About The Company Case Study Example
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CVS Health is an American retailer and Health care Company. It is currently owns and operating over 7,000 pharmacies and drug stores in the entire region of the United States. The company’s headquarter is located in the region of Rhode Island, the United States. In terms of financial capability and strategic significance, this particular company is known as one of the largest companies of the United States, and ranked as 35th largest company lies in the Fortune Global 500 Companies. The company had generated net revenue and net income of US$ 126.761 Billion and US$ 4.592 billion respectively in the financial year 2011. There are more than 200,000 employees are working with the company (Badal, 2011). The shares of the company are actively trading in the New York Stock Exchange (NYSE) market.
A statement that specifically made by an organization to attain their short term objectives is known as a Mission Statement. Every company has a mission statement that made to educate the researcher and readers about the direct connection of their short term promises (Hitt, Ireland & Hoskisson, 1999). The mission statement of CVS Caremark is as follows
“The mission starts from improving the directing the life expectancy to those which are serving hard to make innovative and high quality health through the drugs, as CVS Caremark is willing to provide cost effective pharmacy and solutions to them”
Likewise Mission statement, a Vision statement is also very important which use specifically to educate the readers regarding the long run significance of their company (Hitt, Ireland & Hoskisson, 2007). The Vision Statement of CVS Caremark is as follows
“CVS Caremark is striving hard to improve the quality of human life”
External Audit is a part of the SWOT Analysis in which the powers which are influencing from outside of the company will be recorded and analyzed. External Audit is an important part of analysis in which the External Opportunities and Threats of an organization would have been analyzed accordingly. It is one of the most incredible forms of analyzing the external threats and opportunities of a company from which they have to prevent them for their long term effectiveness and significance (Badal, 2011).
Expanding in Home Care Products
According to the case study, more than 65% of the stores of CVS open 24 hours a day as a drive thru windows in the pharmacy based department. Apart from the pharmacy, the company is also intending to expand their operations in the home care market. The Case study also reveals that CVS is willing to open over 150 new Home Care and Pharmacy stores in the entire market of the United States in a matter of only three years that will certainly assist them to tap a big market in future (Badal, 2011).
Increasing Domestic Presence
The population of the United States has been increasing with a robust pace from last decades which is continuously increasing the demand of companies as the purchasing power parity of the consumers are increasing tremendously, which are increasing the demand of pharmacy based companies. There is a chance for CVS Caremark to increase their domestic presence by increasing the amount of their segmentation. Case study reveals that CVS Caremark is intending to leap out from the traditional and primary dispensing prescriptions and commence operations with one to one discussion with the patients (Badal, 2011).
Tapping of Global Markets
CVS Caremark is a big company with a remarkable goodwill, thus, the chance of tapping high amount of global markets is increasing for them. There are numerous opportunities for the company to expand their operations in the international markets through strategies alliances, tie-ups and collaborations, as found in the case study.
Unfamiliarity of People
People of the United States are unfamiliar regarding different products of pharmaceuticals as discussed in the case study that may increase the pressure for CVS Caremark while opening and maintaining a new operational unit within the country. It is required to broaden the vision of the people regarding the pharmacy based products.
Competition is Arising
The amount of competition in the pharmacy products are increasing heavily in the entire market of the United States, which are giving tough time to the CVS Caremark in terms of their sustainability in the industry. According to the case study, Rite Aide, Wal-Mart and Walgreens are some of the close competitors of CVS Caremark which have been giving tough time to the company from past few years. Therefore, powerful action is required by the CVS to combat with these competitors.
Strengths and Weakness of a company will be recorded in the Internal Audit Section (Badal, 2011)
CVS Caremark has a strong presence in the health and beauty products market, which will certainly strengthen the functions and operations of the company in a positive manner.
Good Market Position and Financial Stability
Brand Recall is ineffective
CVS Caremark is a big company, but still the company is facing problems in terms of brand recall as compared to the industry leaders. Due to some of the segments that found in the case study, the company was unable to make incremental profit in the year 2011 (Badal, 2011). The net revenue of the company decreased by 2.3% in the year 2011 as compared to 2010 due to ineffectiveness of brand recalling (Badal, 2011)
Controversies in terms of Allegations
CVS Caremark is facing number of allegations in terms of their business practices from different Governmental entities; therefore the company has to become powerful in order to cope up with these crises.
Badal, A. (2011). CVS Caremark Corporations. Ne York: McGraw Hill.
Hitt, M., Ireland, R., & Hoskisson, R. (1999). Strategic management. Cincinnati: South-Western College Pub.
Hitt, M., Ireland, R., & Hoskisson, R. (2007). Management of strategy. Australia: Thomson/South-Western.
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