Decision makers need the right amount of business detail (not a big dump of numeracy) to noodle out the FP&A team’s “what if” scenarios and figure out the best tactical path to revenue growth and profit protection” (Driscoll). A simply way the company could have caught their error would be if they occasionally reviewed and attuned their forecasts to make sure that business costs and opportunities to keep everything on track. In general “Pharmacy chains make long-term contracts with health insurers and others, including firms that operate Medicare Part D drug plans, agreeing to sell a range of drugs for set prices” (Siconolfi). This is what caused the mistaken forecast. Walgreens most likely had some sort of deal created with Medicare to keep prices relatively level. However if communication was scarce, Walgreens could have missed a message saying prices were going to skyrocket past their forecasted
Decision makers need the right amount of business detail (not a big dump of numeracy) to noodle out the FP&A team’s “what if” scenarios and figure out the best tactical path to revenue growth and profit protection” (Driscoll). A simply way the company could have caught their error would be if they occasionally reviewed and attuned their forecasts to make sure that business costs and opportunities to keep everything on track. In general “Pharmacy chains make long-term contracts with health insurers and others, including firms that operate Medicare Part D drug plans, agreeing to sell a range of drugs for set prices” (Siconolfi). This is what caused the mistaken forecast. Walgreens most likely had some sort of deal created with Medicare to keep prices relatively level. However if communication was scarce, Walgreens could have missed a message saying prices were going to skyrocket past their forecasted