UK Custom Essay Sample on «Cardinal Health Inc.»

Cardinal Health Inc.


Cardinal Health Inc. offers healthcare products and services. It has made a significant impact on the accessibility of healthcare services. The company’s focus on the distribution of its pharmaceutical products has impacted the organization of healthcare businesses. The company has different divisions of operations depending on the services and products being offered. The pharmacies offer alternative care, retail services; others are located in the community and operate independently; the company has nuclear pharmacy services. They also have hospital pharmacies (Charissa, 2013). A new division will focus on the development of smart health gadgets that monitor the patients' health remotely. Technological advancements have encouraged the development of gadgets that enable people to assess their health progress. Moreover, such gadgets are connected to the internet. In addition to this, it can be accessed via smartphones through mobile applications. Introduction of a new division offering smart gadgets that monitor the body will be customer-focused, and it will promote the market position of the company. Using its position in the market as a leader in the healthcare industry, the company will reach a large number of people who need their gadgets.

People’s lifestyles have changed significantly in recent years due to technological advancements. The changes have resulted in people becoming less active physically. Consequently, there has been an upsurge of lifestyle ailments, such as cardiac-related problems, diabetes, and high blood pressure, among others (Frize, 2014). After people became aware of the issues they are prone to due to their lifestyles in terms of health, they have appeared to be self-conscious. It results in demand for gadgets that people can remotely use in order to assess their health status without visiting a physician.

The aforementioned facts are the main reasons for the suggestion to develop a division that will offer such product as a wrist watch, which can monitor the vitals of an individual’s body and keep track through maintaining a database with the information. In recent years, the majority of the IT companies have developed such gadgets, but they do have a pharmaceutical background, or they do not operate in the health care industry. Hence, there was a gap in industry in relation to follow-up services for the clients. Therefore, when Cardinal Health Inc. starts such a division, it will offer professional advice for clients as they monitor their health problems. In addition to gadgets that most computer and information technology companies are offering, this company will have a service attachment where individual clients can get assistance and advice regarding their health status based on the information gathered by respective gadget.


The division aims at being the market leader in the provision of required high-tech and innovative products and services for upholding and maintaining high health status in the community.


The department cares for the clients as the members of the Cardinal Health Inc. family. The mission is to provide individuals with a capacity to monitor their health status, get advice on their health conditions in order to prevent illnesses through innovative technology. The department protects the independence, privacy, and trust of the community members to ensure that it contributes to the progressive quality of healthcare status in Cardinal Health Inc., the goal of which is to care and provide independence.

Value Proposition

The values of the department include respect, integrity, independence, compassion and care, which honor individualism and confidentiality of the clients, staff, and community. It has progressive anticipation to provide future technologically advanced healthcare services.

The mission, vision, and values align with the company’s goals and mission strategies. Its vision revolves around being an industry leader and providing diversity in its services. The mission entails focusing on the client needs and solving them in addition to having the best employees in industry (CardinalHealth, 2015a). They also relate to social responsibility by offering the services needed by the community. Additionally, the product is ethical as the information gathered will not be shared with other people. It will be governed by the industry’s code of ethics.

SWOT Analysis

Analysis of the department’s internal and external factors is highly reliant on the performance of the Cardinal Health Inc.


The company has acquired numerous branches offering its services in different regions. This has improved its position in industry as well as reputation and trust from the clients. In addition to this, it will foster the product’s performance in industry, which is essential for the success of the department and its contribution to the organization.

The company incorporates innovative advertising solutions, including Pharmacy Health Network, which has a strong foundation and reaches numerous clients. Through the network, it is possible to market new products and services to the existing and prospective clients.

The company has more than 30,000 well-trained employees who understand its culture, and the new department can use some of them along with to hiring some outside experts. Therefore, the department will deal in-line with the mission and vision of the company.

The company has a well-developed distribution channel in more than 60,000 locations. It will also act as the primary distribution channel for other new gadgets.


The company suffered from negative publicity and damaged business image after the investigation from the Drug Enforcement Agency (DEA) on its painkiller medication, oxycodone. Consequently, prospective clients may not have trust in the company's products.

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Acquisitions of new companies in different regions increase the customer base for the products. Hence, there will be more clients available to purchase new products.

A new product uses new technology and internet-based platforms, which can also be used for promotional and marketing purposes.

There is increased self-awareness among people in relation to their health status, and it provides a customer base for new products.


The healthcare industry has stringent regulations, which need to be met.

There is competition from other companies, which have also released health-monitoring gadgets.

Supply and Value Chain Analysis

The company ensures that its supply chain processes operate in an efficient manner. It has solutions that assist in streamlining of processes and reduction of unnecessary costs. The new department will utilize the same supply chain process.

Distribution Management

The company is reliant on effective logistics, which is enhanced by the latest technologies. It has a network of distribution centers, which are effective throughout the distribution channel. The company incorporates the ValueLink® supply management services, which assist in lowering costs and reducing unnecessary inventory (CardinalHealth, 2015b).

Inventory Management

The company has an effective inventory management system that deals with the product flow from the shelf space until its destination in the client's hands. It incorporates the RFID enabled technologies to ensure that only the products required by the clients are supplied (CardinalHealth, 2015b).

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The company’s clients will embrace the new product and incorporate it into their daily lives.

The company’s prominence in the healthcare industry will provide an advantage in gadget performance in industry.

The cost of developing products will result in higher revenue and market position for the company.

Risk and Change Management Plan

Every business faces risks related to different aspects of its operation. In addition to this, whenever change is introduced, most of the individuals react by resisting (Greenberg, 2010). It is essential for the organization to ensure that it has a plan to deal with risks and changes. It will involve dividing the items involved in chain management into three categories:Those that remain unaltered after change, items meant to change, and items that could change or not change. It will assist the company in ensuring that prior to the introduction of any change, there are plans to deal with probable reactions and risks.

Summary of Strategic Objectives

Strategic objectives incorporate different tactics and metrics so as to identify the goals to be achieved and the approaches to be employed for ensure their effectiveness. The strategic objectives include the following:

Increasing of the customer volumes. It will be done through the use of opinion leaders in order to grow the volume of clients by 10% annually after introduction.

Enhancement of learning for the employees. They need to understand the concept of the product to develop the required one.

Balanced Score Card

It is a framework, which allows management and measurement of service delivery. It includes the financial, customer, and internal process, knowledge and development perspectives (Kaplan & Norton, 2006).

Financial Perspective

Improvement of organizational performance through the introduction of a required product.

Growth in income of the business through the sale of the product.

Customer Perspective

Satisfaction of the clients’ needs and demand for a high-quality health monitoring gadget.

Gaining a share of the market available in industry by providing high-quality products at competitive prices.

Improvement of the company’s reputation and image so as to gain and maintain customer’s trust.

Internal Processes Perspective

Ensuring that all the operations are streamlined to enhance productivity and efficiency.

Managing the clients by taking their reviews and responses to make sure that they get satisfied.

Enhancing the innovations of the company by improving and fostering research and development.

Focusing on such social issues as CSR.

Knowledge and Development Perspective

Increasing the capacity of the employees through training and development.

Building the capital of the organization by investing in highly profitable areas.

Communication Plan

The communication plan includes ensuring open communication channels to involve clients and staff members as much as possible. Customer and staff support will be provided through various services including:

  • Consultations
  • Healthcare analysis
  • Promotional campaigns
  • Reaction to customer responses
  • Focusing on the online platform as a communication channel.

The healthcare industry is governed by numerous legal and regulatory factors. Compliance with the regulations is incorporated into the Cardinal Health Inc.daily operations. Considering the fact that the company operates in different countries, it has to adhere to all local regulations. There could be legal, criminal, and administrative sanctions if the company fails to adhere to the laws. It must adhere to the minimum wage level in all regions. Furthermore, it has to adhere to the regulations set by the DEA, Customs and Border Protection, and other relevant regulations in different countries (CardinalHealth, 2014). As the company has established itself as law-abiding, it can easily get into new markets because of its reputation. Adopting new laws can pose threats to the operations. However, since they impact on an entire industry, the company has to follow them.

Global and Economic

The current economic conditions are improving since the last economic recession. However, it is still difficult for organizations to acquire credit. Nevertheless, if the company has a good financial base, it can fund most of its investments. Additionally, there will be less competition as it is difficult for new companies to emerge. Hence, it has an opportunity to grow. Failure to get enough capital may be a threat to the development.

Technological and Innovation

Technological advancements in healthcare industry is providing new opportunities for the company to develop. It has to be innovative to enable fostering its success. For instance, the organization can invest in the production of body monitoring gadgets, which can bring huge returns. Failure to keep up with the technological trends can threaten the company's survival in industry.

Social and Environmental

The company is involved in numerous social and environmental activities through its CSR department. It generates a good image of the company to the society, which offers an opportunity to get a large market share. Consumers enjoy dealing with companies that they believe are playing part in making the society a better place. The company engages with other partners to assist people who need relief after getting involved in natural disasters.

Competitive Analysis

Competition is an external factor affecting the Cardinal Health Inc. The company leads in industry, but it has competition from other companies including McKesson Corp., AmerisourceBergen Corp., and Henry Schein Inc., among others. However, it has a larger income than its competitors (MorningStar, 2015). It can use it to ensure that it invests in vital areas to remain competitive.



The company is involved in acquisitions so as to cement its position as an industry leader. It has combined its generic sourcing operations with those of CVS Caremark to create the largest generic drug procuring entity (MorningStar, 2014).


The company has a well-established organizational structure with its headquarters in Dublin, OH. Since it operates in different regions and countries, its different branches have the autonomy to operate in accordance to their environment. It enables them to concentrate on the respective regions, which makes it possible for the company to compete effectively.

Processes and Systems

The company has streamlined its processes and operations to ensure that they are standardized and well implemented in all branches. In this case, it leads to seamless operations, and the company has strength in industry where the clients need to receive their products in time and in the required condition.


As a market leader, the company has ample assets at its disposal. Proper management of the resources has enabled it to embed its industry position. Continued proper control and allocation of resources will also be its strength.


According to the company’s vision, it needs to be an industry leader. It is the company’s main goal and it has achieved it. However, the current task is to maintain the leadership position. It has to ensure that the clients receive the products and services they need, and their satisfaction will continue as a strength to the company. Failure to meet the goals will threaten its position in industry.

Strategic Capabilities

The company invests in the latest technology in different fields of medical industry. It has top-notch equipment in oncology, which enables it to offer high-quality facilities dealing with tumors. It attracts a large number of clients, and it acts as a strength therefore. It has also invested in getting highly qualified oncologists as a part of its employees.


The company has a culture of inclusion which is embedded in its mission statement. Being a global healthcare provider, the company is well diversified, which improves its ability to deliver products and services to the clients. It promotes its image in the market and acts as its strength.

Technology and Innovations

Embracing technological advancements has been another company’s strength. It has an active research and development department that taps into new technologies and incorporates it into the products and services offered by the company. It is evident that the company has invested in advanced oncological equipment. The department has also been innovative in finding ways of incorporating new technologies into the organizational functions. Hence, innovation is another source of strength.

Intellectual Property

The company has well-outlined intellectual property guidelines protecting its products as well as its name and logo. No one is allowed to use its information for given purposes without the permission of the company. Failure to meet the guidelines can result in conviction and the offender may be fined for the infringement of the company's rights. It is important to have the guidelines as it prevents competitors from using the company’s products or its name for their gain or tarnishing the company’s image.

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The company’s leadership represents building of the best compliance, regulatory, and scientific team. The leadership team has extensive experience in different fields, which gives the company an edge in its operations. Each of the members has an impressive background of strategic leadership in their field. Clients understand the “value addition” emanating from leadership expertise, and it provides the company with strength (CardinalHealth, 2015c). Moreover, the company offers a leadership development program named “EMERGE,” which offers leadership development to its employees through a rotational program. It focuses on new entrant employees who have to work in different departments and locations within the organization. It offers learning opportunities and experience, which is important in succeeding in industry.

Balanced Scorecard

It is a strategic management and planning system, which is extensively used in numerous industries and sectors throughout the world. It assists an organization in the alignment of its business activities in terms of its vision and strategy (Niven, 2013). It also supports the improvement of communication channels internally and externally. It also assists in monitoring organizational performance against strategic goals. It is a framework which allows management and measurement of service delivery (Kaplan & Norton, 2006). It evaluates company’s efficiency in four main areas, which include fiscal, customers, inner business procedures, and research and development. It has various perspectives catering for different organizational aspects. They can be described considering the organizational objectives, values, and perceptions of Cardinal Health Inc.


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