Organizational Change Recommendations for CVS Health (Report)

This report analyzes the organizational changes required at CVS Health, formerly CVS Corporation and CVS Caremark Corporation. It assesses the current state of the healthcare company using SWOT, PESTLE, 7-S Framework, and Balanced Scorecard analysis to identify areas for improvement. The report explores the strengths, weaknesses, opportunities, and threats of CVS Health, along with political, economic, social, technological, environmental, and legal factors. It evaluates the company's strategy, structure, systems, shared values, skills, style, and staff using the 7-S framework. The Balanced Scorecard is used to assess the company's performance from different perspectives. The report provides recommendations for organizational changes, including proposed alterations to the organizational structure, supported by independent research and critical analysis. Before and after organizational charts are included to illustrate the proposed changes and the reasons behind them. The report emphasizes the importance of innovation, caring, accountability, collaboration, and integrity in the competitive healthcare industry, particularly within CVS MinuteClinic.

Running head: ORGANIZATIONAL CHANGES
ORGANIZATIONAL CHANGES
Name of the Student
Name of the University
Author Note

1ORGANIZATIONAL CHANGES
Executive Summary
The aim of this paper will be to discuss the possible changes that CVS Health need to
perform with the reason for making these changes. Assessment tools like SWOT analysis,
PESTLE analysis, 7-S Framework and Balanced Scorecard will be used to describe the
present condition of this healthcare company, which will help to assess the changes required
along with identification of the areas and positions where the necessary changes will be
implemented after the approval of the owners and management. Recommendations for
changes will also be given here along with providing support for the proposals with
independent research and critical analysis. Before and After organizational charts will also be
presented as this will show the current management structure and how the change will be
proposed along with the reasons.

2ORGANIZATIONAL CHANGES
Table of Contents
Introduction................................................................................................................................4
About the Organization..............................................................................................................4
SWOT Analysis.........................................................................................................................6
Strengths.................................................................................................................................7
Weaknesses............................................................................................................................7
Opportunities..........................................................................................................................8
Threats....................................................................................................................................8
PESTLE Analysis.......................................................................................................................9
Political Factor.......................................................................................................................9
Economic Factor....................................................................................................................9
Social Factor...........................................................................................................................9
Technological Factor............................................................................................................10
Environmental Factor...........................................................................................................10
Legal Factor.........................................................................................................................11
7-S Framework.........................................................................................................................11
Strategy....................................................................................................................................12
Structure...................................................................................................................................12
Systems....................................................................................................................................12
Shared Values...........................................................................................................................13
Skills.........................................................................................................................................13

3ORGANIZATIONAL CHANGES
Style..........................................................................................................................................13
Staff..........................................................................................................................................14
Balanced Scorecard..................................................................................................................14
Present Organizational Structure..............................................................................................16
Need for Changes.....................................................................................................................18
New Organizational Structure..................................................................................................19
Recommendations....................................................................................................................20
Bibliography.............................................................................................................................21

4ORGANIZATIONAL CHANGES
Introduction
The main purpose of this report will be to discuss the possible changes that the
organization of CVS Health is looking for along with the reason for making these changes.
The present condition of the organization that has been selected will be discussed in this
paper first, so that it will be easier to state the reasons for change by the owners and
management of this healthcare institute. Assessment tools like SWOT analysis, PESTLE
analysis, 7-S Framework and Balanced Scorecard will be used to describe the present
condition of this healthcare organization, which will help to assess the changes required and
identify the areas and positions where the necessary changes will be implemented after the
approval of the owners and management. Recommendations for changes will be given in this
research paper along with providing support for the proposals with independent research and
critical analysis. Before and After organizational charts will also be presented here this will
show the current management structure and how the change will be proposed along with the
reasons.
About the Organization
CVS Health can be stated as Consumer Value Stores, which was earlier known as
CVS Corporation and CVS Caremark Corporation, and is an organization that owns CVS
pharmacy apart from CVS Caremark, a chain of retail pharmacies, a pharmacy benefits
manager, a provider of health insurance, Aetna and various other brands under the brand
name of CVS Health. The healthcare business was founded in the year of 1996, and is based
in Rhode Island. The wide array of services that are provided by this organization is provided
in almost 10,000 locations, and is from retail and healthcare industry. Apart from the entire
region of the United States, the market place where the services are offered is Puerto Rico.

5ORGANIZATIONAL CHANGES
Almost 295,000 employees are employed in this prestigious organization, which ranked as
number 1 in the category of Health Care pharmacy and Other services. It can be stated in this
context that healthcare services is one of the most competitive business industry among all
other business sectors that are present in this global business world. In the context of this
issue, it can be said that the management of this organization has successfully maintained the
flow of business operations in the market places of America and Puerto Rico. People from
different background and culture works in this healthcare institution and the management
efficiently handle this diversity in their workforce. In this context, it can be said that the
position of an employee will be taken into account in this paper, who works in CVS
MinuteClinic. There are more than 1,100 MinuteClinic locations in the market places of
America and Puerto Rico, which are engaged in high-quality and convenient care for
common and normal family illnesses, which includes flu, bronchitis, strep throat, minor burns
and cuts, bladder infections, insect stings, and many others (Cvshealth.com 2020).
Apart from this range of services, this unit of CVS Health also provides screening and
monitoring, vaccinations and injections and wellness and physicals. Screenings and
monitoring includes services like measuring cholesterol, blood pressure, body mass index and
glucose, which helps to record the numbers and maintain a good health in this daily busy live.
Vaccination and injections offer normal vaccinations for teens, children and adults, which
easily helps to safeguard all the family members. It can also be said in this context that
injection services are also available for prescription vitamin B12 and birth control, which is
very much important in this today’s modern world. Wellness and physicals involves help
with smoking cessation, camp and sports physicals and weight loss programs. Overall, it can
be said that the organization including this CVS MinuteClinic has led them to as one of the
most admired organizations among the world by Fortune magazine for fifth running year at a
stretch. This has helped the management of this healthcare institute to maintain the market

6ORGANIZATIONAL CHANGES
share in this global competitive healthcare market, which successfully attracts new people
apart from holding their existing customers and patients, and maintaining the revenue earning
from the places where they offer their services. Different strategies are thus followed by the
management of this healthcare institution.
Reinventing the pharmacy is the main strategy that is followed by CVS Health
through their CVS MinuteClinic and their wide array of services. The aim is to provide better
health facilities to the people present in the market place in their life path through the values
that are strictly followed by the management of this company, which are innovation, caring,
accountability, collaboration and integrity. As it has been already stated that healthcare
industry is one of the most competitive industries globally, innovation is one factor that plays
an integral part in the overall services that are offered by healthcare institutes like CVS
Health. But, to get this, some alterations in terms of organizational changes are required in
order to gain more competitiveness in the market places where they operate and to perform
the business operations more effectively and efficiently. Innovative offers always possess the
owner of attracting new people from the market place and they help to increase the customer
base for a particular organization. This will automatically increase the revenue earning for the
company along with increasing the market share for them (Cvshealth.com 2020).
SWOT Analysis
This assessment tool will help to assess the inner strengths and weaknesses of CVS
MinuteClinic in the context of providing the wide range of services that are provided by them
in the market places of Puerto Rico and America. Apart from this, the outer opportunities and
threats that avail in the healthcare business environment can also be evaluated by the help of
this framework. The overall evaluation of CVS MinuteClinic through this assessment tool is
given below:

7ORGANIZATIONAL CHANGES
Strengths
The CVS MinuteClinic is comprised of clinics situated at more than a thousand
locations. A very high-quality and convenient care is offered for even the smallest or most
common family diseases. The physicians and nurse practitioners follow only those clinical
guidelines that are nationally well recognized. Specialized health screenings and vaccinations
are provided which are also communicated to the primary care provider of the patient. The
clinics are open all the seven days in a week as well as no appointment is required for a
health checkup. New projects are well executed and good returns are generated on capital
expenditure with the development of latest tax systems. In addition to these, innovation of
new products, high standards of customer satisfaction and a chain of reliable raw material
suppliers also contribute to the strengths of this clinic.
Weaknesses
There are certain drawbacks of the CVS MinuteClinic as well. The first one is getting
the least success outside the chief business area. A lot of expense occurs during the
development of the workforce and providing training for the employees. The attrition rate is
higher as compared to the competing health service providers. They are also quite weak at
forecasting their product demands which results in the missing of a number of opportunities.
They are also not fully efficient in tackling the challenges given by the new entrants and has
thus lost several small market shares. Investment in the latest technologies is also required to
keep in pace with the vision of the company. The clinic also requires a proper and efficient
financial planning so that the organization is able to use the cash in a better and planned way
than what they are doing in the present scenario.

8ORGANIZATIONAL CHANGES
Opportunities
One of the eminent opportunities of the CVS MinuteClinic is the factor of aging
population that comprises of people above 50 years of age. This is almost one-third of the
total population in the US. The increasing affluence of the middle-class section in the society
facilitates the growth of such minute clinics. They also provide wellness contracts that are
long term based. Moreover, they have the facilities for undertaking a medical insurance. A
few government agreements like the free trade agreement have also helped to open up some
new markets. For the last few years, the organization has invested a huge sum of money into
the online platform. Thus has resulted in the opening of some sales channels which, in a few
more years, will be able to use large data analytics and fulfill their needs.
Threats
The growing number of local distributors presents a threat in the market. Also, the
increasing popularity of affordable and organized health services imposes a serious threat.
The pay levels are on a hike too. This can lead to a serious pressure on the profits earned by
the organization. The CVS MinuteClinic has produced a number of innovative products but
their supply isn’t regular. It results into a low and high swing of the sales market. In several
markets the company may face some lawsuits, as there are different laws and regular
fluctuations (Gürel and Tat 2017).

9ORGANIZATIONAL CHANGES
PESTLE Analysis
Political Factor
Since CVS MinuteClinic is operating on a large scale on over a dozen countries, it
gets exposed to several types of political environment as well as may face political risks.
There are certain factors that affect the organization. Before entering in a new market, they
should analyze the political stability in the economy of that country and the importance of
health plan sectors. Matters such as corruption levels in the healthcare sector, government
interference and bureaucracy in the health industry, pricing regulations and its mechanisms,
revenue rates and incentives, idea of minimum wage, compulsory benefits for the employees
should be analyzed closely.
Economic Factor
These factors are segmented into two categories – the macro factors like rates of
inflation, interest, foreign exchange etc. and the micro factors like competition regulations.
The organization must analyze what type of economic system prevails in the countries they
operate and its stability. For changing market dynamics, the Affordable Care Act needs to be
downsized in the US. The affectivity of the financial markets also demonstrates whether the
capital needs to be raised in local market for CVS MinuteClinic. Other factors such as the
quality of infrastructure in health care industries, comparative advantages of the host nation,
level of skilled employees, cost of labor and productivity, business cycle stages etc. must be
taken into consideration.
Social Factor
The culture of a society affects the culture of a company in an environment. The
behavior, attitudes as well as shared beliefs perform a major role in the way how marketers at
CVS MinuteClinic are going to understand the consumers in a particular market and how

10ORGANIZATIONAL CHANGES
they will design their marketing message. The ageing population of US has boosted expenses
on healthcare. Social analysis includes various factors such as hierarchy, power and class
structure of the society, skill level of people, demographics, standards and levels of
education, culture that involves social conventions and gender roles, level of encouragement
for entrepreneurship, consciousness for health and environment and leisure activities.
Technological Factor
The CVS MinuteClinic has already merged with Aetna for creating a strong
technological platform for customer health care. However, a clinical firm must allow gradual
advancement of technology and give sufficient time to cope up for profitable reasons. The
company must keep track of the latest technological developments by its competitors in the
market. Some other factors that should be taken into consideration are impact of technology
on product offering, effects of value chain and cost structure in the health care sector and the
rate at which technology gets diffused.
Environmental Factor
The profitability of CVS MinuteClinic is dependable on the several norms r standards
of the markets in an environment. Different states in a country have separate environmental
regulations and liability laws. Such as the states of Florida and Texas in the US have different
laws. Therefore, the company must consider a few environmental factors before venturing in
a new market. The factors include climatic changes of that area, weather, laws enacted upon
environmental pollution, recycling and waste management norms in the health care industry,
attitudes towards usage of ecological products and sustainable resources as well as
endangered species.

11ORGANIZATIONAL CHANGES
Legal Factor
CVS MinuteClinic must carefully evaluate the legal framework of a country and the
robustness of the institutions to safeguard the property rights prior entering a market. The
first and foremost aspect that should be considered by the company is the Anti-trust law of
the host nation as well as the health care industry. A few more factors to be analyzed are
copyrights or patents of property law, discrimination law, laws related to employment, health
and safety, protection of data and consumer or e-commerce (Ho 2014).
7-S Framework
It has been already stated that healthcare industry is one of the most completive
business sector and all the business houses are fighting against each other to gain the
competitive advantage over others. With almost 10,000 retail locations and 1,100 walk-in
medical clinics, the management of this healthcare institute is focused to serve a wide range
of services through their CVS MinuteClinic. It can be stated in this context that the
management of this organization strives for innovation, which helps them to enjoy the
leading position in the market place. It has been already discussed that reinventing the
pharmacy is the main strategy that is followed by CVS Health through their CVS
MinuteClinic and their wide array of services. The focus is to help the people to enjoy better
health in their life path through the values that are strictly followed by the management of
this company. All these services can be evaluated best by this assessment tool, which can be
described as follows:
Strategy
It has been already stated that reinventing the pharmacy is the main strategy that is
followed by CVS MinuteClinic. In this global world, it is important to follow innovative and

12ORGANIZATIONAL CHANGES
efficient strategy in order to sustain in this highly competitive healthcare market. Different
patients or customers will have different needs or demands which need to be identified and
fulfilled, so that the led can be maintained by them in the market place of America and Puerto
Rico where they serves the people. It can be stated in this context that the proper designing of
the strategy helps to flow the business operations in the market places where they serve the
customers effectively and efficiently.
Structure
The structure of an organization also helps to operate effectively and in a better way,
and this point can be states as the focal point of discussion in this topic. The organizational
structure or chart need to be changed for the unit of CVS MinuteClinic. This actually helps to
describe the company and its divisions and sub-divisions along with the bonding of the team
members, which helps to provide the wide range of services that has been discussed earlier in
this paper. Proper organizational structure helps to sustain in the market place, and this is the
issue which has been faced by the management of the organization and recommended
structure is required in order to avoid the challenges that are faced by CVS MinuteClinic in
America and Puerto Rico.
Systems
In this context, it can be said that the Operations department along with the financial
and human resource department are considered as the main systems who helps to run the unit
of CVS MinuteClinic. Apart from them, the medical system is the only system without which
the entire service that is provided by this unit would have no existence. Efficient management
systems help to provide treatment and care to the patients who are coming to CVS
MinuteClinic for medical purposes.

13ORGANIZATIONAL CHANGES
Shared Values
The purpose is to help the people to enjoy better health in their life path through the
values that are strictly followed by the management of this company. The values that are
followed by this healthcare institute are innovation, caring, accountability, collaboration and
integrity. It can be stated in this context that these shared values helps the management of
CVS MinuteClinic to maintain the leading position that is presently earned by them, and
various people are benefitted through their services.
Skills
The leadership skills that are used to handle all the services that are operated in this
unit helps to serve thousands of people, and this has led them to enjoy the leading position in
the market places where they serve. Apart from this, proper set of skills are required to offer
different kinds of people that are offered by the management of this unit of CVS
MinuteClinic. Skills play an integral part in medical industry as proper skills help to provide
effective and efficient medical services to the patients and help to avoid any kind of wrong
and untimed treatment.
Style
Leadership and management style that is followed by the management of this unit
helps to provide the services effectively and efficiently, so that the people can be treated with
proper attention and they get cured accordingly. As this falls under the emergency service, so
efficient leadership helps to come out for certain emergency issues and avoids any kind of
mishaps. Proper guidance and ability to take quick actions help to provide superior quality
services to the people who come to CVS MinuteClinic to avail their wide range of services.

14ORGANIZATIONAL CHANGES
Staff
Skilled employees are appointed in this organization who serves the customers in
different ways, so that each and every people who come to this unit can be treated with equal
and proper attention. But issues has been identified within the system and this has forced the
management including the Chief Executive Officer to make some alterations within the
organizational chart that will be discussed later in this paper. Trained staffs are required to
provide all the services efficiently, and this is the area where the management need to focus
and follow the recommendations according to the alterations in organizational structure of
this unit of CVS Health.
Balanced Scorecard
This can be treated as a performance management tool which is used to keep a track
by the managers on the execution of all kind of activities by the employees who are under
their leadership and control and also monitor the consequences that arise from all these
actions. It many include a performance management report which is used by a management
team of an organization, who are focused on managing at the overall implementation process
of an operational activity or a strategy.

15ORGANIZATIONAL CHANGES
From the viewpoint of the customers, it can be sad that CVS MinuteClinic is efficient
in providing the wife array of services that are provided by to the customers, whose concerns
are based on quality, time, cost and performance and service. The mission that is followed by
this healthcare unit of CVS Health possesses the power to safeguard the lives of the people
who avail their services in the region of Puerto Rico and the United states. Success rates need
to be measured on the satisfaction and cure of the patients. The financial performance of this
unit can also be judged on the overall affectivity of the services that are provided by them
CVS MinuteClinic. These will also help to gather the financial power or financial backup that
will help them to fight in this global competitive financial market. The internal processes also
help to follow a smooth workflow within the organization, and operational management plays
an important part in this context.
Being treated as an emergency service provider unit, smooth workflow is very
important here and the organizational structure also plays an integral part here, which is the
place where issues has been faced as challenges in CVS MinuteClinic, and organizational

16ORGANIZATIONAL CHANGES
structure need to be changed, whose details will be discussed later in this paper. The
organizational capacity also plays a vital part in case of a medical service provider unit like
this. The services need to be provided according to the capacity or ability of a medical service
provider company like CVS Health, so that efficient as well as effective services can be
provided to the needy people who comes to the unit of CVS MinuteClinic to avail different
kinds of healthcare facilities. Thus, it can be said that all the four perspectives helps to follow
the vision and strategy of CVS MinuteClinic which will only be possible through active
participation and approach of the management so that the data collected can be analysed
properly. This is the reason for referring balanced scorecard as a management tool rather than
a measurement tool.
Present Organizational Structure
In this context, it can be stated that CVS Health follows a cooperative M-form
organizational structure, where the organization is divided into various semi-autonomous
units, which ate controlled and guided by the centre. Here, CVS MinuteClinic is controlled
by the apex body of CVS Health, where the same brand name of Consumer Value Stores or
CVS is used by them. In this M-form structure, numerous divisions or subsidiaries are owned
and controlled by the higher authority of this healthcare service provider organization, which
includes CVS MinuteClinic as well as CVS Pharmacy, CVS Caremark and the Brazilian
subsidiary Drogaria Onofre. The head office is involved in designing the overall strategies
that ate required to run all these medical divisions, but are not responsible for the business
operations of these divisions. Apart from this, it can also be stared that this corporate
structure is cooperative in terms of the all its divisions in sharing of the information and
resources, for example physical space of the retail pharmacies shared with CVS MinuteClinic
clinics. Again, for example, information given in the prescription is shared between CVS

17ORGANIZATIONAL CHANGES
Caremark and CVS Pharmacy in order to streamline the operations in providing convenient
prescription filling and delivery services to its customers. The cooperative nature of this
corporate structure also helps to optimize fresh competitive advantages that can be created
through diversification of the overall present business that is performed in Puerto Rico and
the United States market places (Kossek et al 2014).
Within this M-form organizational structure, the corporate offices provide financial
requirements to all the subsidiaries or divisions, for example, financial targets for CVS
MinuteClinic to operate in a particular fiscal year. In this structural system, CVS Health has
Executive Vice Presidents who, along with the CEO, completes the corporate executive team
at headquarter. Apart from this, in this corporate structure, each of the division of the
company has a president, who possesses the position as an Executive Vice President in the
corporate executive team. For example, the president of CVS Pharmacy is also an Executive
Vice President of CVS Health Corporation (Jones 2013). This structure helps to establish the
various strategic implementations in the divisions of CVS Health where all the subsidiaries
are involved in different service providing operations. This organizational structure also helps
HEADQUARTER
CHIEF EXECUTING
OFFICER
MISSION CENTRE A
CHIEF EXECUTIVE
OFFICER
REGION 1 REGION 2
MISSION CENTRE A
CHIEF EXECUTIVE
OFFICER
REGION 1 REGION 2
MISSION CENTRE C
CHIEF EXECUTIVE
OFFICER
REGION 1 REGION 2
MISSION CENTRE D
CHIEF EXECUTIVE
OFFICER
REGION 1 REGION 2

18ORGANIZATIONAL CHANGES
in organizational flexibility in order to assure that each subsidiary or division accomplishes
their individual aims, objectives and business goals in the market places where the form
operates, where they have to compete with lots of other medical service provider
organizations and institutions in healthcare and retail pharmacy markets. CVS Health may
have the opportunity to diversify its businesses in order to gain the strategic position in the
market place of healthcare industry, which is, as discussed, is one of the most competitive
business industry among all other business industries that prevail in this global business
world, basis on the consideration that that diversification will be supported by the corporate
structure (Oyinlade 2018).
Need for Changes
Reinventing the pharmacy is the main strategy that is followed by CVS Health
through their CVS MinuteClinic and their wide array of services. The purpose is to help the
people to enjoy better health in their life path through the values that are strictly followed by
the management of this company. As it has been already stated that healthcare industry is one
of the most competitive industries globally, innovation is one factor that plays an integral part
in the overall services that are offered by healthcare institutes like CVS Health. But it has
been found that the operations that are followed in CVS MinuteClinic is not running
smoothly, mainly in their screenings and monitoring division, where issues has raised like
wrongly checking of the measurements while measuring cholesterol, blood pressure, body
mass index and glucose. Due to this, organizational structure needs to be changed in order to
provide correct measurements of the above said things. It can be noted in this context that
improper checking of these measurements may lead to wrong medication which may lead to
the death of a person on whom this would be provided. It has been found that innovative
offers always possess the power of attracting new people from the market place and they help

19ORGANIZATIONAL CHANGES
to increase the customer base for a particular organization. This organizational structure will
automatically increase the revenue earning for the company along with increasing the market
share for them (Mitkova 2014).
New Organizational Structure
After studying the issues that CVS MinuteClinic is suffering, the form of
organizational structure that need to be followed by the management of CVS Health is
functional organizational structure. This is the structure which can be used to organize the
workers properly. The workers will be identified through their specific skills and knowledge,
which can be implemented in the areas where it is required in CVS MinuteClinic (Ikinci
2014).

20ORGANIZATIONAL CHANGES
The screening and monitoring unit, where the issues have been identified by the
customers and patients, will be effectively handled (Tran and Tian 2013). Here, skilled
employees will work under each of the functional manager, for example, one manager will
look after the screening and monitoring division, one will look after the vaccinations and
injections and one will look after the wellness and physicals services. This division will help
to focus on the issues more closely and can be reduced by taking prompt actions, which will
help to overcome the challenges.
Recommendations
Innovation is one factor that plays an integral part in the overall services that are
offered by healthcare institutes like CVS Health. This helps to attract new people towards
them as well as retaining the old customers and patients of this institute. But, to get this, some
alterations in terms of organizational changes are required in order to gain more
CEO
FUNCTIONAL
MANAGER
FUNCTIONAL
MANAGER
FUNCTIONAL
MANAGER
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF

21ORGANIZATIONAL CHANGES
competitiveness in the market places where they operate and to perform the business
operations more effectively and efficiently.

22ORGANIZATIONAL CHANGES
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