CVS Health Corporation is an American health care company whose headquarters are in Rhode Island. It was founded in 1964 when three partners decided to develop the venture from its parent company, Mark Steven, which assisted various retailers to manage their beauty aid and health product lines. Although the company was initially a chain of beauty aid and health stores, it began adding pharmacies to their brand. The company manages various assets and subsidiaries such as Longs Drugs, CVS Pharmacy, CVS Caremark, and MinuteClinic among other assets and subsidiaries (Lavigne et al., 2017). The company desires to assist various people across the country to achieve better health. One of their goals is to reinvent the pharmacy role to have a more supportive and active role in individual’s lives and health experience so that they can achieve a greater healthcare environment. The essay will analyze the stakeholder impact analysis and how it affects various people. It will also evaluate how the company implements its vision and mission. The paper will also evaluate the SWOT analysis, and PESTLE analysis of CVS Health Corporation. The PESTEL analysis is an essential tool in evaluating the factors that influence CVS. On the other hand, the SWOT analysis is a study or evaluation of a company’s internal weaknesses and strengths as well as their external threats and opportunities.
Stakeholder Impact Analysis
Within CVS Health Corporation, there are various stakeholders who are affected by its decisions. The stakeholders include local communities, employees, investors, clients and customers, vendors, and suppliers. The company believes that involving and spending more time with the stakeholders in their CSR strategies will assist the company to achieve its strategic goals (Roberts & Betses, 2010). Employees are the main asset in the company because they assist the company to achieve its objectives. The company's objective is to assist consumers to accompany consumers on their journey to better health. Also, they assist the local communities by improving their standards of living.
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Other than assisting the local communities, its employees assist the company to attain various competitive advantages. The company has a diverse networking scale in the country thus making it a low-cost provider with a retention rate of over 95% (Lavigne et al., 2017). Due to the well-trained employees, they have become a premier company that impacts providers, patients, and payers with various innovative solutions. Moreover, they have deep clinical insights and expertise that have allowed the company to achieve favorable outcomes at lower costs. The company has the broadest specialty capabilities that allow them to manage their clients in the growing market. Due to its growing sales and revenues, the company developed into the biggest retail clinic operator in the US that offers cost-effective and convenient care.
Vision and Mission
The company's vision is to enhance the "quality of human life" by reinventing the pharmacy role to have a more supportive and active role in individual’s lives and health experiences. Its mission is to offer innovative solutions and expert care in health care and pharmacy in ways that are easy and efficient for their customers. The company has achieved its mission and vision by offering affordable and high-quality healthcare. Over 5 million Americans walk into their CVS pharmacies for guidance, prescription, and health services daily making the corporation one of the key players in the industry (Lopez-Trigo et al., 2015). The company receives over 1 billion prescriptions annually. The company reaches millions of people from assistance in various complex or chronic conditions to vaccination.
To achieve their vision and mission, the company impacts over many communities through their health care services. CVS Health Corporation is a major pharmacy benefits manager, and they use their integrated health model to deliver favorable health outcomes and to transform pharmacy care, while reducing pharmacy costs for its members. The company has Medicaid programs that depend on CVS for pharmacy health management. The company is currently working to reduce the healthcare costs for over 90 million Americans (Walker, 2014). Due to their programs, millions of Americans are Medicare beneficiaries. Also, majority of the drugs are generic medicines that have allowed millions of Americans to receive quality care at reduced cost.
PESTEL Analysis
Political factors: The company participates in various political processes, that shape the public policy or legislation, that may have direct influence and impact on the company. Due to the increasing focus on healthcare authorities, the state is looking for different ways of saving costs that put pressure on the selection of drugs, drug pricing, and various pharmaceutical services. Other factors include mandatory employee benefits and intellectual property protection.
Economic factors: Consumer shopping trends have changed drastically over the past two decades (Lavigne et al., 2017). Consumers have become very cautious and only purchase drugs from the well-known stores such as CVS. Other economic factors include education levels, interest rates, labor costs, and inflation rate.
Social Factors: The increased population of the elderly may offer both threats and opportunities to the company. Furthermore, the increased obesity among the youth and elderly is an issue. Other factors include education level, leisure interests, and culture.
Technological Factors: Technology provides a great opportunity for the company to enhance its brand visibility by developing high-quality products that will boost its profitability. The company makes heavy technological investments while managing their online platforms. Other issues include impact of technology on production and the level of technological diffusion.
Environmental Factors: There are concerns about the environmental effects of their processes. The company should be proactive in addressing its environmental obligations (Roberts & Betses, 2010). Moreover, they can incorporate environmental activities in their CSR. They may even decide to develop improved products that are environmental friendly. Other factors include attitudes towards endangered species, climate change, waste management, and pollution.
Legal Factors: Also, the company faces various regulatory and legislative restrictions. Additionally, there is a culture of litigation in various states. Patients have also been demanding better rights regarding their healthcare programs. Other factors include data protection, anti-trust law, employment law, and discrimination law.
SWOT Analysis
The company has various strengths. It has established itself as a major retailer with broad market penetration. Due to the well-trained employees, they have become a premier company that impacts providers, patients, and payers with various innovative solutions. Moreover, they have deep clinical insights and expertise that have allowed the company to achieve favorable outcomes at lower costs (Tabuchi, 2015). Furthermore, they have wide healthcare services and pharmacy portfolio that boosts average spending. However, their main weakness is involvement in different legal issues. Some of the controversies and criticisms include pharmaceutical kickbacks, fraud, deceptive business practices, deceptive pricing, corruption, restatements, and privacy violations.
Despite the various legal constraints, they have various opportunities. Their merger with Alliance Boots will boost not only its revenue but also its product portfolio and business networks. Furthermore, there has been the improved popularity of its retail clinics because of their established affordability and accessibility. The personal care market in the country is improving rapidly, and it will offer various opportunities to CVS. Also, the growth in the private label industry offers new opportunities. However, CVS faces various threats to its dominance because of the national spread and increase of prescription drug abuse (Centers for Disease Control and Prevention, 2011). Also, the rising labor costs will not only increase the production costs but also reduce their profit margins. The changes in regulations and intense competition may affect the company’s market share and profitability.
Conclusion
The paper evaluates the stakeholder impact analysis, vision and mission, SWOT analysis, and PESTLE analysis of CVS Health Corporation. The stakeholders include local communities, employees, investors, clients and customers, vendors, and suppliers. The company’s vision is to enhance the “quality of human life” while its mission is to offer innovative solutions and expert care in health care and pharmacy in ways that are easy and efficient for their customers. Despite establishing itself as the main healthcare company in the US, the company still faces various legal issues, increasing competition, and increased prescription drug abuse. CVS should review its company culture and make various modifications that will allow the company to maintain their position while improving their service delivery (Lopez-Trigo et al., 2015). It should address all its legal issues that could have tainted its image and reduced its market share. Also, they should evaluate and comply with the company ethical values to avoid the numerous legal issues.
References
Centers for Disease Control and Prevention (CDC). (2011). Vital signs: overdoses of prescription opioid pain relievers---United States, 1999--2008. MMWR. Morbidity and mortality weekly report , 60 (43), 1487.
Lavigne, J. E., Wright, S. A., Burke, E. S., Kirwan, B., & Ball, J. (2017). Community pharmacies and population health. American Journal of Health-System Pharmacy , 74 (19), 1522-1523.
Lopez-Trigo, P., Khanfar, N. M., Alameddine, S., & Harrington, C. (2015). Banning tobacco sales at the retail pharmacy: the natural evolution of drug store as responsible health provider or effective marketing strategy? Health marketing quarterly , 32 (4), 382-393.
Roberts, J. C., & Betses, D. G. (2010). U.S. Patent No. 7,827,041 . Washington, DC: U.S. Patent and Trademark Office.
Tabuchi, H. (2015). How CVS quit smoking and grew into a healthcare giant. New York Times .
Walker, T. (2014). CVS: Expansion of MinuteClinics to offset tobacco revenue loss.
