Strategic Management in Health Corporation
14 Pages2948 Words65 Views
Added on 2020-04-29
Strategic Management in Health Corporation
Added on 2020-04-29
ShareRelated Documents
Running head: STRATEGIC MANAGEMENTStrategic managementName of the studentName of the universityAuthor Note:
2STRATEGIC MANAGEMENTTable of ContentsQuestion 1........................................................................................................................................3Question 2........................................................................................................................................5SWOT of General Electric...............................................................................................................8Table No 1- SWOT Table................................................................................................................8Question 3......................................................................................................................................10References......................................................................................................................................14
3STRATEGIC MANAGEMENTQuestion 1Dated October 27, 2015CVS Health Corporation makes more than $66 billion bid for AetnaUSA based CVS Health Corporation has made an official bid to acquire the No. 3 U.Shealth insurer Aetna Inc for a reported deal of $66 billion which will make the price each amountof share of the latter company close to $200. The deal if effectively falls in place will surely be agame changer in the health industry of the mentioned country. Healthcare tie ups will be apopular route for both the insurers as well as the pharmacies to make sure that the costs related tothe purpose of health are reduced somehow to make sure that they are affordable. A strategic tieup with the insurance company will be providing the much needed edge to CVS HealthCorporation (Peppard and Ward 2016). The deal between the two companies will also helpmillions of people who are the members of Aetna towards the retail pharmacies of CVS, walk inminute clinics and the specialized home services that will be easier for the company to have aclear focus on providing the best quality Health Service to the users of the service. The businessanalysts who are analyzing the following deal minutely as they have earlier predicted such asudden deal as because CVS had been running on a loss given its retail business. Thus themanagement of the company was in a pressure to adapt new strategies that would help them toturn over the current crisis (www.wsj.com). The following deal adds a lot of strategic value to the health care industry of USA. Themodern days has changed the way the companies as well as the clients or the customers perceiveabout the health industry. Often the companies have to go the extra distance to get close to thepatients and assure them about their presence all the times when needed. The insurers have been
4STRATEGIC MANAGEMENTwanting for closer relations that would be beneficial for them to manage the health care costs,negotiating drug prices with the suppliers of the country and many more as such. The financial aspect of the deal cannot be avoided at any cost as CVS Health Corporationhas offered a whooping sum of amount to the latter company. The price tag of $66 Million ishard to reject and a lot of different meetings with top officials of the company have revealed theprice tag of the company is the most suitable in economic terms as the price implies theeconomic importance of the mentioned deal in USA. The structural efficiency of the followingdeal would be beneficial for a huge reform in the health sector of the country. The peoplesuffering from health ailments can now easily avail a number of different health loans that areeasily supplied by the insurance companies to their respective clients.The decision of the management of CVS Corporation is surely a commendable step thatis to be undertaken by the organization in the form of making a staggering bid of $ 66 billionwhich is one of the most fascinating events to be happened in recent times given the deal falls inplace (Peppard and Ward 2016). The current trend of the market shows that CVS healthcorporation has been facing difficulties in managing its own set of operations. It will be tough forthe management to effectively make the following deal a success as because concerns are thereon the effective strategic management of the organization. The management of CVS will alsofeel the heat as because they have to fix, formulate, integrate and implement all the differenttypes of strategies and also manage both the business effectively. However the company mustcarry forward with such a huge deal to make sure that the company must take aggressivemeasures in marketing and their brand promotion.
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Company analysis of CVS Health Corporationlg...
|9
|1858
|19
Healthcare Marketing Review Analysislg...
|9
|1236
|17