Quiz for INTRODUCTION TO BUSINESS DATE: AUG 15 9:00 AM TO 11:30 PM EST TORONTO TIME
FACULTY OF LIBERAL ARTS &PROFESSIONAL STUDIES
SCHOOL OF ADMINISTRATIVE STUDIES
AP/ADMS1000
INTRODUCTION TO BUSINESS
Summer 2024 – Section D (Online)
FINAL EXAM
Weighting: 40%
Thursday, August 8, 2024.
Start Time: 9am (Toronto Time)
Submission Deadline: 12pm (Toronto Time)
(duration: 3 hours)
INSTRUCTIONS – READ THESE CAREFULLY
1. This is an online, timed, open-book Exam You may consult your notes and textbook and eClass materials posted for the course.
2. However, must not -- under any circumstances -- be searching for materials, examples, or any answers (using Google, Bing, DuckDuckGo, and other search engines in search of answers or analysis is strictly prohibited).
3. Read the Case and answer all questions and all parts.
4. Keep track of time, so that you have sufficient time to upload your answer before the deadline. You must complete and submit this exam by the deadline (Toronto time). A grade of zero will apply if you do not submit your answers on time. Please remember that extensions will NOT be provided.
5. Preparing your answers:
• Write the exam on your computer/device.
• Ensure that you save your file regularly, so that you do not lose your work. • NAME your file clearly, so that you know what file it is that you are going to submit.
• File format: You must submit your work as a Word file (or PDF). If you use a different format to prepare your answer, ensure you can export the file (save as) as a Word Document when you are ready to submit (this export option is available in Google docs, Pages, etc.). iOS/Mac users: you will NOT be able to load a “Pages” file – the posting will fail, and you will lose valuable time.
6. Writing format expectations:
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• Use double-spacing to allow for more comfortable reading.
• Use a clear heading for each question (for example, Question 1(a). Please DO NOT repeat/copy the question into your submission file, only the question number, followed by your answer to the question.
• Citation: Any material you use in your answer that is not your own (textbook or eClass materials) should be cited (referenced properly): (i) Citation is expected; however, no specific citation format is required; (ii) Page numbers must be used for verbatim quote citation.
7. Submitting the exam: Upload your file (Word or Pdf) to the Turnitin submission link on the exam eClass website (AP/ADMS1000 Winter Exams). Turnitin results will be used as part of the academic integrity assessment of the exam.
Start submitting your file a few minutes before the deadline, to ensure you do not miss the deadline. Remember to upload the correct file (not a draft or another. DO NOT upload Pages format, as it will not be accepted by the system.
8. Academic Honesty: Students are expected to adhere to the highest of academic integrity standards. When submitted the exam, you attest that the work you are posting is yours, and only yours, and that you have not used any assistance in content or editing of your work (or provided such to others). Furthermore:
• You acknowledge that cheating on an exam, including impersonation and plagiarism are considered a breach of Academic Honesty and are punishable under the regulations of the Senate of York University. Examples of such
actions include (but are not limited to) using unauthorized aids and assistance, copying or otherwise using the work of others without proper citation,
impersonating another person, using answers that you have purchased or
received without charge.
• You acknowledge that speaking with or seeking advice from other people during the exam, as well as sharing exam content or answers during the exam, are a breach of Academic Honesty and are punishable under the regulations of the Senate of York University.
• You acknowledge that the exam materials are the property of the instructor and/ or publisher. Any printing, saving, recording, sharing, copying, or
dissemination in any form of the exam materials (or parts of them) before,
during or after the exam are considered a breach of Academic Honesty and a violation of Canadian Copyright law (copyright.info.yorku.ca), and are
punishable under the regulations of the Senate of York University.
Any breach of academic integrity will be pursued.
GOOD LUCK !
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Shoppers Drug Mart, Loblaw, and the Ontario MedChecks Program
By: Natalie Guriel (Copyright, 2024)
In February 2024, Mary Fernando, resident of Ottawa, Ontario, received a phone call from a Shoppers Drug Mart employee. The employee asked her if she was still using inhalers to control her asthma and if she was happy with her medication? She said yes. After the call, she realized Shoppers Drug Mart had billed the Ontario Government for a virtual medication review under the Ontario MedsCheck program.i The Ontario MedsCheck Program allows pharmacists to meet with patients virtually to go over their medications. Fernando thought it was a waste of time since she didn’t need it. ii
In a news interview, eight former Shoppers Drug Mart employees explained they were under intense pressure to cold-call patients and to bill the Ontario government to increase sales and profits for Loblaw, the owner and parent company of Shoppers Drug Mart. iii
"It's a shame, it's a disappointment," said pharmacist Jon Nhan, who said he left the company to work elsewhere last year due to weekly billing targets imposed on pharmacists. iv"
In an interview, Shoppers Drug Mart CEO Jeff Leger said “the company does not "pressure pharmacists to bill for MedsChecks" to increase sales or profit. v"We obviously monitor this very closely, take these allegations very seriously, but really believe that MedsChecks and med reviews are actually having a positive impact on Canadians," said Leger. vi
The MedsCheck service is a government program that is free to the public but reimburses pharmacies up to $75 for reviewing customers’ medications. Many customers have been surprised by the cost of this service, since a family doctor in Ontario can only bill the government $38 for a patient visit and medical exam.vii
The Canadian Taxpayers Federation, a non-profit organization that watches government spending and advocates for Canadian taxpayers for greater government efficiency and transparency, has argued that healthcare is not free. Instead, healthcare is paid for by Canadians through their tax dollars and therefore, the money should be spent wisely.
Patients are eligible for a medication review if they are taking at least three (3) medications for a chronic condition, receiving treatment for diabetes, or are resident in a long-term care home. viii While some patients may need a medication review, many pharmacists have agreed the focus on quotas and billing is an abuse of the Ontario healthcare system. ix Medication reviews were meant to address emerging issues and to develop a better understanding of patient needs in order to reduce adverse drug reactions, emergency visits and hospitalizations.
While reviews were supposed to last 20-30 minutes, Fernando explained her call only lasted five (5) minutes. xIn one interview, some pharmacists explained that the company culture was becoming so toxic focusing on sales targets (instead of prescriptions, immunizations and other elements of patient care), that they decided to write a letter to Loblaw. xi
The letter stated, "The pressure ... put on front store and pharmacy metrics and professional services is borderline abusive and is creating safety concerns for the provision of good medical care to patients and customers.” xii "The pressures are so unsustainable and unrelenting that
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they are seriously affecting the mental health of many associates and seriously compromising the quality of care to our communities and ultimately the incredible brand of Shoppers Drug Mart." xiii
There were also wider concerns about other costs to the Ontario healthcare system and its sustainability to remain universally accessible to everyone. For example, once a MedCheck was performed, a patient’s doctor had to sign off on the call, even if there were no issues raised. xiv According to family physician Dr. Michelle Cohen, "It's not uncommon to get several [MedsCheck call records] in a day … and the vast majority of the time, the 'no issues' box is checked, so there's really nothing to do." xv "It's a big [waste of] time… It literally takes me away from my patients because I have to budget time for paperwork." xvi
In a 2024 news release, the Ontario College of Family Physicians (OCFP) reported several challenges to the current healthcare system. One challenge for family doctors was the wage reimbursement model. While expenses such as staff wages, rent and medical supplies continued to rise, the wage rate for family doctors remained fixed at $38 per patient visit (i.e. the fee-for-service model of care). Doctors were also facing a large administrative burden (approximately 19 hours per week) filling out sick notes, making referrals to specialists and completing other tasks that were unpaid and not eligible for reimbursement by the government. In 2024, over two (2) million Ontario residents were without a family doctor and the number was expected to rise. This meant individuals without a family doctor would need to seek medical care at a walk-in-clinic or an emergency department of a hospital, which actually was a more expensive cost for the government to reimburse. xvii
While the Government of Ontario budgeted $74.1 billion for health care in 2021-22, Ontario’s health-care spending per capita remained 8% lower than other provinces and territories. xviii Across Canada, the total money spent on healthcare was estimated to be $217.2 billion according to the Canadian Institute of Health Information.xix In 2022, the Ontario Medical Association had asked the Federal Government to increase Canada Health Transfer spending from 22% to 35% due to growing costs.xx The Canadian population had also exceeded 40 million people, increasing demand.xxi
For the 2022-2023 fiscal year, the Ontario Ministry of Health said it paid out $60 million dollars under the MedCheck program, but did not provide a breakdown by pharmacy. xxii At the time, four major pharmacy chains in Ontario were Guardian, PharmaSave, Rexall and Shoppers Drug Mart. However, there were also many independent-run pharmacies, plus the pharmacies that existed inside Loblaw’s own grocery stores.
In a CBC Marketplace investigation, journalists found that pharmacists across Canada were facing similar issues.xxiii “What we're becoming is salesmen,” one former Rexall pharmacist told Marketplace. “They want us to sell MedChecks, flu shots, Hemocode tests, A1C tests, things that don't cost the store anything, but make money for the store,” she said.xxivxxv
In 2024, virtual medication reviews were legal, professional services eligible for government re imbursement when provided by a pharmacy.
According to one retail analyst, “Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as [Canada’s] largest retailer and private sector employer. With approximately two billion transactions each year in its network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills,
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Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The company’s loyalty[points] program, PC Optimum, has more than 18 million members.”xxvi Here, customers earn points on nonprescribed drugs, food and other products, while the company can track data to analyze consumer spending patterns and determine prices based on demand. Loblaw also gives back to the communities it serves, such as supporting children’s food programs through its PC Children’s Charity.xxvii
In March 2024, Loblaw’s stock price remained strong at over $150 a share. The company’s share price had also been increasing at 30% higher than 12 months ago and 130% more than 5 years ago. Many analysts agreed Loblaw was a well-managed, efficient, and profitable company.xxviii
In 2023, however, Loblaw had faced growing public criticism over rising grocery prices and record profits. In the last five (5) years, consumers had been impacted by high inflation, high interest rates and rising housing costs limiting their disposable income to pay for food. Some critics had accused Loblaw of being too greedy and putting profits before people.
Loblaw had explained that growing supplier costs, as well as an increase in theft was also impacting prices.
Last year, the Canadian Government asked Loblaw to voluntarily sign a Grocery Code of Conduct or the government would pass legislation to enforce it. The legislation would regulate dealings between grocers and their suppliers and to help create transparency, fairness and stability with supplier input costs, negotiations and food pricing in the industry. The Canadian government said that this approach models other countries, such as in Australia and the United Kingdom. xxix By March 2024, Loblaw had not yet agreed to this request.
In 2015, Loblaw admitted to its criminal role in a bread price-fixing scandal in exchange for immunity, where it colluded with suppliers to fix the price of bread (breaching the Federal Government’s Competition Act), increasing bread prices artificially over 14 years.xxx
Some analysts wondered if more competition in the grocery and pharmacy industry was needed to help bring down prices. xxxi In 2024, Loblaw, Metro, Sobeys and Walmart dominated the grocery industry in Canada. Clearly, Loblaw and Walmart are larger players and have significant buying power when negotiating with suppliers. Some observers speculated if Amazon, which owned Whole Foods, would ever expand in Canada to help increase competition and lower prices.
In 2024, the College of Pharmacists of British Columbia became the first regulatory body in Canada to propose new legislation that would aim to ensure that quotas do not compromise patient safety. xxxii Many pharmacists agreed that MedCheck reviews, when used appropriately, could save lives.
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CASE QUESTIONS (TOTAL 80 MARKS)
Answer ALL questions below. Keep in mind that in addressing the questions below, you must apply the theories and concepts discussed in class and in the readings to the context of this exam case. Please make any realistic assumptions that you consider necessary to answer the questions; please state the assumptions clearly. Application of theory with detailed analysis, explanation, and case examples are required.
Question #1 (10 Marks)
What phase of the industry lifecycle model is the pharmacy industry in? Support your answer with characteristics of the industry lifecycle stage and explain in detail with all case examples.
Question #2 (20 Marks)
Using the ethical decision-making model “end-point ethics”, is Shopper’ Drug Mart decision to continue to require pharmacists to meet weekly sales targets on MedChecks ethical? Provide a stakeholder analysis as part of your answer and include all case examples.
Question #3 (10 marks)
Explain the benefits of a multinational like Amazon entering a host country like Canada, and doing business in the grocery industry? Support your answer with all case examples as part of your analysis.
Questions #4 (15 Marks)
Is Shoppers Drug Mart a socially responsible company? Consider Carroll’s four (4) levels of corporate social responsibility in your analysis. Support your answer with all case examples as part of your answer.
Questions #5 (10 Marks)
Explain three (3) ways companies have evaded long-term backlash from customers when there has been a corporate scandal. Why do you think there is not long-term backlash by Shoppers’ customers here?
Questions #6 (15 Marks)
Explain why the provincial government of Ontario should not act as the guardian of business here and provide Loblaw with a provincial tax credit to help the company reduce its costs. Support your answer with all case examples as part of your analysis.
************* End of the exam and questions. ***************
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End notes:
i Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
ii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
iii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
iv Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
v Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
vi Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
vii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
viii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
ix Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
x Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xi Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xiii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xiv Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xv Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xvi Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xvii Buckley, Charlie. The family doctor shortage is forecast to be worse within 2 years. Here's what an Ont. doctor says needs to change. CTV News. March 6, 2024. https://www.ctvnews.ca/health/the-family doctor-shortage-is-forecast-to-be-worse-within-2-years-here-s-what-an-ont-doctor-says-needs-to-change
1.6797046#:~:text=In%20a%20release%20Tuesday%2C%20the,within%20the%20next%20five%20years.
xviii Ontario Medical Association. Ontario’s doctors call on all levels of government to commit to health care. April 25, 2022. https://www.oma.org/newsroom/news/2022/april/ontarios-doctors-call-on-all-levels-of government-to-commit-to-health-care/
xix Nathaniel Li, Milagros Palacios, and Bacchus Barua. The price of public health care insurance, 2023. https://www.fraserinstitute.org/sites/default/files/price-of-public-health-care-insurance-2023.pdf https://www.fraserinstitute.org/sites/default/files/price-of-public-health-care-insurance-2023.pdf
xx Ontario Medical Association. Ontario’s doctors call on all levels of government to commit to health care. April 25, 2022. https://www.oma.org/newsroom/news/2022/april/ontarios-doctors-call-on-all-levels-of government-to-commit-to-health-care/
xxi The Canadian population 40+ million. https://www150.statcan.gc.ca/n1/daily-quotidien/240327/dq240327c-eng.htm
xxii Schmunk, Rhianna; King, Angela; Ward, Lori. Corporate pressure led Shoppers Drug Mart staff for unnecessary mediation reviews, pharmacists say. CBC News. February 28, 2024. https://www.cbc.ca/news/canada/ontario-medcheck-shoppers-drug-mart-pressure-1.7126811
xxiii Griffith-Greene, Megan. Are pharmacists turning into salespeople? CBC News. March 25, 2015. https://www.cbc.ca/news/health/are-pharmacists-turning-into-salespeople-1.3007463 xxiv Griffith-Greene, Megan. Are pharmacists turning into salespeople? CBC News. March 25, 2015. https://www.cbc.ca/news/health/are-pharmacists-turning-into-salespeople-1.3007463 xxv Griffith-Greene, Megan. Are pharmacists turning into salespeople? CBC News. March 25, 2015. https://www.cbc.ca/news/health/are-pharmacists-turning-into-salespeople-1.3007463
xxvi Toneguzzi, Mario. Loblaw announces $2 billion investment in Canada for 2024 with dozens of new stores and 7,500 new jobs. Retail-Insider.com. February 20, 2024. https://retail-insider.com/retail insider/2024/02/loblaw-announces-2-billion-investment-in-canada-for-2024-with-dozens-of-new-stores-and-7500-new-jobs-expert-comment/
xxvii PC Children’s Charity. https://www.pcchildrenscharity.ca/
xxviii Charlebois, Sylvain. Loblaw under fire: Public backlash escalates amidst corporate missteps. Retail-Insider.com March 17, 2024. https://retail-insider.com/retail-insider/2024/03/loblaw-under-fire-public backlash-escalates-amidst-corporate-missteps-op-ed/#:~:text=Loblaw%20came%20under%20fire%20for,do%20so%20triggering%20an%20alarm.
xxix Saba, Rosa. House of Commons committee tells Loblaw and Walmart to sign grocery code or risk legislation. February 16, 2024. https://www.cbc.ca/news/politics/grocery-code-of-conduct-loblaw-walmart 1.7118261#:~:text=The%20industry%2Dcreated%20code%20seeks,negotiations%20between%20suppliers%20and%20grocers.&text=CEO%20tells%20MPs- ,Both%20Walmart%20and%20Loblaw%20have%20said%20they%20will%20not%20sign,could%20increase%20prices%20for%20Canadians.
xxx Strauss, Marina. Loblaw admits to bread price-fixing scheme spanning more than 14 years. The Globe and Mail. December 17, 2017. https://www.theglobeandmail.com/report-on-business/loblaw-parent company-alerted-competition-watchdog-to-bread-price-fixing/article37387816/
xxxi Robertson, Susan Krashinsky. Loblaw profit, sales gain as inflation-weary shoppers visit discount banners, opt for private-label brands. The Globe and Mail. February 22, 2024. https://www.theglobeandmail.com/business/article-loblaw-earnings-grocery-prices/
xxxii Griffith-Greene, Megan. Are pharmacists turning into salespeople? CBC News. March 25, 2015. https://www.cbc.ca/news/health/are-pharmacists-turning-into-salespeople-1.3007463
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