...The Leader as a Strategist Report Organization: CVS Caremark Pharmacy CVS Caremark is a pharmacy innovation company that is reinventing pharmacy for better health. Company continuously developing new ways to improve access for patients, promote better health outcomes and control payor costs in a way that no pharmacy retailer or PBM could do separately. In 2007, CVS Corporation and Caremark Rx, Inc. merged; CVS Caremark became an integrated provider of prescriptions and related health services with an unmatched breadth of capabilities (www.cvscaremark.com). Today CVS Caremark is the market leader in the United States in multiple categories; such as in mail order pharmacy, retail pharmacy, specialty pharmacy, and retail clinics, and is a leading provider of Medicare Part D Prescription Drug Plans. Purpose, vision, and values of CVS Caremark Pharmacy: Purpose: Helping people in their path to better health Strategy: Reinventing pharmacy Values: Innovation – Demonstrating openness, curiosity and creativity in the relentless pursuit of delivering excellence. Providing more relevant, caring, expert guidance, more cost-effective solutions and even more convenient access. Collaboration – Sharing and partnering with people to explore and create things. Caring – treating people with respect and compassion so they feel valued and appreciated. Accountability – Taking personal ownership for the actions and their results 1. An analysis of the strategic cascade of the organization...
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...company resource analysis in the drug store industry, I will select the CVS Caremark Corporation as my study company. Question 1: Whether the company's present strategy working? CVS pharmacy services business strategy centers on providing their customer and client high quality and innovative pharmaceutical solutions, while assisting their member managing overall health care costs by leveraging CVS expertise in core PBM services. (Form -10k) (1) Moreover, the retail pharmacy business strategy, base of the CVS pharmacy services model to maintain successful growth they focus on new store development by expanding the number of retail pharmacy stores and retail stores range in size in order to provide better service, help client lowers overall health care costs and improve health outcomes. (1) How these strategic working? Look into the financial performance in the Appendix 1, table 1. CVS compare well on these profitability ratios with industry averages. Most of ratios are better than the industry averages. Ventureline (2). Study the CVS’s financial report I found the company is “Solid and significant growth.” According to CVS Caremark Annual Report 2013 (3), the financial highlights show the company was significant growth during 2012 to 2013. For example, net revenues increased 3.0 percent to a record $127 billion, while adjusted earnings per share from continuing operations rose 23 percent to $4.00. CVS earned $4.4 billion in free cash flow in 2013, and returned more than...
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...Introduction Walgreen Co. and CVS/Caremark are two of the largest retail drugstore chains in the United States, offering consumers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photofinishing, and seasonal items, as well as over-the-counter and prescription medication. In addition to their well-known retail pharmacies, both companies also operate a health services health and wellness division. Within the retail pharmacy industry CVS/Caremark and Walgreens continually battle for the retail position. This document will offer an overview and basic competitive analysis of the two companies. Background Location & Type of presence (brick and mortar, or internet) According to the CVS/Caremark 2011Annaul Report, page 23; as of December 31, 2011, the CVS/Caremark Retail Pharmacy segment operated 7,327 retail drugstores with 7,271of these retail stores operating a full service pharmacy. Their stores are located in 41 states and the District of Columbia and Puerto Rico. Additionally, within these retail stores operate 657 health care clinics conducting business under the Minute Clinic name. The retail pharmacy stores operate primarily under the CVS/pharmacy or Longs Drugs names. In addition, the Pharmacy Services segment operates under the names CVS Caremark Pharmacy Services, Caremark, CVS Caremark, Care Plus CVS/pharmacy, Care Plus, and Rx America to providing pharmacy benefit management services to employers, insurance...
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...Ethics RES/351 Business Research Business Research Ethics Lawsuits were filed against CVS Caremark pharmacies for disclosing patient information in the interest of financial gain. The first lawsuit was filed on March 7, 2011, for “unauthorized disclosure of protected health information constituted an unfair trade practice (Hunton & Williams LLP, 2011, p. 1 p. 1).” The second lawsuit charged CVS Caremark pharmacy with “racketeering under the federal RICO law, trade secret misappropriation and violations of the HIPAA privacy Act (Goedert, 2010, p. 14 p. 3).” The following information will explain what unethical research behavior was involved, who the injured parties were, how the unethical behavior affected CVS Caremark pharmacy, and how the unethical behavior could have been avoided or resolved. The results of the information will demonstrate that moral judgment is skewed when combining ethical decisions with financial gain. CVS Caremark extracts personal patient and pharmacy data to isolate patient demographic information, drug history, medical providers, health behavior, health plan benefits and the patient preference of communication without obtaining patient permission (Goedert, 2010). This data provides CVS Caremark marketing department the ability to contact patients and physicians in effort to change their prescription habits to financially benefit CVS Caremark’s bottom-line. CVS Caremark sent letters to the patient’s physicians to encourage them to prescribe particular...
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...DECISION MAKING AND ITS EFFECT ON BUSINESS PROFICIENCY GM591 LEADERSHIP AND ORGANIZATIONAL BEHAVIOR May 26th, 2012 TABLE OF CONTENTS Introduction------------------------------------------------------------------------------------------------------Page 3 Problem Statement----------------------------------------------------------------------------------------------Page 4 Literature Review------------------------------------------------------------------------------------------------Page 5 Analysis-----------------------------------------------------------------------------------------------------------Page 7 Suggestive Solutions--------------------------------------------------------------------------------------------Page 8 Conclusion & Reflection --------------------------------------------------------------------------------------Page 9 Work Cited------------------------------------------------------------------------------------------------------Page 10 INTRODUCTION Walgreens is one of the fortune 500 companies and among the fastest growing retailers in the country. Walgreens as of April 30 operated 8307 location in all 50 states including the District of Columbia, Puerto Rico and Guam. This includes 7855 drugstores, 146 more than a year ago, including 21 stores acquired over the last 12 months. The company also operates infusion and respiratory services facilities, specialty pharmacy and mail service...
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...Overview Founded in 1963 by Stanley Goldstein, Sid Goldstein, and Mark Steven in Lowell, Massachusetts, Consumer Value Store (CVS), has quickly grown to be the second largest pharmacy and convenience store with over 7,600 pharmacies and drugstores nationwide. Since the beginning, CVS has always strived to be the largest retail pharmacy-which led to the development of their growth strategy. Furthermore, CVS continually strives to “reinvent” the pharmacy and make healthy living a fundamental part of their customers’ lives. (Biesada, 2014) Initially, these strategies were influenced by the company’s mission statement and purpose. According to the CVS website, the company’s mission is to “provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers” (CVS caremark corporation: History, 2014). Clearly, CVS is in business to provide expert care, although it would appear that not all of their individual pharmacists share the same feelings. Based on research conducted, it would appear that there is a general lack of customer service training as some pharmacists have allegedly been behaving rudely towards customers. Throughout the course of this initiative, we will be discussing the gaps that have been found and we will develop a training program that we hope will help alleviate these problems and allow CVS to fully realize their mission. Part II: Needs Assessment Pharmacy Prescription Practices As a result of organizational...
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...According to CVS.com, CVS is the 2nd largest pharmacy chain in the United States. “The CVS store provides all pharmacy services, popular beauty products, photo labs, and a wide selection of general merchandise. CVS pharmacists dispense medication, give vaccinations, and offer advice on prescription and non-prescription drugs and supplements. You can update your prescription, shop national sales ads, sign up for their ExtraCare card and receive coupons and rewards all from their website. CVS offers CVS Store Brands exclusively which are high quality alternatives to national brands with a 100% satisfaction guarantee”. The CVS pharmacy store locator will allow you to find the CVS closest to you so that you can receive your prescription with the...
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...CVS CAREMARK November 25, 2013 Belinda Merritt Michael Curtis Introduction CVS was founded in 1963 by Stanley and Sidney Goldstein and Ralph Hoagland. The first CVS store was opened in Lowell, MA. CVS stands for Consumer Value Stores. CVS Caremark is headquartered in Woonsocket, RI and the pharmacy services are currently headquartered in Nashville, TN. Within one year, the CV chain grew from one store to seventeen stores. By 1967, CVS opened its first pharmacy location. These locations were opened in Warwick and Cumberland, Rhode Island. CVS pharmacy provides services through the 7,000 retail stores within the United States. CVS has also expanded its business to include pharmacy benefit management, mail order as well as specialty pharmacy division, Caremark Pharmacy Services, a health clinic that is retail based, the Minute Clinic and an online pharmacy. CVS is the largest company that has its operation solely in the United States. In 2013 CVS Caremark was number thirteen on the Fortune 500 list of largest companies in the United States. Internal and External Factors that influenced the organization As with many organizations, there are several external and internal factors that affect the business. An internal factor can be defined as the internal communications of the business. The internal communications of the business forms the culture of the business. The culture of the organization includes the interpersonal relationships, training materials, newsletters...
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...– 002 February 25, 2014 Essay 2 CVS Caremark Steven Graham 1834-5319 Background and Introduction of CVS Caremark Decision On February 5th CVS Caremark announced that they would cease the sale of cigarettes and other tobacco products in its stores. This measure is scheduled to begin by October 1, 2014. Once this action is taken, CVS Caremark will be the first national pharmacy chain to drop the sale of tobacco products. The President and CEO of CVS Caremark, Larry Merlo, stated the following, "Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health." Tobacco sales represent $2 billion in annual revenue for CVS Caremark. This is causing many to question if this is a good move for CVS Caremark. Analyzing this Decision with Respect to Key Stakeholders It seems crucial to analyze the aforementioned decision with respect to three key stakeholders. The stakeholders that will be analyzed are CVS Caremark employees, shareholders, and customers. This is not an exhaustive list of stakeholders, but it represents fundamental primary stakeholders. Employees of CVS Caremark have a significant stake in the company’s decision to drop the sale of tobacco products. Some employees may fear the significant profit loss that this decision represents. This fear would likely be compounded by the lack of details that CVS Caremark has provided on how they will...
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...CVS Caremark Business Analysis Part I University of Phoenix CVS Caremark Business Analysis Part I Investing mutual funds involves many aspects of confidence and knowledge when considering potential companies. One must know a company from the inside and out so they know exactly what their money is being used for. Having this knowledge means investors will not think twice about investing because they will feel confident that the company will provide a return on their investment. By performing a SWOT Analysis and examining how a company will fulfill the needs of internal and external stakeholders, investors will see what the current state of company is and what the foreseeable future holds. SWOT Analysis A SWOT Analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats (Nickels, McHugh, & McHugh, 2010). CVS Caremark is the potential client that this SWOT Analysis will be conducted on in order to determine if they are the proper suitor for investors. Company Overview CVS was founded in 1963 as a company that specialized in health and beauty products. Over time pharmacies were added, and CVS quickly grew in store locations over the next 4 decades by buying smaller pharmacy chains (“Our Company,” 2012). The big change in CVS occurred in 1997 with the purchase of the Revco pharmaceutical chain. Revco and its 2,500 store chain was now a part of the CVS brand and this quickly established CVS as a powerhouse in...
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...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, CVS tried...
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...CVS Health is the United States’ largest pharmacy health care provider. Their mission is to reinvent pharmacy to having a more active, supportive role in each person’s unique health experience and in the greater health care environment—from advising on prescriptions to helping manage chronic and specialty conditions to providing quality walk-in medical care and pharmacy benefits management. CVS Health opened its first store in 1963 and was known as Consumer Value Stores. They then sold health and beauty products. The company was founded in Lowell, Mass. by brothers Stanley and Sidney Goldstein, and partner Ralph Hoagland. Throughout the 60s they grew to 17 stores and opened their first store with a pharmacy department. During the 1970s, they grew to over 200 stores, acquiring stores from Clinton Drug & Discount and Mack Drugstores; they also hit $100 million in annual sales in 1974. In the 1980s they broke ground on the store support center in Woonsocket, RI, which still in 2015 is where their company headquarters belongs. By the end of the 1980s they had nearly 750 stores and had reached $1.6 billion in sales. In the 90s they had acquired more than 3200 stores from Arbor Drugstores, People’s Drug, and “the largest acquisition in the history of the U.S. retail pharmacy industry” from Pevco. They now claimed stores in the Midwest along with the east coast and were breaking ground in the south. In this time frame they also launched the program known as Pharmacare, a...
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...Name: CVS Health Corporation Description: CVS is the country’s number two drugstore chain and pharmacy benefits manager operating retail and specialty drugstores. In addition to its traditional retail locations, CVS also operates its Caremark Pharmacy Services and several stores inside Target locations. With the move away from traditional healthcare, CVS also supplies MinuteClinics in more than 900 retail stores.[1] CVS/Pharmacy, the name of the retail space where more than five million customers are served daily, offers pharmacy care from over 24,000 pharmacists as well as beauty, convenience, and healthcare products covering all areas.[2] Number of locations: 9,500+ (most current)[3] Target customer: The average age of CVS customer is 39. Based on CVS’s diverse beauty department, their target market largely consists of women. In fact, 80% of their customers are women.[4] Contact Person: Bettina Tonelli-Sippel, Category Manager, Healthcare Why: CVS has enjoyed considerable sales growth since 2010. In the last fiscal year, 2014, the company saw revenue rise by 10% to $139.4 billion, led by its Pharmacy Services and recent acquisitions. It’s retail sales grew by 3% as the company enters new markets, add locations in existing markets, and relocates existing stores to more convenient locations. In 2014, CVS Caremark formally changed its name to CVS Health, signaling a transition towards being more health-oriented. Paired with this change was the...
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...CVS Caremark Organizational Analysis James P Miller Strayer University BUS 310 Professor Frevert Abstract CVS Caremark established 1963, has been expanding every year since their inception. With over 7,000 retail locations they face many human resources challenges. It essential for CVS to understand what HR challenges they face to make informed decisions; beneficial to the company stakeholders and employees. Hr decisions affect not only the employee’s but the company’s social opt squat. These resolutions include recruitment of highly skilled workers, company policies, labor relations, training and diversity, management of multiple locations, global business environments, employee compensation and benefits, and legal compliance. In addition, CVS human resources have to align optisquat with the mission and values of the company. CVS Caremark Organizational Analysis CVS Caremark is a pharmacy health care provider in the U.S. They provide pharmacy services, which includes mail order pharmacy services, specialty pharmacy services, plan design and administration, formulary management and claims processing; and Retail Pharmacy, which sells prescription drugs and a range of general merchandise, including over-the-counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards and convenience foods. As of Dec. 31, 2011, CVS has approximately 7,300 CVS/pharmacy retail stores. (CVS Care mark, 2011) CVS...
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...I. Introduction and Overview CVS Pharmacy is considered one of the top pharmacy nationwide chains in the country. There are more than 7,100 stores total, located in nearly every state. The stores retail medication, toiletries and sundry merchandise that is purchased by consumers such as snacks, beverages, skin care and personal care items, holiday merchandise and convenience goods. There is also an online site where products can be ordered and shipped directly to consumers. Some of the CVS pharmacies have medical services that operate out of the retail stores. A. Identify the Organization CVS recognizes the importance of establishing a culture that will have an affect on its people and their performance. The organizational development functional management at CVS realized that sharing a common vision would assist each individual in understanding what the company stands for, commit to the same vision, and then work toward supporting the mission each and every day. The vision at CVS is simple “to strive to improve the quality of human life” (CVScaremark.com, 2010). Taking a look at two of the organization’s functional goals in the Technology and Human Resource business areas, it is easy to see how CVS is an industry leader. The organizational structure or team at CVS involved in working on this issue from the HR area include the Senior Vice President of HR, Training Specialist, nd local HR managers. From organizational operations there is the technology manager, and procurement...
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