Capstone

Running Head: CVS CORPORATION 1

CVS CORPORATION

The Strategies Effective Business

Yvonne Winn

Dr. Keller

January 22, 2021

CVS Corporation is a US bases Health service provider with chains of pharmacies across America (Pallegrin, 2017). It offers affordable medication in its chain of pharmacies and outpatient medical services in their minute clinics. CVS stands for Consumer Value Stores and has been operational since 1963 with its headquarters in Woonsocket Rhode Island, US. The corporation is among the thousands of companies listed in the U.S Securities and Exchange Commission as it contributes fairly to the growth of the American economy.

Globalization and technology changes put pressure on companies to conform to the new digitized world that has been reduced to a global village via globalization. CVS Corporation is not an exception and as a matter of fact, it has received its share of the impact of globalization and technology changes. CVS Corporation has been taking cautious steps in expanding its business beyond the American boundaries despite globalization’s effects of making businesses international (Toma & Caftaflin, 2020). Despite these cautious moves, CVS Corporation has expanded its territories within America with the latest acquisition being Aetna Insurance (Pellegrin, 2017). The acquisition expanded the business and helped in its effectiveness across the States and expatriates.

CVS Corporation is digital-savvy. It makes many efforts in ensuring that their work is made easy with the application of technology. A lot can be done on their CVS mobile app that aid both the clients and the customers of the corporation. The CVS mobile app helps customers to keep records of their prescriptions to avoid losing them and to also enable treatment to be effective as records of medication are kept (Liu, et al., 2018). Technology has also enabled the company to synchronize medication refills such that the client can collect them at their place of convenience (Liu, et al., 2018). This technology is meant to make access to vital medication easy and convenient so that a person does not skip their medication when they run out of them and need refills. The flexibility of the change of collection point eases stress on the clients.

CVS can adopt some structural models for its marketing for curbing competition and to increase its revenues. The resource-based model to increase revenue for a company can be effectively applied to CVS Corporation. CVS announced that it will be retailing and selling tobacco-free products in its outlets (Pellegrin, 2017). This move was aimed at increasing the market share by attracting customers who need tobacco-free products and are concerned about their health. Alongside this plan, CVS also offered free check-ups for patients who have respiratory issues caused by the use of tobacco products in their minute clinics (Pellegrin, 2017). By doing so, patients who have long suffered from such health issues would be interested to seek treatment from the facilities hence both the clinics and the pharmacies will gain more revenues from the new business.

The industrial model focuses on how a business incorporates its vision in its manufacturing process. CVS is in the retail business and is not directly involved with manufacturing the drugs they sell in their pharmacies which contributed to about sixty percent of their revenue (cvshealth.com, 2021). However, CVS partners with trusted suppliers of high-quality medicines and assorted merchandise that they sell in their outlets. CVS's selection of suppliers is strategic such that their production practice is in line with their vision as a retailer. For example, since the company no longer sells tobacco products, it also means that they do not associate with tobacco manufacturers so that the products that end up on their shelves are trusted to be tobacco-free. CVS has many manufacturers supplying them with products under various categories.

The mission of CVS is to “help people on their path to better health” (cvshealth.com, 2021). This mission statement speaks volumes for the company as it embodies the practices of the pharmacy retail business. When CVS announced that they are going tobacco-free, the company proved its seriousness in the health business (Andersen & Bauhoff, 2017). CVS’s acquisition of Aetna insurance was a big merger that was aimed at making health affordable for their clients through insurance (Gallori, 2019). CVS Health has also been famously identified by its relatively cheaper prices for prescriptions especially on expensive essential medication that patients rely on to sustain their lives (cvshealth.com, 2021). Under its umbrella is accessible clinics that offer first medical attention to patients who walk in and in addition to the campaign against smoking, they offer free check-ups for respiratory-related issues. The commitment to providing quality drugs at affordable prices is also a positive step in ensuring that the country receives the best of medication. All these factors are aimed at ensuring that the primary reason for their business is to improve health. CVS Health has increased the accessibility of its services by ensuring that they have their outlets in all the states and their delivery systems as fluid as possible.

CVS has partnered with different stakeholders to help them deliver its strategy. Their main focus is to make the nation tobacco-free and healthy. By sensitizing the public about the effects of tobacco on health, topics about lung cancer center the discussions. CVS Health partners with American Lung Association to help in the research through funding and public sensitization programs (cvshealth.com, 2021). The American Cancer Society also plays such important roles in finding solutions to ending cancers due to lifestyle behaviors such as smoking. CVS is also conscious of its supply sources such that they are supportive of its mission. In that regard, CVS has the Billion Dollar Roundtable and the Business for Social Responsibility as stakeholders that help in upholding their vision of a tobacco-free nation through monitoring the manufacturing practices that introduce such harmful products to the market (cvshealth.com, 2021). Their social responsibility is to sensitize both producers and users on the effects of health inconsiderate businesses. CVS also cares about a healthy heart and especially for women (cvshealth.com, 2021). Smoking too can lead to cardiovascular disease that affects the proper functioning of the heart. The partnership with American Heart Association aims at supporting the healthy heart in women.

CVS has taken the anti-tobacco campaigns seriously. Kids too are not left out as the corporation joins hand with the campaign for tobacco-free kids in sensitizing children on the toxic effects of tobacco on their health and future (tobaccofreekids.org, 2021). These campaigns and many more are in the interest of making good health an easy journey through the participation of the stakeholders and society.

Overall, CVS has earned its place as a leading health care provider in the US whose activities are aimed at nothing short of making its mission possible and its goals attainable. Both internal and external factors of the corporation are clear in transforming the health of the nation.

References

Andersen, M., & Bauhoff, S. (2017). The Share Price Effect of CVS Health’s Announcement to Stop Selling Tobacco: A Comparative Case Study Using Synthetic Controls. In Forum for Health Economics & Policy (Vol. 20, No. 1, pp. 1-13). De Gruyter.

Gallori, C. (2019). CVS-Aetna Merger. Harvard Public Health Review, 22, 1-6.

Liu, L., Li, S., & Opara, M. (2018). Corporate social responsibility and strategic company behavior: CVS Health's discontinuation of tobacco products. Corporate Social Responsibility and Environmental Management, 25(6), 1293-1305.

Pellegrin, K. L. (2017). CVS Health: Checking the vital signs of the largest pharmaceutical company in the US. SAGE Publications: SAGE Business Cases Originals.

Toma, S. G., & Cătălin, G. (2020). Global Retailing: An American Business?. Ovidius University Annals, Economic Sciences Series, 20(1), 99-103.

https://cvshealth.com/social-responsibility/csr-stakeholder-engagement