Business Administration 3321K Study Guide - Final Guide: Shoppers Drug Mart, Rexall, Private Label

• School: Western University
• Department: Business Administration
• Course: Business Administration 3321K
• Professor: Tom Haffie

Document Summary

Management discussion & analysis: management perspective, corporate strategy, future looking, relevant/gaap, talk about core business, overview, managing risk, highlighting key financial ratios and margins, explaining dividends, discussion of growth. Associate model: associate owns the store, not shoppers, profit sharing with shoppers, pharmacists own the equity. Segments: front store sales seasonal, consumer products, pharmacy sales prescription drugs, front store growth 4, pharmacy sale growth 2, pharmacy sales are heavily regulated, prices are capped by government therefore margins are low. Loyalty program: 10 million people with optimum card, recognize revenue net of rewards, conservative accounting, recognize rewards when used. Competitive advantage: lots of competitors for consumer packaged goods, cosmetics, drug store, 33. 3% market share, rexall is number two. Industry: regulation, risk, aging population, demand increasing, technological/pharmaceutical improvements. Shoppers: store ownership associates 100, loyalty program optimum strong, private label private label, geographic coverage urban, market position leader, segment front store/pharmacy. Merger: create synergies & operating efficiencies, maintain momentum, sustain competitive advantage.