Challenges and Changes in McKesson Corporation: A Business Management Perspective

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
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1BUSINESS MANAGEMENT
Introduction
The management of organizations helps in improving the position of the business in the
international markets. The discussion will be focused on understanding the background of
McKesson Corporation and the challenges that are faced by the same. On the other hand, the
discussion also enumerates the different changes that might be undertaken by the same in order
to mitigate the challenges. The different resistances that might be faced by the organization while
undertaking the changes is also enumerated.
Background of McKesson
The concerned company, McKesson Corporation, is an American company that aims at
distributing pharmaceutical products and undertakes systems relating to health information
technology and care management tools. The organization came into existence in the year 1833
and thereby undertook different innovative methods in order to sustain in the competitive
markets. The revenues of the organization were around $198.5 billion computed by the end of
the fiscal year 2017 (Nenni, Giustiniano & Pirolo, 2014). It portrays the sustainable functioning
of the business in the competitive markets. The organization is aimed at providing extensive
network infrastructure for the health care industry.
Challenge faced by the organization
The growing needs of the healthcare industry in providing economic medical facilities to
the patients is one of the major challenge that is faced by the organization due to rising cost of
the raw materials (Khanna, 2012). Exorbitant rise of the drug prices has affected the
development of the pharmaceuticals, which is based on the assessment of the diverse needs of
the patients. The accounting, inventory and operations management departments of the