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INTERNATIONAL BUSINESS CIA II By Naveen Prabhu B 0911152 1

McKesson Company Profile; Yesterday and Today

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Page 1: McKesson Company Profile; Yesterday and Today

INTERNATIONAL BUSINESS

CIA II

By

Naveen Prabhu B

0911152

II BBM B

1

Page 2: McKesson Company Profile; Yesterday and Today

Name: McKesson

Year of Establishment: 1833, by John McKesson & Charles Olcott

Country of Origin: USA

Business Diversification:

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Page 3: McKesson Company Profile; Yesterday and Today

Key Dates:

1833: The partnership of Olcott & McKesson

is founded.

1853: The business is renamed McKesson &

Robbins.

1893: Founder John McKesson dies and his

heirs leave the company.

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Page 4: McKesson Company Profile; Yesterday and Today

1926: Frank D. Coster, a criminal whose

real name was Philip Musica, buys the

company.

1928: McKesson & Robbins is incorporated.

1940: The company becomes privately

owned after Coster kills himself in 1939.

1967: Foremost Dairies takes over the

company, which becomes Foremost-

McKesson, Inc.

1970: The company moves its headquarters

to San Francisco.

1976: The company avoids a hostile

takeover, is reorganized, and acquires C.F.

Mueller Company and Gentry International.

1979: Armor All Products is acquired as

McKesson enters the car protection products

industry.

1983: The company acquires Zee Medical,

Inc. and sells C.F. Mueller and Foremost

Dairies.

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Page 5: McKesson Company Profile; Yesterday and Today

1984: The company is renamed McKesson

Corporation.

1986: McKesson Chemical Division is sold to

Univar Corporation.

1989: McKesson gains Wal-Mart Stores as a

major customer.

1990: The company gains control of Medis

Health and Pharmaceutical, Canada's major

drug wholesaler.

1994: McKesson acquires Integrated

Medical Systems Inc. and decides to sell PCS

Health Systems to Eli Lilly & Company.

1998: The company acquires Red Line

HealthCare Corporation.

1999: A January merger with HBO &

Company creates McKesson HBOC Inc.;

Kelly/Waldron & Company and Kelly

Waldron/Technologies Solutions are

acquired.

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Page 6: McKesson Company Profile; Yesterday and Today

2000: McKesson acquires Prospective

Health, Inc. and sells its Water Products

business; the company renews its contract

with ShopKo Stores for five years.

2001: The firm introduces Supply Management Online to increase its Internet capabilities.

Subsidiaries:

McKesson Health Solutions McKesson Provider Technologies Relay Health Zee Medical

Total Employee Strength: 32,500

Product Profile:

The Product Range on offer by McKesson are separately been enclosed in a exclusive folder.

Business Portfolio:

McKesson's Corporate Strategy and Business Development group works directly with McKesson's senior leaders to shape the strategies of the company and its many business units.

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Page 7: McKesson Company Profile; Yesterday and Today

Team members focus on corporate and business unit strategy, ranging from competitive analysis, strategic marketing plans and reviews of McKesson's existing portfolio of businesses. Additionally, the group heads the corporation's mergers and acquisitions team, working  in collaboration with McKesson's business units as well as various corporate functions.   

Group alumni have gone on to a wide variety of leadership positions within McKesson, including

President, McKesson Medical-Surgical President, McKesson Pharmacy Systems SVP, Packaging and Business Development SVP, Global Generics Sourcing VP, Generics Business Development

Typically, MBA graduates enter the group as a Manager of Corporate Strategy and Business Development.  This role is responsible for evaluating and managing new initiatives and business opportunities. 

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Page 8: McKesson Company Profile; Yesterday and Today

When you join McKesson, you will have the opportunity to engage in strategy development for a Fortune 14 company and evaluate merger and acquisition candidates from target identification to due diligence to transaction completion. This position also provides an excellent opportunity to work with a diverse and talented group of people in a growing industry with a high level of visibility and strong career development opportunities.

Sample projects may include:

Evaluation of industry trends to develop implications and recommend strategies

Development of customer strategies Identification, analysis and deal completion

of acquisition candidates Identification of business implications

associated with regulatory environment Evaluation of new business opportunities New market analysis and entry strategies;

creation of new customer initiatives drawing on an integrated offering across multiple business units

Evaluation of new technologies

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Page 9: McKesson Company Profile; Yesterday and Today

Education/Experience:

MBA or equivalent experience required Previous experience in healthcare not

required, although helpful Interest in healthcare essential Functional experience in strategic planning,

consulting, investment banking, finance, mergers & acquisitions, venture capital, or healthcare operations

Recruiting:McKesson currently recruits for the Manager, Corporate Strategy and Business Development position on the following campuses:

UC Berkeley - Haas School of Business University of Pennsylvania - The Wharton

School

Top Management:

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Page 10: McKesson Company Profile; Yesterday and Today

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John H. Hammergren is Chairman, President and Chief Executive Officer of McKesson Corporation. He has been a director of McKesson since 1999 and was elected President and CEO in 2001.

Pat Blake, is Executive Vice President and Group President of McKesson Technology Solutions

Jeff Campbell is Chief Financial Officer of McKesson Corporation. Jeff Campbell has responsibility for all financial functions of the Corporation

Jorge L. Figueredo is Executive Vice President of Human Resources of McKesson Corporation.

Page 11: McKesson Company Profile; Yesterday and Today

Financial Performance: (2010, Q2)

McKesson Corp. has reported that revenues for the first quarter ended June 30, were $26.7 billion compared to $26.7 billion a year ago.

In a release on July 28, the company noted that first-quarter earnings per diluted share were $1.06 compared to 83 cents per diluted share a year ago.

"McKesson had excellent first quarter results, driven by strong

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Paul C. Julian is Executive Vice President and Group President of McKesson Corporation

Marc Owen, Executive Vice President, Corporate Strategy and Business Development, joined McKesson in 2001

Page 12: McKesson Company Profile; Yesterday and Today

performance across the entire company. Every business in both our Distribution and Technology segments met or exceeded our earnings expectations, giving us positive momentum for the remainder of our fiscal year," said John H. Hammergren, chairman and chief executive officer.

In the first quarter, McKesson revenues were flat, primarily impacted by the Fiscal 2009 loss of certain customers in the U.S. pharmaceutical distribution business. Earnings per diluted share was up 28 percent versus the prior year, aided by strong cost controls across the company. This led to significant operating margin expansion in both segments, resulting in 12 percent growth in Distribution Solutions operating profit and 56 percent growth in Technology Solutions operating profit.

The company continues to execute a balanced capital deployment strategy designed to create additional shareholder value. During the first quarter, McKesson repurchased $275 million of common stock, leaving $555 million remaining on its current share repurchase authorization. For the quarter, McKesson had cash flow from operations of $907 million and ended the quarter with cash of $2.6 billion.

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In the first quarter, the company's 401(k) plan, the Profit Sharing Investment Plan (PSIP), resolved an outstanding legal matter. The PSIP will use a portion of the settlement proceeds from this matter in place of the company's Fiscal 2010 plan contribution. Compared to Fiscal 2009, this resulted in a reduction in the company's expense of four cents per diluted share in the first quarter, and is expected to result in an expense reduction of approximately 15 cents per diluted share for the full year.

"I am very pleased with the company's first quarter earnings, which are the result of focused execution and aggressive cost management in both segments of our business. In addition, strong cash flow generation in the first quarter allowed us to get an early start on our share repurchase program. Based on our positive momentum, we are raising our previous outlook and now expect that McKesson should earn between $4.15 and $4.30 per diluted share for the fiscal year ending March31, 2010," Hammergren said.

Distribution Solutions revenues were flat in the first quarter. U.S. pharmaceutical distribution revenues were also flat for the quarter, reflecting market growth rates and the loss of certain customers in Fiscal 2009. In addition,

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Page 14: McKesson Company Profile; Yesterday and Today

there was a shift of revenues to direct store delivery from sales to customers' warehouses.

Canadian revenues, on a constant currency basis, grew 10 percent for the quarter due to market growth rates and expanded distribution agreements. Including an unfavorable currency impact of 15 percent, Canadian revenues decreased 5 percent for the quarter. Medical-Surgical distribution revenues were up 9 percent for the quarter, aided by acquisitions made in late Fiscal 2009 and an increase in demand from the H1N1 virus. In the first quarter, Distribution Solutions gross profit of $954 million improved 2 percent compared to the first quarter a year ago.

The increase in gross profit for the quarter was due primarily to the impact of our agreements with branded pharmaceutical manufacturers and an improved mix of higher-margin products and services, including sales of One Stop Generics, which were up 19 percent in the quarter, partially offset by lower sell margin in our U.S. pharmaceutical business.

Distribution Solutions operating profit of $430 million was up 12 percent for the quarter and operating margin was 1.66 percent compared to 1.48 percent a year ago.

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"Distribution Solutions had a very strong performance in the first quarter. Margin improvements were attributable to several factors, including solid levels of compensation from our agreements with branded pharmaceutical manufacturers, above-market growth for our One Stop Generics program, increased demand related to the H1N1 virus and, most importantly, a more disciplined approach to expense management across all of the businesses in this segment," said Hammergren.

In Technology Solutions, revenues were flat for the quarter. Services revenues grew 4 percent, reflecting the steady nature of our offering. Software revenues were down 6 percent and hardware revenues were down 43 percent reflecting the impact of lower bookings in the latter part of Fiscal 2009.

In Technology Solutions, revenues were flat for the quarter. Services revenues grew 4 percent, reflecting the steady nature of our offering. Software revenues were down 6 percent and hardware revenues were down 43 percent reflecting the impact of lower bookings in the latter part of Fiscal 2009.

Canadian revenues, on a constant currency basis, grew 10 percent for the quarter due to

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Page 16: McKesson Company Profile; Yesterday and Today

market growth rates and expanded distribution agreements. Including an unfavorable currency impact of 15 percent, Canadian revenues decreased 5 percent for the quarter. Medical-Surgical distribution revenues were up 9 percent for the quarter, aided by acquisitions made in late Fiscal 2009 and an increase in demand from the H1N1 virus. In addition, there was a shift of revenues to direct store delivery from sales to customers' warehouses.

In the first quarter, Distribution Solutions gross profit of $954 million improved 2 percent compared to the first quarter a year ago. The increase in gross profit for the quarter was due primarily to the impact of our agreements with branded pharmaceutical manufacturers and an improved mix of higher-margin products and services, including sales of One Stop Generics, which were up 19 percent in the quarter, partially offset by lower sell margin in our U.S. pharmaceutical business.

Distribution Solutions operating profit of $430 million was up 12 percent for the quarter and operating margin was 1.66 percent compared to 1.48 percent a year ago.

"Distribution Solutions had a very strong performance in the first quarter. Margin improvements were attributable to several

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Page 17: McKesson Company Profile; Yesterday and Today

factors, including solid levels of compensation from our agreements with branded pharmaceutical manufacturers, above-market growth for our One Stop Generics program, increased demand related to the H1N1 virus and, most importantly, a more disciplined approach to expense management across all of the businesses in this segment," said Hammergren.

Technology Solutions operating expenses were down 9 percent in the quarter due to continued rigorous expense management. Operating profit was $103 million, and the operating margin was 13.86 percent compared to 8.87 percent for the first quarter a year ago.

"Technology Solutions has a diverse portfolio of solutions and a solid base of stable and recurring revenues. Coupled with on-going expense management initiatives, this resulted in higher quarterly operating profit," said Hammergren. "With the products and services we offering Technology Solutions, we are well-positioned to extend our leadership in healthcare information technology while driving customer and company success," Hammergren added.

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Page 18: McKesson Company Profile; Yesterday and Today

McKesson Corp., currently ranked 15th on the Fortune 500, is a healthcare services and information technology company dedicated to helping its customers deliver healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care.

Market Share:

McKesson enjoys close to 45% Market Share in the US.

Turnover: (March 2010)

$ 1,263,000,000 (US $)

Research & Development

The McKesson Phase 4 Solutions division of McKesson Canada offers strategic clinical and consulting services to the pharmaceutical, biotech and medical device industries. These services consist of Late Phase Trials and Registries, Health Economics, Reimbursement Management and Payer Relations and Product Development and Marketing. 

A multi-disciplinary team of scientific and business experts serves clients internationally, from offices located in Toronto and Montreal.

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McKesson Phase 4 Solutions coordinates all aspects of your clinical research, including design and development, patient recruitment, site management, trial execution and data management. 

Registries and Post-Marketing Surveillance

Design and development - services include Coordination and site management

- services include Ethics and regulatory submissions Data management (FDA CFR21 Part 11

compliant) - services include Recruitment and support services

- services include Clinical drug management and distribution

- services includeLate Phase Trials

Design and development - services include

Coordination and site management - services include

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Late Phase Trials and Registries

Page 20: McKesson Company Profile; Yesterday and Today

Data management (FDA CFR21 Part 11 compliant) - services include

Recruitment and support services - services include

Clinical drug management and distribution - services include

Clinical Programs and Outcomes Research Chart audits and observational trials Drug use evaluations Patient reported outcome studies and

surveys Product loyalty and pre-/post-launch

programsExperience and expanded/special access

programsCompliance programs

Health Economics

McKesson Phase 4 Solutions business professionals offer a wealth of expertise acquired through their work with manufacturers on hundreds of business strategic support initiatives. 

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Pharmacoeconomic Models and Analyses

Advice on health economic strategies Economic evaluation of healthcare

interventionsCost-effectiveness and cost-utility

analyses Economic burden of illness and financial

impact analyses Trial-based analyses and study design Probabilistic modeling including decision

trees and Markov models Willingness-to-pay studies

Reimbursement Management and Payer Relations

McKesson Phase 4 Solutions experts support manufacturers in their efforts to tackle their market access challenges. 

Market Access Planning

Payer and prescriber market research Payer Submissions: Common Drug Review

(CDR), Quebec, Private, Hospital, Specialty

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Clinical and Executive Summary preparation

Preparation of Budget Impact AnalysesSubmission preparation, compilation and

distributionUpdated payer contact list

Reimbursement research, analysis and strategy

Feasibility studiesPayer Relations

Facilitation and planning of payer advisory boards

Public and private payer advocacy Appeals and re-submissions Post-submission follow-up

Product Development and Marketing

McKesson Phase 4 Solutions works with leading pharmaceutical manufacturers to create innovative product and marketing strategies. 

Strategic planning and marketing

Needs assessments Feasibility analyses

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Environmental analyses Competitive and situational analyses Positioning studies, strategies and tactical

plans Expert panels and advisory boards Support for Key Opinion Leader (KOL)

initiatives and advocacyPatents:

The principal trademarks and service marks of the Health Care Supply Management segment are:ECONOMOST, ECONOLINK, VALU-RITE_, Valu Rite/CareMax, OmniLink, Health Mart, ROBOT-Rx,AcuDose-Rx, AcuScan, Baker Cells, Baker Cassettes, Baker Universal, Autoscript, Pharmacy 2000,coSource and .com Pharmacy SolutionsSM.

Registered Trademarks:

ECONOMOST ® ECONOLINK ® VALU-RITE ® Valu-Rite/CareMax ® OmniLink ® Health Mart ® ROBOT-Rx ®

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AcuDose-Rx ® AcuScan ® Baker Cells ® Baker Cassettes ® Baker Universal ® Autoscript ® Pharmacy 2000 ® coSource ® .com Pharmacy SolutionsSM ®

Mergers and Acquisitions:

McKessonHBOC has undertaken numerous strategic initiatives in recent years to further focus the Company on its core health care businesses and enhance its competitive position. These include the following significant acquisitions:

Health Care Supply Management Segment Acquisitions● In November 1998, the Company acquired RedLine HealthCare Corporation (‘‘RedLine’’), a distributor of medical supplies and services to the extended-care industry, including long-term homecare supply, for approximately $233 million in cash.

Health Care Information Technology Segment Acquisitions

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● In January 1999, McKesson Corporation (‘‘McKesson’’) completed the acquisition of HBO & Company (‘‘HBOC’’), a leading health care information technology company, by exchanging 177 million shares of McKesson common stock for all of the issued and outstanding shares of common stock of HBOC. Each share of HBOC common stock was exchanged for 0.37 of a share of McKesson common stock (the ‘‘Exchange Ratio’’). McKesson was renamed McKesson HBOC, Inc. The transaction was structured as a tax-free reorganization and was accounted for as a pooling of interests.

● In December 1998, the Company acquired Access Health, Inc. (‘‘Access’’), a provider of clinically based care management programs and health care information services, for the equivalent, after application of the Exchange Ratio, of approximately 12.7 million shares of Company common stock.

● In October 1998, the Company acquired IMNET Systems, Inc. (‘‘IMNET’’), a provider of electronic information and document management solutions for the health care industry, for the equivalent of approximately

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3.6 million shares of Company common stock and 0.6 million Company stock options.

● In December 1997, the Company acquired HPR Inc. (‘‘HPR’’), a provider of clinical information systems for the managed care industry, for the equivalent of approximately 6.8 million shares of Company common stock.

● In June 1997, the Company acquired Enterprise Systems, Inc. (‘‘ESi’’), a developer of resource management solutions including materials management, operating room logistics, scheduling and financial management, for the equivalent of approximately 5.6 million shares of Company common stock.

● In June 1997, the Company acquired AMISYS Managed Care Systems, Inc. (‘‘AMISYS’’), a provider of managed care information systems for the payor market, for the equivalent of approximately 4.0 million shares of Company common stock.

e-Health Segment Acquisition

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● In November 1999, the Company acquired Abaton.com, a provider of internet-based clinical applications for use by physician practices, pharmacy benefit managers, benefit payors, laboratories andPharmacies, for approximately $95 million in cash and the assumption of employee stock incentives.

Legal Suits and Litigations:

In re McKesson HBOC, Inc. Securities Litigation (Case No. C-99-20743 RMW) (the ‘‘Consolidated Action’’)

Jacobs v. McKesson HBOC, Inc. et al. (C-99-21192 RMW)

Chang v. McKesson HBOC, Inc.,et al. (Case No. C-00-20030 RMW)

Cohen v. McCall et al. (Case No. C-99-20916 RMW)

Bea v. McKesson HBOC, Inc. et al. (Case No. C-00-20072 RMW)

Cater v. McKesson Corporation et al. (Case No. C-00-20327 RMW)

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Baker v. McKesson HBOC, Inc. et al. (Case No. CV 00-0522)

Business Ethics & Corporate Social Responsibility:

CSR;

Increasingly, the challenges that companies must address to be successful in the long term are intertwined with the challenges that broader society must address to improve the quality of life in our communities. McKesson's commitment to good corporate citizenship is a fundamental part of creating sustained value for both society and our company.

Our ICARE Shared Principles are brought to life every day through our efforts to improve the health of the healthcare system, support those in need, take steps to protect the environment, maintain a diverse workforce and treat our employees fairly. Through these actions McKesson employees demonstrate our deep commitment to corporate social responsibility,

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our customers, our shareholders and our communities every day.

Public Affair

As the nation’s largest health care services company, McKesson Corporation recognizes its responsibility to participate in the public policy process.

Through our Public Affairs department, the company builds and maintains working relationships with elected and appointed officials at every level of government from Washington, D.C. to state capitals to city halls across America.

We encourage policymakers to visit our facilities and customer sites to witness first-hand how our health care businesses and innovative solutions improve the quality and delivery of care while removing unnecessary costs.

Today, health care is a top priority for many Americans. Our government works continually to minimize health care costs while improving efficiency and service within the system. McKesson plays an active role in educating elected and appointed officials about the solutions we offer from disease management to health care IT.

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From distributing pharmaceuticals in emergencies to providing cutting-edge health care IT, McKesson works to educate elected officials and regulators about the unique efficiencies and solutions that we offer. We aim to meet policy concerns as they arise, at the federal, state and local levels, and to provide expertise, solutions and innovations year in and year out.

McKesson Foundation

Founded in 1943, the McKesson Foundation envisions a world where affordable, quality healthcare is available to all.

The Foundation is dedicated to supporting our employees' community involvement efforts and improving the health of patients through:

Improved healthcare quality Personal health management Lower healthcare costs

To that end, each year the McKesson Foundation contributes more than $5 million to non-profit organizations working to improve the health of our communities.

Our main funding area is chronic disease management in the U.S., with a near-term focus

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on diabetes over the next two years. As part of the McKesson Foundation's commitment to supporting innovative disease management interventions, we are proud to announce Mobilizing for HealthSM, the Foundation's new program area focused on building the evidence base for mHealth through research.  Through the Mobilizing for HealthSM initiative, our ultimate goal is to improve health outcomes among underserved patients with chronic diseases through the widespread adoption of care management models using mHealth technologies that have proven successful.

Specifically, through Mobilizing for HealthSM the Foundation will fund U.S. based pilot research projects and on going studies in need of additional funding focused on mobile phone-based interventions for low-income patients with chronic diseases, with an immediate interest in diabetes management.  We also support the dissemination of knowledge and evidence of effective mHealth technologies and advocate for policies and practices that enable the adoption of scalable mHealth interventions as a component of chronic care management for underserved populations.  We also continue to support diabetes management programs at community health centers across the country.

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Awards and Recognition:

Awards and Recognition

2010McKesson named one of the 100 Best Corporate Citizens by Corporate Responsibility Magazine. Ranked #44.

Ranked #1 in Health Care Wholesalers, America's Most Admired Companies, Fortune. Results consider nine key attributes of reputation: Innovation; People Management; Use of Corporate Assets; Social Responsibility; Quality of Management; Financial Soundness; Long-term Investment; and Quality of Products/Services. McKesson was ranked #1 in every category.

2009

Health Mart®, McKesson’s pharmacy franchise network of independently owned pharmacies, awarded the highest customer satisfaction ranking among chain drug stores in the J.D. Power and Associates 2009 National Pharmacy StudySM.

3rd largest company by revenue in San Francisco Bay Area, The San Francisco Chronicle

#15 on Fortune 500

#2 in Health Care Wholesalers, America's Most Admired Companies, Fortune

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2008

Highest ranking among major wholesalers in the Novation Member Satisfaction Survey (April 2008)

John Hammergren #39 on Modern Healthcare's 100 Most Powerful People in Healthcare

#18 on Fortune 500

#44 on Fortune Global 500

3rd largest company by revenue in San Francisco Bay Area, The San Francisco Chronicle

2008 Stevie Award for "Best Executive in EMEA", Charmaine McDonald, vice president, managing director, McKesson UK

2007

Pharmacy Supplier of the Year and Overall Corporate Supplier of the Year

#18 on Fortune 500

#38 on Fortune Global 500

John Hammergren #38 on Modern Healthcare's 100 Most Powerful People in Healthcare

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3rd largest company by revenue in San Francisco Bay Area, The San Francisco Chronicle

Health Mart Named “Pharmacy Chain of the Year” by Drug Topics Magazine

2006

#5 in Health Care Wholesalers for America's Most Admired Companies,Fortune

#5 in Health Care Wholesalers for America's Most Admired Companies,Fortune

#5 in top healthcare information technology companies, Healthcare Informatics

17 McKesson products ranked among the top 3 in their category, 2006 KLAS Year-End Report

2005

#26 on Fortune Global 500

“Supplier of the Year” Award,Wal-Mart

SWOT Analysis:

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StrengthsMcKesson is a long established company in the healthcare industry. The company has a reputation built over a period of more than 175 years in providing of scrutiny goods and supplies.McKesson is a leading provider of pharmaceuticals, analysis instrument supplies and aid aggregation technologies. The company’s leading position in the pharmaceutical distribution and aid and dealership with large companies enhances its strength.

McKesson provides services and products to healthcare providers and payers. From pharmaceuticals and supplies to worldly scrutiny workflow solutions, their offerings help customers reduce costs, streamline processes and, most importantly, improve patient treatment and drug safety.

McKesson focuses on delivering the vital medicines, supplies and aggregation technologies that enable the healthcare industry to provide patients better, safer care. The value added services provided by the company at low rates is one of its strengths.

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McKesson is the distributor of one-third of the medicines used every day. The company provides its services to more than 40,000 U.S. pharmacy stores and locations, from Wal-Mart to the Department of Veterans Affairs to community pharmacies and hospitals. The large customer base is definitely one of its biggest strengths.McKesson employs information technology systems that decimate the requirement for paper prescriptions and patient records.

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WeaknessesBeing a company in the healthcare and medicine business, the company faces several legal tangles and restrictions related to patents, animal testing etc and have to be very careful in designing its strategies.

Healthcare is a high risk industry as it is related to critical patient conditions and involves life-or-death situations.

One of the weaknesses of McKesson is the lack of proper healthcare information grouping, processing and services that they provide for their clients. The increasing integration of technology in the form of use of computers and internet and information systems is critical to success of healthcare services.

Since there is a growing demand for effective products and services which McKesson is not strong enough to deliver, their aim of leading the pharmaceutical business is at risk.

OpportunitiesThe acquisitions and partnerships with different healthcare service providers, being considered by the company is a good opportunity that they must avail.

The politics or environmental concerns do not directly affect the growth of company so they

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can take many new steps and follow new strategies without any high risks factors being involved.

OpportunitiesThe acquisitions and partnerships with different healthcare service providers, being considered by the company is a good opportunity that they must avail.

The politics or environmental concerns do not directly affect the growth of company so they can take many new steps and follow new strategies without any high risks factors being involved.

ThreatsIn the healthcare industry the competition is cutthroat and can result in lesser market share and profits of the company. It is a very high risk business and the threat of legal restrictions and tangles is always there.The McKesson being a healthcare company is less adaptable to changes but it is crucial if they want to achieve their objectives.

The presence of HBOC as a separate health related services and good provider threatens the objective of McKesson to become the leader in the industry. This is the case since HBOC is offering a goods and services that are not in the creation line of McKesson. Even if HBOC

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challenges exclusive digit aspect of McKesson’s Business, the fact that they are able to lead the industry in a specific services offering implies that McKesson will not be able lead the industry.

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References:

www.mckesson.com www.pr-inside.com/market-report-mckesson-corporation-

r1987788.htm www.businessweek.com/investor/content/jul2007/

pi2007079_795827_page_2.htm www.users.ipfw.edu/todorovz/teaching/590/Summer%202006/

Chapters%201-7%20Practice-no-answers.pdf www.corporateinformation.com/Company-Snapshot.aspx?

cusip=58155Q103 www.businessweek.com/mckesson/view?url=http://c.moreover.com/

click/here.pl%3Fr2940260738%26f%3D9791 www.theofficialboard.com/mckesson www.reportbuyer.com/companies/company_name/m/

mckesson_corporation_company_profile_2.html www.mts-mt.com/uploads/files/wholesalers/McKesson.pdf www.b2bfreezone.com/product-search/mckesson-product-catalog.htm www.tradekey.com/ks-mckesson-product-catalog www.answers.com/topic/mckesson-corporation www.mckesson.co.au www.mckesson.co.ca www.yahooanswers.com/mckesson

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