CVS Company Assignment Example | Topics and Well Written Essays - 1250 words

CVS Company - Assignment Example CVS Company was started in 1963 by Stanley and Sidney Goldstein and Ralph Hoagland. By 1964, the company had 17 stores in the States. Initially, the company sold health and beauty products but in 1967 ventured into the pharmaceutical world with its first pharmacy in Rhode Island. Melville Corporation bought CVS in 1969 and by 1974, the company had made $100 million annual sales. 11 years later, the company reached a billion dollars in annual sales. In 1994 the company introduced PharmaCare, a health insurance cover for their employees. By 1997 CVS had more than 2500 stores all over the States. Having become one of the companies to complete the acquisition or Revco, the company was granted major drugstore locations in the Midwest and Southeast. Since then, the company has grown tremendously penetrating many of the States in the US. The firm pioneered the introduction of the loyalty card program, Extra Care Card for its customers. (CVS Caremark Company history 2012) CVS company move to stop selling tobacco products has led to another great loss in the companys sales as they stand to lose approximately 2 billion dollars every year amounting to a 3% loss. Quitting selling tobacco products is one of the reasons why CVS has been unable to provide its tobacco smoking customers with their usual products. The company argues that they are considering a healthy approach that benefits both them and their customers. But with this decision, many of the customers purchasing tobacco products are forced to find alternatives elsewhere or quit smoking altogether. (Paul 2014) In 2011, CVS had a shortage of several products from Johnson & Johnsons. Consumers were told of the shortages which included Motrin, Pepcid AC, Rolaids, Neutrogena skin care products, children’s Tylenol liquid and Tylenol drugs for adults. A department at Johnsons & Johnsons, the McNeil Consumer Healthcare, recalled millions of the J&J products following a quality control problem in its product lines. Some products were suspected of containing metal while others were reported of having a moldy smell within their bottles.