The Leitch Quality Drug Company.edited (1).docx

Once stability is achieved then consistency in terms

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country. Once stability is achieved then consistency in terms of the operations will be achieved too. Growth Strategy The franchise model of operations should be adopted by Leitch across the three stores because growth will be fostered. The managers appointed in the three stores should be liable and responsible for their actions, this will ensure they remain relevant to the course and at the same time avoid the misappropriation of funds and the mismanagement of the store. The growth strategy can be improved through increasing sales and raising the
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THE LEITCH QUALITY DRUG COMPANY 7 profit margin and all these can be possible by increasing the consumer plan. The Leitch drugstores can be expanded to tap customer needs in other areas that may be in need of the services but cannot access them easily. Increasing the number of stores results in many customers attraction and this, in turn, increases the level of sales and profit margins. The fountain bar should be among the services offered by the store; the fountain bar will act as a tool of attraction for all kinds of customers in need of the Leitch products and services. Company merge can be a useful growth strategy that the Leitch brothers and the two partners can agree to and this is because a merge regardless of how big or small the other partner firm will be, it will ensure that the chances of stiff competitions from other drug service providers is avoided. Fear of losing control over the firm should actually not be the driving force against which the Leitch brothers stand firm against the merger idea. They should be open to change so as to easily kick away competitions. The shareholders in the firm can accept the option of a merger with other stakeholders, the many the stakeholders, the bigger the ideas generated. These ideas would be perfect for the implementation and running of the firm’s rules and regulations. Proper regulations are helpful since they help in avoiding any liabilities or legal issues with either the customers or the employees. Infusing different but beneficial ideas in the firms’ operational plan will ensure further growth and expansion. The merger will bring in more ideas in relation to the running and functioning of the firm. Retrenchment Strategy If more focus was centered on the second store which is more stable and generates more monies than the other two, then any monies will be saved through avoidance of spending anyhow (SSP, 2015). Introduction of discounted prices will increase the customer margin and so will the profit margin. Having one administrative personnel to oversee the three stores would also cut on the cost used. Their competitors inclusive of
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THE LEITCH QUALITY DRUG COMPANY 8 the small drugstores do have a discounted price on certain products, introduction of the discounts on products and services will greatly appeal to not only to the loyal customers but to the new customers as well. Retrenchment strategy is one that can be very cost
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