«Cardinal Health Inc.» - Free Essay Paper

Cardinal Health Inc.

Part I


Cardinal Health Inc. offers health care products and services. It has made a significant impact on the accessibility of health care services. The company’s focus on the distribution of its pharmaceutical products has impacted the organization of health care businesses. Cardinal Health Inc. distributes both the pharmaceutical and medical products to various destinations worldwide (Charissa, 2013). It also manufactures different medical and surgical products, as well as products used in fluid management. The company has the different divisions of operations depending on the services and products being offered. The health care providers offer numerous services revolving around the health of the people. The pharmacies offer alternative care, retail services; others are located in the community and operate independently; the company has nuclear pharmacy services, and they also have hospital pharmacies (Charissa, 2013).

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The new division will focus on the development of smart health-gadgets that monitor the health of the patients remotely. Technological advancement has encouraged the development of gadgets that enable people to assess their health progress, and it is connected to the Internet. In addition, it can be accessed via smartphones through mobile applications. Introduction of a new division offering the 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 health care industry, the company will reach a large number of people who need the gadgets.

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

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The aforementioned facts are the main reasons for the suggestion to develop a division that will offer a product, 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 is a gap in the industry, in relation to follow-up services for the clients. Therefore, when Cardinal Health Inc. starts such a division, it will offer professional advice to the clients as they monitor their health problems. In addition to offering the gadget, as most computer and information technology companies are offering, the company will have a service attachment where individual clients can get assistance and advice regarding their health status based on the information gathered by the gadget.

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The division aims to be the market leader in the provision of required high-tech and innovative products and services to uphold and maintain high health status in the community.


The department cares for the clients as 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 innovation and technology. The department protects the independence, privacy and trust of the community members to ensure that it contributes to the progressive quality health care status of Cardinal Health Inc., the goal of which is to care and provide independence.

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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 health care services.

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

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Part II

SWOT Analysis

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


  1. The company has acquired numerous branches offering its services in different regions. This has improved its position in the industry, as well as reputation and trust from the clients. In addition, it will foster the product’s performance in the industry, which is essential for the success of the department, and its contribution to the organization.
  2. The company incorporates innovative advertising solutions, including Pharmacy Health Network, which has a strong foundation and reaches numerous clients. Through the network, it will be possible to market the new products and services to the existing and prospective clients.
  3. The company’s good financial performance offers funds to be invested in research and development of the new product. It will also harness the expertise of its research and development department, which is essential for the creation of a top-notch product.
  4. The company has more than 30,000 well-trained employees who understand its culture, and the new department can use some of them in addition to hiring some experts. Therefore, the department will operate in-line with the mission and vision of the company.
  5. The company has a well-developed distribution channel in more than 60,000 locations. It will also act as the primary distribution channel for the new gadget.


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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 its products.


  1. Acquisitions of new companies in different regions increase the customer base for the products. Hence, there will be more clients available to purchase the new product.
  2. The new product uses new technology and internet-based platforms, which can also be used for promotional and marketing purposes.
  3. There is increased self-awareness among the people in relation to their health status, and it provides a customer base for the new product.


  1. The health care industry has stringent regulations, which need to be met.
  2. There is competition from other companies, which have 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.

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Distribution Management

The company is reliant on effective logistics, which is enhanced by the latest technology. 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 the 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 it gets to the client. It incorporates the RFID enabled technologies to ensure that only what is required by the clients is supplied (CardinalHealth, 2015b).

Part III


  1. The company’s clients will embrace the new product and incorporate it into their daily lives.
  2. The company’s prominence in the health care industry will provide an advantage in the performance of the gadget in the industry.
  3. The cost of developing the product will result in higher revenue and market position for the company.

Risk and Change Management Plan

Every business faces risks relating to different aspects of its operation. In addition, 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 the risks and change. It will involve dividing the things 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. In order to assess the risk, the company will utilize different analysis including interviews with stakeholders and statistical probability analysis. It will assist in ensuring that prior to the introduction of change, there are plans to deal with probable reactions and risk.

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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 to ensure their achievement. The strategic objectives include the following:

  1. Increasing of the volume of customers: It will be done through the use of opinion leaders in order to grow the volume of client by ten percent annually after introduction.
  2. Enhancement of learning for the employees: They need to understand the concept of the product to develop the required product.

Balanced Score Card

It is a framework, which allows management and measurement of service delivery. It includes the financial, customer, internal process, and 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.
  • Gain a share of the market available in the 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

  • Ensure that all the operations are streamlined to enhance productivity and efficiency.
  • Manage the clients by taking their reviews and responses to make sure that they get satisfied.
  • Enhance the innovations of the company by improving and fostering research and development.
  • Focus on social issues, such as CSR.

Knowledge and Development Perspective

  • Increase the capacity of the employees through training and development.
  • Build 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 members of staff as much as possible. Customer and staff support will be provided through various services including

  • Consultations
  • Health Care analysis
  • Promotional Campaigns
  • Response to customer responses
  • Focusing on the online platform as a communication channel.


It is essential to harness technological advancement to the advantage of the organization. Such an approach will include the introduction of a new division at the Cardinal Health Inc. to develop health monitoring gadgets that gather information about an individual to offer guidance on practices that will prevent lifestyle ailments. The new department will utilize the company’s position in the market to reach as many clients as possible. In addition, innovation will be the main focus to enable its fight against the competition. The plan to introduce the new product is also based on the company’s network, which will be essential in product sale and customer relations. It will also utilize the company’s research and development department and expertise to create a new product that will solve the needs of the company.

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