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Mckesson Corporation: Competitive Environment Trends and Business Model Assessment

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Mckesson Corporation: Competitive Environment Trends and Business Model Assessment
McKesson Corporation: Competitive Environment Trends and Business Model Assessment
U07a1, DB8004 - Strategic Thinking and Innovation, Section 01

McKesson Corp: Competitive Environment Trends and Business Model Assessment
McKesson Corporation is largest health-care provider in the United States; as of 2011 it ranked as the third largest company in the state of California; where the company is headquartered. On the Fortune 500 list McKesson is ranked 15 (“Fortune 500,” 2011), McKesson consisted of several Strategic Business Units (SBUs).
McKesson’s SBUs are divided into two primary categories: Distribution Solutions and Technology Solutions. The Distribution Solutions service all 50 states and deliver pharmaceuticals to institutional providers such as hospitals and health care systems; and also distributes to retail pharmacies; physician offices, surgery centers, long-term care facilities, and home care businesses. McKesson Canada, which is a part of McKesson, is a leading distributor in Mexico via its equity holding in Nadro. McKesson Distribution Solutions consist of the following SBUs (McKesson, n.d.):
• McKesson Medical-Surgical
• McKesson Patient Relationship Solutions
• McKesson Pharmaceutical
• McKesson Pharmacy Systems
• McKesson Specialty Care Solutions
• Moore Medical
• Plasma and BioLogics
• Zee Medical
McKesson Technology Solutions consists of software, services and consulting to hospitals, automation, imaging centers, physician offices, home health care agencies, and payors. The Technology-Solutions of McKesson Provide an avenue to improve health care safety, manage revenue streams and resources, and reduce the cost and variability of health care. . McKesson Technology Solutions consist of the following SBUs (McKesson, n.d.):
• McKesson Automation
• McKesson Health Solutions
• McKesson Provider Technologies
• RelayHealth
McKesson is one of the most successful companies in its industry in the United States. From a


References: Acur, N., & Bititci, U. (2003). Managing strategy through business processes. Production Planning & Control, 14(4), 309. Retrieved from EBSCOhost. Fortune 500: 15. McKesson.  (2011). Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/2219.html Haugh, H. M., & Talwar, A. (2010). How Do Corporations Embed Sustainability Across the Organization?. Academy of Management Learning & Education, 9(3), 384-396. doi:10.5465/AMLE.2010.53791822 Leveraging Business Intelligence for Revenue Improvement. (2008). hfm (Healthcare Financial Management), 62(8), 1-8. Retrieved from EBSCOhost. McKesson. (n.d.) McKesson About 2BU Our 2BU Company Businesses 2BBusinesses. Retrieved August 20, 2011, from http://www.mckesson.com/en_us/McKesson.com/About%2BUs/Our%2BCompany/Our%2BBusinesses.html Raynor, E. (2007). Developing the Performance Culture at McKesson Medical-Surgical. Organization Development Journal, 25(4), P19-P25. Retrieved from EBSCOhost. Smith, C. (2006). Distributor CEO extends reach from hospital bedside to the home. Healthcare Purchasing News, 30(9), 16-21. Retrieved from EBSCOhost.
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