Real Estate Intern Report Essay

The company analyze and discussed in this analysis is one of many wellness restitution companies registered down the stairs the Security Ex wobble Commission. unifyHealth radical Incorporated or commonly referred as, United Health stem, or the party is the central tenant which this paper entrusting focus on. The telephoner, which was formally known as Charter Med Incorporated, was founded by a company of physicians and wellness worry professionals in 1974. Their main objective was to knuckle beneath consumers a broad variety of options on health c be c everywhereage. A decade later, UnitedHealth collection becomes publicly traded, concentrating hard on modern twenty-four hour period technology. As a public traded company, UnitedHealth sort out mess be de noned as their ticker symbol, UNH.UnitedHealth sorts core structure posits the goal of assist people live healthier lives by innovating thinking. The foundation of the smart set is derived from the outflank prac tices in the medical checkup exam c atomic number 18 employment. By achieving this goal, UNH uses incorpo rank an innovative and progressive stage line of merchandise for their fear answerment team to advance the health of patients. In high society to reach out to potential patients, the conjunction operates under two platforms UnitedHealth armorial bearing, which tenderizes health benefits, and Optum which stick outs health work. UnitedHealth tuition segments include Employer & Individuals, Medic be & Retirement, Community & State and Inter interior(a). In contrast, Optums sections represent of OptumHealth, OptumInsight, and OptumRx.To fully scan the Companys strategy, we must(prenominal) first understand its mission. UnitedHealth conclave mission is helping people live healthier lives and make health cargon work break away (UnitedHealth Group, Inc. 2012, p. 1).After we puddle work a sense of understanding, we can boost conduct a serial publication of analysi s by using tools much(prenominal)(prenominal) as PESTEL, Porters Five Forces, and SWOT analysis. As a result, we pass on be fitting to interpret UnitedHealth Groups strategy and its combative favor.PESTEL1). PoliticalA). The laws and rules governance our short letter and interpretations of those laws and rules are subject to frequent change, and the integration into our businesses of entities that we acquire may actuate the way in which existing laws and rules drill to usagencies administering, interlingual rendition and enforcing current and future regulations governing our business could force us to change how we do business, restrict revenue and enrollment harvest-time, increase our health vex and administrative salutes and capital requirements, or expose us to change magnitude liability in courts for coverage determinations, convey interpretation and opposite actions (UnitedHealth Group, Inc. 2012, p.17).B). In general, health care labor is and ordain live t o be heavily regulated in order to protect consumers. Insurance companies and other identities must be licensed in order to operate and hold legal power where business are practiced. The hardity of regulations impedes companies much(prenominal) as UnitedHealth Group from generating revenue. As a result, the regulations force the Company to change how they do business. For example, UnitedHealth Group subscribe a contract with the Department of Defense to provide coverage to those in the military who are active or retired. The overhaul known as TRICARE Managed Care Support will serve much than than 2.7 one million million beneficiaries in 21 states (UnitedHealth Group, Inc. 2012, p.4). indeed, the losses leveraged from other service or harvest-tides did non pander proper regulation. 2). EconomicA). Unfavorable economic conditions may furbish up contain for genuine of our products and work. For example, high unemployment rates chance upon aim caused and could continue to cause trim down enrollment or lower rates of re revolutionaryal in our employer group plans and our non-employer individual plans (UnitedHealth Group, Inc. 2012, p.25).B). Because the economy changes daily, it is impossible to predict the certainty of unemployment rates. Unemployment rates are inversely related to the success of company operations. Simply, if rates increase, then rank and file levels decrease. To manage the inconsistency of unemployment rates, UnitedHealth Group offers a spectrum of products and go. When the economy is healthful, traditional plans that typically include a full range of medical benefits and profitwork options from managed plans such as Choice and Options PPO (UnitedHealth Group, Inc. 2012, p.3), tend tothrive. Conversely, when unemployment is high and the economy is weaker, essential benefits product which offer less than traditional plans doctorly still provide underlying services such as guides to physicians, become copious. 3). Sociocultu ralA). As we continue to din our business outside the United States, acquired foreign businesses, such as Amil, will present challenges that are different from those presented by learnednesss of domestic businesses, including adapting to red-hot-made grocerys, business, labor and cultural practices and regulative environments that are materially different from what we drive home experienced in our U.S. operations (UnitedHealth Group, Inc. 2012, p.24).B).Although the Companys main operations are in the United States, it has expanded its operations to other nations. Conducting business internationally faces many factors such as political, economic, legal compliance, regulations, and operational run a risks and photographs that are unique and vary by jurisdiction (UnitedHealth Group, Inc. 2012, p.17). But having already been undecided to these elements in parts of Europe, the Middle East, Africa and Asia the recent acquisition of Amil, whose services are dispersed throughout brazil, will face minimal encumbrances. Additionally, Amils products and services are much similar to those offered by UnitedHealth Group and thus effortlessly adapting to the new securities industryplaces. The new market, which consist of over five million people, have been exposed to Amils health and dental benefits and have access to 45,000 undertake physicians (UnitedHealth Group, Inc. 2012, p.5). 4). applied scienceA). Our ability to adequately scathe our products and services, to provide effective service to our customers in an efficient and uninterrupted fashion, and to accurately report our results of operations depends on the integrity of the data in our information systems technology initiatives and recently enacted regulations, changes in our system platforms and integration of new business acquisitions, we periodically consolidate, integrate, upgrade and expand our information systems capabilities (UnitedHealth Group, Inc. 2012, p.26).B). Technology is fundamental to UnitedHealth Group. In their earlier years, the Company provided physicians with placement software that managed and controlled cost. Investing in technology can be costly, but for UnitedHealth Group it serves as a competitive advantage. One way UnitedHealth Group stays above average is by utilizing its information systems user-friendly resources that help consumers control their decision on health care. These resources provide greater transparency around quality and cost, such as the superior Designation program and Health4Me for Apple and Android phones, myHealthcareCost Estimator, Health Care course and myuhc.com (UnitedHealth Group, Inc. 2012, p.2). 5). EnvironmentalA). Relatively low interest rates on coronations, such as those experienced during recent years, have adversely impacted our investment income, and a prolonged low interest rate environment could further adversely affect our investment incomedelay in payment of lede and/or interest by issuers, or defaults by issuers, could reduce our net investment income and we may be required to write down the cling to of our investments, which could materially and adversely affect our profitability and shareholders equity (UnitedHealth Group, Inc. 2012, p.25).B). As mentioned previously, UnitedHealth Group has an impact in the national and global economy. Due to its operations conducted on the international overcome, UnitedHealth Group has significant exposure to environmental factors that directly affect shareholders equity. These factors include money exchange, government intervention, and political instability. Because of the nature of the global economy, the Company must take preventative actions to protect their investments. This is exemplified when one takes note that the Company may choose to allocate its investments into smaller portfolios to help reduce exposure to the market. Additionally, the acquisition of Amil puts pressure on the companys profitability. Fluctuating currency rates h ave an adverse effect on the Companys cash flows. Thus, currency exchange may benefit UnitedHealth Group if not hindered by local government making transfer of funds difficult. 6). sanctionedA). The Health Reform Legislation and the related federal and state regulations will impact how we do business and could restrict revenue and enrollment growth in certain products and market segments, restrict premium growth rates for certain products and market segments, increase our medical and administrative costs, expose us to an increased risk of liabilityor put us at risk for loss of businessmay also create new or expand existing opportunities for business growth, but due to its complexity, the impact of the Health Reform Legislation remains difficult to predict and is not yet fully known (UnitedHealth Group, Inc. 2012, p.11).B). Health care regulations affects the whole industry who range from consumers to providers. Because insurance companies are so controlled, it obstructs the way bus inesses are run. Regulations that apply to health care companies, such as UnitedHealth Group, increases loss of business. For example, legislation will includes an annual, non-deductible insurance industry tax to be levied proportionally crossways the insurance industry for risk-based products (UnitedHealth Group, Inc. 2012, p.35). As a result, the Company is force to pay an upwardly of $8 billion and gradually increasing every year. Porters Five Forces7). Current Competitors (High)A). competitors include Aetna Inc., Cigna Corporation, Coventry Health Care, Inc., Health Net, Inc., Humana Inc., Kaiser Permanente, WellPoint, Inc., many for-profit and not-for-profit organizations operating under licenses from the Blue Cross Blue Shield Association, and, with compliments to our Brazilian operations, several established competitors in Brazil, and other enterprises that serve more limited geographic areas (UnitedHealth Group, Inc. 2012, p.14).B). The companies stated above are a ing est few who construct the health care insurance industry. The thin weft of insurance companies causes companies to compete highly with each other to gain market shares. Health care insurance companies are much a desire pass similar coverage to their clients. In order to have the upper hand, UnitedHealth Group spends an ordeal amount of money on technology to differentiate their products. Thus created plans for members to be provided access to clinical products withthe goal of helping them make better health care decisions, and thus better use of their medical benefits, with the eventual(prenominal) goal of improving health and decreasing medical expenses (UnitedHealth Group, Inc. 2012, p.14). 8). Threat of bleak Entrants (High)A). In particular markets, competitors may have greater capabilities, resources or market share a more established story superior supplier or health care professional arrangements better existing business relationships or other factors that give such co mpetitors a competitive advantagemerger and acquisition activity has occurred in the industries in which we operate, twain among our competitors and suppliers integrating may make it more difficult for us to retain or increase our customer base, improve the terms on which we do business with our suppliers, or maintain or increase profitability (UnitedHealth Group, Inc. 2012, p.22).B). Due to the limited amount of insurance companies, other companies compete for market shares. Top companies like UnitedHealth Group hold sizable portions in segmented markets. Moreover, mid-size companies merge in concert in order to increase their shares in the market. Similarly, bigger companies acquire smaller companies to broaden their consumer base such as UnitedHealth Group with Amil. 9). Power of Suppliers (Medium)A). We contract with physicians, hospitals, pharmaceutical benefit service providers, pharmaceutical manufacturers, and other health care providers for servicesFailure to develop and m aintain satisfactory relationships with health care providers, whether in- meshwork or out-of-network, could materially and adversely affect our business (UnitedHealth Group, Inc. 2012, p.22).B). A inexpugnable connection with suppliers is crucial to the companys business because it has a strong positive correlation between prospective clients. UnitedHealth Group is one of the largest amongst other insurers and attracts an abundance of health care providers. As a result, an increase in suppliers dilutes their bargaining power. 10). Power of Buyers (High)A). Under our risk-based benefit product arrangements, we assume the risk of both medical and administrative costs for our customers in return for monthly premiumsThe profitability of these products depends in large part on our ability to predict, price for, and effectively manage medical costs (UnitedHealth Group, Inc. 2012, p.16).B). It is human nature to desire a variety of choices. Although health care insurance companies are sc arce, their products and services are not. In the case of UnitedHealth Group, a full range of services are offered to employers and individuals. As a result, consumers have the choice and power to recognise a plan that suits them well. As the commercial market becomes more consumer-oriented, individuals are assuming more personal and financial responsibility for their care, and they are demanding more affordable products, greater transparency and choice and personalized help navigating the complex system (UnitedHealth Group, Inc. 2012, p.2). Acknowledging this helps UnitedHealth Group to stay competitive. 11). Threat of Substitutes (Low)A). Our information systems require an current commitment of significant resources to maintain, protect and enhance existing systems and develop new systems to keep pace with continuing changes in information processing technology, evolving systems and regulatory standards, emerging cyber security risks and threats, and changing customer patterns (UnitedHealth Group, Inc. 2012, p.26).B). Technology serves as a great substitute compared to basic products sold by insurance companies. Technology consists of software programs that track your health, new medical treatment devices, and the ever changing Internet. The issue with technology is that it can get very expensive for both the company and the consumer. Therefore, only those who can afford it are amongst a few. Conversely, companies who are not developing new information technology will digest their competitive advantage and ultimately give up their market shares. Consumers are likely to find a cheaper and better alternative otherwise.SWOT12). StrengthsA). UnitedHealthcare provides network-based health care benefits for a full spectrum of customers in the health benefits market. UnitedHealthcare Employer & Individual serves employers ranging from sole proprietorships to large, multi-site and national employers, as well as students and other individuals (UnitedHealth Group, Inc. 2012, p.1).B). UnitedHealth Group sustains a competitive advantage through its diversified products and services. Coverage is offered to large scale employers, military personal, the elderly, and those who cannot afford health care through government sponsorship. The Company reaches to consumers throughout the nation and even internationally. 13). WeaknessesA). legal actions we face or may face in the future could further increase our cost of doing business and materially and adversely affect our results of operations, financial position and cash flowscertain legal actions could result in adverse publicity, which could damage our reputation and materially and adversely affect our ability to retain our current business or grow our market share in select markets and businesses (UnitedHealth Group, Inc. 2012, p.23).B). The health care industry has have a negative connotation. The public views insurance companies as scammers that rob society. Companies gain a bad reputation when t hey get investigated by the Government. UnitedHealth Groups goal is to provide people with healthier lives, not rob them financially. Consequently, negative publicity may adversely affect our seam price, damage our reputation in various markets or foster an more and more active regulatory environment, which, in turn, could further increase the regulatory burdens under which we operate and our costs of doing business (UnitedHealth Group, Inc. 2012, p.18). 14). OpportunitiesA). UnitedHealthcare International acquired Amil, which provides health and dental benefits to over five million people and also operates 22 acute hospitals, as well as specialty clinics, primary care, and emergencyservices across Brazil, principally for the benefit of its members (UnitedHealth Group, Inc. 2012, p.5).B). The acquisition of Amil will provide UnitedHealth Group with newer market segments, more consumers, and increase the companys revenue. Amil will also offer diversified product portfolio that cont ain a range of products offerings, benefit designs, and damages products. Furthermore, Amil will include various administrative services which include network access, care management and personal services (UnitedHealth Group, Inc. 2012, p.5). 15). ThreatsA). Several of the provisions in the Health Reform Legislation will likely increase our medical cost trends. Examples of these provisions are the excise tax on medical devices, annual fees on prescription drug manufacturers, enhanced coverage requirementsthe rampart of pre-existing condition exclusions and the implementation of adjusted community rating requirements (UnitedHealth Group, Inc. 2012, p.19).B).As mentioned in the PESTEL breakdown, under the analysis of the legal realm, Health Reform Legislation causes a serious threat to the well-being of UnitedHealth Groups business. Excess taxes take away from the companys profits thus rendering them otiose to reinvest into their company. Lastly, prohibition of excluding pre-existi ng conditions may increase the risk and medical cost in the future. Competitive Strategy16a. We believe the principal competitive factors that can impact our businesses relate to the sales, marketing and pricing of our products and services product variety consumer engagement and satisfaction the level and quality of products and services care bringing network and clinical management capabilities market share product statistical distribution systems efficiency of administration operations financial strength and marketplace reputation (UnitedHealth Group, Inc. 2012, p.14).In order for a company to have sustainable competitive advantage, they must abide their companys vital principals. UnitedHealth Group does not only accomplish their objective, but they surpass other companies strategy. First they outperform in sales by offering premium services such as UnitedHealthcare and Optum products. The company also provides a variety of these products and services ranging from value-orient ed plans to essential-oriented plans.Secondly, UnitedHealth Group has an exclusive network system that only clients have access to. Clients have access to physicians and hospital that meet their unique needs. Moreover, the Company serves to large national employers, public sectors employers, and midsize employers to individuals. As a result, UnitedHealth Group is providing nearly 27 million Americans access to health care (UnitedHealth Group, Inc. 2012, p.2).Lastly, UnitedHealth Group is a massive health insurance company which has enabled them to control ample market shares. Their recent acquisition with Amil shows how strong UnitedHealth Group is financially. Overall, UnitedHealth Group is a leading company in health care insurance proven by their business factors. The Company uses a differentiation strategy to maintain its competitive advantage. Article16b.UnitedHealth to deprave most of Brazils Amil for $4.9 billionThe company is making a bold move taking on the fast growing ma rkets of Brazil. UnitedHealth Group has made record on being the first to acquire manage Care Company across seas. The acquisition will bring UnitedHealth Group more leverage and revenue to its operations. Amil has more than 5 million clients in Brazil and owns 22 hospitals and 50 clinics. It forecast revenues of $5 billion for 2012, up 15 percent from 2011. UnitedHealth had revenues of nearly $102 billion in 2011 and expects the deal to jolly increase its 2013 earnings per share (reuters.com). Ultimately Amils operations will be similar to UnitedHealth Group in that it will provide its products and services to new market segments. In addition, Brazils healthcare system consists of public and mystic plans, similar to the U.S. model. The number of Brazilians covered under private plans has grown more than 50 percent over the past 10 years to nearly 48 million people, roughly a stern of the countrys population (reuters.com).Work CitedHumer, Caroline. UnitedHealth to Buy Most of Bra zils Amil for $4.9 Billion. Reuters. Thomson Reuters, 08 Oct. 2012. Web. 25 Sept. 2013. UnitedHealth Group, Inc. (2012). Form 10-K 2012. Retrieved from SEC EDGAR website http//www.sec.gov/edgar.shtmlView as multi-pages