Strategy Formulation and Planning

Strategy Formulation and Planning

Human capital in every company is increasingly becoming an important part of the assets of these companies. Therefore, there is the need for the human resource management of any company to pay much attention to the needs and requirements of their employees if they want to succeed and grow in the current competitive market. Many companies that deal with logistics and wholesale drugs at the international level have always maintained and believed in fair competition to gain a competitive advantage over their competitors as well as gaining a larger market share (Liu, Zhang, & Zhang, 2010). Cardinal Health, Inc. and McKesson Corporation, among others, have been striving and fighting for the available market with global giants such as AmerisourceBergen Corporation in an attempt to topple it as one of the best logistic and drug wholesale company in the world. In several aspects, the human resource departments of these companies have taken the great task to ensure that they succeed in their daily operations and grow to new levels and heights (Storey, 2007). This assignment will attempt to assess the comparator group human resource posture of these three organizations.

AmerisourceBergen Corporation is currently one of the biggest logistical and wholesale drug organization in the United States. The merging of the Bergen Brunswig and AmeriSource back in 2001 gave the company the much-needed push and motivation to excel in the current market. In the last few years, the company has experienced tremendous growth as a result of increased customer base. The company focuses on distributing drugs and associated services designed to minimize the cost incurred in the production processes while enhancing the patient outcome (Poor’s & S, 2010). On the other hand, Cardinal Health, Inc. particularizes in the dissemination of pharmaceuticals and restorative items serving more than 100,000 urban areas. The company operates from Dublin, Ohio and has proven to be a force to be reckoned in this industry as it is one of the major competitors of AmerisourceBergen Corporation. Notably, the company produces medical and surgical equipment like surgical apparel and fluid management products. Having been founded in 1971, the company is becoming one of the major pharmaceutical distributors in the united states. McKesson Corporation is another pharmaceutical distributing company at a retail sales level that has provided stiff competition in the pharmaceutical in the states (In Jacques & In Kepos, 2010). Additionally, the company offers health information technology, and care management technologies. The company has a large market share in the united states, and by the year 2012, it was making a total of over $122 billion in sales. This Comparator Group was chosen based on the annual revenue and market capitalization of the individual companies.

Benefits and compensation

The human resource management at Cardinal Health, Inc. approaches the employee compensation and benefits programs with the aim of reducing the operating cost, but at the same time motivating their employees to give their best to the company. Therefore, the company tries to find the balance between minimizing the organization expenditure and maintaining a good performance from the members of the workforce. As a result, the company offers competitive based compensation plan to keep their employees motivated (WorldatWork, 2015). Additionally, the human resource management offers benefits programs such as medical insurance, dental and eye care coverage, 401 (k) saving plan, basic life insurance and tuition reimbursement. Just like Cardinal Health, Inc., McKesson Corporation provides a competitively based compensation plan with bonuses when employees work overtime or meet the target, and this helps to keep them motivated and focused. Also, the company also provides benefits programs that are meant to retain employees in the company and keep them happy. Some of the benefits provided include free online health assessment, easy access to online tools and resources, subsidized gym membership fees and free biometric screening. However, the company is reviewing its compensation and benefits programs to be at par with other competitors and to attract the best talents in the market.

On the other hand, unlike its competitors, AmerisourceBergen Corporation offers a compensation program that depends on the level of employee in the organization. Therefore, the executives and high management team receive better payment than those occupying the junior and lower positions. Additionally, the company provides comprehensive and competitive benefit programs to meet the needs and wants of the employees as well as show their commitment to improving their lives as well as appreciating their efforts and input to the organization (Poor’s & S, 2010). An example of the core benefit programs provided to the employees in the company includes health care insurance covers for all members of the workforce and their families such as medical plans and prescription drug insurance. This strategy helps to keep employee happy while at the same time improving their effectiveness, efficiency, and performance.

Business Leadership and Strategy

The leadership of any organization is paramount to the improvement, success and the development of the company for it focuses on designing and attaining challenging objectives, takes quick and appropriate action, fights the competition and motivates the members of staff to improve their performance at the company. The two major competitors of AmerisourceBergen Corporation have heavily invested in leadership strategies. Cardinal Health, Inc. is more concerned on the pillars to move on with operations, remain competitive at the global level and at the same time remain relevant to the fast growing business network. For example, the company has re-engineered its supply chain to show incredible attainment in line with the other crucial department in the company. On the other hand, McKesson Corporation has extensively improved its leadership and business strategies to meet the international standards which in turn improves efficiency in the organization. Bad and inappropriate leadership can adversely affect the business which calls for research to determine the best leadership for a company.

AmerisourceBergen Corporation has been one of the most successful companies in America owing to the successful team of leaders under the guidance of the chairman, president, and the chief executive officer of the company Steven H. Collins. The well able team makes the organization to enjoy precision at the highest level of management. Additionally, the organization has shown strength concerning the strategic vision, creativity, entrepreneurship, and leadership (Poor’s & S, 2010). Notably, the president of the company has chosen a team of expert to help him execute his roles and take the company to the next level. However, other competitors are taking good steps forward in an attempt to neutralize its dominance in the market.


AmerisourceBergen is one of the leading organizations to embrace diversity, and the entity is devoted to providing equal opportunities for employment regardless of the race, color, religion sex or gender of the employees and applicants. Besides from encouraging diversity, the company also specializes in providing a comprehensive working environment where all employees and stakeholders and the community at large are acknowledged, reckoned and respected for their different and unique talents and abilities (Daniels, 2011). The incomparable abilities of all stakeholders uniformly make a strong company that can compete at the global level. However, other close competitors to the company have not been left behind since they have also embraced diversity in their organizations. Diversity at Cardinal Health is worldwide and is comprised of thoughts, communication styles, interests, language, values, and beliefs of different individuals who make up the company’s stakeholders. The human resource department at the company recognizes that cultivating diversity and inclusion is crucial to the success of the company. On the other hand, McKesson Corporation is devoted to fostering a workplace environment that reckons the distinct ways that the workforce is different and supports and acknowledges the diverse market and the environment in which the company operates. Diversity in the workplace has improved the competitiveness and performance of the institution at the global level.

Employee Relations

From time to time Cardinal Health has been hit with employee relations scandals as a part of the workforce becomes frustrated by the company policies. For example, some part of the workforce has been complaining of work overload, poor payment or even slow recruitment policies. However, the company has gone forth to re-engineer its processes to match those of other competitors. According to the company, every employee has a duty to provide advice to the managers on employee relations and management issues (Daniels, 2011). Just like cardinal health, McKesson Corporation has had issues with long working hours, poor management and even lack of support from the superiors. However, the company has long since tried to improve their relations with employees so that they can compete at the highest level. On the other hand, AmerisourceBergen through the human managers offers the chance to redefine health care delivery at all levels and different points in the service delivery chain (Poor’s & S, 2010). Additionally, the entity treats its employees with respect, thus ensuring there is a good relationship at an acceptable level as well as motivating employees through competitive pay and benefit packages.

Ethics and Corporate Social Responsibility

AmerisourceBergen policy prohibits fraudulent activity in any form, but acknowledges that the economic, social and physical environments in which the entity conducts its operations are an important part of the organizational success. Thus, the company is devoted to enhancing the health standards of their patients through the provision of innovative services and solutions that boost the quality and efficiency of healthcare as well as collaborating on community development initiatives and environmental sustainability programs (Perrewé, 2011). Similarly, its competitors have heavily invested in ethics and corporate social responsibility in an attempt to win more customers. For example, McKesson Corporation is committed to good corporate citizenship by creating a sustained value for both the society and the company. Additionally, the company supports the needy, takes the initiative to shield the environment, maintain a multi-cultural workforce and treat all the company employees fairly (Grant & Cengage Learning (Firm), 2007). On the other hand, the continuously evolving leadership role at Cardinal Health reflects on the company’s respect for the environment and demonstrates its devotion to the health and safety of the employees, contractors and the community. Additionally, the company also has a strong environmental compliance record that makes it a customer favorite.

Organizational and Employee Development

AmerisourceBergen offers the training and the equipment the employees required to assess and monitor their careers. The responsibility of training employees at the company is shared between the management and the employees themselves as the management is always ready to support employees and teams in aligning their careers and establishing their developmental opportunities (Perrewé, 2011). Other competitors in the industry are following this example to ensure that they cope there at the top with the best. Cardinal Health has put in place many programs to help the employees succeed, such as tuition reimbursement and career planning. Similarly, McKesson Corporation has heavily invested in employee growth and development through internal courses on topics such as diversity and mentoring the aspiring future leaders and managers at the company.

Talent Management

Since AmerisourceBergen has achieved a lot of success concerning talent management at the company, other companies in the industry are following the suit by implementing training and development programs to ensure that the best talents in their workforces remain in the company. Additionally, both Cardinal Health and McKesson Corporation have a talent management team that has the responsibility of identifying the best talent in the market, recruiting them and offering the needed skills and knowledge to make them productive and resourceful. These teams have a duty of shaping their workers’ careers and direct them towards new chances.


With the increased innovations and inventions in this industry, all competitors are heavily investing in information technology to improve their operations. Additionally, these companies are using the web to conduct market research as well as stay in contact with other organizations and customers. For example, AmerisourceBergen has successfully incorporated most of its processes and procedures with technology such as Cubixx storage and inventory management technologies to give a chance to the health care providers and patients to successfully to stash away important and temperature sensitive medications while both Cardinal Health and McKesson Corporation are focusing on e-commerce (Grant & Cengage Learning (Firm), 2007).

Best Practices for Human Resource Management

A human resource department is a paramount department in any organization. Hence, keeping up best practice is essential for any development to occur. AmerisourceBergen contenders have looked to have an appropriate process to protect their businesses. This is through research and gaining from past mix-ups and rolling out the important improvements (Perrewé, 2011). Both McKesson Corporation and cardinal health need to compare and contrast AmerisourceBergen’s best practices in this respect to having a reasonable playing ground.


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Grant, T., & Cengage Learning (Firm). (2007). International directory of company histories: Volume 12. Chicago: St. James Press.

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Liu, G. G., Zhang, S., & Zhang, Z. (2010). Investing in human capital for economic development in China. Singapore: World Scientific.

Perrewé, P. L. (2011). The role of personality in human resource management. Human Resource Management Review, 21(4), 257. doi:10.1016/j.hrmr.2010.10.009

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