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In today's fast-changing world, companies are faced with the constant need to build new capabilities and diversify into new products/services to adapt to the changing marketplace. However, building new capabilities will often take years and is not an easy process. Please use the tools and frameworks you have learned in Chapter 06 to analyze Case 06: CVS in 2015: From Neighborhood Pharmacy Provider to Health Care Company.
Write your answer to the following questions.
Explain how CVS uses mergers and acquisitions to extend its position in the changing pharmacy market.
Using the 6 S model from Ch6, identify two of CVS’s diversification efforts (either through greenfield or acquisition), and how did each add value to CVS.
Evaluate CVSs current position and think through what the future might look like.
It's important to display critical and independent thinking in your analyses, and please refer to the rubric for details on the evaluation. Length guideline is roughly one page length, and quality of thinking is valued more than quantity, and you are encouraged to use bullet points and short sentences and short paragraphs which cut right to the point.
When and where should a company focus or diversify? Why is synergy important and how to achieve that synergy in expanding operations?
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