CVS STRUCTURE

Topics: Organizational studies, Transaction cost, Dependency theory Pages: 6 (2182 words) Published: June 10, 2014

Module 6:

Question 1: Draw a chart of your organizations domain. List the organization’s products and customers and the forces in the specific and general environments that have an effect on it. Which are the most important forces that the organization has to deal with?

Part A: Draw a chart of your organizations domain.

CVS Pharmacy

Specific Environment

General Environment

An organizations domain is the goods and services, and customers of the organization. Every organizational domain consists of a specific and general environment. In CVS Pharmacy’s specific environment are its suppliers and customers. In CVS Pharmacy’s general environment are governmental regulations, advancements in technology, and economic forces.

Part B: List the organizations products and customers and the forces in the specific and general environments that have an effect on it. What are the most important forces that the organization has to deal with?

CVS Pharmacy offers products in the front store and the pharmacy. Products in the front store range from health and beauty products, over the counter medications, cleaning supplies, school supplies, seasonal items such as Halloween or Christmas decorations, and food and beverages. Some services offered in the front store is the photo station where customers can print photos and make albums for themselves or loved ones. Great customer service is to be given to all customers from the time they enter the store until the time they leave the store. Products offered in the pharmacy are prescription only medications and ordering medications online that cannot be found in the front store. Some services offered in the pharmacy are immunizations such as flu shots, pneumonia, and shingles shot, MinuteClinics, patient consultations, and directing customers into a good Medicare Part D plan. CVS Pharmacy is directed towards many different customer bases. Some customers come into CVS to keep up their good health by getting their medications and becoming informed on what they are used for and how to take them. Other customers just come into CVS to do a little bit of general needs shopping. In CVS Pharmacy’s specific environment falls its customer and suppliers. These forces have a huge effect on how successful the company is or becomes. Customers play a huge role in keeping CVS alive. In 2012, CVS Pharmacy’s net revenues increased by 15 percent to a record $123.1 billion and its operating profit increased by 14.2 percent to a record $7.2 billion. Without our customers, CVS would not be able to operate. Suppliers are another huge part of CVS’s specific environment. In the pharmacy, our main supplier is McKesson. If we are not able get the products that we need for our customers, we will end up losing these customers to different pharmacies. Every day we place an order with McKesson to get in the medications need to fill customer’s prescriptions. Without our suppliers, we would not have any products to offer our customers. In CVS Pharmacy’s general environment are technological advancements which play a big role in keeping CVS alive. Technology is always changing and in order to keep up with the fast-paced environment, CVS needs to keep implementing the best technologies they can to keep customers interested. One huge technological advancement is ordering and managing your medications online. This lets customer easily order their medications from home and be alerted when their prescriptions are ready for pickup. Governmental regulations also play a role in CVS’s general environment. There are many rules and regulations that need to be followed in the pharmacy. One specific regulation that we must follow are HIPAA laws. This helps protect the customer from outsiders viewing any of their personal information. I think the most important forces that CVS has to deal with are keeping customers happy and getting the supplies they need from their suppliers.

Question 2: Analyze...
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