Rite Aid Corporation, the third largest retail pharmacy chain in the United States, controls approximately 2,380 pharmacies in 28 states through professional pharmacy services, a comprehensive selection of health products and personal care, an assortment of general products in the nation and the District of Columbia (Rite Aid, 2007). Rite Aid has a great management team that helps them in their success: their team includes President, President and CEO, Special Advisor, Corporate Strategy, Chief Operating Officer, Chief Administrative Officer, Executive Vice President - Pharmacy, Executive Vice President, Store Operations, Executive Vice President and General Counsel (Rite Aid, 2007). The distinction between management and leadership is very different; for example, in response to its huge losses, Rite Aid said it expects to spend more than $94 million to reevaluate and restate its financial results for 1998 and 1999( ) . Additionally, this includes rerunning mainframe-based accounting systems and paying IT staff overtime to work with internal and external accountants and auditors during the process. However, Rite Aid does not plan to replace its internal combined accounting system Computer Corp.. Rite Aide is challenged by complexity and the lack of standard interfaces supported by finance and accounting functions across the organization. Data is not formed or transported in standard borders or structures. Manual work is required to adapt the data to budget codes and company formatting standards. This manual system is error-prone and open to possible scams and abuse. Hardware, software, support and maintenance costs grow every year with more systems in each local region running different types of software and hardware. The application and hardware support teams are larger than would be possible with an integrated solution. Rite Aide has choices in the solution our organization can implement to resolve these financial systems integration issues. The main problem facing the Finance and Accounting department is the lack of standardized systems, which include software, data interfaces and processes. Here are some solutions, Solution 1: Maintain and improve existing systems, the organization has three very different finance and accounting functions that need to be consolidated to provide a consistent environment that can grow with the business. One option might be to continue to focus IT and financial services divisions on maintaining and improving existing systems. This would not require any upfront capital expenditure, but does not meet our short- or long-term business requirements.
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