Chapter 8 – Flexibility Real Options Analysis

For this chapter we will be discussing how Rite Aid’s ability to be flexible can be taken in various forms, including the option to defer, the option to grow, the option to contract, the option to shut down and restart, the option to abandon, and the option to expand. However, by retaining any of these options have consequences as there will always be a trade-off. This is a good and unfortunate opportunity to discuss this chapter during this crisis of the coronavirus.

Due to the stay home order and people are being quarantines at home, Rite Aid have to establish protocol for the mandate social distancing and have their employees wear protective equipment. At the same time, patient was not able to go see their doctors or visit the pharmacy due to them being in fear. This causes Rite Aid to implement the option to shut down and restart due to the uncertainty that the pandemic will affect their workers and prescription sales is down. This will help Rite Aid be more sustainable as their spending expenditure will decrease, but this will cause Rite Aid’s remaining employees to be overwork due to the low supply of staff helping the patient.

Pharmacists fear for their safety due to mask and glove shortages ...

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