BALANCED SCORECARD 2
Daniel Ortiz
Strategic Plan Part 3: Balanced Scorecard and Communication Plan
BUS 475
Roberto Cordero
August 2, 2016
Running head: BALANCED SCORECARD 1
Conceptualizing a new service
As most organizations become more successful it becomes the natural them to expand both their products on their services as a way of claiming more of the market share. CVS health is one such company who has established is strong name and house built in well-organized. As parts of the current expansion of fun at CVS health, we have decided to expand our services to now include intensive childcare services. After a thorough evaluation of our customer's needs through observation question in online services we have determined that the expanding of our services to know include this year would bring tremendous value to the medical experience. We would include child interaction services from 6 months to 12 years for standard low flat fees, the new service will allow parents and guardians to leave their kids in a safe enjoyable environments.
This new service would require parents to register their kids to using the service for the first time however the registration process is not a difficult one. This allows CVS health to verify parent’s information and ensure that all stated specific requirements are being met. This childcare service will provide age appropriate care which would include constant supervision. Care would be given in a comfortable atmosphere that will be climate controlled, toys and games would help stimulate the children's minds, and there will also be television and snacks that would be provided at no additional cost. Given that the safety of all kids and enrolled in this program is of paramount importance there would be one associate for every four children at our facilities.
Strategic Direction
As our company has grown to over 1.3 million employees and over 5000 stores in many countries around the world we have been able to serve and support both our customers and associates by making them a priority and ensuring that we give back to the communities that we serve. Wal-Mart’s strategy includes improving the quality of goods we provides as well as the quality of the services we provide to both our employees and customers. By investing in our people we can ignite a sense of ownership as it will be an even better place to work and the pride and loyalty they feel towards the company would propel our company to new heights by becoming the number one retailer in the country. Investing in our customers allows us to show them that they are our most valuable assets and that the decisions that are made are for their benefit so that they can shop with confidence and shop on their own terms. Wal-Mart Daycare Inc. would be state of the art staffed with board certified and licensed child care professionals that would be able to provide excellent care for all children enrolled here. As the company becomes more inclusive of th ...
1. BALANCED SCORECARD 2
Daniel Ortiz
Strategic Plan Part 3: Balanced Scorecard and Communication
Plan
BUS 475
Roberto Cordero
August 2, 2016
Running head: BALANCED SCORECARD 1
Conceptualizing a new service
As most organizations become more successful it becomes the
natural them to expand both their products on their services as a
way of claiming more of the market share. CVS health is one
such company who has established is strong name and house
built in well-organized. As parts of the current expansion of fun
at CVS health, we have decided to expand our services to now
include intensive childcare services. After a thorough
evaluation of our customer's needs through observation question
in online services we have determined that the expanding of our
services to know include this year would bring tremendous
2. value to the medical experience. We would include child
interaction services from 6 months to 12 years for standard low
flat fees, the new service will allow parents and guardians to
leave their kids in a safe enjoyable environments.
This new service would require parents to register their kids to
using the service for the first time however the registration
process is not a difficult one. This allows CVS health to verify
parent’s information and ensure that all stated specific
requirements are being met. This childcare service will provide
age appropriate care which would include constant supervision.
Care would be given in a comfortable atmosphere that will be
climate controlled, toys and games would help stimulate the
children's minds, and there will also be television and snacks
that would be provided at no additional cost. Given that the
safety of all kids and enrolled in this program is of paramount
importance there would be one associate for every four children
at our facilities.
Strategic Direction
As our company has grown to over 1.3 million employees and
over 5000 stores in many countries around the world we have
been able to serve and support both our customers and
associates by making them a priority and ensuring that we give
back to the communities that we serve. Wal-Mart’s strategy
includes improving the quality of goods we provides as well as
the quality of the services we provide to both our employees
and customers. By investing in our people we can ignite a sense
of ownership as it will be an even better place to work and the
pride and loyalty they feel towards the company would propel
our company to new heights by becoming the number one
retailer in the country. Investing in our customers allows us to
show them that they are our most valuable assets and that the
decisions that are made are for their benefit so that they can
shop with confidence and shop on their own terms. Wal-Mart
Daycare Inc. would be state of the art staffed with board
certified and licensed child care professionals that would be
able to provide excellent care for all children enrolled here. As
3. the company becomes more inclusive of the customers we
service our market share as well as customer satisfaction scores
would see a significant increase.
Financial perspective
The global market is comprised of a growing business market
with a large percentage of the market not yet aware of the
services being offered by the CVS health childcare services.
Despite this, there is increased revenue based on the fact that
more people focus on visiting the CVS health facility and being
offered the capability of children accessing quality services
including their development and the parents experiencing a
good care for children with low pricing on the service offered.
Based on the fact that the childcare services awareness
increases, the number of children being offered the services
increases. With a large customer base, the fixed costs are most
likely to spread thinner. Effort should be made to increase the
awareness of the services being offered at CVS health. The
number of customers is aimed to be growing at an average
estimate of 10% annually. The childcare services should be
built at a point offering household brand synonymous care to
the kids.
Customer value
The childcare services offered at CVS health provides parents
with a full-time daycare services with the utilization of well
trained staff and an enjoyable atmosphere where kids re-
equipped with televisions, toys and snacks with no additional
costs to the parents. The children offered the childcare services
would be from the age of 6 months to 12 years. The
accessibility of the services will be within the available,
different CVS health stores during the day. Adequate training of
the staff enhances the capability of quality services being
offered and the customers being treated by their needs.
Competition is in existence within the business world hence the
low price of services being offered on the basis of outdoing
other competitive organizations. Our competitors do not
currently provide this type of services and we fully expect that
4. our market share will increase as a result given that we now
offer another alternative to the service.
Process perspective
A sophisticated and an effective system has to be developed on
the basis of ensuring thrive within the market. Poor market
acquisition of the existing trends will see poor adaptation by the
organization within the market. The organization will face
competition from earlier established facilities offering the
childcare services. The business environment is faced with the
challenge of change due to technological advance and the ever-
changing market trends. It is crucial for the organization to
establish unique and purposeful change strategies on the basis
of increasing the profit margins and outdoing competition.
Childcare services are an existing business within the current
economic environment and market trends. Lack of visibility is
faced by the business plan based on the fact that it is a new
operation within the organization. Comprehensive business
plans and competent visions have to be the core requirement by
the organization. The child care services require legal
requirements from the government, quality services offered to
the customers and a welcoming atmosphere to the kids on the
basis of enhancing child development. The legal liability issues
are a crucial requirement that the organization has to buy on the
basis of inhibiting suits.
Learning and growth
CVS health childcare services offer excellent training programs
to all the employees. The childcare service is a growing
business environment with the capability of offering high-profit
margin to the business organization. CVS health is a highly
accessed facility by customers globally with high financial
resources baseline. Despite this, the educated customer base
clearly recognizes the benefits arising from the services being
offered at CVS health.
Conclusion
The addition of the childcare facilities will bring us closer to
realizing our ultimate goal of being the number one service in
5. the country. This new journey is a good one and allows us to
again live our culture of service to our customers as we help to
make their life easier all while presenting cost cutting
alternatives that help them save money. As CVS health embarks
on a new chapter and into territories not traveled by similar
businesses we will embrace the challenges that lies ahead
however given that our direction has been set and our culture is
one of service to our customers we will embrace our role as
pioneers and succeed for our customers.
FINANCIAL PERSPECTIVE
Objectives
Measures
Targets
Initiatives
7. LEARNING AND GROWTH PERSPECTIVE
Objectives
Measures
Targets
Initiatives
References
Pearce, J.A. & Robinson, R.B. (2004). Strategic Management.
New York: McGraw-Hill/Irwin
Russel, J. &. (2012). Cvs Pharmacy. Books on Demand
8. CVS HEALTH 2
Daniel Ortiz
Strategic Plan Part 2: SWOT Analysis Paper
CVS Health
BUS 475
Roberto Cordero
University of Phoenix
July 26, 2016
Running head: CVS HEALTH 1
SWOT ANALYSIS
Strengths
A strength that CVS has is a strong brand name and customer
awareness. The purchase of CVS brand name items helps to get
the name out and the product gets more known. The more sales
of the products, the more the product will be in popular demand.
The more sales of the product equals more distribution of the
products. The more distribution of the CVS brand name
products, the more well known the name will be and the
customers will buy them. Customers will become more aware of
the products and prices compared to brand name products that
are the same. Another strength that CVS has is being a part of a
pharmacy, Caremark, MinuteClinic, and Pharmacy Benefit
9. Management (PBM). CVS provides different ways you can get
your prescriptions and different prices. CVS gives you different
ways to help you stay on top of your prescriptions to keep you
healthy. You can get them in a store location, but if that doesn’t
work for you, you can get them through PBM; which is a mail
service program. You can go to a MinuteClinic and get a check-
up or if you have an illness and cannot get a doctor’s
appointment quickly.
Weaknesses
With strengths, comes weaknesses and every company has
weaknesses, but have to try to be prepared for them. CVS has an
increasing amount of long term debt by aggressively acquiring
companies. The more debt CVS digs the company into, the
harder it is to strive in the economy that is already doing
terrible. CVS continues to buy other small drugstore companies,
and creating more and more CVS stores. They are using the
money on expanding, but not on their employees. Stores will
also start getting effected at store levels when there aren’t any
people wanting to work for CVS. Corporate needs to
concentrate on the stores that are already built and have been
built. Stop purchasing more land to build another CVS that is
only 5 miles or less from another CVS. Stop building
CVS/Pharmacies on every corner because that harms the stores
that are already in business.
Another weakness CVS has dealt with were allegations against
CVS's refill practices which triggered monitoring and
investigations. With the allegations of refill practices, there was
an investigation on the practices and there was high monitoring
of the pharmacies and Caremark. To help prevent this in the
future, the pharmacist and techs should follow the rules and
regulations when processing the refills through both Medicaid
and Caremark insurances like they are supposed to.
Opportunity
The biggest opportunity any company has is their social
responsibility to the community. CVS has a social responsibility
to the community and the better the health of the community as
10. a big pharmacy name. CVS has partnered with several different
organizations to help support and raise money for these
organizations at local CVS stores. This helps the different
organizations with research and it helps CVS because they are
partnering with a well-known organization that can help get
their name out even more as a contributor. This is an
opportunity for CVS to help these organizations raise money for
research and it affects CVS because they are now part of a
community that is supported by large contributors. It also gives
a sense of caring to the community the local CVS is located in
because you are part of an organization they care about or are
involved with. CVS could soon be well-known to be a preferred
company to go to for their social responsibility with the specific
organizations they are partnered with.
Threats
There are several threats as a company as big as CVS, and of
course the #1 threat is other retail pharmacies (Walmart,
Walgreens, Rite Aid, etc.). The increase of different drugstores
is a threat to any drugstore in this industry. The competition is
getting more intense because each drugstore wants to be the
largest retail drugstore in the world. For example, right now
Walgreens is the biggest competition to CVS because it offers
exactly what CVS offers, but in different ways. In my research,
Walgreens, from a customer point of view, is better than CVS.
So from a customer point of view, Walgreens is a huge threat to
CVS. Other retail stores are a threat because of prices, customer
service, and convenience. If prices are cheaper than at CVS,
customers will go to other places, and if the customer service is
better at another retail drugstore, people will tend to go to those
other store also. CVS will start to lose business and stocks will
start to go down because CVS is not making the same amount of
revenue.
Lastly, the other threat to a company like CVS is the
intervention of the government. “Government intervention can
put downside pressure on the stocks” (WikiWealth.com). With
the possible government intervention, they are high risk because
11. the government is high on change of the operating ability of
companies in every industry. Governments are usually
inefficient with spending money also. It’s a threat because if the
Government intervenes, than CVS will start losing stocks and a
lot of money. That will then lead to stockholders losing money
and CVS would than start losing stockholders. They will also
start losing customers because any changes made by the
Government will not please them and they will start shopping
elsewhere.
Forces and Trends
Companies are influenced by a large number of external
elements, which ultimately shape the company’s approach to
conducting business and serving the market, and which also
guide the company’s internal organization, its structure and
processes (Pearce and Robinson, 2004). External influences are
not static; many of these factors change frequently, forcing the
firm to modify its strategy and policies to keep current with the
market needs. According to Walker, Harper, Mullich and
Larreche, adaptability can be defined as the company’s ability
to respond to changes in the environment’s conditions (2002, p.
71).
To decide what actions to take to adapt to changing conditions,
managers often look first at internal processes, which is
extremely necessary; however, scanning the firm’s external
environment is perhaps more critical. Factors or forces in the
external environment are divided into “three interrelated
subcategories: factors in the remote environment, factors in the
industry environment, and factors in the operating environment”
(Pearce and Robinson, 2004, p. 78). The forces in the remote
environment are economic, social, political, technological, and
ecological. The forces in the industry environment are entry
barriers, supplier power, buyer power, substitute availability,
and competitive rivalry. The forces in the operating
environment are competitors, creditors, customers, labor, and
suppliers.
Economic Force. In varying degrees, economic forces dictate
12. the manner in which a firm operates. Changes in the economy
can promote, destroy, and present opportunities for businesses.
Thus, strategic planners find monitoring and considering
economic trends in areas affecting its industry imperative.
(Pearce and Robinson, 2004). For CVS, a reduction in enrollees
in their health benefits program could have adverse effects on
the firm’s business and profitability. A recession can result in
unfavorable outcomes such as reduction of workforce by
present clients, business failures, employers ceasing to offer
employer-paid healthcare benefits, increases in Consolidated
Omnibus Budget Reconciliation Act (COBRA) premiums, and
reductions in state and federal spending for the medically
needy. Conversely, economic growth that produces
opportunities for employment, reductions in unemployment
rates, and increases in government spending can increase
membership rates and profitability.
Social Force. Social Forces are dynamic and can occur with
widespread and unpredictable, rapid upheavals. “The social
factors that affect a firm involve the beliefs, values, attitudes,
opinions, and lifestyles of persons in the firm's external
environment, as developed from cultural, ecological,
demographic, religious, educational, and ethnic conditioning”
(Pearce and Robinson, p. 79 2009).
Reference
Pearce, J.A. & Robinson, R.B. (2004). Strategic Management.
New York: McGraw-Hill/Irwin
13. Russel, J. &. (2012). Cvs Pharmacy. Books on Demand.
RUNNING HEAD: STRATEGIC PLAN 1
STRATEGIC PLAN 6
Daniel Ortiz
Strategic Plan Part 1
BUS 475
Roberto Cordero
University of Phoenix
July 19, 2016
COMPANY DESCRIPTION
With the invention of hospitals came along the pharmacies due
to the urging need of drug stores which would serve the patients
by easing the access to drugs. CVS Health Company on
recognizing the need for a store that retails drugs and cosmetics
established the CVS pharmacy as one of its subsidiaries. CVS
pharmacy is the second largest pharmaceutical company In the
United States with Walgreens taking the lead. This is mainly
based on the total prescription revenue (Russel, 2012). CVS was
established in the year 1963 in a small town; Lowell, at the
heart of Massachusetts. There are approximately 7600 stores in
the United States.
In 2009, the company had a staggering $1.660 billion net
income turnover. The internet has converted the world into a
14. global village and this has come in favor of various businesses
that have opted to exploit the platform to broaden their
business. CVS pharmacy has equally embraced the rise of the
internet by employing the online platform; Cvs.com, to retail
the various products on its catalogue. The forecast your
finances journal has revealed that the company is anticipated to
launch a new products into the plethora of goods it sell
(Blackwell, 2011). In business, networking is one of the
strategically employed approaches to broaden and CVS
embraces the same by through various acquisitions of
companies such as Navarro Discounts and Eckerd Stores.
Constancy in innovation brews invention. The newly
anticipated product is highly customer focused a factor that is
incorporated in the production since the customer needs led to
the rise of its manufacture. On the launching of the product the
company will employ the product differentiation strategy that
will work in favor of marketing the product.
MISSION STATEMENT
Improve the lives of those people we serve by making the
innovative and high quality health and pharmacy services safe,
affordable and easy to access. People work hard every day to
catch up on their history but for CVS pharmaceutical, we work
hard to ensure our name is embedded in the books of history
owing to its purpose to help people on their path for better
health (McKeever, 2012).
VISION
Strive for the improvement of the human life. CVS help the
people for live longer, healthier and happier lives.
VALUES OF CVS
Every company is bound to its values and rules that accredit it
to the rise of its success. CVS has various values that have been
divided into three major categories which are for the customers,
colleagues and contributions. The company is very passionate
about its customers who form the base of its clientele. CVS
acknowledges the importance of integrity, team work as well the
integration of new ideas of being open minded The CVS as the
15. pharmacy innovation company is focused on creating new,
personalized experiences that appeal to all the customers based
on their personal preferences. The pharmacy has designed the
research and development program for knowing the needs and
requirements of the customers (Russel, 2012).
A good product without a clear-cut strategy on how to market it
is equally as good as leading the product to a total downfall.
The company plans on employing the product differentiation
otherwise referred to as segmentation. This approach will go a
long way in helping the company to promote the new product as
well will help the comp to place the customer needs at the fore
front of their business activities a factor that will culminate in
an increase in their sales through exploitation of the competitive
environment.
NEW VISION AND BUSINESS MODEL
Health and quality are the core parts of the company’s vision.
The company hence looks forth to provide better quality
products that will help change the future health sector as well
serve as aid people live better and happier lives not only now
but in future as well. For CVS, being the best is not the target
but rather to be the absolute SI unit of perfection in delivery of
goods and services in the history of pharmaceutical companies
is the epitome of the company’s new vision. The company is
using the reinventing pharmacy to have more active, supportive
role in the unique health experiences of each person and in the
greater health care environment (Russel, 2012).
The objectives of the pharmacy for next three years are
such as; exceeding the customers’ expectations with the
affordable pricing, increasing the number of customers by more
than 30% per year and developing the business that can survive
off its own cash flow. The main objectives of the pharmacy are
to fulfill the needs of the customers and to increase the revenues
of the pharmacy (Blackwell, 2011).
Lack of planning is planning to fail. During the launch
of the new product the company should employ the use of
strategies that will take advantage of mail order customers and
16. walk in customers. The milestones for this are office or business
set up for the new division, establishment of the new strategic
relationship and profitability. It should appoint the effective
sales persons, phone representatives, pharmaceutical
technicians, order fulfillment agents and counter person. The
pharmacy should develop the effective budget and financial plan
for the next three years of the set-up of the new division.
The mission, vision and values of the new product are in
line with the company’s overall mission. Owing to the
company’s concerns of its client’s needs, it has esteemed itself
by ensuring it formulates its mission, values and vision of the
new product while integrating it into its strategy. The strategy
of the company for the corporate social responsibility includes
building the healthier communities, protecting the planet and
creating the economic opportunities. The new division should
follow the all the laws and highly ethical standards. In the
organization, the responsibilities are shared to everyone. The
company should maintain the code of conducts by providing the
training and communication programs on their respective codes
and ethics programs. There will be punishment for the
employees if they are doing any wrong full act in the
organization. The company will establish the cultural identity
on the basis of the mission, vision and set of the values of the
pharmacy (McKeever, 2012)
The pharmacy will implement the effective business plan for the
new division of the CVS for the new beauty and cosmetic
products, and then there will be increase in the all over turnover
of the CVS. The mission, vision and values are very important
for the development of the new division of the pharmacy in
other localities of the United States. The company should
develop the effective principles for the ethics, culture, codes of
conduct and social responsibility in the company.
References
Blackwell, E. (2011). How to prepare Business Plan: Create
your srategy. Forecast your finances.
McKeever, M. (2012). How to write a business plan. Nolo
17. Publishers.
Russel, J. &. (2012). Cvs Pharmacy. Books on Demand.
Running head: BUSINESS MODEL AND STRATEGIC PLAN
PART II 1
Business Model and Strategic Plan Part II
Student Name Here
BUS/475
Submission Date Here
Instructor’s Name Here
18. BUSINESS MODEL AND STRATEGIC PLAN PART II 2
Business Model and Strategic Plan Part II
< Paper Introductory Paragraph Here >
SWOTT Analysis for Company XYZ, Inc. (Sample below)
Economic, Legal, and Regulatory Forces
Multiple economic, legal, and regulatory forces may affect the
uptake of company XYZ,
Inc. in the market. The proposed division will need to…
Adapting to Change
The proposed division will place effective measures to ensure
that it will adapt to
continual changes in the industry effectively…
BUSINESS MODEL AND STRATEGIC PLAN PART II 3
19. Supply Chain Process Analysis for the Proposed Division
The supply chain strategy of the new division will be closely
linked to its long-term
growth plans in the industry. More importantly, the supply
chain process will be directly
associated to reflect its business objectives…
Issues and Opportunities Derived from the SWOTT Analysis
Currently, the firm faces various internal and external
influences in its operations. These
include (a) unpredictable regulatory environment, (b) rapid
technological innovation, and (c)
declining consumer spending ….
Hypothesis Surrounding the Identified Issues and Opportunities
Hypothesis #1 for unpredictable regulatory environment.
< Insert a tentative solution for the issue here (short
statement) >
Hypothesis #2 for rapid technological innovation.
< Insert a tentative solution for the issue here (short statement)
>
20. Hypothesis #3 for declining consumer spending.
< Insert a tentative solution for the issue here (short
statement) >
Circumstances Surrounding the Identified Issues and
Opportunities
Describe here what potential circumstances could impede
solving the issues and
opportunities identified above.
BUSINESS MODEL AND STRATEGIC PLAN PART II 4
References