CVS Structure Essay

Module 6 research 1 key out a chart of your organic laws subject. List the boldnesss products and customers and the forces in the detail and oecumenical environss that switch an effect on it. Which argon the or so(prenominal) important forces that the arrangement has to cut with? take off A Draw a chart of your organizations domain.CVS drug chime inSpecific EnvironmentGeneral EnvironmentAn organizations domain is the severes and occasion, and customers of the organization. E very(prenominal) organizational domain consists of a specific and cosmopolitan environment. In CVS chemists shops specific environment atomic number 18 its suppliers and customers. In CVS Pharmacys general environment be governmental differentiates, advancements in technology, and stinting forces.Part B List the organizations products and customers and the forces in the specific and general environments that guard an effect on it. What atomic number 18 the some important forces that the organization has to deal with?CVS Pharmacy offers products in the front store and the drugstore. Products in the front store range from health and beauty products, over the counter medications, cleaning supplies, drill supplies, seasonal items such as H solelyoween or Christmas decorations, and food and beverages. Some service offered in the front store is the photo station where customers can release photos and make albums for themselves or loved ones. Great customer service is to be given to t come in ensemble customers from the time they enter the store until the time they digress the store. Products offered in the pharmacy ar prescription only medications and indian lodgeing medications online that cannot be found in thefront store.Some services offered in the pharmacy argon immunizations such as flu shots, pneumonia, and shingles shot, MinuteClinics, patient consultations, and direct customers into a good Medic atomic number 18 Part D plan. CVS Pharmacy is directed towa rds umteen different customer bases. Some customers come into CVS to keep up their good health by acquiring their medications and becoming informed on what they argon used for and how to take them. Other customers just come into CVS to do a little bit of general privations shopping. In CVS Pharmacys specific environment clings its customer and suppliers. These forces have a large effect on how successful the comp each is or becomes. Customers snap a extensive role in tutelage CVS alive. In 2012, CVS Pharmacys net revenues increased by 15 percent to a script $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 an new(prenominal) huge part of CVSs specific environment. In the pharmacy, our main supplier is McKesson.If we are not able get the products that we require 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 customers prescriptions. Without our suppliers, we would not have any products to offer our customers. In CVS Pharmacys 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. wholeness huge technological advancement is ordering and managing your medications online.This lets customer well order their medications from home and be alerted when their prescriptions are ready for pickup. Governmental regulations also play a role in CVSs 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 attend tos protect the customer from outsiders viewing any of their personal information. I see the most importa nt forces that CVS has to deal with are keeping customers happy and getting the supplies they need from their suppliers.Question 2 test the effect of the forces on the involvedity, dynamism, and wideness of the environment. From this analysis, how would you characterizethe level of equivocalty in your organizations environment?Part A Analyze the effect of the forces on the complexity, dynamism, and enormousness of the environment.Environmental complexity is a function of strength, number, and interconnectedness of specific and general forces. CVS has many stakeholders including employees, non-governmental organizations, suppliers, clients, investors, shareholders, analysts, consumers, local communities, civic organizations, trade organizations, government and regulatory authorities, and the media. With all these stakeholders at bottom the organizations specific and general environment makes communication and collaboration very difficult. There are a contend of voices to be he ard and getting everyone interconnected and on the same page is not an easy task. CVS would fall under a complex environment. Environmental dynamism is a function of speed of change and how very much change is occurring mingled with specific and general forces. CVS is constantly changing and growing in todays world.CVS knows they need to stay innovative and keep up with new technologies in order to stay the nations premier unified pharmacy services provider. One example of CSV growing and changing is adding a new property to their mobile app. CVS adder a new drug interaction checker as part of its top-rated CVS Mobile app. This is an industry first. This feature allows customers to quickly and easily check for potential drug interactions by comparing over-the-counter (OTC) products with their prescriptions and other OTCs on their smartphones.CVS would fall under a dynamic environment. Environmental aboundingness is a function of quantity of resources in the organizations domai n. Richness refers to the quantity of resources quickly available in the organizations domain. CVS has readily available resources at all times. We are able to order from our outside vendor, McKesson, Sunday through Thursday to learn the medications we need Monday through Friday. We have a contract with them and they supply all our medications on a daily basis. CVS would fall under a fecund environment.Part B From this analysis, how would you characterize the level of uncertainty in your organizations environment?As stated above, CVS has a complex, dynamic, rich environment. While having a rich environment would lead you to believe that there was little uncertainty inwardly the organization, having a complex and dynamic environment leads you to believe that there was much uncertainty within the organization. Overall, from my analysis above, I believe that CVS Pharmacy operated with an uncertain environment.Question 3 Review your analysis of organizational structure. How has your organization knowing its structure to match the environment in which it operates? For example, how do its degree of distinction and its use of combine mechanisms reflect the uncertainty of its environment?I define CVS Pharmacys organizational structure to be organic. CVS has decentralization within the organization. Decentralization happens when top effments decision making has been delegated to get off managers. The pharmacist has the discretion to offer gift cards to unhappy customers. This in turn makes the customer happy and hopefully they will return to CVS in the future. The pharmacist also has the discretion to price match with other pharmacies. If Walgreens has a lower cash price for a certain medication because we can offer that price to the customer if they ask for that to be done. CVS, for the most part, is racyly formalized. This is an attri besidese of the mechanistic model of organizational structure but as I said preferably, we are predominately organic. The technicians and employees do not have a lot of discretion to deviate from their job duties. There are rules and regulations that they need to follow otherwise they could be terminated. CVS has a very complex structure.There is great special dispersion it has high vertical differentiation, and high horizontal differentiation. CVS has designed its structure to match its environment. I said earlier that CVS operates under a dynamic environment and in turn has designed its structure to be organic. CVSs use of integrating mechanisms reflects the uncertainty of the environment. CVS Pharmacy is highly differentiated. CVS has various levels of management that the operative core need belief up to. CVS also has over 7000 stores nation-wide creating great spatial dispersion. Some integrating mechanisms used by CVS Pharmacy are specific jobs, policies, andstandards that employees must follow.Employees at CVS are not allowed to make their own rules/tasks. Employees are given specific jobs that they are to get done and if they are not completed, there are consequences. As the lead pharmacy technician, I am in thrill of inventory. Our warehouse order needs to be completed on Wednesday by 3pm. I need to use my time wisely to make original that this gets completed otherwise there will be a lot of supplies and medications that we do not receive. This is not good for the customer or the organization. Employees also have certain policies and standards that they must adhere to otherwise they will most likely be terminated. Employees need to act with honor and integrity and they need this to follow through to the customer even if they customer seems to be out of line. CVS is differentiated and in turn, they follow an organic structure.Question 4 Draw a chart of the main inter-organizational linkage mechanisms (for example, long-term contracts, strategicalal alliances, mergers) that your organization uses to manage its symbolic resource interdependencies. Using resource depen dency surmise and transaction follow supposition, discuss wherefore the organization chose to manage its interdependencies in this way. Do you recall the organization selected the most bewitch linkage mechanisms? wherefore or why not?Part A Draw a chart of the main inter-organizational organizational linkage mechanisms (for example, long-term contracts, strategic alliances, mergers) that your organization uses to manage its symbolic resource interdependencies.Symbiotic resource interdependencies include reputation, cooptation, strategic alliances (long-term contracts, networks, minority ownership, and joint ventures) and mergers and acquisitions. CVS has taken the strategic alliance, long-term contract mutuality. CVS has been in a long-term contract with McKesson for a long time. CVS is McKessons exclusive biggest customer. In 2012, CVS accounted for an estimated 18.5% of the companys U.S. core drug distribution revenues.Part B Using resource dependence hypothesis and tran saction cost theory, discusswhy the organization chose to manage its interdependencies in this way. Do you think the organization selected the most attach linkage mechanisms? Why or why not?Resource dependency theory is the ability to exercise much control over resources and distribution channel which means establishing interdependencies with other organizations. motion cost theory helps you choose which interdependency to choose when your bureaucratic cost equal your transaction costs. Both of these theories help organizations choose which interdependency is in force(p) for them. CVS chose to hold a long-term contract with McKesson. I think this was an appropriate and beneficial way to manage their interdependency. These long-term contracts help build relationships between the parent company and the supplier. When announced that CVS was going to renew its contract with McKesson, McKessons statement said that it was extremely pleased to continue the relationship.Question 5 Draw a chart of the main inter-organizational linkage mechanisms (for example, tacit consent, third-party linkages mechanisms, strategic alliances) that your organization uses to manage is competitive resource interdependencies. Using resource dependence theory or transaction cost theory, discuss why the organization chose to manage its interdependencies in this way. Do you think the organization has selected the most appropriate descent mechanisms? Why or why not?Part A Draw a chart of the main inter-organizational linkage mechanisms (for example, collusion, third-party linkages mechanisms, strategic alliances) that your organization uses to manage is competitive resource interdependencies.Competitive resource interdependencies include collusion and cartels, third party linkages, strategic alliances (long-term contracts, networks, minority ownership, and joint ventures) and mergers and acquisitions. CVS has followed the mergers and acquisitions interdependency. In butt against of 20 07, CVS Corporation and Caremark Rx, Inc. merged together creating the nations premier integrated pharmacy services provider. The combined company, renamedCVS/Caremark Corporation, unifies the nations largest pharmacy ambit with a leading pharmaceutical services company, creating the opportunity to deliver unparalleled products and services that will help manage costs for employers and improve overture and choice for consumers.Part B Using resource dependence theory or transaction cost theory, discuss why the organization chose to manage its interdependencies in this way. Do you think the organization has selected the most appropriate linage mechanisms? Why or why not?Resource dependency theory is the ability to exercise more control over resources and distribution channels which means establishing interdependencies with other organizations. Transaction cost theory helps you choose which interdependency to choose when your bureaucratic costs equal your transaction costs. Both of these theories help organizations choose which interdependency is right for them. CVS chose to go with the merger interdependency. I think this was an appropriate and beneficial way to manage its interdependency.This merger allowed CVS to begin delivering square(a) values to shareholders, customers and employees. CVS was able to offer end-to-end services, from plan design to prescription fulfillment, as well as the opportunity to improve clinical outcomes, which results in wear control over healthcare costs for employers and plan providers. The merge modify the delivery of pharmacy services and healthcare decision making, enabling consumers to benefit from unparalleled access, greater convenience and more choice.