40 page paper

Running head: MCKESSON STRATEGY FORMULATION AND PLANNING REPORT 1

MCKESSON STRATEGY FORMULATION AND PLANNING REPORT

McKesson Strategy Formulation and Planning Report

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McKesson Strategy Formulation and Planning Report

Introduction

McKesson Corporation serves as an American company focusing on the distribution of pharmaceutical products. It provides health information technology, care management equipment, and various medical supplies. The huge operations and financial success of the company make it become number five in the United States and join the Fortune Global 500 list. Concerning the short background of the company, the main focus of the report includes the posture of human resource in its operations. Human resource at McKesson Corporation falls under the Vice President in charge of the department.

Presenting the Variables of Focus in the Report

The report presents several segments about the relationship between human resource development and McKesson capabilities to grow and acquire the desired operational results.

Benefits and Compensation

The development of McKesson Corporation exists due to its highly skilled workforce. The employees go through successful programs that initiate training and motivate employees to learn new incentives on how to improve the operations of their company. McKesson Corporation invests huge resources on its employees for them to diversify their skill and knowledge background. When you look at the training and skill development, it serves as the beginning of benefits and compensation plan. Employees can improve their careers and experience high possibilities of receiving promotions in their workplace. McKesson possesses a corporate culture that revolves around health (United States Securities and Exchange Commission, 2013). The focus of the culture is to ensure that employees remain satisfied and motivated to change their workplace. The company has ensured that it benefits employees through its health products and services. Employees at McKesson have access to free Fitbit application. This is used to track the daily activities that make them become fit and have fun at the same time while working. The management has and continues to ensure that the employees maintain a healthy lifestyle while at the same time making it possible to acquire insurance.

Employees receive payoff when they have time off from the professional environment — the company carters for the holidays of its employees by offering them small packages to support their leave and time-off. The human resource department provides employees with six weeks paid parental leave. This focuses on providing employees with the opportunity to start their new families. Employees have access to the gym and other services. Employees are also able to invest in the company. As they work for McKesson, they are also able to become investors in their capacity. This means that they are allowed to purchase stocks and shares to grow the company and support their financial needs. McKesson has huge salaries and benefits. They are highly competitive and enable employees to deal with their financial hurdles. The company pays $ 9,732 in annual bonuses (United States Securities and Exchange Commission, 2013). Those with senior directorship position receive close to $ 42, 123.

Business Leadership and Strategy

McKesson Corporation has diverse business strategies through its quality leadership incentives. The leadership continues to be a major force in its operations and strategic growth. Employees are given opportunities to become leaders through different leadership programs. The training provided by the company focuses on managerial and financial skills. The employees and the leadership portfolio comprises of the President, Departmental Vice presidents, and managers who have different roles and responsibilities. They have made it possible for the company to evolve from a small shop to one of the largest distributors of healthcare products. The leadership of the company uses global business strategies to support financial and logistical growth. The company has ensured that it borrows ideas from society to motivate growth. Business ideas are major influencing factors in the growth of companies.

McKesson Corporation has created possibilities for employees to contribute to its operations. Leadership and strategies have been initiated in such a way that the company has taken the mantra of leadership in comparison to its competitors. McKesson Corporation came up with a leadership strategy in the early 1990s to focus on acquiring a huge market share in the global health sector. The company acquired several smaller companies in its merging and acquisition plan. The approaches employed by McKesson Corporation has influenced it to maintain and sustain its leadership position in the market for several decades. The acquisition strategy has become one of the major influencing factors to facilitate faster growth. An example includes 1983 when the company purchased General Medicaid and Automated Healthcare to strengthen its growth (Jetly, Rossetti, & Handfield, 2014).

Restructuring an organization influence it to become profitable (Aghazadeh, 2015). McKesson Corporation has gone through several restructuring initiatives for profitability purpose. After its collapse in 1974, the company was restructured to meet its financial demands. The company ended up selling 11 of its subsidiary company’s possessing low profits in 1976 (Duarte, Goodson, & Dougherty, 2014). This was a move that saw the leadership coming up with a strategy that cut costs of running the subsidiary companies and supporting financial growth.

Diversity among McKesson Employees

McKesson Corporation commits its resources and strategies to foster a workplace environment that focuses on the respect of its employees. The company has introduced a multicultural environment that appreciates different norms, religions, genders, and sexual orientations. The management recognizes the diverse professional environment which is a key factor in supporting future growth (Andries, Debackere, & Looy, 2013). The situation in the company sees the promotion of vitality and innovation to make the company one of the most enjoyable professional environments in the world. McKesson works with an inclusion policy that supports diversity in its business. From the evaluation of the philosophy, it is evident that the company will still maintain its share of the market and have more if it continues to respect its employees. The business will experience business success through its diversity and inclusion philosophy. Employees are allowed to respond to various issues affecting them.

Any employment environment should have incentives that lead to maintaining peace among individual and improve productivity. It should have factors that support innovation and cements teamwork among employees (Hornibrook, May, & Fearne, 2015). The philosophy of allowing employees to participate in important decisions of the company makes it possible for it to achieve its desired operational goal. Employees have a better experience through an inclusion and diversity approach. They can broaden their thinking and become highly competitive in their career backgrounds. The involvement of the employees in its key decisions may increase the provision of efficient and affordable healthcare. Diversity is an important tool that needs to be introduced in any professional environment to facilitate change.

Employee Relations

Teamwork is a critical factor in the development of a workplace. Since McKesson Corporation has an advanced distribution network, it needs different skills, talents, and knowledge to support the approaches employed to enable its products to reach the market (Duarte, Goodson, & Dougherty, 2014). Nevertheless, it needs to ensure that the management and the employees have robust relationships about their work ethics and policies. The company has enabled employees to go through several team-building initiatives that are held on a quarterly basis. The initiatives act as platforms through which employees may share their working experiences. They may communicate about the challenges they experience in their line of work. Employees participate in task-oriented programs that provide them with significant skills on various issues surrounding their professional environment.

McKesson Corporation expects every individual to work with each other. Responsibilities are divided into groups and as per the individual roles provided by the management as per the employees’ career background. Employee relations should be a goal of any company as it enables the contribution of ideas. The company has benefited from positive employee relations. Most of its operations depend on the ideas of that are provided by the employees for development. This makes it possible for the company to identify problems in its business environment as the employees are made part and parcel of its decision making portfolio.

Ethics and Corporate Social Responsibility

Ethics and CSR act as a backbone towards supporting growth and initiating change in the professional environment. For any company looking to beat the competition, focusing on the well-being of the surrounding community makes it possible to achieve the desired goals. Concerning McKesson Corporation, it is important for the management to ensure that the company obeys all the regulations existing in its business environments. This means that McKesson needs to pay its taxes and comply with various business regulations that touch on employees, business operations, and copyright infringement among other issues. Despite the above changes, McKesson already enjoys a fundamental framework of ethics and corporate social responsibility in the market.

The company possesses shared principles known as ICARE which unite its resources, business units, and functional areas to shape its business culture. The company invests in its business environments by ensuring that it makes a positive difference for its customers, shareholders, and everyone. McKesson works with a code of conduct that acquires power from its legislative and business environments. It works to ensure that its employees have high legal standards followed by ethical behavioral traits in the professional environment. ICARE serves as the building block of the code of conduct. It discusses policies, procedures, and fundamental principles that affect the workplace environment.

Organizational and Employee Development

McKesson focuses on the well-being of the employees as reiterated in the first segments of the report. The vision of the company begins with the patient and spreads to the employees. This is because patients come from all corners of society. Employees and managers may become patients when they become sick. The company has ensured that the employees are healthy to enjoy their lives and wok more often. It is through the above approach that employees can build healthier communities (Jetly, Rossetti, & Handfield, 2014). The above approach also influences McKesson to provide enough medical care to its employees and supporting them by giving back to their development.

McKesson Corporation has ensured that its employees and their families are kept at bay when it comes to accessing health products and services. The workplace environment of the company is secure and safe. It has all the required necessities to motivate success and productivity. McKesson has invested heavily in its employees and organizational structure because it understands that it is the future of the company. Employees have the opportunity of leveraging their strengths and growing professionally.

Talent Management

The Vice President in charge of the human resource department has a difficult task of ensuring that the company acquires the right talent. It is a challenging job, but the results are adequate to increase growth and revenues — talent management for the company concerns identifying the best skills and personalities related to various responsibilities found in the company. It involves identifying strengths and aligning it with objectives of McKesson to support growth. It means appreciating talent and working with employees through training initiatives to build on capacity.

The world comprises of many people with unique talents regarding different areas of professional development (Jetly, Rossetti, & Handfield, 2014). The above factor calls for the management and leadership of McKesson to undertake several initiatives in acquiring the right talent. It should think of internship opportunities, career expos, advertising employment positions, and creating capacity for talent acquisition. Despite the company trying to do so in the past, it should try as much as possible to create a diverse professional team for effective operations.

Technology and McKesson

Technological advancement has become an influencing factor in the business environment. Companies are forced to install technology in their operations for them to become relevant in the market. Concerning McKesson, the company should adopt new technological frameworks in advertising and marketing its products. Technology should also be used in ensuring effective distribution of products. McKesson has already changed its business strategies by introducing technology solutions to customers.

Customers can acquire healthcare information through the company’s website and other mobile applications (Fogarty, 2015). Technology is used through partnerships created via pharmaceutical providers, governments, and organizations in the healthcare sectors. This is to create frameworks that lead to the provision of the right medicines, products, and services to the right patients without having to lose time and resources. The above factors act as a force in supporting and implementing change in its business structure.

Best Practices in Human Resource Management

When one talks about best practices in the human resource management department, it is important to focus on the specific processes, procedures, and stakeholders involved to improve the workplace environment. The company has proved itself as a major force in influencing its employees positively. It has internships which are used to select future leaders and employees. It also undertakes promotions of employees to boost their careers and improve their professional experience. Employees are given the best salaries and remuneration packages (Duarte, Goodson, & Dougherty, 2014). They have access to medical insurance and services. McKesson has ensured that it monitors the health and lifestyle of its employees to enable them to become change implementers in their environments. The above examples are some of the few factors that are essential for a company becoming highly competitive and maintaining a good market share.

Conclusion

For any organization with a need to develop its employee portfolio, human resources, and other employment processes should focus on strengthening the human resource department to initiate a positive outcome. In the case of McKesson Corporation, strategic planning and formulation are crucial to boosting its development and operations in the medical business sector. This makes it possible to acquire a competitive basis over other companies with the same objectives in the market. McKesson also achieves high revenues due to acquiring a large market share. Strategic formulation and planning is the centerpiece of future development for the company.

References

Aghazadeh, H. (2015). Strategic marketing management: Achieving superior business performance through intelligent marketing strategy. Procedia-Social and Behavioral Sciences, 207, 125-134.

Andries, P., Debackere, K., & Looy, B. (2013). Simultaneous experimentation as a learning strategy: Business model development under uncertainty. Strategic Entrepreneurship Journal, 7(4),, 288-310.

Duarte, N., Goodson, J., & Dougherty, T. (2014). Managing innovation in hospitals and health systems: Lessons from the Malcolm Baldrige National Quality Award Winners. International Journal of Healthcare Management, 7(1), 21-34.

Fogarty, D. (2015). Lean Six Sigma and big data: Continuing to innovate and optimize business processes. Journal of Management and Innovation, 1(2), 2-20.

Hornibrook, S., May, C., & Fearne, A. (2015). Sustainable development and the consumer: Exploring the role of carbon labeling in retail supply chains. Business Strategy and the Environment, 24(4), 266-276.

Jetly, G., Rossetti, C., & Handfield, R. (2014). A multi-agent simulation of the pharmaceutical supply chain. In Agent-Based Modeling and Simulation (pp. 133-154). London.: Palgrave Macmillan.

United States Securities and Exchange Commission. (2013). McKesson Corporation-Notice of 2013 Annual Meeting of Stockholders. United States Securities and Exchange Commission. Retrieved from www.sec.gov/Archives/edgar/data/927653/000130817913000277/lmckesson_def14a.htm