1. MT460 Management Policy and Strategy Final Assignment: Cardinal Health Learner: Jeremiah LaPlante

2.  Introduction  Company Background  Company Vision & Mission Statements  Leadership and Organizational Culture  Corporate Social Responsibility, Business Ethics, and Policies Empowering Action  External Analysis (Opportunities and Threats) and Global Environment  Internal Analysis (Strengths and Weaknesses), Strategic Control, and Continuous Improvement  Innovation and Entrepreneurship  Strategic Analysis and Choice  Generic and Grand Strategies  Long-Term Objectives and Strategies  Short-Term Objectives, Functional Tactics, and Implementation  Restructuring, Reengineering, and Refocusing  Conclusion

3.  Who is Cardinal Health?  Pharmaceutical and medical Device distributor  Began as Cardinal Foods in 1971  Over 34,000 employees  Manufacturer of generic labeled medical products.  Earnings in the Billions Annually

4. Company Background Founded by Robert D. Walter in 1971 in Columbus Ohio as a small food distributor In less than 10 years became a prominent regional food distributor branched out into Pharmaceutical distribution in 1979 when they purchased a drug distributor and became known as Cardinal Distribution. In 1983 Cardinal Health went public and over the next ten years acquired over a dozen of small US drug distributors.

5. Company Background Continued. In 1988 they sold off the food distribution but at the same time had doubled in size the medical distribution arm, compared to their food distribution company. Exceeded sales in 1991 over $1 billion with a nationwide presence. By 1994 Cardinal Health had established itself as the nationwide leader in drug distribution with over $6 billion in annual revenues (CardinalHealth, 2015).

6.  Company Vision: To be the healthcare industry leader in providing a diverse, inclusive work environment that reflects the marketplace and communities where we do business while maximizing our competitive advantage through innovation, profit and adaptability. ◦ CardinalHealth’s Mission statement: Our mission is to: ◦ Identify, attract, and retain the best talent from each group. ◦ Create a workplace where all talent can perform at its best. ◦ Assess/ understand the diversity of your marketplace  Ensure We are responding and aligning to our customers  Ensure our customers see themselves in our vision, action and workplace. ◦ Use External contributions to eliminate disadvantage and increase the diversity of the talent pool (CardinalHealth, 2015).

7.  George S. Barrett- Chairman and Chief Executive Officer  Nick Augustinos -Senior VP of Health Information Services and Strategy  Donald Casey Jr.- Chief Executive Officer, Medical Segment  Craig Cowman- Executive VP of Global Sourcing  Joseph DePinto- President Cardinal Health Specialty Solutions  Mike Duffy- President, Medical Products  Brian Ellis- Executive VP of Enterprise Corporate Accounts & Strategic Accounts Teams

8.  Steve Falk- Executive VP, & General Counsel & Corporate Secretary  Meghan M FitzGerald- President, Specialty Solutions  Jon Giacomin- Chief Executive Officer, Pharmaceutical Segment  Steve Inacker- President, Hospital Sales & Services  Mike Kaufmann- Chief Financial Officer  Craig Morford- Chief Legal Compliance Officer

9.  Patricia Morrison- Executive VP, Customer Shared Services, Chief Information Officer  Tiffany Olsen- President, Nuclear Pharmacy Services  Bill Owad- Senior VP, Operational Excellence  Michael Petras- President, Cardinal Health at Home  Carole Watkins- Chief Human Resources Officer

10. ◦ CardinalHealth believes that patients lives depend on them doing what they say they will do using accuracy, quality, integrity and the necessary urgency. ◦ They believe doing what is right will create value for all stakeholders. ◦ Collaborate with partners to provide superior service and to improve healthcare around the globe.

11. ◦ Cardinal uses their assets, expertise and influence to make the local communities stronger and our world more sustainable. ◦ Operate as a good corporate citizen staying in compliance with all regulations required. ◦ Doing the Right Thing and making investments in: -  Environmental sustainability,  efficiency in the supply chain and products and services offered,  vital and healthy communities, and  healthy diverse workplaces for the employees.

12. Opportunities  Further Acquisitions  Expansion of the generic products market  Increasing ageing population  Emerging markets  International expansion

13. Threats  More regulations  Retail pharmacy consolidation  Increasing strong competitors  Cost control measures

14. Strengths  Large Scope of Operations  Technology  Market leading position  Wide array of products and services offered

15. Weaknesses  Large Dependence of the US market  Product Recalls  Weak customer services

16.  Innovation is creating something that doesn’t currently exist (Pearce & Robinson, 2013).  for Cardinal to innovate they would need to acquire new firms  Employ people to develop new ideas  At least moderately new to the market  Meets a customer want or need in the market  Supports the company mission

17.  The combination of long term objectives and a grand strategy defines the strategic analysis (Pearce & Robinson, 2013).  International expansion  Concentration on emerging markets  Expansion of generic medical products.

18.  Suggested generic strategy:  Continued development of generic medical devices  Find more ways to reduce cost to customers  Improve upon web-based services (ordering systems)  Improve brand appeal to reduce competition impact

19.  Grand Strategy suggestion:  Increase international market expansion  Improved marketing to promote brand worldwide  Focus on emerging markets like Asia.  Use strength of generic low cost medical devices for expansion

20.  To become the worldwide leader of medical products and drug distribution  To be considered the low price leader in the industry  Brand recognition globally

21.  Focus on Emerging markets like Asia  Acquire more international firms to have local presence sooner  Establish international partnerships to improve brand appeal to new markets

22.  Changing marketing to include international markets.  Translated brochures in local languages  Product instructions in all languages  Local advertisements in periodicals and online to attract international clients  Hiring of sales representatives to develop the new markets.  Locate locations for easier distribution to new markets

23.  Employ local management for international sales  Empower local management to make final decisions  Improve web-based ordering system to include international abilities  Care model changing from hospital based to outside in more efficient models and need to capitalize on this.

24.  So how will Cardinal Health Evolve?  Expansion to emerging markets  Acquisition of more international firms  Further growth in Asia by more acquisitions

25. Pearce, J. A., & Robinson, R. B. (2013). Planning for domestic & global competition. (13 th ed.). New York, NY: McGraw-Hill/Irwin. Our commitment. (n.d.). Retrieved June 24, 2015, from http://cardinalhealth.com/us/en/aboutus/commitment