Analysis of The Pharmacy Services Industry Essay

Analysis of The Pharmacy Services Industry - Essay Example These stocks now have more of a growth profile than they had in the past. There is much opportunity for expansion, with billions of dollars in the business up for grabs! Besides, there is greater competition coming from every direction, as non-traditional channels are looking to get in on the act. Below, we discuss an evolving industry and provide a guide as to what to consider before committing funds here. Traditionally, this industry has been divided into two main categories: pharmacy services, which consist of Pharmacy Benefits Managers, or ‘PBMs’, as well as Clinical Services Providers and large drug chains. Although both groups distribute prescription drugs to consumers, they differ in that ‘PBM’s are mail-order operations while ‘chains’ sell from storefronts. The numerical arrays on the Value Line pages of companies in these groups are largely similar. However, the pages of PBMs, which are somewhat more capital intensive, list capital spen ding per share and depreciation; whereas, the pages of drug chains include the number of stores and gross margin. Within the business description on the Value Line page, investors find a company's mix of pharmacy and general merchandise sales. A heavy weighting of wide-margined pharmacy business is vital to a company's wellbeing. Pharmacy business is less sensitive to economic cycles and a sales slowdown here could indicate a serious problem. The prescription growth rate is another noteworthy figure in measuring the health of a company, and it is gaining prominence. Demographics point to a rise in the number of Americans aged 65 and older, over the next two decades. Increasingly, Baby Boomers will require medical care and pharmaceuticals, auguring well for the industry's sales and earnings prospects. The largest pharmacy services providers are best positioned to reap the coming rewards of the industry (Walgreens Co., 2013 www.walgreens.com/ and CVS Pharmacy, 2013 www.cvs.com/). BACK GROUND/HISTORY CVS CVS Caremark Corporation, together with its associates, provides unified pharmacy health care services in the United States. The company’s Pharmacy Services division offers pharmacy benefit management services, including plan design and administration, formulary management, discounted drug purchase provisions, Medicare Part D services, mail order and specialty pharmacy services, retail pharmacy network management amenities, prescription management systems, quantifiable services and disease controlling services (Yahoo finance, 2013). This division sells its products through retail drugstores; the ‘online retail pharmacy website’, CVS.com; onsite pharmacy stores and retail health care clinics. As on December 31, 2012, the company operated 7,458 retail drugstores, 640 Minute Clinic locations, 31 retail specialty pharmacy stores, 12 specialty mail order pharmacies, and 5 mail order pharmacies. CVS Caremark Corporation was founded in 1892 and is bas ed in Woonsocket, Rhode Island (Yahoo Finance, 2013). Walgreens Walgreen is an innovated and intuitive organization that takes ‘the shopping experience’ to another level. The organization has devoted it’s time to being helpful to the consumers and ensures that shopping is made as convenient as possible. With its many divisions, it operates a network of drugstores in the United States. It provides consumer goods and services; it also provides pharmacy, health and wellness services through drugstores along with novel methods such as mail, telephone, and online modes.  

Exam Assignment Example | Topics and Well Written Essays - 1000 words - 4

Exam - Assignment Example The qualities include transparency, honesty, and trustworthiness. These traits make the teacher and student’s relationship even stronger. The teacher’s reliability and dependability further makes him an all-round leader. The reality that the teacher can judge when wrong stays true to what he utters, is never a disappointment, and tries to understand other people make the teachers an exceptional leader (Hershey 2015). Normative leadership theories control the act of leaders by building the moral principles or norms unlike the general ethical perspective addressing the leader’s behavior. Type of normative leadership theory they most commonly identify with is the transformation leadership called the transactional compared to a more form of leadership called transforming. The transactional lower level needs followers to focus on terminal values like liberty, equality, and justice. The Transformational leaders become more of role models to their followers who admire, respect, and trust them. The inspirational motivation-transforming leader uplifts the team morale by encouraging followers stimulating innovation and creativity. The transformational leaders are a bit more successful than the transactional leaders making other companies prosper extremely. These are the most common normative leadership theories that leaders who are keen on ethical issues live by. Since ethical leadership is based on understanding and positive relations, it is important to that it is included in most organizations thus improving the quality of performance in such organization and the quality of leadership in the organization is also improved. Leaders need to conform to ethical leadership attributes for them to establish to perfect relationships characterized by mutual respect and trust. The ethical leader should develop the type of relationship that arises from basic and vital