The General Environment That Influence The Corporation Most Essay

1137 WordsNov 2, 20155 Pages
Two segments of the general environment that influence the corporation most. CVS Health, an American retailer and health care company like any other business entity is influenced by the general environment in various aspect. Two of the most influential segments are: 1. Legal Regulatory Environment and Political trends The health care industry needs a lot of legal regulation due to its sensitive nature. The fact that, it deals with a crucial aspect of humanity makes it be prone to many political issues too. This environment is therefore a big influence on the operations of CVS Healthcare. The company has over the years tried to comply with legal requirements but has still found itself at clash with the law; occasionally being forced to re-strategize while incurring big loses. Some of such incidences include: • In the late 1980s and early 1990s it was involved in a number of health fraud and Medicare fraud scandals. The combined price to settle this dispute with the U.S. Government cost the company over $250,000,000. • In 2005 it paid $137.5 million to settle federal lawsuits filed by whistle-blowers that accused a company it acquired in 2003 of improper dealings with pharmaceutical manufacturers. • On January 12, 2012, it paid $5 million to settle Federal Trade Commission charges that it misrepresented the prices of drugs used to treat breast cancer symptoms and epilepsy. From these previous experiences, CVS Health has changed its practices to minimize the number of legal
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