In This Assignment, You Will Be Researching CVS Health Compa ✓ Solved

In this assignment, you will be researching CVS Health company.

In this assignment, you will be researching CVS Health company. Write a 4–5 page evaluation of your chosen company’s performance with respect to its stated values. Do the following:

Summarize the company’s primary products and or services. Suggest three ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for your response.

Describe two critical factors in the organization’s external environment that can affect its success. Support your assertions. Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance?

Paper For Above Instructions

CVS Health is a prominent health services company in the United States, consisting of a diverse array of products and services designed to improve health outcomes for individuals and communities. As one of the country's largest healthcare providers, CVS Health is known for its retail pharmacy services, pharmacy benefit management (PBM), and health insurance offerings through its subsidiary, Aetna. This paper provides an evaluation of CVS Health’s performance concerning its stated values, particularly focusing on its product and service offerings, stakeholder influence on financial performance, critical external environmental factors, and the company’s response to social issues.

Primary Products and Services

CVS Health operates through several business lines that provide comprehensive health solutions. These include:

• Retail Pharmacy Services: CVS pharmacies offer prescription medications, over-the-counter drugs, and wellness products across thousands of locations in the U.S.
• Pharmacy Benefit Management (PBM): Through CVS Caremark, the company manages prescription drug plans for various employers and health plans, helping control costs and improve health outcomes.
• Health Insurance: After acquiring Aetna, CVS Health has integrated insurance services to provide a variety of health plans, including Medicare and Medicaid options, enhancing its comprehensive healthcare offerings.

Influence of Stakeholders on Financial Performance

The financial performance of CVS Health is influenced significantly by its primary stakeholders, which include shareholders, customers, employees, and suppliers. Here are three ways in which these stakeholders can impact the organization:

1. Shareholder Engagement: Active participation of shareholders can pressure CVS Health to enhance its financial performance by demanding greater returns through dividend distributions or stock buybacks. Shareholders can influence strategic decisions by holding vote on key issues during annual meetings.
2. Customer Feedback: Customers are crucial stakeholders whose purchasing behaviors can significantly impact the company's revenue. Continuous customer satisfaction surveys can help CVS identify areas for service improvement, thereby retaining customers and increasing sales.
3. Employee Performance: Engaged and satisfied employees often lead to higher productivity and efficiency. CVS can invest in employee training and development to boost morale, enhance service delivery, and ultimately positively affect financial outcomes.

External Environmental Factors

The success of CVS Health is also influenced by various external factors, particularly changing regulations and competition within the healthcare sector.

Regulatory Environment: The healthcare industry is subject to stringent regulations at both the federal and state levels. Changes in healthcare policies, such as those stemming from the Affordable Care Act, can have a significant effect on CVS Health's services and insurance offerings. Adapting to new regulations requires substantial investments in compliance and can impact profit margins.

Market Competition: CVS Health faces intense competition from other pharmacy chains, retail giants, and online healthcare service providers. Competitors like Walgreens and Amazon (with its increasing footprint in pharmaceuticals) continuously push CVS to innovate its offerings and pricing strategies to maintain market share. Failure to do so can adversely impact financial performance.

Social Issues and Company Response

CVS Health has made notable strides in addressing critical social issues, particularly around opioid misuse. As one of the largest pharmacy chains, CVS took proactive measures to combat the opioid crisis by implementing policies to limit opioid prescriptions and increasing access to naloxone, an emergency treatment for opioid overdose. This initiative not only showcases CVS's commitment to corporate social responsibility but also enhances its brand reputation among consumers concerned with public health. By positioning itself as a leader in this space, CVS has successfully bolstered customer loyalty and trust.

Furthermore, the company has faced criticism for its pricing strategies and accessibility of medications. The backlash during the COVID-19 pandemic, regarding vaccine distribution delays, illustrated the importance of responsiveness to societal needs, which directly affected its public image and customer sentiment. The company has since made efforts to streamline vaccine administration processes, aiming to regain public trust and improve overall performance.

Conclusion

In conclusion, CVS Health's performance can be evaluated through its comprehensive array of healthcare products and services and its strategies to engage stakeholders effectively. By addressing critical external challenges and taking a proactive stance on social issues, CVS demonstrates a commitment to its stated values. The balance of stakeholder interests and external factors will continue to shape the company's journey in the evolving healthcare landscape.

References

• CVS Health. (2022). Annual report. Retrieved from [company URL]
• Healthcare Information and Management Systems Society (HIMSS). (2021). Impact of the opioid crisis on healthcare systems. Retrieved from [URL]
• American Pharmacists Association. (2020). The role of pharmacists in opioid misuse prevention. Retrieved from [URL]
• McKinsey & Company. (2021). The state of the healthcare industry. Retrieved from [URL]
• MarketLine. (2021). CVS Health Corporation company profile. Retrieved from [URL]
• Institute for Healthcare Improvement. (2022). Health care innovations for addressing social issues. Retrieved from [URL]
• Kaiser Family Foundation. (2021). Health care spending and trends. Retrieved from [URL]
• Nash, D. B., & Bowers, A. (2020). The relationship between corporate strategy and social responsibility. Journal of Healthcare Management, 65(4), 219-228.
• DaRosa, D. A., & Lam, J. (2021). The business of healthcare: Impact of external factors on performance. Healthcare Management Forum, 34(5), 223-230.
• Becker’s Hospital Review. (2021). CVS leads the way in healthcare service innovation. Retrieved from [URL]