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Rite Aid Company’s Change Issues and Solutions Case Study

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Updated: Nov 28th, 2020


Rite Aids is a company that deals with clinical drugs. The company has several branches in thirty states in America hence being able to serve many customers every day. The company sells drug to customers under prescription. This is pivotal in ensuring that drugs end up in hands of right people and for the right purpose. The company has established its customer base with its presence in west and east coasts of America. In fact, the company has 91000 associates in both coastal regions.

Change Issues

Rite Aids Company has been facing challenges in the recent past hence calling for urgent measures to save its operations. For instance, the company acquired two drug stores in Canada, and this left it in serious financial problems. The company is experiencing a lot of difficulties due to debts caused by these acquisitions (Hord, 2008). In addition, the company has been losing money quarterly since it acquired the two drug stores in Canada in 2007.

There has been a lot of market pressure exerted on the company since it cannot run its operations effectively. In fact, the company lacks adequate finances to facilitate operations aimed at improving its business in the market. For instance, the Rite Aid’s deal to sell drugs online was terminated since the company could not afford to sustain it. In addition, there are other challenges in the market such as discounts in mail order and existence of generic drugs which affect in house prescription purchases.

The company had its reputation tainted by debts and lawsuits. The company was markedly hit by depreciation on its share price in the stock market. This affected the company since many people perceived it as a failed organization. In addition, the company has issues with its employees and this adversely affects its reputation in the eyes of the general public. Furthermore, the company has ended up in the list of companies with ill reputation in America.

Measures that are taken by the company to contain change issues

The company has come up with various means of containing the financial situation. For instance, managers have decided to close down all underperforming branches in order to cut down costs. This has seen the company cut down on its expenditure in the past three years. There also have been internal changes in management in aimed at saving the company. For instance, the company brought a new chief executive in the move to change its management. In addition, the company entered into creative partnerships aimed at winning customer hearts once more. This happened when Rite Aids partnered with organizations dealing with drugs and nutrition supplements such as the General Nutrition Companies, Inc.

Analysis of the presenting change issue

The company should implement all viable measures that can help in restoring their customer trust and business. In fact, they should take advantage of other players who are falling out in the market (Philips, 1992). For example, Walgreen Co. lost many customers due to pricing disputes early this year. Rite Aids should strategize on how to present itself to the market in order to resume to its past operations.

The company should come up with ways of resolving differences with its employees. This is noteworthy because it may help in restoring customer trust in its products. In fact, the company should make use of its new partners to sell its products to customers. This may help the company in regaining trust among customers since it will be associated with known organization. The company should consider investing in marketing in order to clear its name in the eyes of the general public (Burke, 2011). This should include advertisements on the internet and other electronic media. Marketing will help in convincing customers that the company still exists regardless of their past challenges.

Rite Aids should find ways of settling its debts in order to attain financial stability. The company can decide to sell some of its outlets to other players in the market. This is important because the company can be able to offset its debts. On the other hand, the company will be left with few outlets, which are easy to manage. In fact, managing few stores will enable managers to monitor their daily activities hence reducing the amount of money lost.

In addition, the company should device means of holding workers responsible for money lost in their presence. This will enhance accountability as workers will be keen on every transaction they make. Measures should be taken to ensure that the company’s name finds its way from lists of shame to improve its acceptability in the market (Renault, 2004). This can be achieved by ensuring that all lawsuits are settled alongside settling all debts. This is crucial since it will encourage suppliers to work with the company hence enhancing its operations. In fact, sterling reputation will attract many customers since they will be assured of getting quality drugs from the company’s stores.


Rite Aids Company has been faced by many challenges in the recent past. The company’s management has come up with various means of recovering from the mess. For instance, the decision to close down several stores was for the good of the organization (Viola, 2009). Finally, managers should work hard to ensure that they settle all debts in order to restore the wholesome image of the company.


Burke, W. (2011). Organization Change, Theories and Practice. New york: Sage Publishers.

Hord, R. E. (2008). Taking Charge of Change. Alexandria : Adventures Works Press.

Philips, B. (1992). The Empowered Manager. Positive political skills at work , 60-70.

Renault, B. (2004). Effective Staff Development. San Francisco: Far West Publishers.

Viola, B. (2009). Barrier for Change. San Francisco: Jossey-Bass.

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