Cardinal Health Case Analysis
Cardinal Health, Inc. Company History
Cardinal Health was founded in 1971 when founder Robert D. Walter opened a small distribution center in Columbus, Ohio, then named Cardinal Foods, Inc. In 1979 the food distributor branched out into pharmaceutical distribution when the company purchased a Zanesville, Ohio, drug distributor and became known as Cardinal Distribution ("Our history," 2011). The company evolved over the next several years; they went public and was renamed Cardinal Health in 1983, sold its food distribution segment in 1988, and become a global corporation with $103 billion in revenues and $1.5 billion in annual operation earnings in 2011 (Annual Report, 2011). Through several acquisitions over the past three decades Cardinal Health provides products & services to help hospitals, pharmacies and other healthcare providers meet the growing challenges of the healthcare industry ("Our history," 2011).
Cardinal Health, Inc. Vision Statement
Cardinal Health’s vision is “to be the healthcare industry leader in providing a diverse, inclusive work environment that reflects the marketplace and communities where we do business while maximizing our competitive advantage through innovation, profit and adaptability” ("Our commitment," 2011). As one of the top organizations in the healthcare industry, Cardinal Health is in the position to drive efficiency through the system and improve the cost-effectiveness of care so that both provider customers and supplier partners are prepared for success in the changing healthcare industry (2011 Annual Report, p. 2)
Key Elements of the Business Strategy
Walter decided to take Cardinal into pharmaceutical wholesaling at a time when this industry lacked synergy, acquiring 69 companies from 1980 through 2010, with more than half of these between 1998 and 2002 (Pearce & Robinson, 2011, p. 18-11). The key element of the growth strategy was to acquire businesses that expand or complement existing businesses
Cardinal Health was founded in 1971 when founder Robert D. Walter opened a small distribution center in Columbus, Ohio, then named Cardinal Foods, Inc. In 1979 the food distributor branched out into pharmaceutical distribution when the company purchased a Zanesville, Ohio, drug distributor and became known as Cardinal Distribution ("Our history," 2011). The company evolved over the next several years; they went public and was renamed Cardinal Health in 1983, sold its food distribution segment in 1988, and become a global corporation with $103 billion in revenues and $1.5 billion in annual operation earnings in 2011 (Annual Report, 2011). Through several acquisitions over the past three decades Cardinal Health provides products & services to help hospitals, pharmacies and other healthcare providers meet the growing challenges of the healthcare industry ("Our history," 2011).
Cardinal Health, Inc. Vision Statement
Cardinal Health’s vision is “to be the healthcare industry leader in providing a diverse, inclusive work environment that reflects the marketplace and communities where we do business while maximizing our competitive advantage through innovation, profit and adaptability” ("Our commitment," 2011). As one of the top organizations in the healthcare industry, Cardinal Health is in the position to drive efficiency through the system and improve the cost-effectiveness of care so that both provider customers and supplier partners are prepared for success in the changing healthcare industry (2011 Annual Report, p. 2)
Key Elements of the Business Strategy
Walter decided to take Cardinal into pharmaceutical wholesaling at a time when this industry lacked synergy, acquiring 69 companies from 1980 through 2010, with more than half of these between 1998 and 2002 (Pearce & Robinson, 2011, p. 18-11). The key element of the growth strategy was to acquire businesses that expand or complement existing businesses
References: Cardinal health: committed to creating a culture of inclusion. (2009, October 1). Cerra, A. (2011, February 2011).Kinray acquisition drives cardinal health 's q2. Retrieved from http://www.drugstorenews.com/article/kinray-acquisition-drives-cardina-l healths-q2 Coldwell, E Glenn, B. (2011, November 8).Cardinal health looks to build china business, but has long way to go Our commitment. (2011). Retrieved from http://www.cardinal.com/us/en/AboutUs/ Commitment Our history. (2011). Retrieved from http://www.cardinal.com/us/en/AboutUs/OurHistory Pearce, J Walker, M. (2011, October 4).Cardinal health – developing effective high potential talent management programs Wharton asia business conference - keynotes (2011). Retrieved from http://www.whartonasiabusinessconference.com/keynote/