Based on the attached documents, assess CVS’s performance relative to its competitors, Walgreen’s and Rite Aid (at minimum, use cash-to-cash cycle time and return on assets). If CVS adopts a lean philosophy and is able to reduce its inventory levels with other values remaining relatively stable,
How would you expect the performance metrics to change? Inventory level or capital cost
Do you believe that a lean philosophy will work for CVS (based on the company, the industry, etc.)?
Make at least one recommendation to help make the lean initiative successful at CVS.
Be as specific and detailed as possible, and research the companies as necessary.
The attached file contains an income statement and balance sheet for CVS, Walgreen’s, and Rite Aid. Please note that the ‘cost of goods sold’ term may also be referred to as ‘cost of revenue’ or ‘cost of sales’.
500 word maximum. Calculations and tables do not count toward your word count.