21 Jun The funding pitch went extremely well, and you just received word that your idea for the new product/service has been approved. In fact, senior management sent a memo, comp
Scenario
The funding pitch went extremely well, and you just received word that your idea for the new product/service has been approved. In fact, senior management sent a memo, company-wide, announcing the project.
One line in the memo really caught your attention: “We are eager to see the project to completion and the many other product offerings to come from this initiative.”
You reach out to the project manager (PM) and are told that, typically, senior management expects to see product/service extensions or some type of next steps stemming from an original product. This could include different versions of the product/service, such as cheaper or premium versions, new targeted customers, and more. The PM also adds that senior management will look for contingency planning to protect the funding for the project.
Prompt
For your business continuity plan, consider your next steps, including project improvements and how to mitigate risk to the project to protect the product investment. To accomplish this, you must leverage employee and customer feedback on the new product/service. Additionally, research the market and use a PESTLE analysis to examine if any external factor could affect your new product offering.
Specifically, your plan must address the following criteria:
- Business continuity plan: Outline a basic business continuity plan for your business that identifies key business areas and critical functions as well as identifies at least one measure for recovering or maintaining critical business operations in case of an emergency. Include how you will ensure that this plan is followed.
- Post-launch stage: Propose new ideas for the post-launch stage, including one idea for a product/service improvement you plan to implement after the initial launch, and one idea for increasing your customer base or engagement after the initial launch.
- Feedback loops: Explain how you will implement feedback loops for your product or service.
- PESTLE analysis: Use PESTLE analysis to identify at least one external risk factor that may affect the project. Then provide a solution or contingency plan for mitigating that risk.
Guidelines for Submission
Submission must be a 1- to 2-page Word document. Any sources cited should use APA formatting.
I have attached all previous assignments for reference
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3-2 Milestone One Submission: Elevator Pitch
Cole Staats
Southern New Hampshire University
BUS-400 Driving Business Opportunities
Alan Marley
May 21, 2023
3-2 Milestone One Submission: Elevator Pitch
Introduction:
Greetings, esteemed members of the senior executive cohort. I am thrilled to introduce a novel initiative that will transform our pharmaceutical amenities at CVS Health Corporation. Our objective is to furnish superior, expedient amenities that enhance patient results and ultimately augment the well-being of our clientele. It is widely acknowledged that CVS Health currently holds a prominent position in the American pharmacy industry, boasting a market share of around 25% in terms of revenue generated from prescription drug sales (CVS Health, n.d). Nonetheless, we must not become complacent. We have discerned a prospective market prospect to augment our market portion and surmount competition by enhancing our pharmaceutical amenities.
How it Fits:
Our intended demographic comprises individuals belonging to the Generation X and Baby Boomer cohorts who possess substantial financial resources. These demographic cohorts are comparatively more susceptible to diverse health concerns and necessitate increased medical attention (Minemyer, 2023). By augmenting our pharmaceutical offerings, we can cater to the distinct healthcare requirements of elderly individuals and tackle their health-associated issues. Let us now engage in a discussion about numerical values (IBISWorld, 2023). By enhancing our pharmaceutical offerings, we can anticipate a significant augmentation in our earnings and liquidity. Enhancements in service provision are poised to mitigate inaccuracies, augment patron contentment, and ultimately stimulate greater revenue generation. A cash inflow is imperative for enduring expansion and upholding the corporation's welfare (CVS Health, n.d). Augmenting our revenue will also result in amplified earnings, fortifying our fiscal stance.
Justification:
According to our research and analysis, the proposed product or service is well within the purview of CVS Health. We have recognized appropriate technological resources, such as mechanized dispensing apparatus and pharmaceutical care oversight, that can be assessed and implemented within a feasible duration (Minemyer, 2023). Furthermore, communication mechanisms can be employed to maintain our patients' involvement and link, amplifying their comprehensive encounters. We conform to the enterprise's tactical blueprint and objective by incorporating these technological resources and amenities (IBISWorld, 2023). Our dedication to furnishing easily available and superior healthcare to our clientele is unwavering, and this undertaking fortifies that pledge. CVS Health Corporation's improved pharmacy services initiative will be lucrative. Automated dispensing cabinets/units and pharmaceutical treatment management enhance operational efficiency and eliminate mistakes, saving money.
Enhancing the Mission:
Customer satisfaction and engagement via messaging technologies will boost prescription fulfillment and sales. These elements boost project income (IBISWorld, 2023). We may also target high-income Gen Xers and Baby Boomers who require healthcare services. The revenue increase is possible due to the aging population's health difficulties. Improved pharmaceutical services may increase market share and client base, boosting profitability. Increased revenue and customer satisfaction will boost CVS Health Corporation's cash flow and financial situation. The firm needs a solid cash flow to invest in new projects, R&D, and expansion for continuous success (CVS Health, n.d). CVS Health can compete in the pharmacy market and provide value to shareholders and investors with a sound financial basis and predicted profitability (Minemyer, 2023). The statement above posits that the project's profitability can be ascertained by augmenting our market dominance, fostering revenue expansion, and providing better patient results.
Conclusively, the suggested initiative to enhance our pharmaceutical provisions at CVS Health Corporation is a tactical maneuver that conforms to our objective and possesses a robust economic rationale. We are presented with the prospect of fulfilling the healthcare requirements of elderly individuals, augmenting client contentment, and establishing our dominance as a pioneer in the pharmaceutical sector. In my estimation, this undertaking can yield substantial financial returns and a persuasive return on investment that warrants the allocation of resources for stakeholders and upper-level executives.
References
CVS Health (n.d.). Our purpose – Bringing our heart to every moment of your health. CVS Health. Retrieved May 17, 2023, from https://www.cvshealth.com/about/our-people/our-purpose.html#:~:text=We%20unite%20around%20our%20goal,customers%2C%20colleagues%20and%20the%20company.
IBISWorld. (2023). Cvs Health Corporation – Company Profile. IBIS World. Retrieved May 17, 2023, from https://www.ibisworld.com/us/company/cvs-health-corporation/9191/
Minemyer, P. (2023, February 8). CVS reports double-digit revenue growth in 2022, $4.1B in profit. Fierce Healthcare. Retrieved May 18, 2023, from https://www.fiercehealthcare.com/payers/cvs-reports-double-digit-revenue-growth-2022-41b-profit#:~:text=CVS%20Health's%20revenue%20topped%20%24300,company's%20earnings%20report%20released%20Wednesday.
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PROJECT OUTLINE for CVS Pharmacy Services 2
Project Outline: Pharmacy Services for CVS Health Corporation
Cole Staats
PROJECT OUTLINE for CVS Pharmacy Services 1
Southern New Hampshire University
About Pharmacy Services
CVS Health Corporation should improve its pharmacy services. The company can utilize digital tools, such as automated dispensing cabinets/units and medication therapy management, to enhance its services. CVS Health can also use messaging tools to keep patients engaged and connected.
Goals
1. To provide quality, convenient services,
2. To improve patient outcomes, and
3. To improve patients’ lives.
Target Customer
The target customers are Gen Xers and Baby Boomers with high incomes. Gen Xers are currently between 41 and 56 years. On the other hand, Baby Boomers are between 59 and 77 years old. As we all know, older individuals are more vulnerable to diseases like diabetes, dementia, back pain, arthritis, respiratory diseases, and cancer. This is because our immune system deteriorates as we age. Therefore, older adults require more healthcare services compared to their younger counterparts. Improved pharmacy services will help meet older people's health needs and health-related problems.
Market Opportunity
Reports show that by market share, CVS Health Corporation was the leading United States pharmacy in 2022. That year, the company held approximately 25% of the prescription drug market revenue (Mikulic, 2023). Cigna, one of CVS’s competitors, reported a significant increase in market share through the acquisition of Express Scripts in 2018. Therefore, CVS Health can overcome competition and increase market share by improving its pharmacy services.
Financial Opportunity
CVS Health will also enhance its revenue and cash flow by improving pharmacy services. Service improvement can reduce errors, increase customer satisfaction, and eventually increase sales. A sales increase is associated with a positive cash flow. A Positive cash flow suggests that more cash is coming in than going out of the company, which is necessary for CVS Health to maintain long-term growth (Smith, 2021). In contrast, a negative cash flow threatens the company’s well-being. Further, an increase in sales can increase the company’s profits.
Timeline
Activity Duration
Identify suitable digital tools 4-10 weeks
Test and deploy the tools 1-2 months
Inform customers 1 day to 1 week
References
Mikulic, M. (2023). U.S. pharmacies ranked by prescription drugs market share 2022. Statista.
Smith, S. (2021). A Healthy Cash Flow: The Most Crucial Element For Sustained Growth. Forbes.
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Business Model Canvas – CVS Health Improved Pharmacy Services
Key Partners
CVS Health has established solid agreements with several pharmaceutical suppliers, which allows for a consistent supply of drugs and other healthcare items.
Collaborations with insurance carriers help to speed the procedures of reimbursement and increase consumers' capacity to pay for their coverage.
The formation of strategic agreements with various healthcare providers allows for the provision of complete services and unobstructed referrals. with insurance providers streamline reimbursement processes and improve affordability for customers.
The development of digital platforms and efficient operations is bolstered by the contributions of technology partners.
Key Activities
Operating retail pharmacies and clinics.
Providing healthcare services such as prescription dispensing, vaccinations, and chronic disease management.
Managing logistics for product delivery.
Key Resources
A vast network of retail pharmacies, clinics, and internet platforms are all part of this operation.
Value Proposition
The primary value proposition is to provide healthcare solutions that are easy to use and integrated, with the goal of bettering patient outcomes and the well-being of the population as a whole.
Customer Relationship
CVS Health provides dedicated customer service teams for prompt assistance and support.
CVS Health engages with customers through digital platforms, offering personalized health recommendations and access to resources..
Channels
Customers get access to goods, prescriptions, and healthcare services via CVS Health's network of physical retail pharmacies, which act as a gateway for consumer access.
Online ordering, prescription refills, virtual consultations, and access to tailored health information are just some of the digital services that may be accessed via CVS Health's digital channels, such as their website and mobile app.
Customer Segments
High-earning members of Generation X (those aged 41 to 56) and Baby Boomers (those aged 59 to 77).
healthcare for conditions associated with aging, such as those affecting the immune system, the nervous system, the skeletal system, the circulatory system, and the digestive system.
Cost Structure
The most important costs with the new venture would be those fixed costs and variable costs that are associated with this new service.
Fixed Costs: Assumptions: Facility and equipment expenses, with the number of facilities this cost could get excessive, employee salaries with this new services we would need to hire more employees to facilitate this service, insurance costs with this new service our policies would need adjusted and with that an increase in the premium.
Variable Costs: Assumptions: Cost of goods sold, marketing and advertising expenses from our marketing team, customer support costs.
Revenue Streams
Direct Sales: Assumption: CVS Health generates revenue by directly selling products and services to customers through retail pharmacies and digital platforms.
Insurance Reimbursements: Assumption: CVS Health earns revenue through reimbursements from insurance providers for healthcare services and prescription medications provided to customers.
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BUS 400 Milestone Two
Business Model Canvas
Company: CVS Health
Last updated: June 4, 2023
Unique Value Proposition
CVS Health Corporation has implemented the Blue Ocean Strategy to set itself apart in the marketplace and gain a strategic advantage (Mourtzikou et al., 2019).
By leveraging its extensive network of retail pharmacies, clinics, and digital platforms
Cutting-edge technologies and data analytics capabilities
This integrated model positions CVS Health as a leader in the industry, providing comprehensive and convenient healthcare options while driving positive patient outcomes.
Their unique offering lies in their innovative healthcare delivery model, which combines traditional pharmacy services with advanced clinical care and digital health technologies.
CVS Health provides convenient access to a wide range of healthcare services.
They have also invested in cutting-edge technologies and data analytics capabilities, enabling them to offer personalized and proactive healthcare solutions (Das et al 2018).
By adopting the Blue Ocean Strategy, CVS Health has created a niche that differentiates them from traditional healthcare providers, attracting and retaining customers and transforming the healthcare delivery experience (Mourtzikou et al., 2019).
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Key Business Model Questions: The Customer
1. How do you acquire customers?
CVS Health acquires customers through retail pharmacies, digital platforms, and targeted marketing campaigns.
2. How do you deliver the product/service to the customer?
CVS Health delivers products and services through physical retail pharmacies, home delivery services, and digital platforms.
3. After landing a new customer, how do you plan to relate to a new customer and manage the relationship after landing a new customer?
CVS Health maintains customer relationships through dedicated customer service teams and digital engagement for personalized support and assistance.
Retail pharmacies, internet platforms, and targeted marketing initiatives are the primary channels via which CVS Health brings in new clients. CVS Health reports that their 50 million online customers spend 2.4 times more than their in-store customers (PYMNTS, 2023).
Consumers will soon have access to primary care, on-demand care, chronic disease management, and mental health services thanks to the introduction of a new virtual care service that is being rolled out by the retail pharmacy giant CVS (Landi, 2022).
CVS offers a customer chat where you can speak to your customer in real time. Also, the convivence of email or call where it is policy that all customers get treated with the upmost respect. By having this policy this shows our customer we care about their needs and also want to take care of them.
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Key Business Model Questions: The Customer, Continued
How will you charge your customers? What is your revenue model?
CVS Health charges customers for products and services through direct sales, insurance reimbursements, and co-payments.
How much will you charge your customers? Can you calculate your revenues for the next month, quarter, and year?
Revenues for CVS Health are determined by factors such as sales volume, pricing, reimbursement rates, and market conditions.
What key activities must you engage in to deliver your value proposition?
Key activities for delivering CVS Health's value proposition include:
Operating retail pharmacies.
Providing healthcare services.
Managing logistics for product delivery.
Leveraging digital platforms.
Engaging in marketing and customer outreach.
Maintaining customer relationships through dedicated support.
Key Business Model Questions: Assets, Partners, and Cost
Assets: CVS Health has a wide range of assets under its control, including a vast network of retail pharmacies and clinics, digital platforms and technology infrastructure, a strong brand reputation, a large customer base, and valuable data and analytics capabilities.
Key partners: CVS Health collaborates with various entities in the healthcare industry.
Cost structures: CVS Health incurs costs from many different verticals.
Assets: Over the course of the last ten years, CVS Health has significantly expanded its store count, going from 5,474 locations in 2005 to 9674 locations by the end of 2022; There are 1150 CVS MinuteClinic's around the United States, many of them are situated in close proximity to major urban centers.; CVS has a rating of 3.04 stars from 457 reviews, indicating that most customers are generally satisfied with their purchases; CVS has constructed the necessary technology infrastructure to provide assistance to patients exactly when and where they need it, allowing them to better control their illness and ultimately achieve better results (CVS Health, n.d.).
Key Partners: such as pharmaceutical manufacturers, healthcare providers, insurance companies, technology companies, community organizations, and government agencies.
Cost Structures: costs from pharmaceutical products, research and development, digital platform maintenance, marketing, and customer acquisition, operating retail pharmacies and healthcare facilities, regulatory compliance, patient safety and privacy, and data security measures.
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Business Model Canvas – CVS Health Improved Pharmacy Services
Key Partners
CVS Health has established solid agreements with several pharmaceutical suppliers, which allows for a consistent supply of drugs and other healthcare items.
Collaborations with insurance carriers help to speed the procedures of reimbursement and increase consumers' capacity to pay for their coverage.
The formation of strategic agreements with various healthcare providers allows for the provision of complete services and unobstructed referrals. with insurance providers streamline reimbursement processes and improve affordability for customers.
The development of digital platforms and efficient operations is bolstered by the contributions of technology partners.
Key Activities
Operating retail pharmacies and clinics.
Providing healthcare services such as prescription dispensing, vaccinations, and chronic disease management.
Managing logistics for product delivery.
Key Resources
A vast network of retail pharmacies, clinics, and internet platforms are all part of this operation.
Value Proposition
The primary value proposition is to provide healthcare solutions that are easy to use and integrated, with the goal of bettering patient outcomes and the well-being of the population as a whole.
Customer Relationship
CVS Health provides dedicated customer service teams for prompt assistance and support.
CVS Health engages with customers through digital platforms, offering personalized health recommendations and access to resources..
Channels
Customers get access to goods, prescriptions, and healthcare services via CVS Health's network of physical retail pharmacies, which act as a gateway for consumer access.
Online ordering, prescription refills, virtual consultations, and access to tailored health information are just some of the digital services that may be accessed via CVS Health's digital channels, such as their website and mobile app.
Customer Segments
High-earning members of Generation X (those aged 41 to 56) and Baby Boomers (those aged 59 to 77).
healthcare for conditions associated with aging, such as those affecting the immune system, the nervous system, the skeletal system, the circulatory system, and the digestive system.
Cost Structure
The most important costs with the new venture would be those fixed costs and variable costs that are associated with this new service.
Fixed Costs: Assumptions: Facility and equipment expenses, with the number of facilities this cost could get excessive, employee salaries with this new services we would need to hire more employees to facilitate this service, insurance costs with this new service our policies would need adjusted and with that an increase in the premium.
Variable Costs: Assumptions: Cost of goods sold, marketing and advertising expenses from our marketing team, customer support costs.
Revenue Streams
Direct Sales: Assumption: CVS Health generates revenue by directly selling products and services to customers through retail pharmacies and digital platforms.
Insurance Reimbursements: Assumption: CVS Health earns revenue through reimbursements from insurance providers for healthcare services and prescription medications provided to customers.
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Consider Your Business Model
Based on the BMC chart, proceeding with this new product/service makes sense for several reasons. Firstly, CVS Health's integrated healthcare delivery model, combining traditional pharmacy services with advanced clinical care and digital health technologies, offers a unique value proposition in the marketplace (Trinh & Begun, 2019).
However, there are risks to the business model that should be considered. One risk is the dependency on insurance reimbursements, which can be subject to changes in reimbursement rates, regulations, or shifts in insurance-provider relationships (Trinh & Begun, 2019
CVS Health should consider a few changes to strengthen the business model and reduce its risk
This differentiation provides a strategic advantage and enhances the overall customer experience. Secondly, the revenue streams from direct sales and insurance reimbursements demonstrate the potential for sustainable revenue generation.
Maintaining the right relationships with suppliers and partners is crucial for effectively delivering the value proposition. Any disruptions in the supply chain or strained partnerships could impact the business model's success.
. Diversifying the revenue streams beyond insurance reimbursements, such as exploring additional direct payment options or partnerships, can mitigate the risk associated with dependency on a single revenue source (Trinh & Begun, 2019). Building strong relationships with multiple suppliers can also protect against potential disruptions and ensure a reliable supply of products and services. Conducting regular SWOT analysis and actively addressing weaknesses and threats will help identify areas of improvement and strengthen the overall business model.
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[Delete this slide once your have completed the table on the next slide.]
The assumptions regarding CVS are based on commonly observed practices in the healthcare sector (Das et al 2018). Direct sales through retail pharmacies and digital platforms are well-established methods for generating industry revenue.
Insurance reimbursements are a common source of revenue for healthcare providers, including pharmacies, where they provide services and prescription medications to customers covered by insurance plans(Das et al 2018).
While these assumptions are generally applicable, it is important to note that specific financial and operational details of CVS Health's business model would require access to their internal information or official sources for accurate verification.
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Clarify Your Business Model Assumptions
| BMC Chart Item | This Is a Fact. (Evidence) | This Is an Assumption |
| Key Partners | X | |
| – Pharmaceutical Manufacturers | Assumption | |
| – Insurance Companies | Assumption | |
| Key Activities | X | |
| – Operating Retail Pharmacies | Assumption | |
| – Digital Platform Management | Assumption |
Clarify Your Business Model Assumptions Cont.
| BMC Chart Item | This Is a Fact. (Evidence) | This Is an Assumption |
| Customer Relationship | X | |
| – CVS Health targets individuals seeking convenient access to healthcare products and services | Assumption | |
| – CVS Health seeks alliances and contracts with insurance providers | Assumption | |
| Cost Structure | X | |
| – Fixed Costs | Assumption |
