CVS Caremark Corporation – 2011 Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction:

CVS is a drug company based in Rhode Island and founded in the year 1892. The company is known to be the largest company in terms of revenues in offering pharmacy care in the United States. Moreover, the company is also known to be the second largest company in terms of having number of stores in the world.

There are approximately 7200 specialty and retail drugstores that are owned by CVS Caremark Corporation. These drugstores are running under the name of both CVS and Longs Drugs banner. One of the basic reasons behind the company’s rapid growth is the string of acquisitions made by the company. The major acquisitions of the company include Longs Drug Stores and Eckerd chains. In addition to this, CVS Caremark has also purchased prescription benefits management in 2007 for approximately $27 billion.

CVS existing vision, mission, objectives, and strategies:

Actual vision statement CVS Caremark Corporation:

Actual vision statement of CVS Caremark Corporation is as follows:

“Providing expert innovative and care solutions in the health care and pharmacy sector that are easy for the customers and effective as well.”

Actual mission statement of CVS Caremark Corporation:

Actual mission statement of the company is as follows:

“We provide expert care and innovative solutions for the field of pharmacy. The innovation and care are dedicated for the health care sector that is effective for our customers as well”.

CVS current strategies:

The current strategy of the company includes making an increase in the contribution and leadership of the company. This increase in leadership is based on innovation in the various areas of pharmacy healthcare and services. In addition to this, the company is using various strategies to make a reduction in the cost. For this, the company is using specialty pharmacy division and minute clinic locations to decrease the cost along with making improvements on the individuals to which the company is serving.

Develop vision and mission statements for CVS:

New and proposed vision statement:

New and proposed vision statement of the company is as follows:

“The main vision of CVS Caremark Corporation is to show and make people follow the path of success to get a better life and better health.”

New and proposed mission statement:

New and proposed mission statement of CVS Caremark Corporation is as follows:

“The mission statement of CVS is making continuous improvements in the service level of the company. Furthermore, the company is continuously trying to make improvements related to safe practices for the efficiency in the overall procedure. Moreover, the company is making continuous effort to make high quality and innovative health-related and pharmacy services. The company is also aiming to bring innovation by taking assistance from the information technology. Besides that, the company has dedicated itself to be in the leadership position in the pharmacy industry through achieving efficiency in reaching towards financial goals and objectives. The company also support and encourage individuals who like to maintain a work environment that is based on support and respect. The management of CVS Caremark is responsible for maintaining an optimum level of integrity in the organization for smooth operations. By following all this, the company is hoping to meet and even exceed the expectations of employees, customers, and other stakeholders”.

CVS Caremark Corporation external opportunities and threats

Opportunities:

One of the major opportunities for CVS is the predictable escalation in the population of baby Boomers through approximately 2% in the coming years. Another opportunity for the company is the continuous efforts to improve technology that in turn will shrink the possibility for drug interactions. In the United States, the government and the individuals are increasing their level of expenditures on healthcare sector. There has been a high focus on Pharmacogenomics research that will be beneficial for the company. Due to the changing factors in the economy, the usage of Minute Clinics is increasing in comparison with doctors’ office. Furthermore, individual’s spending on drug prescription is expected to face a high growth rate in the coming years. In addition to this, a rise in the disposable income of Americans has been observed in the recent years. CVS Caremark Corporation will be able to get financing opportunities because there is a high fluctuation in the interest rates. Other opportunities for the company include high growth rates in the organic food industry, expiration of patents and increase in Medicare drug spending on an annual basis...........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.