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SHOPPERS DRUG MART Human Resource Strategy - Assignment 1

Simranjeet Kaur - 301087286 Radhika Shila Raju - 301087067 Reshma Suresh - 301062623 Nirjari Desai - 300991203 Varna Avarachan - 301062619 Snehanka Sodha - 300985006

The Business School - Centennial College Human Resource Strategy HRDP 712 - 001

Submitted to : Prof. Rick Atkinson September 30, 2019

TABLE OF CONTENTS

SERIAL NUMBER

TOPIC

PAGE NUMBER

1

INTRODUCTION

2

2

CORPORATE STRATEGY AWARENESS

2

3

ALIGNING HR WITH STRATEGY

4

4

ENVIRONMENTAL INFLUENCES ON STRATEGIC HUMAN RESOURCES

6

5

CONCLUSION

8

6

REFERENCES

9

INTRODUCTION

1

Shoppers Drug Mart is considered as the leading retail drug store chain in Canada which has 1300 pharmacies of its own in various locations across Canada. The corporate website of the Shopper Drug Mart includes each and every aspect of the strategies in detail, as well as its Corporate Social Responsibilities. The Website of the company is https://corporate.shoppersdrugmart.ca/en-ca/. Shoppers Drugmart was Founded by Murray Koffler, a pharmacist from Toronto, in 1962. He Created the Associate Concept, where individual pharmacists got the opportunity to start their own business under the name of Shopper Drug Mart. The very first store was opened in Toronto, Ontario, where it has a mass merchandising and self serving service in the retail pharmaceutical industry. In Shoppers Drug Mart, a Pharmacist who is authorized to dispense the prescribed medicines directly to patients is appointed. The retail health and pharmacy department of the store includes medical kit utilities, Advil and so on. The store has a separate department for beauty and hygiene products for both men and women. Not only that, the company has expanded its business by providing some grocery items such as milk and beverages. Overall, this could be considered as a strategy to grow the business by providing all types of health and pharma products. Analysis of the Corporate Strategies of Shoppers Drug Mart are as follows.

PART 1 - CORPORATE STRATEGY AWARENESS 1.

The mission of Shoppers Drug Mart is to lead Canadians to achieve a healthier life. They

offer various healthcare aids, over the counter medications, cosmetics, seasonal products, household essentials and so on. Their mission is connected with core values and culture of the organization. The Shoppers Drug Mart have an intrinsic motivation of pride and engagement. They have a mastery on their business.. They always have the pride of serving best in class to the public. Shoppers Drug Mart always consider their customer’s preferences and let it combined with their production strategies. Because they consider the needs of customers as a whole. They also follows CSR- Corporate Social Responsibility. Shoppers Drug Mart always care for their

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people and environment. They are on the top of providing better retail services and also passionate and intensive towards the accomplishment of results. All the above stated values and culture makes Shoppers Drug Mart different from other retailers in similar industry and also contribute towards the attainment of their long term goal/ mission. 2.

Corporate strategies means an organizational decisions that helps to reach their long term

objectives and survival. It also refers to their plans and actions that operates together to achieve their mission. Shoppers Drug Mart is following Growth Strategy. In which they are using Incremental growth approach. They are enlarging / varying the range of their products and field of operation. They are gaining more goodwill and are enthusiastic in expanding their business all over canada. Some of their business and corporate strategies are listed below that focuses on the attainment of mission statement. ➢ Shoppers Drug Mart aims to make Cosmetic Dermatology approachable. ➢ Opened cosmetic treatment clinics ➢ They introduced medical cannabis platform ➢ Online refill services and Widen customer services. ➢ Developed new ecommerce platform for beauty products. ➢ Opened Wellwise, a new store concept targeted on aging consumers and their caregivers. 3.

Porter's five-force model is used to determine a company's nature of competition. It was

introduced by Michael E. Porter in 1979 and the 5 factors determines the company profitability. Which includes:

Threats of new entrance, Threats of substitutes, Competitive revelry,

Bargaining power of buyers and Bargaining power of suppliers. These factors help shoppers drug mart to understand its position in Canadian business market and support them to plan strategies to improve productivity and profit. The porter’s five generic competitive strategy helps the organization to plan strategy to improve profit. Through this analysis Shoppers Drug Mart can determine their efficiency or to understand external factors. Threats of new entrance Threats of new entrance represents; how new organizations are a threat to developed organizations. There are no hurdles to enter into a market if the company is highly profitable. This generates more competitors and threats of new entrants will be high. For Shoppers Drug 3

Mart, threats of new entrants is low or moderate. Shoppers Drug Mart’s brand value is very high, therefore, it is not easy for a new company to compete with them in the market as it is a wellestablished drugstore retailer and home care store. For a new company, it is very difficult to achieve customer loyalty and the company is maintained by professional workers. It’s a hub of medicines and it is a well organized store. In the case of Shoppers Drug Mart, threats of new entrants was low since it is a highly recommended brand. It is difficult to enter into the pharmaceutical industry, it requires high investment and require highly talented professionals for customer service. The shoppers drug mart is open till 12 am, which is an advantage and this discourage other companies to enter into the market. The company had potential loyal customers who are satisfied with the service and products. Moreover, the government put regulations over pharmaceutical companies which would be a barrier to new entrants. At the same time, small scale drug store can make a new entry by providing services at low cost but it is highly challenging. This would be a possibility for a small retailer to compete against Shoppers Drug Mart.

PART 2 - ALIGNING HR WITH STRATEGY HR conducts a wide variety of activities under five main HR functional areas - Recruitment and selection, employee and labour relations, Compensation, Organizational Development/ Training and Development, Occupational Health and Safety. Employee engagement is the top priority for Shoppers Drug Mart as this makes them different from others while creating a unique culture. HR activities that support the company’s corporate and competitive strategies under different HR functional areas are discussed below: Recruitment and selection: Shoppers Drug Mart reflects diversity, they hire a wide range of people from all over the world and fulfill talent needs. The minimum age to work at the Shoppers Drug Mart is 18.

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Shoppers maintain an ethical hiring process, they have different hiring criteria for different job postings. They use a standard interview way for entry level, store manager, and pharmacy jobs but for others they have different way of hiring. As an equal opportunity employer, the company aims to include diversity in their recruitment and selection process as one of their major competitive strategies. Individuals from various cultural backgrounds are being hired at Shoppers based on objective criteria with regard to job and work requirements. The diversity in the workplace is of high importance at Shoppers and employees tend to learn from each others so as to be an inclusive workplace. Also any discriminatory or harassing behaviour at Shoppers is untolerable and disciplinary actions will be taken against the person engaging in such activities. Employee and Labour Relations: Mediating is mostly done voluntarily, disagreements between the two is sorted usually by the manager. The people who work for the company are the assets for the company so shoppers implement all sorts of ways to avoid the conflict between them and creating a healthy relation amongst them. The employees have mainly three basic rights - Right to know, right to participate, Right to refuse unsafe work. shoppers Drug Mart being a unionized company discusses all the employee rights with the unions, management and stakeholders. Organizational development/ training and development: Employee engagement programs at Shoppers is of top priority. Most of the training sessions in the Shoppers Drug Mart are paid and there is no difference between a trainee and a well knowledged person, both are treated equally and given a fair chance. Shoppers set small tasks for the employees without making them aware of this and keeps a keen check over the work performed by them ensuring all the management prospects to be achieved and then providing feedback to the employees and the managers. Compensation:

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Shoppers Drug Mart provides many benefits to the employees working in the organization such as - Company store discounts, Paid sick leave, Life insurance/ disability, Registered Retirement Savings Plan. Shoppers has a strong organizational culture for the employees. They are quite passionate about the results which drives them to do a lot for their staff. Occupational

Health

and

safety:

Shoppers Drug Mart has expanded its online platform by launching medical cannabis in Alberta and wellwise which help all Canadians to live a healthy and active life. Under the Occupational Health and Safety law, it is the duty of the employer to provide a safe working environment to the employees of the organization. Shoppers Drug Mart uses different coloured codes, posters, pictures to warn the employees about the potential hazards.

PART 3 - ENVIRONMENTAL INFLUENCES ON STRATEGIC HUMAN RESOURCES 1.

Factors that may have influenced the Corporate Strategy :

Political and Legislative factors: As there is an increase in the Cost of Drugs there is high prices of drugs in the market and if legislatures put up amendments on the medical bill about the cost of the drugs then the Pharma industry over all can Increase profitability wise, and this is the biggest factor that has influenced the corporate strategy so that the company can be in the business. Globalization: As there is increase in Globalization, and the competitors of the world coming from outside of Canada and have Started their own franchises, This has made a lot of changes in the corporate strategy of the Shoppers Drug Mart because there are a lot of competitors in the pharmacy field such as walmart also has pharmacy department with the pharmacist. So they have to get themselves mingled with the social work programmes which shows their portfolio nice in front of Investors and Market. Economic Climate: As there is an increase in the economic Conditions, there are a lot of changes that are being occurred and in one of them is the strong Value of Dollars in the Global Economy and because of that there are a lot of strategies which they have to keep in mind as 6

there will be a lot of immigration and job seekers in Canada, and the job seekers around the gold will be increasing so, Drug Mart where they have all the other retail options available as customer representative, the HR department will have more burden on them. 2.

Identify 3 environmental factors that may influence the HR strategy . Why? Provide

evidence to support your answer. Political and Legislative factors: With the introduction of new work environment consistent standards, HR office is always constrained to remain inside the law. These sorts of guidelines influence each procedure of the HR Department. As per government rules, every employee must have a clean sheet of criminal conviction, employees must not misuse substances and once a year company should give performance appraisal to the employee. All these things need to be taken care of by Human resource management. Technological factors: This is considered an external impact since new technologies are introduced. The HR department can begin seeing how to save money. HR department and employees must go with the flow of technological changes, a lot of older generation individuals are working in the stores and some employees cannot cope up with new technological changes. Thus, HR team may replace them with the candidates who are good at technology. This will be a huge burden for HR to implement. However, technology updates will save money as it will reduce the manual work. Demographics: In this competitive world, with new generation, human resource must look ways to attract people. These days, skill-sets of individuals vary from person to person and their compensation packages should also match with their skill-sets. Nowadays, most of the candidates are educated and good at technology. So HR management should offer more wages in order to hire them, but here HR management should use the skill to convince the candidates with the salary.

CONCLUSION

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Those associated with human resource management accomplishes more than employing and terminating, they ensure that each kind of external impact is tuned in to and legitimate methods are pursued to maintain and avoid lawsuits and sanctions. So, HR should ensure that giving close attention to external impacts on the company, that there is a decent possibility of influencing the organization. In this way, involving the human resource management process, think twice about the number of possibilities they will affect, and it is important for them to be top in the game.

REFERENCES 1. Shoppers Drug Mart SWOT Analysis, Competitors & USP Posted in Lifestyle and Retail. Retrieved from https://www.mbaskool.com/brandguide/lifestyle-and-retail/4964shoppers-drug-mart.html 2. Less drug, more Shoppers And more chips and perfume sold by Richard Warnica, May 2, 2013. Retrieved from https://www.canadianbusiness.com/companies-andindustries/less-drug-more-shoppers/

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3. Loblaw and Shoppers Drug Mart Porter Five Forces Analysis by Brandon Hopkins , June 22 2018. Retrieved from https://www.case48.com/porter-case/28929-LOBLAW-ANDSHOPPERS-DRUG-MART 4. Shoppers Drug Mart, About Us, Retrieved from: https://corporate.shoppersdrugmart.ca/en-ca/about-us/drug-store-network 5. Shoppers Drug Mart " Strategy, Christopher Lombardo Retrieved from: 6. http://strategyonline.ca/tag/shoppers-drug-mart/ 7. Shoppers Drug Mart " Strategy, Harmeet Singh, Retrieved from:http://strategyonline.ca/2017/09/26/shoppers-shifts-tactics-to-target-agingcanadians/ 8. Shoppers Drug Mart, Culture, retrieved from: http://careers.shoppersdrugmart.ca/ourcultur 9. Shoppers Drug Mart , Safety Measures, Wellwise, retrieved from: https://www.retailinsider.com/retail-insider/2018/2/wellwis 10. Shoppers Drug mart , Safety Measures, Cannabis, Retrieved from: https://www.newswire.ca/news-releases/shoppers-drug-mart-launches-ecommerceplatform-for-medical-cannabis-in-alberta-822381471.html 11. Presentation for strategic Human Resource, (2016) Grace O’ Farrell : Chapter 3

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