The Walgreens Crisis: An exercise in critical thinking
Capella University
MBA-FPX5002 - MBA Leadership Assessment 1
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The Walgreens Crisis: An exercise in critical thinking
With the rapid advancements in technology and the evolving global landscape, companies are
inevitably challenged, yet those challenges present opportunities for success. Businesses must not only
improve efficiency and drive revenue but also uphold exceptional service quality while elevating the
customer experience. This paper examines the essential role of critical thinking and the principles of
volatility, uncertainty, complexity, and ambiguity (VUCA) in tackling the financial and service crisis
, currently confronting Walgreens. Drawing on the successful strategies employed by leaders at Panera
Bread to address their "Mosh Pit" issue (Jargon, 2017), this paper adopts a similar framework for
analysis.
Walgreens stands as a century-old enterprise that has adeptly navigated the complexities of a
VUCA environment during most phases of its lifespan. Walgreens achieved remarkable success
primarily through the strategic expansion of its locations. While this approach effectively met its goals,
the absence of diverse mindsets left the company vulnerable to stagnation. In contrast, competitors
embraced innovative strategies to adapt to the evolving market, while Walgreens continued to follow a
steady, unchanging course. Recognizing the compelling need to adapt in light of the internet's rise and
the convenience of mail-order medicine, the leadership team understood the need for new strategies.
Embracing growth mindsets and diverse critical thinking is essential for fostering innovation,
responding swiftly to global changes, and enhancing customer engagement. Walgreens is poised to
leverage these insights not only to thrive but to lead in the ever-changing landscape of healthcare.
Applying VUCA
A successful leader identifies problems and creates effective strategies to solve them. Each
business challenge needs a clear and thoughtful response. By using Kallet's critical thinking
framework