40 page paper

McKesson Corporation has a strong competitive position in the pharmaceutical industry. Other organizations are barred from entering the market by their reduced market share, limited buying and growth power, expertise and decreased economies of scale. McKesson Corporation dominates the industry along with other peers such as Cardinal Health and the AmerisourceBergen (ABC) (Spicuzza, 2016). The company enjoys strong oligopoly powers which make entry into the industry by other firms difficult. McKesson Corporation is among the renowned and the most competitive pharmaceutical firms which mean that the decisions made by the firm at any point have the potential to affect the operations of other firms and the courses of actions they take. The oligopoly powers mean that the firm does not face fierce competition that can adversely affect the performance and the overall success of the company. A company is also able to create a strong value for their products through their oligopoly power (Madsen & Walker, 2015). McKesson Corporation has been able to place itself as a key cog in the industry and distributes drugs more efficiently than the other pharma clients and suppliers.

The favorable competitive position of the firm means that it is one of the options that investors consider at any given time. Investors are always looking for a greater return for their investments and will consider a firm that assures them of the best (Tracey, 2016). The performance of a firm is one of the factors that investors consider before making an investment choice. The ability to attract more investors means that a firm is able to grow, become more successful, impact to as many clients as possible and establish customer loyalty and trust (Morgan & Strong, 2015). Such are the values that have driven success and overall competitiveness at the McKesson Corporation.

The future of the company seems promising; strong customer and market base, there is an effective route density, the company has effective warehousing infrastructure, and there are also unparalleled expertise in logistics, decent asset returns, quality products and services, and an increased capital base. The firm has always realized top returns on their assets and the trend is expected to continue for the longest time, writing a history of success and pharmaceutical products improvement (Spicuzza, 2016). McKesson Corporation has all the opportunities to guard the competitive advantage and become better in their service delivery. The firm has led in the past in terms of quality, ability to give the anticipated returns and effectively handle the challenges being experienced in the healthcare industry.

The top competitors for McKesson Corporation are Cardinal Health and the AmerisourceBergen (ABC). Cardinal Health is among the highest revenue-generating firms in the United States (Spicuzza, 2016). The company has the headquarters in Dublin, Ohio and specializes in the distribution of pharmaceutical products. Cardinal Health serves more than 100,000 locations and is, therefore, one of the major competitors to McKesson Corporation (Spicuzza, 2016). Cardinal Health also operates one of the most advanced networks of radiopharmacies in the country. The company serves over 75% of the hospitals in the United States (Spicuzza, 2016). McKesson Corporation must devise ways to deal with the competition posed by the rival because the products and services offered are close substitutes.

AmerisourceBergen (ABC) is the other top competitor for McKesson Corporation and is also a global firm providing healthcare solution to numerous hospitals in the United States and the world at large. AmerisourceBergen (ABC) provides drug distribution and the related healthcare services. The company has been able to ensure that services and products are delivered at a reduced prices and improvement of patient outcomes. The firm was the largest in terms of the revenues recorded in 2012, 79.49 billion (Spicuzza, 2016). Being a market leader then AmerisourceBergen (ABC) can be termed as a fierce competitor to McKesson Corporation which must always be on their toes to improve products and service delivery. Competition is one of the most dreaded encounters for any firm and comes with numerous challenges which must be addressed if the firm is to remain in business (Tracey, 2016). Competition is always healthy if managed effectively and may be an opportunity for a firm. McKesson Corporation has mastered the art of handling competition and such may be the reason why 185 years down the line, the firm is still competitive and has won the trust and loyalty of customers, not only in the United States but also all over the world.

McKesson Corporation has a diverse workforce comprising of people from all over the globe. Diverse workforce means that the firm has to manage multiple cultures failure to which conflicts may arise. Employees are always reluctant to accommodate the differences that come with working with their colleagues from other backgrounds especially if their culture is considered as minor and is viewed negatively (Tracey, 2016). There is always the need to ensure that employees can coexist peacefully and learn to respect diversity. Diversity comes with opportunities that can only be discovered if only a firm embraces a culture of respect for diversity (Morgan & Strong, 2015). Large, competitive organizations are always faced with the challenge of managing diverse cultures and McKesson Corporation is no exception.

Non-compliance with the legislation is another human resources risk that McKesson Corporation deals with. The legislation stipulates various employment terms including employee pay and compensation, and equal employment opportunities. The company has in the past found itself dealing with issues of employment laws non-compliance and that means endless lawsuits by the employees and the government (Spicuzza, 2016). Governments are meant to stipulate what is to be achieved in any industry and especially those regarding employment. Various terms are set and are to be implemented by firms. Compliance is required failure to which has seen organizations, even the most competitive ones, walk out of the market and being closed down permanently (Tracey, 2016). Such lawsuits are costly to the company and leads to misappropriation of resources. Organizations are required to adhere to the set government regulations which show the level of compliance in the corporate operations and especially in areas of hiring and placement.

There are numerous trends in the business environment regarding pay and employee skills. The company deals with the ever-changing business environment and in the event that the trends do not favor the operations of the firm then those are risks. Availability of new skills in the market means that the firm must always be on the lookout for human resources with the right and competitive skills that are essential for the successful execution of the business operations (Snell et al., 2015). Trends in market basic pay for the employees mean that the acquired labor must receive wages and salaries that are line with what the business environment stipulates (Morgan & Strong, 2015). A firm may strain their resources trying to meet the market pay rates.

McKesson Corporation has been known for the increased training done to the employees that are on board. The team of employees is adequately trained and posses the right skills to perform to the expected standards (Spicuzza, 2016). Well-trained employees have sustained the firm for the many decades it has been in operation. Training ensures that the employees are equipped with the right skills and abilities and that they can always handle work-related challenges as they present themselves (Tracey, 2016). There are numerous changes that are always being encountered in the operations of firms and if the employees are not well-trained they may not be reliable to deal with the changes, which are apparently unforeseen and unavoidable. The trained workforce also means that the company has always been able to venture into new opportunities as they present themselves. Competitive firms utilize the skills that the team on board posses to achieve the business goals and McKesson Corporation has known the art of employee training which is an opportunity for the firm.

McKesson Corporation has diverse employees who bring in different skills, cultures and ways of doing things. Diversity is embraced by competitive, successful and global firms and is considered a great opportunity to grow the firms and improve their operations. Diverse employees have always been at the core of the success at McKesson Corporation in the last 185 years (Spicuzza, 2016). The employees have learnt to share their skills, abilities, knowledge and experience and are always able to achieve together. A successful organization is an enabler for the employees, even the less skillful (Morgan & Strong, 2015). Organizations with employees from different backgrounds only need to effectively manage the differences to reap maximally from the same. Employees also learn to accept each others’ weaknesses and learn the culture of achieving collectively. McKesson Corporation stands a chance to become even better in their operations by managing the diverse workforce.

There is an increased supply of cheap labor in the growing business environment that the firm operates in. Competent employees can easily be acquired from the market whenever a need arises (Morgan & Strong, 2015). Competent employees mean that the firm can deliver quality services to the customers while still realizing the business goals and maximizing value. The ability of a firm to acquire the required labor at a relatively cheap and reasonable price means that the operations of the company are never affected negatively and that the firm can even increase the industry activities, the products and services offered to the customers (Rothaermel, 2015). Human resources are the drivers of change, success and the survival of organizations. Firms must always acquire and retain competitive employees at any given time to ensure that they are not competed out of the market. The pharmaceutical industry is one of the most developed and such means that that getting qualified human resources is never a hurdle for firms.

McKesson Corporation has extensively invested in their human resources and the analysis has shown the numerous training and development programs designed to equip the employees with the best of skills and abilities. The company stands a chance to be the best by utilizing the skills that the employees acquire through the trainings (Spicuzza, 2016). The training and development mean that the employees can be relied on to drive changes in the organization, to deliver the best in terms of quality and remain committed to the organization for the longest time possible (Vickers, 2016). The firm also has a diverse workforce and such translates into more employee skills and an enabled workforce. Success, sustainability and the competitive advantage of the firm cannot be compromised at all.

The firm, is however, tasked with the responsibility of managing diversity among the employees. Diverse employees manifest different cultures which may the cause of the numerous conflicts in organization (Ekwoaba et al., 2015). McKesson Corporation is a global firm operating in more than 16 countries across the globe and such means that the employees are from diverse cultures and backgrounds (Spicuzza, 2016). Effective management of diversity will ensure that the employees are able to coexist, share in knowledge and skills, achieve the work targets collectively and ensure that the firm remains competitive.

References

Ekwoaba, J.O., Ikeije, U.U., & Ufoma, N. (2015). The impact of recruitment and selection criteria on organizational performance.

Madsen, T. L., & Walker, G. (2015). Modern competitive strategy. McGraw Hill.

Morgan, R. E., & Strong, C. A. (2015). Competitive strategy and market orientation: The relationship and its implications. In proceedings of the 1998 academy of marketing science (AMS) annual conference (pp. 232-232). Springer, Cham.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education,

Snell, S., Morris, S., & Bohlander, G. W. (2015). Managing human resources. Nelson Education.

Spicuzza, L. (2016). Initiating the communication: Is McKesson Corporation really a victim of epic systems' users infringing acts?. SAGE.

Tracey, W. R. (2016). The human resources glossary: The complete desk reference for HR executives, managers, and practitioners. CRC Press.

Vickers, L. (2016). Religious freedom, religious discrimination and the workplace. Bloomsbury Publishing.