of the business. The number of threats was other rivals and competition such as supermarkets chains like Tesco, who entered personal care and pharmaceutical market as well. They had a range of products which customers would be interested to purchase. Supermarket stores had much h better advantage because all their products from various brands and quality were all able to be found all under one roof. Therefore the customers did not have to wander far into searching for their products. Also, the customers were able to find groceries and other necessities at the same time. This formed a threat for Boots' business. Also, the weather of the environment could also affect the organisation's business. the inability to control the weather to the business' advantage hauls over the possibility of losing customers such as having bad weather and unable to perform delivery accuracy of the products to the required customers.
The PEST analysis consists and constructs under four sectors of environment surroundings known as the Political Environment, Economic Environment, Social Environment and the Technological Environment. These sectors demonstrate the impacts on the four different sectors.
Firstly, the Political Environment speaks on the impact of the government policies that arise on the business. For example, the government's given permission on major supermarkets, allowing them to open up many pharmacies in their stores. In order to increase National Health Service' services and also to better the community services and healthcare. The new pharmaceutics will be given license to open much faster if the pharmacies open 100 hours in a week. This would put off a threat to Boots business because the competition just became much stiffer. This could lead to having to reduce the price on the products and would have to put in longer hours of work. Hereinafter, Boots are compiling up with ideas and methods into getting back into the competition. Boots came up with new methods such as repeated prescription services, medicine delivery and a specialised pharmacist to guide the customers on their medicines that they are consuming. Besides that, the government is giving importance to focusing on healthy lifestyle choices and is sharing up ideas on health promotion to be endorsed. Boots is also participating in programs led by the government so therefore, the government is somewhat playing an indefinite role in helping Boot and others on their sales enhancement and improvement.
Secondly, the Economic Environment engages a prioritised role in processing the business profoundly. Many businesses have suffered loss due to the recent recession in the world's economical state which puts many businesses in jeopardy. Boots however, had managed to pull through the recession. A recession caused an increase in inexpensive cosmetics. Boots pharmaceutical business did not see the loss from the recession as well. On reasons such as many people are willing to sacrifice on new clothing and materialistic luxuries but not many would sacrifice their own health just for the sake of a luxurious lifestyle. However, Boots Optician graved a loss in their sale of designer glasses and contact lenses preferably maybe because customers see their health as a primary and designer glasses and contact lenses as a secondary.
Thirdly, the Social Environment talks on about the social lives of the customers which include their lifestyle, working conditions, income basis and background of education and communities they are from. Whilst the National Health Service spreading health awareness to the public, Boots is taking advantage of this awareness as an opportunity to increase sales since the public is more health conscious at this point. Apart from that, beauty products such as anti-aging cream named 'No.7' sales are increasing in number. With the increasing number of female working and earning they are capable in buying their own beauty products to look good without concern. The sale of designer glasses have become a trend and its sale is rising as one of the high income level in the United Kingdom.
Fourthly, the Technological Environment consists of the Boots Centre for Innovation which hence provides support and funding to be used for the development leading products and technologies. Their focus would be on the needs for the customers. For example, to improve digestive health related to issues of poor diet, obesity and even stress. Boots has implemented to meet a desired service level for the customers. By this, Boots demanded Forecasting and Replenishment system to find ways to meet this desire in ways such as optimising the distribution of safety for the stock and also to accompany the users on what, how to order, how much and when in order to enable an easier service. Boots introduced an advanced reporting function which allows the users to filter large amounts of data. Also, generate reports of forecast accuracy, overstocks, and suppliers' performance and so on. Results of marked improvement were sought out by the organisation which had better achievements compared to previous period. Inhaling the positive impact of the process, available deals have approached. A significant number of profits were attained and performance was entitled.
Impact of IT/IS System
Boots has come up with a new system which is technologically bounded. It relates to the implementation of one of the top lines in the information system. This latest culture of technology has changed tremendously over the years and is now a must-have in every organisation. In the early stages, the organisation came to a realisation whereby the improvement on its IT/IS system would definitely benefit the business and the services provided to the customers would be able to be enhanced. Boots has also investment much in IT/IS infrastructure for the business in order to improve efficiently and more importantly to give the customers' value for their purchase in buying products from Boots. They touched every aspect possible in their IT/IS sector which includes the data centre, the network systems and in store data. One of the main roles that were administered by the company was the conversion from the old Legacy system and onto the new Enterprise Resource planning system with the core of the IT/IS operational system that is. Boots IT/IS systems had transformed into a bigger picture hence, they were able to install new personal computers to all its offices and the overhaul of its networks system. They introduced the touch screen tills to all its stores across the United Kingdom. This renewed structure planning took the Boots business to a whole new industrial level. Boots bared in mind the sourcing deal with IBM and restructured their dealing to improve in the IT/IS sector on customer service, to improve on its delivering capabilities and to reduce its previous IT operational cost to a minimum.
Boots then employed Tata Consulting Services out of India to be an additional outsource client of Boots. By having more than one client helps increases competition with the rivalries and at the same time to cut cost and retrieving the value for the money the customers put in. Boots have also been effective on the organisation culture by implementing National Health Service to work with the IT/IS system provided. By doing so, registering patients using the online system of the IT/IS sector would endow the task of the GP offices as well and reduce pressure on their behalf. This withholds benefits with adding up to their card system in 1997, the registering and record of data of the customers whom are which in possession of the card which would also increase the number of customer cardholders of the business. This success of implementation has brought the organisation a leap further falling at the top place in the competition. They have also increased their expansion from their Systems Applications and Products by implementing a fraud detection system which now sends the business to a fraud-proof protection system. One of the cultural changes that have been made was the ability to use the Customer Relation Management to monitor the customer's shopping traits. Boots Human Resource Management has come up with ways where they can reduce the man power and work load and labour which was then contracted to Torex Retail.
As mentioned, in 2006, Boots launched the E-Learning and the new touch screen tills would be used to train the employees as well to hand them the latest upgrades of the system and therefore making them more efficient in their work. The thing that makes the training worthwhile and the usage of the touch screen tills was that even during working hours, the employees are able to train and learn at the same time, especially the employees sectioned at the cashier because the tills have a smart switching software which allows them to train while working. Because of the cultural change in the organisation, individual training was more personalised for reasons that personal training much have more of an impact on learning for the employees than just on the scale of the technology. However, both ways was interpreted as having each different advantage to learning and training. The touch screen tills are used as an extra compound into training to endeavour memorial response when conducting in the action of the jobs indication. By having done this, the organisation would be able to distribute workers in particular work and area divisions so that, the workers would be specialised in specific wok criteria.