...CVS Web Strategy Case Analysis Brandon Matthews 9/30/2009 1 Overview Introduction Consumer Value Stores, better known as CVS opened its doors in 1963 as a health and beauty supply store in Massachusetts. Since then it has evolved to one of the largest retail pharmacy chains in North America. In 1999, CVS was faced with a new business strategy. It appeared that there was a lot of traffic on Wall Street involving online pharmacies. The consumer and stakeholder demand for a strategic web presence for companies, with no exception of pharmacy giants like CVS, pressured the executives to implement a business strategy of incorporating its pharmaceutical retail services with the web. Helena Foulkes, Vice President of Marketing at CVS, was charged with ensuring that this new business strategy succeeded. CVS acquired a web company, Soma.com whose entire business strategy was similar to what CVS was attempting to achieve. Foulkes was faced with critical strategic challenges in transforming their new Information Technology (IT) initiative, Soma.com, to CVS.com. In this paper, we will introduce the retail pharmacy industry and its protagonists, achieve a bird’s eye view of CVS’s organizational structure, understand who CVS’s customers and competitors are, introduce the term Alignment Link in terms of overall strategy, implement the SWOT analysis tool to gauge ...
Words: 1811 - Pages: 8
...Pharmacy Service Improvement at CVS Business Seminar Case Study Bethany Odom, Katie Tewell, Kelly Snider, Brad Lowe Table of Contents Introduction…………………………………………………….3 Day-to-Day Operations Diagram……………………………….4 Drop Off………………………………………………………..5 Data Entry………………………………………………………7 Production………………………………………………………10 Quality Assurance………………………………………………12 Pick-Up…………………………………………………………12 Pharmacy Additions……………………………………………14 Our Future………………………………………………………15 Works Cited…………………………………………………….16 2 Introduction The current system in a CVS pharmacy allows customers to quickly drop off their prescriptions whenever convenient for them, the pharmacists and technicians to fill the scripts near the time the customer would like to pick them up, and customers to return to the store to pick up their medications at the specified time. However, this system creates long lines and angry customers during busy pick-up times, such as around the evening meal, when the typical work day concludes. We would like to implement a system that focuses on the day’s procedures and alters the drop-off, data entry, and production steps, therefore ideally reducing the number of problems that occur and must be resolved during the pick-up stage. With some additional changes made to the pick-up procedure, we feel CVS will be able to better their customer service and increase customer satisfaction while keeping the safety of its shoppers the company’s number one priority. The following page presents a data...
Words: 4457 - Pages: 18
...S Villanova School of Business VSB 1002- Business Dynamics II Pharmacy Service Improvement at CVS (A) Harvard Business School Case 9-605-015 (Rev. October 20, 2006) Case Study Assignment Problems arose in almost every part of the fulfillment process, as explained below: [pic] Drop Off Staff asked for name, address, birth date, time of pick-up; then put script in slotted box (sectioned by hours of the day) in slot for one hour earlier than pick-up time Potential Drop Off Problem: No one manning drop-off station [pic] Data Entry At each hour, tech took scripts from that hour’s slot and entered all required data into pharmacy info system (so no one looked at script until 1 hour before pickup) Info logged in: Patient contact info Doctor contact info Third party payor info – insurance companies, employers Drug name Dosage Number of doses Number of refills System performed an automated Drug Utilization Review: Automated check of script against all other prescriptions in CVS database for patient; looking for harmful drug interactions and appropriateness of drug for patient given age, weight, gender, etc. Hard Stop = fulfillment process cannot proceed until DUR reviewed by pharmacist if automated review reveals any potential problems Hard Stop Good for patient safety Hard Stop Bad for slowing down process, lowering efficiency Insurance check was done after DUR. Checking to make sure insurance still valid, script matches drugs on formulary...
Words: 975 - Pages: 4
...Villanova School of Business VSB 1002- Business Dynamics II Pharmacy Service Improvement at CVS (A) Harvard Business School Case 9-605-015 (Rev. October 20, 2006) Case Study Assignment Problems arose in almost every part of the fulfillment process, as explained below: [pic] Drop Off Staff asked for name, address, birth date, time of pick-up; then put script in slotted box (sectioned by hours of the day) in slot for one hour earlier than pick-up time Potential Drop Off Problem: No one manning drop-off station [pic] Data Entry At each hour, tech took scripts from that hour’s slot and entered all required data into pharmacy info system (so no one looked at script until 1 hour before pickup) Info logged in: Patient contact info Doctor contact info Third party payor info – insurance companies, employers Drug name Dosage Number of doses Number of refills System performed an automated Drug Utilization Review: Automated check of script against all other prescriptions in CVS database for patient; looking for harmful drug interactions and appropriateness of drug for patient given age, weight, gender, etc. Hard Stop = fulfillment process cannot proceed until DUR reviewed by pharmacist if automated review reveals any potential problems Hard Stop Good for patient safety Hard Stop Bad for slowing down process, lowering efficiency Insurance check was done after DUR. Checking to make sure insurance still valid, script matches drugs on formulary...
Words: 974 - Pages: 4
...Villanova School of Business VSB 1002- Business Dynamics II Pharmacy Service Improvement at CVS (A) Harvard Business School Case 9-605-015 (Rev. October 20, 2006) Case Study Assignment Problems arose in almost every part of the fulfillment process, as explained below: [pic] Drop Off Staff asked for name, address, birth date, time of pick-up; then put script in slotted box (sectioned by hours of the day) in slot for one hour earlier than pick-up time Potential Drop Off Problem: No one manning drop-off station [pic] Data Entry At each hour, tech took scripts from that hour’s slot and entered all required data into pharmacy info system (so no one looked at script until 1 hour before pickup) Info logged in: Patient contact info Doctor contact info Third party payor info – insurance companies, employers Drug name Dosage Number of doses Number of refills System performed an automated Drug Utilization Review: Automated check of script against all other prescriptions in CVS database for patient; looking for harmful drug interactions and appropriateness of drug for patient given age, weight, gender, etc. Hard Stop = fulfillment process cannot proceed until DUR reviewed by pharmacist if automated review reveals any potential problems Hard Stop Good for patient safety Hard Stop Bad for slowing down process, lowering efficiency Insurance check was done after DUR. Checking to make sure insurance still valid, script matches drugs on formulary...
Words: 974 - Pages: 4
...Case Analysis of CVS “Beauty 360” Mike Kleinschmidt Metropolitan State University Abstract As a business reaches a plateau, they often look for new and innovating ways to create new growth opportunities. One of the ways this can be accomplished is by entering into a more profitable market. Drug store giant CVS found themselves in this situation and took on the task of competing in the upscale beauty market. The drugstore chain was going to challenge the recession. The launching of a new retail concept in the midst of the then gloomy economic environment was certainly risky. Amid other high end beauty marketers struggling during this economic downturn, CVS was poised to try and lure away some of their clientele. Named Beauty 360, the first stores were launched in 2008. This study will analyze the factors and decisions CVS made in deciding to enter this market, and, if these choices proved practical. Introduction CVS Pharmacy is the second largest pharmacy chain in the United States with over 7,000 stores in 41 states and $86 billion in revenue (Prior, 2008). As the retail pharmacy division of CVS Caremark, it sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. For more than 10 years...
Words: 2767 - Pages: 12
...Walgreens pharmacy, and more than 6 million customers were served each day. Walgreens issued more than 800 million prescriptions annually, representing 20 percent of the U.S. market. Its online business, Walgreens.com, had almost 17 million visitors per month. Walgreens’ strategy had evolved for more than a century in business. By 2012, the company faced a number of major strategic questions, including international expansion and a changing health care environment. History of Pharmacy2 People have been trying to create remedies for illnesses and ailments since the beginning of time, but most historians credit Babylon with the first organized apothecary. This was followed by the Romans, who created a system of pathology and therapy that became standards for Western medicine for more than 1,000 years. For the most part, though, pharmacy remained a sketchy and shadowy business for centuries, practiced by (among others) witch doctors and alchemists. Advances in medicine and the Renaissance era led to more structured and scientific approaches. In 1240, German Emperor Frederick II issued a proclamation establishing the practice of pharmacy along three tenets: (1) separation of the pharmaceutical profession from the medical profession; (2) official supervision (regulation) of pharmacy; and (3) “obligation to prepare drugs reliably, according to skilled art, and in a uniform, suitable quality.” 3 Public pharmacies and university training began spreading throughout Europe. 1 This case was...
Words: 11802 - Pages: 48
...Transmercial. 1340 Tully Road, Suite 306-307 — San Jose, CA 95122-3055 — (408) 288-5500— (408) 288-5533(F)- © Transmercial. 2010 transmercial Commercial Real Estate Investment www.transmercial.com 3RD QUARTER 2010 Newsletter VOLUME 5 ISSUE 1 Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2011? By David V. Tran There are 3 major drugstore chains in the US: Walgreens, CVS, and Rite Aid. Below are some key statistics about the 3 major drugstore chains as of July 2010: 1. Walgreens ranks #1 with market cap of $29.33 Billion, $66.25 Billion in revenue, and S&P rating of A+. According to Walgreens, 75% US population lives within 3 miles from its stores. On Oct 1, 2009, Walgreens opened its 7000-th store in Brooklyn, New York. In April 2010, it acquired 258 Duane Reade drug stores in New York Metropolitan area. 2. CVS ranks #2 with market cap of $42.09 Billion, $99.1 Billion in revenue (CVS revenue alone is less than Walgreens if revenue from its Caremark group is taken out), and S&P rating of BBB+. CVS opened its 7000-th store in Little Canada, Minnesota on October 5, 2009 and currently operates 7025 drug stores. 3. Rite Aid ranks #3 with market cap of $869 Million, $25.53 Billion in revenue, 4780 drug stores and S&P rating of B-. Investors purchase properties occupied by these drugstore chains for the following reasons: 1. The drugstore business is very recession-insensitive. People need medicine when they are sick, regardless of the state of the economy. Both...
Words: 5064 - Pages: 21
...industry. Over the years, Walgreens has developed a very well-known and respectable name for itself through different marketing strategies and company strengths. Like any company in a competitive market, Walgreens has its share of opportunities and threats, and has continued to remain at the top of the industry. Providing such a wide variety of products and services to its very diverse customer base means Walgreens must stay up-to-date with the trends of society. From changes in technology to the changing demands of the culture, Walgreens is using its best marketing efforts to maintain a strong presence in the minds of its customers. As a member of the drug store industry, the pharmacy is the most profitable component of the company. Many customers are loyal to Walgreens because of their frequent visits to the pharmacy;this...
Words: 10659 - Pages: 43
...www.hbr.org Studies of corporate performance reveal a growing link between certain kinds of technology investments and intensifying competitiveness. Investing in the IT That Makes a Competitive Difference by Andrew McAfee and Erik Brynjolfsson Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 Investing in the IT That Makes a Competitive Difference 11 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications Reprint R0807J Investing in the IT That Makes a Competitive Difference The Idea in Brief It’s not just you. It really is getting harder to outpace the other guys. Since the mid1990s, competition in the U.S. economy has accelerated to unprecedented levels. The engine behind this hypercompetition: IT. Thanks to powerful tools like ERP and CRM, backed by cheap networks, companies are swiftly replicating business-process innovations throughout their organizations. The firm with the best processes (order fulfillment, field installation, job closing) wins, but not for long. Rivals are striking back with their own IT-based process innovations. To gain—and keep—a competitive edge in this environment, McAfee and Brynjolfsson recommend a three-step strategy: • Deploy a consistent technology platform, rather than stitching together a jumble of legacy systems. • Innovate better ways of working...
Words: 7023 - Pages: 29
...Business Statistics HMO Pharmacy is facing various issues that are affecting their level of productivity. In many cases management has become less in tune with what is happening on the sales floor, since they have other administrative responsibilities to uphold. In these instances, there are a few methods that can be used to cut down on the inaccuracy of medication being distributed. A company can look at how they treat their staff and improve motivation methods. These are important factors, and if properly adjusted, can minimize or eliminate the issue a company has. In all businesses there are barriers that may affect the way it is conducting affairs. Juan is experiencing a great example of what are some of the issues or barriers that can affect a business. He is faced with backlash because of the ineffective method on keeping the medications properly given or distributed. In many pharmaceutical companies, there are systems in place to make sure the medications are properly dispensed. HMO can look at its current system to see if there is a defect or if the system no longer serves the purpose of the business. In this case the company would need to get another system to help them do such. The company may want to look at its current chain of command. In many companies in the U.S. there are escalating levels of supervision. This helps by giving each stage of supervisory position its responsibility so each has a part in making the business successful. This would help Juan by...
Words: 1081 - Pages: 5
...characteristics and intended use.” Although the distribution process is the same, the design of the channel may be substantial different comparing to branded drugs. For example, an increasing numbers of generic manufactures are locating and forming partnerships with Indian and Chinese manufactures. Generic drugs have no patent, which lead to lower prices and lower margins. Drug example Zolpidem Wholesaler: Pharmaceutical wholesalers act as middlemen for retail drugstores. They stock brand name drugs, generic drugs and sundry items to sell to retail, hospital and clinical pharmacies. They buy directly from the manufacture. Examples of the wholesalers in pharmaceutical world are McKesson, AmerisourceBergen, and Cardinal wholesalers. Retail Pharmacy: Also known as Community Pharmacy is a type of pharmacy that sells drugs to patients. The retail pharmacy market has greatly consolidated such that top five pharmacy chains now control 85% of the market....
Words: 1790 - Pages: 8
...“Recruitment and Selection Process of Incepta Pharmaceuticals Ltd.” , which you have assigned us as part of the course curriculum Manpower Planning and Personnel Policy (J-601). This is a group assignment, which was assigned after a series of class lectures and presentations. Thank you for offering us the opportunity to prepare this report. We appreciate the chance to apply our theoretical knowledge which will surely stand us in good stead. We hope that despite of the limitations, this report will give a fare idea regarding Recruitment and Selection Process of an organization to the interested readers. We will be glad to clarify queries if you have any. Finally, we thank you again for providing us the opportunity to carry out such study. Sincerely yours, Md. Hafizur Rahman ……………... Faruque Ahmed ……………… Recruitment and Selection Process of Incepta Pharmaceuticals Ltd. Prepared for: Homayara L. Ahmed Course Instructor Manpower Planning and Personnel Policy (J-601) Prepared by: Md. Hafizur Rahman M1112023 Faruque Ahmed M1112038 MBA-12 BANGLADESH UNIVERSITY OF PROFESSIONALS Mirpur Cantonment, Dhaka September 25, 2012 Executive summary Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh. Now they are exporting their products in 57 countries. Around 4000 individuals from diverse disciplines are working...
Words: 1692 - Pages: 7
...plans, development, and other services typically use the system analysis in directing decision making. The Reliable Pharmaceutical Services Some health care organizations offer pharmaceutical services to other health care delivery organizations that do not have the ability to run such services. The book ‘System Analysis and Design in a Changing World’ by John W. Satzinger, Robert B. Jackson and Stephen D. Burd illustrates this by the use of a case study of a Pharmaceutical company, The Reliable Pharmaceuticals Services. In this case study, the pharmaceutical services are offered or provided to hospitals, nursing homes and rehabilitation homes. These health care facilities have to ability to make prescription orders on the telephone to the organization that offers pharmaceutical services and have their orders delivered to them at the facilities. This ability offers fewer burdens to the health care facilities. According to Satzinger, Jackson and Burd, more often than not, the health care facilities have standing orders with the pharmacy. This means that they get a constant supply of the same products in monthly, weekly or even...
Words: 1515 - Pages: 7
...American Well MKT/421 February 8, 2016 American Well Even though medicine and technology have come a long way, I think we have gone back in time. Years ago doctors would make house calls, then came the big hospitals and the long waits to get a simple prescription. Now we have the option of getting a consultation online or via telemedicine. Amwell has been providing direct to consumer telehealth medicine since 2009. Not only is it convenient, online visits are cost effective. Consumers save time, accessibility and have lower fees. Amwell is largest telehealth company in the country that offers a variety of care from Trauma to substance abuse. Overview of AmWell Tired of having to make an appointment to see a doctor or visit your nearest clinic when symptoms of health concerns strike? Well, there's a new breakthrough in technology. A mobile healthcare service that is available on your cell phone or mobile device. Just download the App "AmWell" (American Well) allows you to connect instantly with a doctor by downloading the App from your smartphone or mobile device. Whether you connect with your actual doctor or choose one from the network providers. This technology is sweeping the nation. Blue Cross and Blue Shield has joined the partnership to provide its members with easy access to available healthcare. The joint effort of the two is available in 26 states. That's half of America (American Well, 2015). Founded by Doctors Ido and Ray Schoenberg. It is there...
Words: 1837 - Pages: 8
