CVS Health Corporation – A Company Analysis
After reading assigned chapters, as well as the Guide to Case Analysis , Research and Writing Requirements, and Ratio Analysis Table in the Week 2 Course Content, students should then create a company analysis of CVS Healthcare.
The student must do original research on CVS Healthcare corporation. (https://investors.cvshealth.com/investors/financial-information/default.aspx). A minimum of 5 completely different and credible sources are required and NO SOURCE CAN BE OVER 1 YEAR OLD (older sources will not count for this part of the assignment requirements). Students are encouraged to use more than the 5 current sources. References without in-text citations to them will be counted for the submission.
When writing this paper students cannot use a source more than 2 times in a row for a paragraph (see Fundamental Writing Issues in the Week 2 Writing sub-module for this and further tips). In this example the third usage or sentence in a row will be considered plagiarism and the entire submission will receive a zero. All assertions that students make must be supported in this submission and accompanied by an in-text citation to a reference listed source. If you do not support your analysis and recommendations using appropriate citation the entire submission will receive a zero. High similarity scores in Turnitin will also receive a zero.
Students need to answer the following questions in their company analysis:
1. Chapter 1 – 4
Identify the specific methods CVS Healthcare Inc is using to enable their strategy and explain how it has evolved over the past couple years. Do they have a winning competitive strategy for their industry or not?
2. Chapter 4 *See Ratio Analysis Table*
You are to apply five types of ratios (i.e. profitability, liquidity, leverage, activity, and market) and consider past three years in this analysis. Conduct further research on this company and their industry in order to get their most recent financial reports. Students need to select and calculate at least five (5) financial ratios, one from each of the five different types or subgroups, to assess how well the CVS Healthcare strategy is working compared to two major competitors. Students must clearly show their work for these calculations and explain how these results impacted understanding of whether their strategy is winning or not.
3. Chapter 5
Examine the five competitive strategy options (low cost, broad differentiation, focused low cost, focused differentiation, and best cost). Which strategy does CVS Healthcare use? Provide at least 3 decisions that the company uses that explains your strategy choice. In competitive situations sometimes companies need to change their strategy. This may happen to your company in the simulation. Indicate at least 3 key decisions that would be needed to move CVS Healthcare to two different strategies. For example, lets say you determined they currently use a low cost strategy. What specifically should the company implement to move to say a best cost and/or focused differentiation strategy?
4. Overall
Considering your research and analysis from Question 1 through 3, what specific recommendations would you make to CVS Healthcare Board of Directors to improve their competitive position? Be specific with at least 3 strategic improvements (consider financing, marketing, and operating decisions), the estimated impact they would have on the companys goals/objectives, and prepare a plan to implement the recommended improvements over the next year.
These company questions require students to evaluate how to apply the Chapter 1, 2, 3, 4 and 5 reading in the company analysis. Students need to apply the Guide to Case Analysis concepts and Research and Writing Requirements in their research and answers to these questions. This submission requires an APA paper with all sources cited and referenced appropriately using credible and current research
