Now, expanding a CVS store size or location is everything for the company for them to dominate the community and pharmaceutical area in general. After all, the dynamic behind this just happens to be the most “defining characteristic of service technology in terms that its often much more important than manufacturing who tends to rely on mass production, continuous production, and smart manufacturing technologies” (Daft, pp. 273 -274). Exhibit 7.7. in Organization Theory & Design by Daft. R.L., represents the idea behind this dynamic for CVS being more concerned with site selection over manufacturing. In terms, of them expanding the store in size (in other words square feet) or to other locations where they are wanted or needed to expand
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In other words, when CVS does not increase its revenue the obvious happens, with that being stock prices decreasing. As of this year, the CVS has “posted earnings-per-share of 86 cents, below S&P Global Market Intelligence analyst estimates of $1.18” (Bomey, 2016). However, when revenue increased and stock prices jumped in the market by point six percent following that shortcoming, “CVS opened 20 new drug stores and relocated nine during the quarter. It had 9,652 locations, including pharmacies inside Target stores, as of June 30” (Bomey, 2016). Until December 1, 2016, when they will be replaced by Walgreens in the pharmaceutical area, because they are being kicked out Tricare’s Pharmacy …show more content…
According, too Daft R.L., “this element becomes extremely important as it considers the human element (the employees), deals with a service that should be provided to the customer who wants and needs it to make the response rapid, and places a higher emphasizes on the customer” (Daft, pp. 275). In this aspect, pharmacies are challenged to respond to the customers in a manner that best services the customer, making this element a major challenge to any pharmaceutical company. However, once CVS pharmacies entered Target stores, their main goal in the environment was to make it an environment like theirs, and that mainly centered around changing out Target’s traditional big red shaped prescription bottles for their own small plain ones. While, making the change customers already made complaints to the Pharmacists about how this changed made it harder to read the labels on their prescriptions, and how the bottles were harder to open (especially for elderly people and those with physical disabilities). Many clients made complaints that they were even overdosing or taking the wrong prescription (such as, their high blood medication versus their antibiotic), because the small writing on the CVS bottles made it
In other words, when CVS does not increase its revenue the obvious happens, with that being stock prices decreasing. As of this year, the CVS has “posted earnings-per-share of 86 cents, below S&P Global Market Intelligence analyst estimates of $1.18” (Bomey, 2016). However, when revenue increased and stock prices jumped in the market by point six percent following that shortcoming, “CVS opened 20 new drug stores and relocated nine during the quarter. It had 9,652 locations, including pharmacies inside Target stores, as of June 30” (Bomey, 2016). Until December 1, 2016, when they will be replaced by Walgreens in the pharmaceutical area, because they are being kicked out Tricare’s Pharmacy …show more content…
According, too Daft R.L., “this element becomes extremely important as it considers the human element (the employees), deals with a service that should be provided to the customer who wants and needs it to make the response rapid, and places a higher emphasizes on the customer” (Daft, pp. 275). In this aspect, pharmacies are challenged to respond to the customers in a manner that best services the customer, making this element a major challenge to any pharmaceutical company. However, once CVS pharmacies entered Target stores, their main goal in the environment was to make it an environment like theirs, and that mainly centered around changing out Target’s traditional big red shaped prescription bottles for their own small plain ones. While, making the change customers already made complaints to the Pharmacists about how this changed made it harder to read the labels on their prescriptions, and how the bottles were harder to open (especially for elderly people and those with physical disabilities). Many clients made complaints that they were even overdosing or taking the wrong prescription (such as, their high blood medication versus their antibiotic), because the small writing on the CVS bottles made it