In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.
Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a six to eight (6-8) page paper in which you:
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation's most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
You MUST use the REQUIRED template.
Running Head: McKesson 1
Running Head: McKesson 8
Week 3 Assignment 1
Lisa C Donovan
BUS 499 Business Administration Capstone
July 21, 2019
Week 3 Assignment 1
McKesson is an American Corporation that engages in the distribution of medical supplies and information technology. It is one of the largest and oldest healthcare providers in the United States, with its operations in more than 16 countries. McKesson considers the provision of quality healthcare a priority. Their vision is to improve care through one product, one patient one partner at a time. The company is dedicated to making this happen by ensuring that they touch on every aspect of healthcare. The company has approximately 78,000 employees who consolidate their efforts to make it possible to provide quality care for their patients in different parts of the world. McKesson believes that high-quality care can be made possible through the provision of the right technology, products, and resources that are needed to reduce operational costs and enhance patient health (McKesson, n.d.). Despite being the largest distributor of pharmaceutical products, McKesson has managed to provide some of the largest networks in the healthcare industry. It is one of the companies that embrace the use of technology such as bar codes in the distribution of its products and has incorporated the automation of pharmacies.
Globalization has affected different sectors of modern life, including the pharmaceutical industry. It is one of the critical drivers of the growth that has been evidenced in the McKesson Company. It is the reason why the company has moved towards the development in other countries that show higher business opportunities (Lawrence, A., & Weber, 2014). Currently, the company operates in more than 13 countries in Europe, where it has a total of 38,000 employees (McKesson (n.d.). It has also established businesses in the United States, Australia, Canada, and New Zealand, among others. In a bid to improve service delivery, the company has partnered with care providers, biopharma companies, manufacturers, and the government to deliver quality healthcare services and medical products in a safe and cost-efficient manner.
Technology has also played a considerable role in the manner that McKesson executes its operations. It is amongst the few pharmaceutical companies that have embraced the use of technology in its business operations, an aspect that has enabled the company to benefit from competitive advantage. The organization advocates for the purpose of technology in the health industry; in a bid to incorporate different strategic initiatives with the ability to transform service delivery to its clients. The application of technology in an innovative manner has made a massive contribution to its success and has helped it to create an edge over its competitors. The company provides solutions in healthcare information technology, which have improved service delivery with its partners.
Industrial Organization Model
The industrial organization model is about identifying the environment in which a business operates and explaining different outside the company with the ability to affect its profitability. According to 2019, the five forces of competition in the industrial model are an organizational strategy, employee skills, industry, external environment, and available assets. These five forces can be applied by McKesson’s management to implement different strategies that would make it easy for the organization to earn the expected above-average returns. The company should gather information about its competitors to identify those that earn above the average returns and strategize the most efficient move that will help them to make above-average profits. In order to implement this strategy successfully, the company’s management should ensure the availability of the required assets and skills, to help them match the standards of the selected company.
McKesson can apply a resource-based model to carry out an in-depth analysis of its top competitors to identify their uniqueness in their operation. The management of McKesson should identify the resources that they can utilize for them to earn returns that are above average. It should evaluate the weaknesses and strengths of the top competitors to identify what it can do best to create an edge over its competitor. According to Hoang & Rothaermel (2016), it is indispensable to determine different capabilities that the company can utilize in order to do better than its competitors. After analyzing its resources and capabilities, McKesson should lay strategies it can use to create a competitive advantage against its competitors in a bid to earn above-average returns. In order to earn above-average returns, McKesson management should adopt the resource-based model as opposed to the industrial organization model. The resource model is better because it focuses on the company’s strengths and weaknesses and in their ability to gather viable resources to benefit from competitive advantage.
Mission and Vision Statement of McKesson influence its success
The mission and vision of every business are a reflection of its strategies that are summarized in a simple manner. The clarity of its strategies determines how successful an organization will be. This is because; strategies determine how well tasks are executed, company goals, and employee motivation. According to (Rothaermel, 2015), the vision statement defines what the company would want to achieve or accomplishments in a certain period of time. It helps an organization to create an image of its destination while motivating its employees. The mission statement stipulates what the business does and how it plans to conduct its business to achieve its goals.
McKesson’s mission statement shows that the company believes in the power of partnerships in that they are pertinent to achieving high-quality care. It values the contribution of its partners and stakeholders in their journey to provide high-quality care. The company provides technology, products, and resources to its stakeholders in order to operate efficiently. It seeks to collaborate with its partners and other stakeholders to enable them to provide high-quality services while improving efficiency, cutting on costs, and enhancing quality (Hitt et al. 2013). Its success can also be attributed to its ability to establish intelligent networks that enable its customers to receive quality healthcare services.
McKesson’s vision is to improve the provision of care one step at a time through its products and partners. It intends to achieve this by gathering different medical resources, including process expertise and clinical knowledge, in order to lower the costs of its products and services. This vision has made it possible for most consumers to access high-quality healthcare services at an affordable cost. Its vision provides a platform upon which they make the organization’s difficult decisions, try out new ideas, and take risks which are directed towards achieving satisfaction for its consumers. The company leaders have established a strong and sustainable future for the healthcare industry. Its vision statement serves as the foundation upon which its mission is founded by emphasizing on the importance of working with like-minded partners in the industry.
Impact of Internal stakeholders on the success of the corporation
Stakeholders are individuals with the interest in the operation of the organization and are affected directly when something negative or positive happens to the organization. Stakeholders can be classified as either internal or external stakeholders. At McKesson, internal stakeholders are those with direct influence on the operation of the business, including the investors, owners, managers, and employees. Employees affect the company’s success directly through the provision of quality services (Hitt et al., 2013). McKesson ensures that they are well paid and are allocated duties depending on their ability to execute, which increases company efficiency. Managers ensure that the company operations run as expected without any interruptions. The management ensures that company operations are executed with any interruptions and that the quality of its products is not compromised. Company investors have also contributed to the company success by providing the capital needed to run the business and produce high-quality products.
Impact of External stakeholders on the success of the corporation
McKesson’s external stakeholders also have had an influence on the company’s success. Although they don’t work in the company, the company actions and decisions often influence them directly. Unions, the government, suppliers, and customers have influenced the level of success in McKesson. The relationship the company has with its external stakeholders affects its success in that some own shares. The company’s ability to provide its customers and suppliers with quality products has enabled it to develop a loyal customer base, which has contributed to its success directly (Hoang, & Rothaermel, 2016). Through allegiance to government rules and regulations, the company has managed to operate and execute its functions with ease. The government has supported the business’s existence through the provision of security and amenities in order to enhance their ability to pay for taxes. Shareholder’s interest in company shares has enabled the company to invest in high-quality products in order to remain profitable in the long run.
McKesson is a pharmaceutical company that works to promote the provision of healthcare through the protection of the environment, creation of sustained, and provision of support to the communities. It is among the oldest pharmaceutical companies in the United States that have maintained its success over the years. Its growth can be attributed to its dedication to high-quality products and services to its consumers. Globalization and technological changes have enabled the company to gain a competitive advantage over its competitors. The ability to execute its operations in line with its vision and mission statements has enabled the company to achieve success in the industry. Distinct divisions in the company have continued to enhance profitability in the company an aspect that have enabled the company to make more acquisitions in a bid to enhance its operations and increase its market share.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic Management: Concepts and Cases: Competitiveness and Globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
Hoang, H., & Rothaermel, F. T. (2016). How to manage alliances strategically. MIT Sloan Management Review, 58(1), 69.
Lawrence, A. T., & Weber, J. (2014). Business and society: Stakeholders, ethics, public policy. Tata McGraw-Hill Education.
McKesson (n.d.). Making Better Care Possible. McKesson. Retrieved from https://www.mckesson.com/about-mckesson/
Running head: BUS 499 BUSINESS ADMINISTRATION CAPSTONE 1
BUS 499 BUSINESS ADMINISTRATION CAPSTONE 6
Week 6 Assignment 2
Lisa C Donovan
BUS499 Business Administration Capstone
August 10, 2019
Week 6 Assignment 2
McKesson is an international company that deals with the distribution of medical supplies in the United States. The company’s main priority is to provide quality healthcare and to improve care through one product and one patient at a time (Clemons & Row, 1988). In line with McKesson Corporation, the paper will provide the company’s general environment and analyze the company with relation to the five forces of competition. It will also undertake the company’s SWOT analysis and identify strategies to improve on the company’s opportunities, threats, strengths, and weaknesses.
The two segments of common environment that rank the highest with regards to McKesson is technology and environmental sustainability. These segments have been crucial towards the company’s success. McKesson Corporation believes that communities can thrive best in a healthy environment, the reason why they are sharpening their focus towards environmental sustainability. The company has established new practices across the business that are meant to capture the most critical metrics and act on recommendations that facilitate a healthy environment. In a bid to achieve this and lessen the carbon footprint, the company has increased the use of LED lighting where it has cut the footprint of carbon and reduced emissions significantly (Clemons & Row, 1988). The promotion of fuel efficiency is essential considering the company is focused on the transportation and distribution of its products.
Technology is an essential segment in the growth of the corporation. McKesson is a provider of healthcare information technology solutions and associates with other organizations and pharmaceutical providers to provide the right kind of medication and healthcare services to patients in a timely, safe and cost-effective manner. The company’s business solutions often develop and install healthcare IT system for physicians, hospitals, and imaging centers which increases its scope of service delivery. The company is well known for providing extensive infrastructure for the healthcare sector and is an early adopter of various technologies such as RFID and pharmacy robotics among others. This segment has created business for the company owing to the fact that technology is evolving rapidly and is a requirement for most organizations.
Five Forces of Competition
Porter’s five forces is a tool that is often used in the assessment of the industry with relation to a particular company. In this case the company of interest is McKesson. The forces of interest are suppliers’ bargaining power, buyers’ bargaining power, and threat of substitutes, rivalry and barrier to entry (Porter, 2008).
Item 1: New entrants
New entrants into the industry often act as a source of pressure to the company (Porter, 2008). McKesson experiences weak barriers to entry owing to the fact that the medical industry doesn’t limit entry but rather regulates the quality of entrants. As a result, new entrants have been introducing new types of innovation which has caused the company to experience pressure in terms of reduced costs of particular products and services. Customers have also been provided with new value propositions and new entrants have been provided with low costs of products. This threat is important in that the company will be required to innovate new products in order to maintain its current market share while still ensuring that it appeals to the demographics in the new population. In addition, the firm will need to build on its economies of scale in order to reduced fixed cost per every unit. This is essential in that it will provide the firm with the room to reduce its prices when put under pressure by entrants. This will necessitate the company to undertake extensive research and development in order to redefine the company dynamics with much ease. This will enable the company to create barriers to new entrants since new firms will have a hard time when competing with the company.
Item 2 Rivalry
Rivalry between McKesson and its competitors such as AmerSourceBergen has increased in the recent past exponentially. Michael explains that when the intensity of rivalry is on the rise, prices are often driven down by the profitability which lowers that of the entire industry (Porter, 2008). This is one of the reasons which have facilitated the company’s diminished return on the assets ratio. The industry that McKesson operates in has experienced high levels of competition such that competing with other firms for a long time has had a significant toll on the company’s profitability in the long term. This force is important in that it has necessitated the need for McKesson to create sustainable differentiation of its branding and its products. The firm must also enhance its scale in order to compete at an advanced level particularly in the international market.
In the recent past, McKesson has shown its ability to address the threat of new entrants by developing brand loyalty by working on its customer relationship continuously. The company has also invested in various development and research activities which have provided the company with valuable data and innovative products which have established a strong basis of differentiation from its competitors. With regards to rivalry, the company has focused on the fulfillment of customer needs which has strengthened its foundation and differentiated from other companies. It has also created long-term relationships with its customers which has created an edge above its competitors.
In the future, McKesson can deal with rivalry and the threat of new entrants by focusing on the implicit needs of its customers. It should work hard to meet the expectations of its clients in order to strengthen its foundation and create a competitive edge in the market. The company should also collaborate with its competitors to establish mutually beneficial grounds for the companies in the industry.
External Threats and Opportunities
McKesson’s SWOT analysis shows that the company has a strong market for its generic medication and has taken into consideration the health needs of the ageing population. The agenda of the public policy also supports access to quality healthcare solutions which gives the company a higher margin in the industry (Bartusková & Kresta, 2015). However, the company is faced with the threats of there being changes in the legal aspect of company’s healthcare business. There is also the threat of having other software companies making an entrant into the industry thus increasing competition.
Threats and Opportunities Strategies
The greatest opportunity is that the company has a wide market for its medication. The company should invest market research in order to understand and meet the needs of its customers. Having a wide market for its products has separated it from its competitors and given it an edge in the market (Hitt et al., 2013). The greatest threat is the possibility of having the entry of new software companies which could increase competition in the industry (Bartusková & Kresta, 2015). This would require the company to invest in increase research and product development in order to remain in business.
Strengths and Weaknesses
McKesson has a competitive edge over its competitors owing to the fact the company has a total of 36,000 employees and a customer base that is bigger than 100000 physician customers. Besides, the company has a strong position of liquidity and international offices in various parts of the world including France, Ireland, the UK and Netherlands (Muñoz et al., 2016). However, the company is faced by weaknesses that affect its ability to achieve stipulated objectives. For instance, legal complications that are involved in drug testing and high dependence on restricted business segments could affect its growth potential.
McKesson should take advantage of its employee and the huge customer base by ensuring that the employees are well compensated. The customers should also be provided with quality products to enhance customer loyalty (Manteghi & Zohrabi, 2011). The company should also expand its boundaries to other parts of the world in order to handle the problem brought about by restricted business segments.
Resources, Capabilities, and Core Competencies
The resources, core competencies, and capabilities are anchored on the company’s ability to promote sustainability and provide quality products (Hitt et al., 2013). The company’s core competency is the ability to provide essential technical solutions and to meet the needs of its customer base. The company has a huge base of qualified employees who help to provide quality products. It also serves a wide scope of customers and benefits from a competitive edge above its competitors which provides the company with the required resources to engage in the market.
Bartusková, T., & Kresta, A. (2015). Application of AHP method in external strategic analysis of the selected organization. Procedia Economics and Finance, 30, 146-154.
Clemons, E. K., & Row, M. (1988). McKesson Drug Company: A case study of Economost–a strategic information system. Journal of Management Information Systems, 5(1), 36-50.Retrieved from https://www.tandfonline.com/doi/abs/10.1080/07421222.1988.11517815
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
Manteghi, N., & Zohrabi, A. (2011). A proposed comprehensive framework for formulating strategy: a Hybrid of balanced scorecard, SWOT analysis, Porter's generic strategies and Fuzzy quality function deployment. Procedia-Social and Behavioral Sciences, 15, 2068-2073.
Muñoz, R. M., de Pablo, S., Jesús, D., Peña, I., & Salinero, Y. (2016). The effects of technology entrepreneurship on customers and society: A case study of a Spanish pharmaceutical distribution company. Frontiers in psychology, 7, 978.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 78-93.
Week 8 Assignment 3
Student Full Name
BUS499 Business Administration Capstone
Dr. Grizzell, Dr. Gardner
Everything in Blue below should be deleted
Due Week 8 and worth 150 points
Using the corporation you chose from Assignment 1, examine its industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. NOTE: Be sure to read Chapters 1 – 10 in the course textbook and complete the LEARN E-Activities for Weeks 1-8 as they set the foundation to this assignment. Be sure to cite your sources! Begin your paper on Page 2 and write a minimum of six (6) pages (does not include Title or Source pages).
Week 8 Assignment 3
Write your brief introduction here: It should not be more than 1 good paragraph (about 5 complete sentences) to introduce the reader to your topic and it should explain in detail what your paper will be discussing. Much of your introduction may be taken from the assignment itself (in your own words). Read the scenario to get a feel for what the paper is about and explain what your paper will be discussing – so be sure to review the Assignment instructions AND Rubric for understanding. Finally, please ask me any questions about this assignment.
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice (Note: in this step you need to choose and write about only one (1) business-level strategy from the text book (not Google). Justify your opinion. For background, be sure to research and explain the industry in which your selected corporation operates. You could also briefly (1 – 2 sentences) define the business-level strategy (cite your sources) you are writing about using the textbook/Learn, as an introduction to your analysis. Read Chapter 4 in the course textbook. Review the Week 4 Learn video/Lecture for supporting content. In this section, you will want to research and identify the core competencies of your chosen firm. Demonstrate from your research how the firm uses its core competencies to create and sell its products in the marketplace. What actions & choices has the firm made to compete in individual product markets? Hint: “Every firm must form and use a business-level strategy.” (Hitt, Ireland, & Hoskisson, 2013, pp. 102). Review Chapters 4-9 for specifics on the business-level strategies.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice (Note: in this step you need to choose and write about only one (1) corporate-level strategy from the text book (not Google). Justify your opinion.
You should briefly define (1 – 2 sentences) corporate-level strategy based upon the textbook/lectures (cite your sources) as part of your analysis. Read Chapter 6 in the course textbook. Review the Week 6 Learn video/Lecture for supporting content .
Analyze the competitive environment to determine the corporation's most significant competitor (this will require research/cite your sources). Compare their strategies at each level (market commonality, resource similarity, competitive behavior, and competitive dynamics/actions/responses) and evaluate which company you think is most likely to be successful in the long term. Justify your choice. Hint: read Chapter 5 in the course textbook as it provides a solid background and clues on this model that apply to this section. Review the Week 4 Learn video Lecture for supporting content (cite your sources).
Determine whether your choice from Question 3 (Competitive Environment section above) would differ in slow-cycle and fast-cycle markets. It would be a good idea to briefly (1 – 2 sentences) explain what the slow-cycle and fast-cycle markets are from the textbook (cite your sources) as a short introduction to your determination. Hint: read Chapter 5 in the course textbook with a special focus on the Competitive Dynamics section. Review the Week 4 Learn video Lecture for supporting content (cite your sources).
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
List your sources on this page and remember to delete the instructions, which are in blue font.
Use at least three (3) quality sources, one of which must be the course textbook to support your ideas/work. Note: Wikipedia and college essay sites do not qualify as academic resources.
Cite your sources throughout your work when you borrow someone else’s words or ideas.
The source page must include all sources used. All sources listed here must be cited in your paper.
Look for a permalink tool for a webpage when possible (especially when an electronic
source requires logging in).
When using SWS remember to organize sources in a numbered list and in order of use throughout the paper; use the original number when citing a source multiple times; and follow this format for all sources:
Author. Publication Date. Title. Page # (written as p. #). How to Find (e.g. web address)
The APA format may also be used for a Reference page.
Questions to ask yourself before submitting your paper.
· Did I read the required course material and complete the required activities?
· Have I deleted the blue font instructions in this template?
· Did I leave the provided section headings in place, as provided in this template?
· After deleting the blue fonts in this template, have I changed all font to black?
Additional things to keep in mind.
· You will be graded on the content of your submission, the quality of your answers, the logic/organization of the report, your language skills, and your writing skills using the grading rubric.
· Strayer uses SafeAssign – an automated plagiarism checker. It is advised that you do your own writing and use external resources to support what you have written in your own words.
We are a professional custom writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework.
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill our Order Form. Filling the order form correctly will assist our team in referencing, specifications and future communication.
2. Fill in your paper’s requirements in the "PAPER INFORMATION" section and click “PRICE CALCULATION” at the bottom to calculate your order price.
3. Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.