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CVS Caremark Company Analysis: Management Essay

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Updated: Oct 20th, 2021


CVS Caremark is the nation’s leading incorporated pharmacy provider, joining one of the country’s principal pharmaceutical services corporations with the state’s biggest pharmacy chain. The corporation plugs or supervises more than one billion instructions per year, more than any other pharmacy services supplier. CVS drives charge for pharmacy services consumers by successfully administering pharmaceutical charges and improving healthcare results through its 6,200 CVS pharmacy departments; its pharmacy advantage arrangement, mail order and subject pharmacy department, Caremark Pharmacy Services; its vend-grounded health clinic supplementary, MinuteClinic; and its World Wide Web pharmacy.

The managerial structure is the following.

The managerial structure

A control system is essential in any organization which acts with various divisions, sections, segments, and so requires to be directed and managed. Most control systems are past-action-adjusted and therefore are unproductive or fail. For instance, there is little a worker can do today to adjust the consequences of actions accomplished some time ago.

Routing controls, alternatively, are future-directed and permit modifications to be arranged to get back on route before the managing period terminates. They consequently state a more inspiring climate for the worker.

The control systems in CVS pharmacy include all the premises of successful operating. These are:

  • Agenda making and control are the two intimately connected management purposes.
  • The human area of the control procedure requires to be pressured as much as, if not more than, the missions or ‘numbers chomping’ elevation.
  • Estimating, coaching, and gratifying are more effectual in the continuing than gauging, contrasting, and pressuring or reprimanding

The fact is that, contemporary healthcare liberation arrangement is quickly changing. Healthcare is turning to be more customer-oriented as the U.S. healthcare system fails to coordinate growing charges and managers impose more accountability for managing charges for workers. An aging populace, growing occurrence of chronic disease and escalating consumption of the Medicare drug advantage is fueling command for instructions and pharmacy overhauls. Cost-successful generic remedies are becoming more generally obtainable and new drug treatments to treat unmet healthcare requirements and decrease infirmary continues are being initiated. Clients require prescription organizational agendas and better data to assist them attain the most out of their healthcare incomes. CVS is exclusively positioned to offer explanations that tackle these inclinations and will greatly progress the pharmacy services skills for customers.

As for the matters of differentiation, it is significantly to mention, that the offered differentiation would be a “game-changer”. It could not be easily explained as vertical differentiation or horizontal differentiation as Caremark is both a consumer of CVS prescriptions and a competitor of CVS through its incarcerated mail order processes.

Express Scripts, announced on December 2007 as a competing proposition for CVS Corporation. The appeared arrangement obviously would be of a horizontal differentiation, and some researchers state, that this differentiation would be the most successful variant of cooperation. Express Scripts states that differentiation is pro-aggressive as it is elaborated to augment purchasing capability with brand and generic drug producers.


As it has been stated above, CVS Corporation is the state’s primary pharmacy vendor with over $24 billion in yearly incomes. It operates 4,100 stores in 34 states and provides work for over 110,000 people. To convene business growth and development aims and to guarantee high-quality service to its consumers, CVS designed an inventive strategy, including Government Hiring Program. CVS advanced corporations as an approach for finding the required partners – people and companies who are able to differentiate the corporation from the competition by making sure purchasers have a comfy, welcoming incident in the store.

  • CVS pharmacy upgraded and replaced over 40,000 trade points facilitated, autograph capture Payment Terminals in 5,400 + stores
  • Stores were improved with RF Payment Terminals an as element of a reeled rollout from February though July 2007
  • Compress was organized by CVS pharmacy Rollout Operations Center and Store Operations. The imbursement terminals were mounted by different low energy salespersons
  • The whole period to install Payment Terminal was roughly 1 – 2 hours per store, and necessitated minimum exertion on the part of the store team
  • All payment terminals are equipped with AMEX, MasterCard and Visa logos
  • CVS/pharmacy now has over 50,000 RF terminals in over 6,200 stores.

Operationally, the CVS pharmacy Government Hiring Department was “molded,” with each team member possessing geographic accountability for an amount of States, while also expanding particular inhabitants-based niche spheres (e.g., experts, immobilized). For instance, one department member consulted nationally on matters and tactics for hiring immobilized workers, while also having accountability for overall government hiring courses in a number of nominated States.

As for the problems, that may occur, it should be stated, that the only matter is unclear formulation of the strategies, as clear aims are not usually supported by exact explanations, and, surely nobody can be insured against unexpectedness.

Action plan

The action plan includes the CVS pharmacy planned actions for achieving the aims and objectives of the Action Plan which was adopted by the department management in February 2007. The CVS Plan was arranged in response to the matters of financial vivacity of the CVS pharmacy. The Action Plan entails general review and market research and classifies action components in the districts of image enhancement, business preservation, expansion of enticements, contact improvements, building recycle, and promotion of available services.

This Action plan also plasters the period of time while the previous Status Report was completed in September 2007 through the present. While much progress has been made, there is still more to be done to fully address the conditions and initiatives identified in 2005. Working in conjunction with the business and residential neighborhood stakeholders in the area, the City proposes to continue to do all it can to improve the business district in line with the Action Plan and Council goals.


The latest conclusion of the landmark differentiation of CVS and Caremark facilitates the company to start transporting considerable advantages to the investors, consumers and workers. CVS Caremark will offer end-to-end overhauls, from plan design to recommendation accomplishment, as well as the chance to recover experimental results, which will result in better control over healthcare charges for companies and plan suppliers.


Haney, Sean P. “Pharmaceutical Dispensing in the “Wild West”: Advancing Health Care and Protecting Consumers through the Regulation of Online Pharmacies.” William and Mary Law Review 42.2 (2000): 575.

Lewis, Nicole. “Look at the Big Economic Picture: Ron Johnson Says in a Changing Economy, Company Performance Drives Portfolio Growth.” Black Enterprise. 2004: 38.

Litman, Jessica. “Information Privacy/information Property.” Stanford Law Review 52.5 (2000): 1283.

Royal, Leslie E. “Coupon Clippings for Consumers.” Black Enterprise 2001: 149.

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