...REV: OCTOBER 20, 2006 Pharmacy Service Improvement at CVS (A) Flum looked at Betses. “You told us it was bad, but this bad?” “I told you there were service issues in our pharmacies. But I have to admit, even I didn’t know the whole story.” “So what do we do about it?” “Well, we can’t have 67 solutions for the 67 problems we identified,” Roberts said. “Definitely not,” Grossi agreed. “But do you have an idea what we should do? If you erased that whiteboard and grabbed a pen, could you draw the ‘right’ flow chart for pharmacy operations?” “Actually, I think I could come pretty close. And I think my flow chart would look a lot like both of yours. I’m just not sure which parts of it would be easy to implement and which would be tricky. Mitch, you know these places better than anyone—what kinds of changes would make them really unhappy?” “Anything affecting safety. Everyone—not just the pharmacists—is a fanatic about making sure we fill prescriptions accurately and watch out for the health of our customers. So for example if we said, ‘In the interests of efficiency we want to have the system spit out fewer alerts about drug-drug interactions,’ we would get killed. The pharmacists would march us right out the front door of their stores and tell us never to come back. And I wouldn’t blame them.” Do “Got it. What else?” ________________________________________________________________________________________________________________ Professor Andrew F. McAfee prepared...
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... GENE ALEC SUNGA Group 3 I. PROBLEM STATEMENT a. What can Consumer Value Store do to improve their customer service so that customer complaint can be avoided or at least be lessened? b. How will the company be able to motivate their employees in terms of their work output? II. OBJECTIVES a) To be able to identify the problems that usually occur during the drop-off stage. b) To be able to come up with solutions that can help improve customer service. c) To determine the pros and cons of system upgrade to help minimize errors in data entry. III. STATEMENT OF FACTS a) CVS had 29.5 million pharmacy members at the start of 2000 and a revenue of $20 billion. b) In the year 2002, CVS was one of America’s largest retail drugstores, with over 4,000 stores and revenue of $24.2 billion. c) An estimated of 10.9 million infrequent customers left in 2000. d) In 2000 the company was able to attract 8.5 million new regular members e) Heavy users filled an average of 40 scripts a year and were most likely to leave because of poor service. f) Light users filled an average of 5 scripts per year. IV. ALTERNATIVE COURSE OF ACTION a) Hire part-time employees to work during the peak hours where majority of the...
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...Case Write-up #1: Pharmacy Service Improvement at CVS After reading the two articles by Ramias and Wilkins on Performance Metrics, what metrics, if any would you identify that are essential to managing the prescription fulfillment process at CVS. Ramias and Wilkens’ state that the starting point in developing metrics is to understand the expectation of the customer. Upon review of the data compiled by the PSI team, customers expect accuracy and timeliness. Therefore, most of the metrics developed below focus on measuring the two expectations and, I believe, are essential to managing the prescription fulfillment process at CVS. 1. Processing time – prescriptions filled per unit of time. A major customer complaint was time – either waiting too long in line, waiting for their prescription after the pick-up time, etc. 2. Number of prescriptions filled per day and median processing time. Again, this metric will help identify peak time periods, staffing needs, and eliminate waiting times by customers. This would also help to measure accuracy. If prescriptions are constantly wrong and the customer has to wait to correct them, the processing time will be higher than expected. 3. Hourly volume and median processing time. This metric would measure the volume of prescriptions filled per hour, the percentage of prescriptions filled in under the target number of minutes, and the median time to fill them per hour. Because heavy users cited service as their number...
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...Introduction Walgreen Co. and CVS/Caremark are two of the largest retail drugstore chains in the United States, offering consumers a variety of basic consumer goods including household products, convenience foods, personal care, beauty care, photofinishing, and seasonal items, as well as over-the-counter and prescription medication. In addition to their well-known retail pharmacies, both companies also operate a health services health and wellness division. Within the retail pharmacy industry CVS/Caremark and Walgreens continually battle for the retail position. This document will offer an overview and basic competitive analysis of the two companies. Background Location & Type of presence (brick and mortar, or internet) According to the CVS/Caremark 2011Annaul Report, page 23; as of December 31, 2011, the CVS/Caremark Retail Pharmacy segment operated 7,327 retail drugstores with 7,271of these retail stores operating a full service pharmacy. Their stores are located in 41 states and the District of Columbia and Puerto Rico. Additionally, within these retail stores operate 657 health care clinics conducting business under the Minute Clinic name. The retail pharmacy stores operate primarily under the CVS/pharmacy or Longs Drugs names. In addition, the Pharmacy Services segment operates under the names CVS Caremark Pharmacy Services, Caremark, CVS Caremark, Care Plus CVS/pharmacy, Care Plus, and Rx America to providing pharmacy benefit management services to employers, insurance companies...
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...company resource analysis in the drug store industry, I will select the CVS Caremark Corporation as my study company. Question 1: Whether the company's present strategy working? CVS pharmacy services business strategy centers on providing their customer and client high quality and innovative pharmaceutical solutions, while assisting their member managing overall health care costs by leveraging CVS expertise in core PBM services. (Form -10k) (1) Moreover, the retail pharmacy business strategy, base of the CVS pharmacy services model to maintain successful growth they focus on new store development by expanding the number of retail pharmacy stores and retail stores range in size in order to provide better service, help client lowers overall health care costs and improve health outcomes. (1) How these strategic working? Look into the financial performance in the Appendix 1, table 1. CVS compare well on these profitability ratios with industry averages. Most of ratios are better than the industry averages. Ventureline (2). Study the CVS’s financial report I found the company is “Solid and significant growth.” According to CVS Caremark Annual Report 2013 (3), the financial highlights show the company was significant growth during 2012 to 2013. For example, net revenues increased 3.0 percent to a record $127 billion, while adjusted earnings per share from continuing operations rose 23 percent to $4.00. CVS earned $4.4 billion in free cash flow in 2013, and returned more than...
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...According to CVS.com, CVS is the 2nd largest pharmacy chain in the United States. “The CVS store provides all pharmacy services, popular beauty products, photo labs, and a wide selection of general merchandise. CVS pharmacists dispense medication, give vaccinations, and offer advice on prescription and non-prescription drugs and supplements. You can update your prescription, shop national sales ads, sign up for their ExtraCare card and receive coupons and rewards all from their website. CVS offers CVS Store Brands exclusively which are high quality alternatives to national brands with a 100% satisfaction guarantee”. The CVS pharmacy store locator will allow you to find the CVS closest to you so that you can receive your prescription with the...
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...Goldstein, Sid Goldstein, and Mark Steven in Lowell, Massachusetts, Consumer Value Store (CVS), has quickly grown to be the second largest pharmacy and convenience store with over 7,600 pharmacies and drugstores nationwide. Since the beginning, CVS has always strived to be the largest retail pharmacy-which led to the development of their growth strategy. Furthermore, CVS continually strives to “reinvent” the pharmacy and make healthy living a fundamental part of their customers’ lives. (Biesada, 2014) Initially, these strategies were influenced by the company’s mission statement and purpose. According to the CVS website, the company’s mission is to “provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers” (CVS caremark corporation: History, 2014). Clearly, CVS is in business to provide expert care, although it would appear that not all of their individual pharmacists share the same feelings. Based on research conducted, it would appear that there is a general lack of customer service training as some pharmacists have allegedly been behaving rudely towards customers. Throughout the course of this initiative, we will be discussing the gaps that have been found and we will develop a training program that we hope will help alleviate these problems and allow CVS to fully realize their mission. Part II: Needs Assessment Pharmacy Prescription Practices As a result of organizational research, we have determined that...
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...CVS CAREMARK November 25, 2013 Belinda Merritt Michael Curtis Introduction CVS was founded in 1963 by Stanley and Sidney Goldstein and Ralph Hoagland. The first CVS store was opened in Lowell, MA. CVS stands for Consumer Value Stores. CVS Caremark is headquartered in Woonsocket, RI and the pharmacy services are currently headquartered in Nashville, TN. Within one year, the CV chain grew from one store to seventeen stores. By 1967, CVS opened its first pharmacy location. These locations were opened in Warwick and Cumberland, Rhode Island. CVS pharmacy provides services through the 7,000 retail stores within the United States. CVS has also expanded its business to include pharmacy benefit management, mail order as well as specialty pharmacy division, Caremark Pharmacy Services, a health clinic that is retail based, the Minute Clinic and an online pharmacy. CVS is the largest company that has its operation solely in the United States. In 2013 CVS Caremark was number thirteen on the Fortune 500 list of largest companies in the United States. Internal and External Factors that influenced the organization As with many organizations, there are several external and internal factors that affect the business. An internal factor can be defined as the internal communications of the business. The internal communications of the business forms the culture of the business. The culture of the organization includes the interpersonal relationships, training materials, newsletters...
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...November 16, 2014 CVS/PHARMACY SWOT ANALYSIS In 1963 the Consumer Value Store (CVS) was built for your health and beauty needs, in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland. Through the next few years CVS started to grow and in 1967 pharmacies were being added to CVS’s in Warwick and Cumberland, Rhode Island (RI). After buying several small chain drug stores in the early 1970’s around the surrounding areas/states, CVS created small chain stores in shopping malls. In 1981, CVS broke ground on the Store Support Center in Woonsocket, RI. In 1988 CVS celebrated their 25th anniversary with a total of 750 stores. The 1990’s brought more stores in the new mid Atlantic, and Caremark set up in California. By the late 1990’s, CVS had stretched to 24 states totaling 4, 100 stores. 2001 was the year that CVS launched their ExtraCare Card Program, being the first national pharmacy retailer to launch a loyalty program. In 2005, CVS partnered up with MinuteClinic, and opened up three in their CVS/Pharmacy stores. The next year in 2006, MinuteClinic became the first retail clinic to be accredited by the Joint Commission. In 2008, CVS officially branched to California and Hawaii, by buying Long’s drugstores. In 2014, CVS announced they were deciding to stop the sale of tobacco, which was announced officially on September 3, 2014. With the end of tobacco sales, CVS’s mission statement makes more sense. CVS states they are a pharmacy innovation company...
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...I. Introduction and Overview CVS Pharmacy is considered one of the top pharmacy nationwide chains in the country. There are more than 7,100 stores total, located in nearly every state. The stores retail medication, toiletries and sundry merchandise that is purchased by consumers such as snacks, beverages, skin care and personal care items, holiday merchandise and convenience goods. There is also an online site where products can be ordered and shipped directly to consumers. Some of the CVS pharmacies have medical services that operate out of the retail stores. A. Identify the Organization CVS recognizes the importance of establishing a culture that will have an affect on its people and their performance. The organizational development functional management at CVS realized that sharing a common vision would assist each individual in understanding what the company stands for, commit to the same vision, and then work toward supporting the mission each and every day. The vision at CVS is simple “to strive to improve the quality of human life” (CVScaremark.com, 2010). Taking a look at two of the organization’s functional goals in the Technology and Human Resource business areas, it is easy to see how CVS is an industry leader. The organizational structure or team at CVS involved in working on this issue from the HR area include the Senior Vice President of HR, Training Specialist, nd local HR managers. From organizational operations there is the technology manager, and procurement...
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...------------------------------------Page 8 Conclusion & Reflection --------------------------------------------------------------------------------------Page 9 Work Cited------------------------------------------------------------------------------------------------------Page 10 INTRODUCTION Walgreens is one of the fortune 500 companies and among the fastest growing retailers in the country. Walgreens as of April 30 operated 8307 location in all 50 states including the District of Columbia, Puerto Rico and Guam. This includes 7855 drugstores, 146 more than a year ago, including 21 stores acquired over the last 12 months. The company also operates infusion and respiratory services facilities, specialty pharmacy and mail service facilities. They also have a take care health system subsidiary which manages more than 700 in-store convenient care clinics and worksite health and wellness canters. This research is based on the problem facing the company on how executive decision making in the company has caused a negative impact and low productivity level among employees due to their decision to discontinue having...
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...Analysis of CVS “Beauty 360” Mike Kleinschmidt Metropolitan State University Abstract As a business reaches a plateau, they often look for new and innovating ways to create new growth opportunities. One of the ways this can be accomplished is by entering into a more profitable market. Drug store giant CVS found themselves in this situation and took on the task of competing in the upscale beauty market. The drugstore chain was going to challenge the recession. The launching of a new retail concept in the midst of the then gloomy economic environment was certainly risky. Amid other high end beauty marketers struggling during this economic downturn, CVS was poised to try and lure away some of their clientele. Named Beauty 360, the first stores were launched in 2008. This study will analyze the factors and decisions CVS made in deciding to enter this market, and, if these choices proved practical. Introduction CVS Pharmacy is the second largest pharmacy chain in the United States with over 7,000 stores in 41 states and $86 billion in revenue (Prior, 2008). As the retail pharmacy division of CVS Caremark, it sells prescription drugs and a wide assortment of general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods through their CVS Pharmacy and Longs Drugs retail stores and online through CVS.com. For more than 10 years, CVS tried...
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...Americans lived within five miles of a Walgreens pharmacy, and more than 6 million customers were served each day. Walgreens issued more than 800 million prescriptions annually, representing 20 percent of the U.S. market. Its online business, Walgreens.com, had almost 17 million visitors per month. Walgreens’ strategy had evolved for more than a century in business. By 2012, the company faced a number of major strategic questions, including international expansion and a changing health care environment. History of Pharmacy2 People have been trying to create remedies for illnesses and ailments since the beginning of time, but most historians credit Babylon with the first organized apothecary. This was followed by the Romans, who created a system of pathology and therapy that became standards for Western medicine for more than 1,000 years. For the most part, though, pharmacy remained a sketchy and shadowy business for centuries, practiced by (among others) witch doctors and alchemists. Advances in medicine and the Renaissance era led to more structured and scientific approaches. In 1240, German Emperor Frederick II issued a proclamation establishing the practice of pharmacy along three tenets: (1) separation of the pharmaceutical profession from the medical profession; (2) official supervision (regulation) of pharmacy; and (3) “obligation to prepare drugs reliably, according to skilled art, and in a uniform, suitable quality.” 3 Public pharmacies and university training began spreading throughout...
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...Central District of California announced that CVS Pharmacy, Inc. was fined $77 million (including $75 million civil penalty and the forfeit of $2.5 million profit) for its unlawful sales of pseudoephedrine, a regulated drug, to criminals between September 2007 and November 2008. During that period, the company failed to comply with laws that limit the quantity of the drug sold to individual customers. The sales, according to the Attorney’s Office, directly caused an increase the production of methamphetamine in California. CVS Pharmacy, Inc (“CVS/pharmacy”) is the retail pharmacy subsidiary of CVS Caremark Corporation (hereinafter collectively referred to as “CVS”). In addition to retail pharmacy, CVS also runs pharmacy services, retail clinics, and mail-order pharmacy businesses. In fiscal year 2010, the company had net revenues of more than $96 billion and a net profit of more than $3 billion. Selected financial data by business segments (pharmacy services, retail pharmacy, and corporate) is shown in Exhibit 1. CVS was the 18th largest company on the Fortune 500 according to its 2010 annual report and CVS/pharmacy is one of the largest retail pharmacy chains in the United States. As of December 31, 2010, it operates more than 7,100 retail pharmacy stores in the United States. Exhibit 2 shows the number of CVS/pharmacy stores in each state (as of December 31, 2009). Today’s CVS (listed on New York Stock Exchange, ticker “CVS”, web site: http://www.cvs.com/) is the results...
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...Transmercial. 1340 Tully Road, Suite 306-307 — San Jose, CA 95122-3055 — (408) 288-5500— (408) 288-5533(F)- © Transmercial. 2010 transmercial Commercial Real Estate Investment www.transmercial.com 3RD QUARTER 2010 Newsletter VOLUME 5 ISSUE 1 Walgreens, CVS or Rite-Aid: Which Tenant Is Best in 2011? By David V. Tran There are 3 major drugstore chains in the US: Walgreens, CVS, and Rite Aid. Below are some key statistics about the 3 major drugstore chains as of July 2010: 1. Walgreens ranks #1 with market cap of $29.33 Billion, $66.25 Billion in revenue, and S&P rating of A+. According to Walgreens, 75% US population lives within 3 miles from its stores. On Oct 1, 2009, Walgreens opened its 7000-th store in Brooklyn, New York. In April 2010, it acquired 258 Duane Reade drug stores in New York Metropolitan area. 2. CVS ranks #2 with market cap of $42.09 Billion, $99.1 Billion in revenue (CVS revenue alone is less than Walgreens if revenue from its Caremark group is taken out), and S&P rating of BBB+. CVS opened its 7000-th store in Little Canada, Minnesota on October 5, 2009 and currently operates 7025 drug stores. 3. Rite Aid ranks #3 with market cap of $869 Million, $25.53 Billion in revenue, 4780 drug stores and S&P rating of B-. Investors purchase properties occupied by these drugstore chains for the following reasons: 1. The drugstore business is very recession-insensitive. People need medicine when they are sick, regardless of the state of the economy. Both...
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