Business Analysis 1
CVS Caremark Business Analysis Part I
University of Phoenix
CVS Caremark Business Analysis Part I
Investing mutual funds involves many aspects of confidence and knowledge when considering potential companies. One must know a company from the inside and out so they know exactly what their money is being used for. Having this knowledge means investors will not think twice about investing because they will feel confident that the company will provide a return on their investment. By performing a SWOT Analysis and examining how a company will fulfill the needs of internal and external stakeholders, investors will see what the current state of company is and what the foreseeable future holds.
SWOT Analysis
A SWOT Analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats (Nickels, McHugh, & McHugh, 2010). CVS Caremark is the potential client that this SWOT Analysis will be conducted on in order to determine if they are the proper suitor for investors.
Company Overview
CVS was founded in 1963 as a company that specialized in health and beauty products. Over time pharmacies were added, and CVS quickly grew in store locations over the next 4 decades by buying smaller pharmacy chains (“Our Company,” 2012). The big change in CVS occurred in 1997 with the purchase of the Revco pharmaceutical chain. Revco and its 2,500 store chain was now a part of the CVS brand and this quickly established CVS as a powerhouse in the pharmaceutical industry. Up until 2006 CVS focused on purchasing smaller pharmacy chains, by this time CVS began to focus on a different market segment, retail health clinics. With the purchase of the 500 location Minute Clinic Company, CVS now branched out into a new market segment that focused on patients getting quick and affordable healthcare which combined with getting their prescriptions filled all in one place (2012).
Perhaps the biggest acquisition for CVS came 4 months later,
University of Phoenix
CVS Caremark Business Analysis Part I
Investing mutual funds involves many aspects of confidence and knowledge when considering potential companies. One must know a company from the inside and out so they know exactly what their money is being used for. Having this knowledge means investors will not think twice about investing because they will feel confident that the company will provide a return on their investment. By performing a SWOT Analysis and examining how a company will fulfill the needs of internal and external stakeholders, investors will see what the current state of company is and what the foreseeable future holds.
SWOT Analysis
A SWOT Analysis is a planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats (Nickels, McHugh, & McHugh, 2010). CVS Caremark is the potential client that this SWOT Analysis will be conducted on in order to determine if they are the proper suitor for investors.
Company Overview
CVS was founded in 1963 as a company that specialized in health and beauty products. Over time pharmacies were added, and CVS quickly grew in store locations over the next 4 decades by buying smaller pharmacy chains (“Our Company,” 2012). The big change in CVS occurred in 1997 with the purchase of the Revco pharmaceutical chain. Revco and its 2,500 store chain was now a part of the CVS brand and this quickly established CVS as a powerhouse in the pharmaceutical industry. Up until 2006 CVS focused on purchasing smaller pharmacy chains, by this time CVS began to focus on a different market segment, retail health clinics. With the purchase of the 500 location Minute Clinic Company, CVS now branched out into a new market segment that focused on patients getting quick and affordable healthcare which combined with getting their prescriptions filled all in one place (2012).
Perhaps the biggest acquisition for CVS came 4 months later,
References: Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2010). Understanding Business (9th ed.). New York, NY: McGraw-Hill/Irwin. Cvs. (2012). Retrieved from http://info.cvscaremark.com/our-company http://articles.nydailynews.com/2010-10-14/news/27078211_1_cvs-caremark-cvs- locations-meth-production http://www.drugstorenews.com/top-retailers http://www.forbes.com/companies/cvs-caremark/ http://www.washingtonpost.com/blogs/crime-scene/post/police-cvs-robberies-were-an- inside-job-three-suspects-arrested/2012/04/13/gIQA3zZpET_blog.html http://www.usatoday.com/money/industries/health/drugs/story/2011-10-09/cnbc- drugs/50690880/1 http://www.bhfglobal.com/pharmacist-shortage-holds-back-retailers-29052012 http://info.cvscaremark.com/our-company/corporate-responsibility/corporate- governance/stakeholder-engagement