CVS Case Study Final
A Strategic Management Case Study on
CVS Caremark Corporation
By: Carter Vaillancourt, Megan Land, and Emily
Michaud
UMFK
Company Overview
•A brief history of CVS
•Existing Mission and
Vision
•Existing Strategies
•New Mission and Vision
Overview
External Assessment
•Industry Analysis
•Opportunities and
Threats
•EFE Matrix
•CPM Matrix
Internal
Assessment
•Organizational Structure
•Strengths and
Weaknesses
•Financial Condition
•IFE Matrix
Strategy
Formulation
•SWOT Matrix
•Space Matrix
•Grand Strategy Matrix
•Matrix Analysis
•QSPM Matrix
Evaluation
Balanced Scorecard
CVS Caremark Update
Implementation
•Projected Financials
Strategic Plan for the Future
•Objectives
•Strategies
Company Timeline
The CVS name was used for the first time in 1964.
That year, they had 17 retail locations, and 40 stores only five years later
1960s
1970s
By 1974, CVS had 232 stores and sales of
$100 million
The chain had more than 400 stores by 1981.
Sales reached $1 billion in 1985, partly due to the pharmacies being added to many of
CVS's older stores
1980s
1990s
In 1994, CVS started PharmaCare
Management
Services.
In 1999, CVS acquired Soma.com, the first online pharmacy, and renamed it
CVS.com
In 2004, CVS purchased 1,268
Eckerd drug stores and Eckerd
Health Services, a PBM/mail-order pharmacy business, from J.
C. Penney
20002005
20062010
On November 1, 2006,
CVS announced that it was entering into a purchase agreement with Nashville-based
Caremark Rx Inc., a pharmacy benefits manager On August 12, 2008, CVS
Pharmacy announced that it would acquire
Longs Drugs for $2.9 billion CVS Caremark Segments
2010 CVS Caremark Retail Segment Revenue
Break Down
2009
2010
Existing Vision Statement
We strive to improve the quality of human life.
Existing Mission Statement
We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers. Existing Strategies
• Use Minute Clinic locations and
CVS Caremark Corporation
By: Carter Vaillancourt, Megan Land, and Emily
Michaud
UMFK
Company Overview
•A brief history of CVS
•Existing Mission and
Vision
•Existing Strategies
•New Mission and Vision
Overview
External Assessment
•Industry Analysis
•Opportunities and
Threats
•EFE Matrix
•CPM Matrix
Internal
Assessment
•Organizational Structure
•Strengths and
Weaknesses
•Financial Condition
•IFE Matrix
Strategy
Formulation
•SWOT Matrix
•Space Matrix
•Grand Strategy Matrix
•Matrix Analysis
•QSPM Matrix
Evaluation
Balanced Scorecard
CVS Caremark Update
Implementation
•Projected Financials
Strategic Plan for the Future
•Objectives
•Strategies
Company Timeline
The CVS name was used for the first time in 1964.
That year, they had 17 retail locations, and 40 stores only five years later
1960s
1970s
By 1974, CVS had 232 stores and sales of
$100 million
The chain had more than 400 stores by 1981.
Sales reached $1 billion in 1985, partly due to the pharmacies being added to many of
CVS's older stores
1980s
1990s
In 1994, CVS started PharmaCare
Management
Services.
In 1999, CVS acquired Soma.com, the first online pharmacy, and renamed it
CVS.com
In 2004, CVS purchased 1,268
Eckerd drug stores and Eckerd
Health Services, a PBM/mail-order pharmacy business, from J.
C. Penney
20002005
20062010
On November 1, 2006,
CVS announced that it was entering into a purchase agreement with Nashville-based
Caremark Rx Inc., a pharmacy benefits manager On August 12, 2008, CVS
Pharmacy announced that it would acquire
Longs Drugs for $2.9 billion CVS Caremark Segments
2010 CVS Caremark Retail Segment Revenue
Break Down
2009
2010
Existing Vision Statement
We strive to improve the quality of human life.
Existing Mission Statement
We provide expert care and innovative solutions in pharmacy and health care that are effective and easy for our customers. Existing Strategies
• Use Minute Clinic locations and