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CVS Health: A Proposal for Organizational Improvement
Group 8: Lucas Doudera, Benjamin Fays, Gabe Provost, Sally Huang, Leah Hoffman
Liberty University
BUSI 240: Organizational Behavior Managment
Professor Boyce
April 17, 2025
CVS Health is one of the biggest pharmacy and healthcare companies in the US, with
thousands of stores across the country. It started as a small store in Lowell, Massachusetts. Since
then, CVS has grown into a primary healthcare provider, offering prescription drugs and
walking-in clinics for the public. As the abbreviation stands for “consumer value store”, CVS is
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not only a drug store that provides merchandise for customers like cosmetics, beauty products,
food, over the counter medicine, and other basic remedies, but the business also provides reliable
health care services for the community as well. CVS’s growth and success is remarkable as it
was started by just a few people from Massachusetts's who collaborated strategically with
various business tactics.
CVS was founded in May of 1963 by the Goldstein brothers, Sidney and Stanley, along
with the help from Ralph Hoagland. Stanley P. Goldstein was a successful businessman and it’s
safe to say that he is credible for part of CVS’s wealth. Goldstein grew up in Rhode Island and
received his undergraduate degree from the University of Pennsylvania. The consumer store was
founded earlier, then taken over by the corporation Melville in 1969. In 1987, Goldstein was able
to take more dictation over the business 500 and collaborate with a group of “loose-knit” people
involved in retail to fully turn the corporation into soley healthcare (Harvard). Stanley’s strategic
restructuring helped CVS generate over $15 billion in earnings. He lived a long life, reaching the
age of 99 before peacefully passing away from natural causes.
One of the other co-founders, also known as Stanley’s older brother, Sidney S. Goldstein
was@a significant contributor to the business. Ironically, Sidney grew up with Stanley in Rhode
Island and earned his college degree from Brown University in sociology. He was not only a
successful business owner, but was very dedicated to studying demography, and worked as an
assistant professor at various universities.@ In other words, he was invested in the study of social
structure and population, which often includes statistical reasoning. Despite their success, CVS
faces strong competition from other big retailers like Walmart and Target. Online companies like
Amazon are also becoming a big threat, because online companies provide easy access for
consumers to buy medication without going in person to buy them.
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CVS Health’s extensive operations in retail pharmacy, pharmacy benefits, and healthcare
services position it as a critical player in the American healthcare system; however, addressing
employee satisfaction, improving customer service, and enhancing operational efficiency are
essential for sustaining its competitive advantage. Our proposed change is aimed at helping CVS
and CVS Pharmacy’s operate more efficiently while reducing internal challenges within the
company.
This paper proposes an organizational change to help CVS Health improve employee
satisfaction, enhance operational efficiency, integrate technology solutions, such as AI and
automation, to speed up prescription processing reduce delays, and address legal challenges
related to the opioid crisis.
Despite being a large and successful company, CVS has faced a variety of challenges.
Many employees have reported feeling overworked, enduring long hours, and facing pressure to
meet prescription goals. Wilson, B. (2024). These issues have raised concerns about working
conditions and employee safety. Additionally, the company struggles with operational
inefficiencies, such as supply chain delays and slow prescription processing. On top of these
challenges, CVS has also been entangled in lawsuits related to the opioid crisis, leading to
significant legal and financial consequences. While CVS continues to grow and maintain a
strong reputation, it is clear that improvements are needed in both employee treatment and
operational management.
CVS is currently undergoing a significant number of changes to advance the business
which we applaud them for. Also, the company is currently experiencing some challenges which
they’re trying to resolve. Moreover, they’re making changes to lower their product costs,
leadership roles for more efficiency, and elevating financial burdens that they have. Although
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they are making positive changes throughout the company, this is also resulting in closures of
stores across the nation and employee layoffs. My group and I would like to propose beneficial
changes for the company that avoid negative consequences for employees and the surrounding
communities.
For instance, while CVS is currently making adjustments to address financial challenges
—such as declining gross and sales profits—we aim to offer solutions that also prioritize the
well-being of its people. CVS’s board of directors has discussed potentially splitting the
company’s chain and insurance components to aid the pressure received from their investors
(2024). As far as leadership changes are concerned, the company’s main insurer, Aetna, has
departed elsewhere. In terms of cutting the cost of some of their products, this is where store
closures and releasing employees have occurred.
In addition, CVS has established itself as the leading force in the US Healthcare and retail
pharmacy by adopting a unique, health-first business model that differentiates it from traditional
retail competitors like Walmart and Target, as well as online giants like Amazon. Rather than
focusing solely on retail sales, CVS has strategically positioned itself as an integrated healthcare
provider with a strong emphasis on accessibility, personalization, and preventative care.
To better understand CVS Health’s current position and the potential for future success, it
is helpful to conduct a SWOT analysis. This tool identifies the company’s internal strengths and
weaknesses, as well as external opportunities and threats. By examining these areas, CVS can
make more informed decisions to improve its operations, employee relations, and overall impact.
One of CVS’s greatest strengths is its scale and national presence. As one of the largest
pharmacy and healthcare companies in the United States, CVS operates thousands of stores
across the country, giving it a strong and recognizable brand. Its integrated business model,
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which includes retail locations, pharmacy services, Aetna insurance, and MinuteClinic's, allows
CVS to meet a variety of healthcare needs under one umbrella. This model also positions the
company as a key player in transforming how everyday Americans access care. In addition, CVS
should start to use technology more strategically, such as incorporating AI and expanding
telehealth services, which can help improve customer experience and operational performance.
However, the company also faces significant weaknesses. Employee dissatisfaction is a
major concern. Reports of understaffing, long hours, and poor communication have led to low
morale and even strikes. Many CVS employees feel excluded from decision-making processes
and say they lack proper support from upper management. Layoffs and store closures have also
damaged employee trust and weakened CVS’s public image. The company’s involvement in
legal battles related to opioid distribution has further exposed internal flaws and hurt its
reputation.
Despite these weaknesses, CVS has several promising opportunities for growth and
improvement. For instance, investing in automation and artificial intelligence can help speed up
prescription processing, reduce errors, and free up staff to focus more on customer care. The
expansion of mobile clinics and telehealth services can also help CVS reach underserved
populations, especially in rural or low-income areas. Additionally, improving employee benefits,
offering flexible scheduling, and providing better training can lead to higher retention and
improved job performance. Strengthening community partnerships and demonstrating social
responsibility can also help rebuild public trust.
At the same time, CVS must navigate serious external threats. Competition from
companies like Walmart, Target, and especially Amazon is intense. These companies often offer
lower prices or faster service, putting pressure on CVS to stay competitive. Financial challenges
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related to rising healthcare costs and Medicare Advantage plans also threaten the company’s
profitability. Moreover, ongoing lawsuits and federal investigations related to its handling of
controlled substances create the risk of further legal and financial penalties. If these issues are
not addressed, they could continue to damage CVS’s reputation and financial health.
In summary, CVS Health has many strengths that support its leadership in the healthcare
industry, but it must also address major internal weaknesses and external risks. By taking
advantage of current opportunities—especially through technology and employee care—while
managing its threats responsibly, CVS can become a stronger, more ethical, and more sustainable
organization.
A key criticism from the Change to Win Study (2010) was CVS Caremark’s pricing
structure for genetic drugs, which appeared less competitive compared to low-cost programs
offered by Walmart or Target. The study cited examples where insured federal employees were
charged significantly more through CVS’s Caremark than uninsured customers paying cash,
which raises concerns about the transparency and potential conflicts of interest due to CVS’s role
as both a pharmacy benefit manager and retail pharmacy.
Despite this, CVS has continued to evolve its marketing strategy, focusing less on being
the lowest-price competitor and more on delivering accessible healthcare services. Through its
acquisition of Aetna and its expansion of Minute Clinics and telehealth services, CVS can offer a
more integrated, patient-centered experience, once again positioning itself as a trusted provider
of everyday healthcare services rather than just a place to fill prescriptions.
CVS’s marketing strategy now centers around its role as a trusted health partner in the
community. By using its large numbers of store locations across the country and digital tools,
CVS is able to offer a more personalized service to people all over the country. This strategy
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helps CVS stand out from its competitors that mainly compete on affordability. It also allows
CVS to build a stronger relationship with its customers, support better health outcomes, and
continue to grow its reputation as a trusted and accessible healthcare provider.
The largest United States pharmaceutical chain CVS Health experiences extensive
criticism from its employees. The workforce has expressed major concerns about unsafe work
environments coupled with continuous understaffing and insufficient pay transparency. Multiple
strikes and legal actions initiated by employees have triggered national debates regarding labor
conditions within the retail pharmaceutical sector.
Extreme understaffing which is often referred to as working with “skeleton crews” stands
as a major employee issue while CVS staff claimed they were “routinely expected to do more
with less—often without proper breaks, manageable workloads or adequate help” according to
The Boston Globe report (Gavin, 2024). Dangerous work environments harm employees' mental
and physical wellbeing and create public safety concerns especially when pharmacists become
overwhelmed during the dispensing of controlled substances.
The federal lawsuit accuses CVS of inadequate practices that enabled unlawful opioid
distribution according to the same article. A CVS pharmacist explained that their team was
overwhelmed because they lacked sufficient staff to complete their tasks safely (Gavin, 2024).
The concerning testimony reveals how the system places business efficiency above ethical
patient care and employee health. The company’s lack of transparency and poor communication
stands as a significant complaint among CVS employees.
Employees at CVS believe management has neglected to include them in decision-
making processes that affect their work responsibilities. During the legal proceedings one
pharmacist shared their experience saying they were not informed about significant policy shifts
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which forced them to learn through practical experience instead of communication (Gavin,
2024). Corporate practices have widened the gap between executives and the workers on the
front lines. These conditions have not gone unanswered. Thousands of CVS employees
throughout California abandoned their workstations in early 2024 to make demands for improved
wages and safer workplace conditions along with more affordable healthcare options. During the
strike one CVS worker stated "We deserve dignity and respect while working" according to
Supermarket News (Wilson, 2024).
The United Food and Commercial Workers (UFCW) supported the walkout because they
claimed CVS was not fulfilling its fundamental responsibilities to its employees. According to
Wilson (2024), numerous workers reached their limit because stagnant salaries combined with
costly health insurance plans over many years pushed them beyond endurance. An employee
expressed her inability to purchase company health insurance by saying it was not only ironic but
outright inhumane. Fox Business released a report explaining a strike at seven California CVS
stores where employees demanded fair pay and safe staff numbers along with affordable
healthcare benefits (Dumas, 2024). One union representative described the situation starkly:
“Our members are burnt out. The workers are completing the workload meant for two to three
people on each day.
CVS possesses adequate resources for improvement, yet they choose not to act. The
report highlighted workers' inability to take lunch or bathroom breaks during their shifts, which
further demonstrated the harsh working conditions at CVS stores. A fundamental issue regarding
workplace human rights exists beneath all these complaints. Workplace staff feel their treatment
reduces them to replaceable workers instead of appreciated healthcare experts within a profit-
centered corporate structure. Unsafe staffing levels combined with poor communication practices
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and insufficient pay alongside unaffordable healthcare demonstrates systemic neglect which
harms employee morale and creates patient safety risks.
Long-term problems in staffing procedures and corporate transparency and accountability
have led to widespread employee dissatisfaction at CVS. The persistent actions of workers
nationwide through speaking out, striking and testifying demonstrate the urgent need for real
change. The healthcare provider CVS needs to directly confront these issues to safeguard
employee welfare and uphold its professional integrity.
Operational efficiency is essential for any company looking to improve performance,
reduce costs, and stay competitive. It plays an important role in many situations. For example, it
boosts profitability, increases the satisfaction of customers who shop, and is very sustainable.
Efficient operations allow companies to respond in terms of changes in demand and help
minimize waste.
For CVS, using technology solutions like AI and automation can help speed up
prescription processing and reduce delays. These technological tools can automate repetitive
tasks, which will free up employees to focus more on customer-centered work. Because of this,
staff can provide more personalized/better service for customers and improve their experience
when shopping. For example, AI could be used to help track inventory, reduce human errors, and
ensure prescriptions are processed quickly and accurately. Using AI, especially in CVS, can help
with filling medication without using someone to manually do it, which will be faster and more
efficient. Also, using AI will allow the workers/pharmacists to dedicate more time to
consultations.
Another important area to focus on is supply chain management. By using real-time
tracking and improving inventory management, CVS can avoid common issues like stockouts or
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excess inventory. When inventory is better managed, CVS can provide more reliable service to
customers. Also, building stronger relationships with suppliers will help ensure timely deliveries
and better pricing, both of which will improve the company’s overall efficiency.
Employee training is also critical to improving operations. In a 2001 study, Gebhart
highlighted how training technicians at CVS helped reduce turnover and improved operational
efficiency (Gebhart, 2001). When employees receive proper training, they feel more confident in
their roles, which reduces mistakes and boosts productivity. A well-trained workforce helps
prevent bottlenecks and improves overall performance in pharmacies. This approach enables
CVS to operate more efficiently during peak seasons, maintain internal standards, and
consistently deliver a high level of care.
However, despite our group's proposed change efforts, CVS continues to face challenges
with operational inefficiencies—particularly in staffing. In 2023, Schladen reported that several
CVS pharmacies in Ohio were struggling with understaffing, resulting in significant delays
(Schladen, 2023). Tackling this issue through more accurate forecasting of staffing needs and
optimizing scheduling could greatly reduce these problems.
Advanced scheduling platforms will help optimize shift planning and ensure it runs more
smoothly. You can also implement measures such as flexible scheduling, employee benefits such
as excellent medical insurance, 20 days paid vacation, etc. These measures can attract/draw more
qualified professionals in their field. Ensuring that CVS has the right number of employees at all
times can significantly improve the workflow and reduce delays.
From a Christian perspective, the values of excellence and diligence are deeply rooted in
the Bible. Colossians 3:23 encourages us to “work heartily, as for the Lord and not for men,”
reminding us that we should strive for excellence in everything we do. Proverbs 12:24 also
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speaks to the importance of hard work, saying, “The hand of the diligent will rule.” By
improving operational efficiency, CVS can demonstrate these biblical principles by pursuing
excellence and diligently working to improve its processes. These values can be reflected in how
CVS treats its employees and customers- with honesty, loyalty, and fairness.
By improving employee satisfaction and operational efficiency at CVS, this sets up CVS
for a very successful future. By focusing on fair compensation, better work conditions, training,
and utilizing technology, CVS can create a more positive and productive environment for both
employees and customers. When companies focus more on fair compensation and better working
conditions it shows they care about their employees and want the best for them in their business.
These changes not only align with business goals but also reflect biblical values of compassion,
respect, and excellence in work.
CVS has faced some serious legal and financial problems lately and taking the right
steps now can help prevent bigger issues in the future. One of the biggest legal challenges is a
recent lawsuit that says CVS filled prescriptions for opioids and other controlled substances
without following proper rules. According to Gavin (2024), employees said they were working
with “skeleton crews” and had too many tasks, which made it harder to do their jobs safely. This
kind of pressure can lead to mistakes and legal trouble. To fix this, CVS should create stronger
systems to make sure they’re following the law. This means doing regular check-ups such as
audits, training staff better, and being more open about what’s happening inside the company.
When people know the rules and have the support they need, they’re more likely to follow them.
Being honest and clear also helps rebuild trust with customers and employees.
Financially, CVS has been struggling. Lutz (2024) explains that the company had to
lower its forecast for 2024 because it’s spending too much money on Medicare Advantage plans.
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These rising costs are making it harder for CVS to make a profit and invest in important areas
like technology or hiring more workers. To handle these money problems, CVS needs to plan
better and look for ways to save money without hurting customers or employees. For example,
they could cut spending in areas that aren’t working well and use that money for more helpful
tools or to support their staff. Another smart move would be for CVS to do more community
outreach and show they care about more than just profits. Helping the community and being
socially responsible can improve CVS’s reputation. When people see that a company is trying to
do the right thing, they’re more likely to support it.
CVS also has communication issues, between leaders and pharmacy staff. What that
could look like would be employees reporting safely and swiftly to their managers and
suggesting solutions for those problems. In this instance doing this will allow CVS to catch
smaller problems before they turn into more problematic/bigger problems.
In addition to legal and financial reforms, CVS should focus on improving workplace
culture. When employees feel valued and respected by both their coworkers and managers, they
are more likely to remain motivated and committed to their work. In CVS’s case, high employee
turnover has contributed to a decline in service quality. Introducing supportive measures—such
as allowing breaks during overwhelming workloads—can enhance employee well-being. These
small but meaningful changes can lead to long-term success and greater overall efficiency for the
company.
Another area CVS can improve is its digital infrastructure. Many customers rely on
CVS’s website to purchase goods and access services, so it's essential that the site runs smoothly,
loads quickly, and is easy to navigate. Strengthening the website’s performance not only
enhances the customer experience but also helps improve CVS’s reputation and competitiveness
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in the market. CVS could also partner with local healthcare providers and nonprofits. This would
allow better access to services, especially in unserved communities or low-income places. You
could implement mobile clinics, which allow the clinic to come to you, especially if you can’t go
to a store due to it being too far or are unable to drive to the place to get things you need.
Implementing this idea can create a stronger connection between the company and the people it
serves.
The Bible also gives good advice about how to handle these kinds of problems. Micah
6:8 says to “act justly and to love mercy and to walk humbly with your God.” That means doing
what’s right, even when it’s hard. Proverbs 16:8 says, “Better a little with righteousness than
much gain with injustice.” This reminds us that it’s more important to do things fairly than to
make a lot of money the wrong way. If CVS sticks to these values—being honest, fair, and
responsible—they can build a stronger future that’s better for everyone.
Enhancing operational performance through streamlined processes and improving
staffing is crucial for CVS to deliver efficient service, benefiting both consumers and the
company’s financial health. Recent reports have highlighted significant understaffing issues at
CVS pharmacies, leading to delays in prescription fulfillment and compromised patient safety.
For instance, reports from Ohio revealed that some CVS locations have experienced an up to
month long backlog in filling prescriptions, with staff expressing concerns about the lack of
response to their pleas for assistance.
By addressing these staffing issues, CVS can reduce wait times, minimize prescription
errors, and enhance overall customer satisfaction. Adequate staffing ensures that pharmacists and
technicians can manage their work effectively, which leads to more accurate dispensing and
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better patient counseling. This improves customer satisfaction but also fosters trust and loyalty
among patients, which are essential for retaining clientele in a competitive market. From a
financial perspective, faster service can lead to cost savings by reducing overtime expenses, and
mitigating risks that are associated with understaffing errors like legal liabilities and regulatory
fines. Additionally, happier employees are less likely to quit, reducing turnover costs and
improving team morale. In a competitive healthcare and retail environment, investing in better
operations and staffing is a smart business strategy that supports CVS’s bottom line.
By reducing legal risks by addressing understaffing, compliance failures, and regulatory
violations can help CVS avoid costly lawsuits and fines. Improving public trust through
transparent pricing and better employee treatment can rebuild the company’s damaged reputation
and strengthen customer loyalty. These actions also support workforce stability and operational
efficiency, reducing strikes and turnover. Together, these efforts will stabilize CVS both
financially and legally in the long term. Schladen, M. (2023).
This proposal outlines three key areas of organizational change for CVS Health,
improving employee satisfaction, enhancing operational efficiency, and managing legal risks.
Many CVS employees have said they feel overworked with long hours and pressure to meet high
prescription goals. By improving work schedules, providing better support, and listening to
employee feedback, CVS can create a better workplace. The company also needs to improve
how it runs day-to-day operations.
Using technology like automation and AI can help speed up prescription processing,
reducing delays, and make things easier for both employees and customers. CVS must take steps
to handle legal issues, especially those connected to the opioid crisis. By being more transparent,
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following legal guidelines closely, and taking responsibility for past mistakes, CVS can avoid
future problems. These three changes work together to make the company safe and more
efficient.
Making these changes will help CVS in the long run. A more satisfied workforce leads to
higher retention, better performance, and stronger customer service, which are essential for
building brand loyalty. Operational improvements such as faster prescription processing and
better inventory control will reduce costs and improve the customer experience, giving CVS an
edge over competitors like Amazon and Walmart. Addressing legal risks and increasing
transparency will strengthen CVS’s reputation as a responsible healthcare provider, helping the
company avoid future lawsuits and penalties. These improvements will not only protect CVS’s
financial health but also position the company as a modern, trustworthy leader in the healthcare
industry. By taking a proactive approach to internal challenges and aligning operations with
evolving customer needs, CVS can maintain its leadership in a highly competitive market while
improving long-term stability and growth.
These changes also reflect important Christian values that can guide ethical business
practices. Improving employee treatment aligns with the biblical principle of fairness and caring
for others (Colossians 4:1). Embracing stewardship means using technology and resources
wisely to improve both service and efficiency. Managing legal risks through transparency and
accountability reflects integrity, a key value in both faith and business. When organizations lead
with compassion, honesty, and responsibility, they build lasting success grounded in trust. By
applying these values, CVS can serve not just as a business leader, but as a company that honors
God, its people, its customers, and its role in the community.
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References
Annika Kim Constantino. (2024, October 4).@CVS is under pressure and considering a breakup.
Here’s why that could be risky. CNBC. https://www.cnbc.com/2024/10/04/cvs-is-
considering-a-break-up-heres-why-that-could-be-risky.html
Change to Win Study Shows Drug Manager CVS Caremark Charges More for Generic Drugs to
Federal Employees and US Government than Walk-in Customers. (2010, Feb 03).
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Dumas, B. (2024, February 26). CVS workers strike at 7 California locations seeking better pay,
health care. Fox Business. https://www.foxbusiness.com/economy/cvs-workers-strike-7-
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of Justice says the pharmacy giant unlawfully dispensed opioids and other controlled
substances. The staffers who worked there paint a vivid picture of the conditions they say
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Gavin, C. (2024, Dec 20). ‘Skeleton crews.’ ‘Endless tasks.’ What employees said about
working conditions at CVS, according to a federal lawsuit.: The Department of Justice
says the pharmacy giant unlawfully dispensed opioids and other controlled substances.
The staffers who worked there paint a vivid picture of the conditions they say contributed
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