Transcript Long Term Objectives and Strategies

MT460 Management Policy and Strategy
Final Assignment: Cardinal Health
Learner: Jeremiah LaPlante
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Introduction
Company Background
Company Vision & Mission Statements
Leadership and Organizational Culture
Corporate Social Responsibility, Business Ethics, and Policies
Empowering Action
External Analysis (Opportunities and Threats) and Global Environment
Internal Analysis (Strengths and Weaknesses), Strategic Control, and
Continuous Improvement
Innovation and Entrepreneurship
Strategic Analysis and Choice
Generic and Grand Strategies
Long-Term Objectives and Strategies
Short-Term Objectives, Functional Tactics, and Implementation
Restructuring, Reengineering, and Refocusing
Conclusion
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Who is Cardinal Health?
Pharmaceutical and medical Device
distributor
Began as Cardinal Foods in 1971
Over 34,000 employees
Manufacturer of generic labeled medical
products.
Earnings in the Billions Annually
Company Background
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Founded by Robert D. Walter in 1971 in Columbus Ohio as a small
food distributor
In less than 10 years became a prominent regional food distributor
branched out into Pharmaceutical distribution in 1979 when they
purchased a drug distributor and became known as Cardinal
Distribution.
In 1983 Cardinal Health went public and over the next ten years
acquired over a dozen of small US drug distributors.
Company Background Continued.
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In 1988 they sold off the food distribution but at the same time had
doubled in size the medical distribution arm, compared to their food
distribution company.
Exceeded sales in 1991 over $1 billion with a nationwide presence.
By 1994 Cardinal Health had established itself as the nationwide
leader in drug distribution with over $6 billion in annual revenues
(CardinalHealth, 2015).
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Company Vision: 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.
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CardinalHealth’s Mission statement: Our mission is to:
Identify, attract, and retain the best talent from each group.
Create a workplace where all talent can perform at its best.
Assess/ understand the diversity of your marketplace
 Ensure We are responding and aligning to our customers
 Ensure our customers see themselves in our vision, action and
workplace.
◦ Use External contributions to eliminate disadvantage and
increase the diversity of the talent pool (CardinalHealth,
2015).
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George S. Barrett- Chairman and Chief Executive
Officer
Nick Augustinos -Senior VP of Health
Information Services and Strategy
Donald Casey Jr.- Chief Executive Officer,
Medical Segment
Craig Cowman- Executive VP of Global Sourcing
Joseph DePinto- President Cardinal Health
Specialty Solutions
Mike Duffy- President, Medical Products
Brian Ellis- Executive VP of Enterprise Corporate
Accounts & Strategic Accounts Teams
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Steve Falk- Executive VP, & General Counsel &
Corporate Secretary
Meghan M FitzGerald- President, Specialty
Solutions
Jon Giacomin- Chief Executive Officer,
Pharmaceutical Segment
Steve Inacker- President, Hospital Sales &
Services
Mike Kaufmann- Chief Financial Officer
Craig Morford- Chief Legal Compliance Officer
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Patricia Morrison- Executive VP, Customer
Shared Services, Chief Information Officer
Tiffany Olsen- President, Nuclear Pharmacy
Services
Bill Owad- Senior VP, Operational Excellence
Michael Petras- President, Cardinal Health at
Home
Carole Watkins- Chief Human Resources
Officer
◦ CardinalHealth believes that patients lives depend on
them doing what they say they will do using accuracy,
quality, integrity and the necessary urgency.
◦ They believe doing what is right will create value for all
stakeholders.
◦ Collaborate with partners to provide superior service
and to improve healthcare around the globe.
◦ Cardinal uses their assets, expertise and influence to
make the local communities stronger and our world
more sustainable.
◦ Operate as a good corporate citizen staying in
compliance with all regulations required.
◦ Doing the Right Thing and making investments in:  Environmental sustainability,
 efficiency in the supply chain and products and services
offered,
 vital and healthy communities, and
 healthy diverse workplaces for the employees.
Opportunities
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Further Acquisitions
Expansion of the generic products market
Increasing ageing population
Emerging markets
International expansion
Threats
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More regulations
Retail pharmacy consolidation
Increasing strong competitors
Cost control measures
Strengths
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Large Scope of Operations
Technology
Market leading position
Wide array of products and services offered
Weaknesses
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Large Dependence of the US market
Product Recalls
Weak customer services
Innovation is creating something that doesn’t
currently exist (Pearce & Robinson, 2013).
 for Cardinal to innovate they would need to
acquire new firms
 Employ people to develop new ideas
 At least moderately new to the market
 Meets a customer want or need in the market
 Supports the company mission
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The combination of long term objectives and
a grand strategy defines the strategic analysis
(Pearce & Robinson, 2013).
 International expansion
 Concentration on emerging markets
 Expansion of generic medical products.
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Suggested generic strategy:
 Continued development of generic medical
devices
 Find more ways to reduce cost to customers
 Improve upon web-based services (ordering
systems)
 Improve brand appeal to reduce competition
impact
Grand Strategy suggestion:
 Increase international market expansion
 Improved marketing to promote brand
worldwide
 Focus on emerging markets like Asia.
 Use strength of generic low cost medical
devices for expansion
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To become the worldwide leader of medical
products and drug distribution
To be considered the low price leader in the
industry
Brand recognition globally
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Focus on Emerging markets like Asia
Acquire more international firms to have
local presence sooner
Establish international partnerships to
improve brand appeal to new markets
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Changing marketing to include international
markets.
 Translated brochures in local languages
 Product instructions in all languages
 Local advertisements in periodicals and online to
attract international clients
 Hiring of sales representatives to develop the new
markets.
 Locate locations for easier distribution to new
markets
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Employ local management for international
sales
Empower local management to make final
decisions
Improve web-based ordering system to
include international abilities
Care model changing from hospital based to
outside in more efficient models and need to
capitalize on this.
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So how will Cardinal Health Evolve?
Expansion to emerging markets
Acquisition of more international firms
Further growth in Asia by more acquisitions
Pearce, J. A., & Robinson, R. B. (2013). Planning for domestic & global
competition. (13th ed.). New York, NY: McGraw-Hill/Irwin.
Our commitment. (n.d.). Retrieved June 24, 2015,
from http://cardinalhealth.com/us/en/aboutus/commitment