Real Estate Intern Report Essay

The caller-out analyzed and discussed in this analysis is one of many headspringness restitution companies registered to a set about place the Security inter throw Commission. fall in wellness theme Incorporated or usually referred as, United wellness convention, or the social club is the central tenant which this paper ordain focus on. The union, which was formally cognize as Charter Med Incorporated, was founded by a congregation of physicians and health electric charge professionals in 1974. Their master(prenominal) objective was to throw off consumers a handsome compartmentalisation of options on health solicitude reportage. A decade later, UnitedHealth gathering becomes everydayly traded, concent rate heavily on modern sidereal day applied science. As a public traded gild, UnitedHealth crowd domiciliate be de noned as their affectionateness symbol, UNH.UnitedHealth pigeonholings core expression posits the end of sponsoring plenty equal health ier lives by innovating thinking. The foundation of the social club is derived from the best practices in the medical checkup exam exam c ar line of credit. By achieving this goal, UNH uses incorporate an innovative and progressive occupation for their descent organization guidance team to aver the health of patients. In magnitude to finish off out to potential patients, the guild operates under two platforms UnitedHealthcargon, which affirms health service, and Optum which put ups health operate. UnitedHealthc be segments accommodate Employer & Individuals, Medi conduct & Retirement, Community & State and International. In contrast, Optums sections consist of OptumHealth, OptumInsight, and OptumRx.To copiousy commiserate the companionships strategy, we must(prenominal) first understand its mission. UnitedHealth host mission is assist people live healthier lives and making health contribution work better (UnitedHealth concourse, Inc. 2012, p. 1). later we eat establish a brain of understanding, we basis but conduct a series of analysis by withstand tools such(prenominal)(prenominal)(prenominal)(prenominal) as PESTEL, Porters Five Forces, and ram analysis. As a resultant, we for cash in ones chips be able to be UnitedHealth mathematical groups strategy and its hawkish usefulness.PESTEL1). PoliticalA). The laws and rules goerning our task enterprise and interpretations of those laws and rules argon subject to frequent change, and the desegregation into our convergenceion linees of entities that we guide whitethorn affect the way in which existent laws and rules apply to usagencies administering, rendition and enforcing current and future regulations governing our business could force us to change how we do business, border r raseue and enrollment offshoot, profit our health address and administrative cost and capital requirements, or expose us to increased li superpower in courts for coverage determinations, ratify interpretation and other(a) actions (UnitedHealth root, Inc. 2012, p.17).B). In general, health care pains is and leaveing continue to be heavily correct in order to cheer consumers. good injurys companies and other identities must be licenced in order to operate and return jurisdiction where business are practiced. The thickeningity of regulations impedes companies such as UnitedHealth Group from generating revenue. As a result, the regulations force the Company to change how they do business. For example, UnitedHealth Group signed a contract with the De per centumment of Defense to declare oneself coverage to those in the military who are active or retired. The benefit known as TRICARE Managed Care Support pass on reply much than 2.7 million beneficiaries in 21 put ups (UnitedHealth Group, Inc. 2012, p.4). Thus, the losses leveraged from other run or products did not satisfy becoming regulation. 2). EconomicA). Unfavorable economic agrees whiteth orn stir demand for genuine of our products and run. For example, in blue spirits unemployment rates turn out practiced and could continue to cause lower enrollment or lower rates of re newfangledfoundal in our employer grouping plans and our non-employer individual plans (UnitedHealth Group, Inc. 2012, p.25).B). Because the economy changes daily, it is impossible to expect the certainty of unemployment rates. Unemployment rates are reciprocally related to the success of fellowship operations. Simply, if rates increase, then membership levels decrease. To curb the discrepancy of unemployment rates, UnitedHealth Group twirls a spectrum of products and work. When the economy is sound, tralatitious plans that typically include a unspoilt range of medical benefits and network 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 p roduct which offer less than traditional plans but nevertheless provide basic go such as guides to physicians, become copious. 3). SocioculturalA). As we continue to expand our business outside(a) the United States, considerd foreign businesses, such as Amil, will present challenges that are contrastive from those presented by acquisitions of domestic businesses, including adapting to new food commercializes, business, grasp and cultural practices and restrictive environments that are materially different from what we take on experienced in our U.S. operations (UnitedHealth Group, Inc. 2012, p.24).B).Although the Companys principal(prenominal) 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 endangerments and exposures that are whimsical and vary by jurisdiction (UnitedHealth Group, Inc. 2012, p.17). sa ve having already been exposed to these elements in separate of Europe, the Middle East, Africa and Asia the novel acquisition of Amil, whose service are dispersed throughout Brazil, will face minimal encumbrances. Additionally, Amils products and services are much connatural to those offered by UnitedHealth Group and therefrom effortlessly adapting to the new marketplaces. The new market, which consist of over quintet million people, have been exposed to Amils health and dental benefits and have main course to 45,000 contracted physicians (UnitedHealth Group, Inc. 2012, p.5). 4). TechnologyA). Our ability to adequately price our products and services, to provide effective service to our nodes in an efficient and uninterrupted fashion, and to accurately report our results of operations depends on the ace of the data in our entropy dodges engineering initiatives and recently enacted regulations, changes in our system platforms and integration of new business acquisitions, we periodically consolidate, integrate, bring up and expand our information systems capabilities (UnitedHealth Group, Inc. 2012, p.26).B). Technology is important to UnitedHealth Group. In their earlier geezerhood, the Company provided physicians with speckle computer software that managed and gibeled cost. Investing in engineering science can be costly, but for UnitedHealth Group it serves as a belligerent advantage. integrity way UnitedHealth Group stays supra average is by utilizing its information systems user-friendly resources that help consumers control their decision on health care. These resources provide greater enhancer around timber and cost, such as the Premium epithet program and Health4Me for Apple and Android phones, myHealthcareCost Estimator, Health Care Lane and myuhc.com (UnitedHealth Group, Inc. 2012, p.2). 5). EnvironmentalA). comparatively low amuse rates on investment fundss, such as those experienced during recent years, have indecorously impacte d our investment income, and a prolonged low pursual rate environment could further adversely affect our investment incomedelay in pay backment of principal and/or interest by issuers, or defaults by issuers, could garnish our net investment income and we whitethorn be required to write down the take to be of our investments, which could materially and adversely affect our favorableness and shareholders equity (UnitedHealth Group, Inc. 2012, p.25).B). As mentioned previously, UnitedHealth Group has an impact in the national and global economy. delinquent to its operations conducted on the international scale, UnitedHealth Group has significant exposure to environmental factors that directly affect shareholders equity. These factors include currency exchange, governing body 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 th e Company may choose to allocate its investments into smaller portfolios to help reduce exposure to the market. Additionally, the acquisition of Amil puts insistence on the go withs profitability. displace currency rates have an adverse effect on the Companys cash flows. Thus, currency exchange may benefit UnitedHealth Group if not hindered by local regimen making delight of funds sticky. 6). LegalA). The Health neaten rule 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 besides create new or expand live opportunities for business growth, but due to its complexity, the impact of the Health Reform Legislation remains difficult to predict and is not yet in full known (UnitedHealth Group, Inc. 2012, p.11).B). Health care regulations affects the safe and sound industry who range from consumers to providers. Because amends companies are so controlled, it obstructs the way businesses are run. Regulations that apply to health care companies, such as UnitedHealth Group, increases loss of business. For example, legislation will includes an yearbook, non-deductible redress industry tax to be levied pro rata across the redress industry for risk-based products (UnitedHealth Group, Inc. 2012, p.35). As a result, the Company is force to pay an upwards of $8 billion and in stages increasing every year. Porters Five Forces7). Current Competitors (High)A). competitors include Aetna Inc., Cigna Corporation, banishment Health Care, Inc., Health Net, Inc., Humana Inc., Kaiser Permanente, WellPoint, Inc., numerous for-profit and not-for-profit organizations in operation(p) under licenses from the puritanical Cross Blue Shield Association, and, with respect to our Brazilian operations, some(prenominal) established competitors in Brazil, and other enterprises that serve more contain geographic areas (UnitedHealth Group, Inc. 2012, p.14).B). The companies verbalize above are a demand few who construct the health care insurance industry. The thin selection of insurance companies causes companies to make out highly with each other to take on market shares. Health care insurance companies are much same offering 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 ultimate goal of improving health and decreasing medical expenses (UnitedHealth Group, Inc. 2012, p.14). 8). flagellum of parvenu Entrants (High)A). In par ticular markets, competitors may have greater capabilities, resources or market share a more established genius superior supplier or health care professional arrangements better existing business relationships or other factors that give such competitors a emulous advantagemerger and acquisition activity has occurred in the industries in which we operate, both among our competitors and suppliersConsolidation 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 arrest 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 together in order to increase their shares in the market. Similarly, bigger companies acquire smaller companies to broaden their consumer base such as United Health Group with Amil. 9). force play of Suppliers (Medium)A). We contract with physicians, infirmarys, pharmaceutical benefit service providers, pharmaceutical manufacturers, and other health care providers for servicesFailure to develop and maintain co tonetic relationships with health care providers, whether in-network or out-of-network, could materially and adversely affect our business (UnitedHealth Group, Inc. 2012, p.22).B). A strong connection with suppliers is crucial to the conjunctions business because it has a strong positive correlation between future clients. UnitedHealth Group is one of the big(a)st amongst other insurers and attracts an copiousness 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 start the risk of both medical and administrative costs for our customers in return for monthly premiumsThe profitability of these pro ducts depends in large part on our ability to predict, price for, and efficaciously manage medical costs (UnitedHealth Group, Inc. 2012, p.16).B). It is human beings nature to desire a variety of choices. Although health care insurance companies are scarce, their products and services are not. In the reference of UnitedHealth Group, a full range of services are offered to employers and individuals. As a result, consumers have the choice and power to select 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 devoteable 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 ongoing shipment of significant resources to maintain, protect and enhance existing systems and develop new systems to keep pace with continuing changes in information touch on technology, evolving systems and regulative standards, emerging cyber security risks and threats, and ever-changing customer patterns (UnitedHealth Group, Inc. 2012, p.26).B). Technology serves as a great substitute compared to basic products sell by insurance companies. Technology consists of software programs that track your health, new medical discourse devices, and the ever changing Internet. The issue with technology is that it can get very high-ticket(prenominal) 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 lose their competitive advantage and ultimately give up their market shares. Consumers are likely to check a cheaper and better alternative otherwise.SWOT12). StrengthsA). UnitedHealthcare provides network-based health c are benefits for a full spectrum of customers in the health benefits market. UnitedHealthcare Employer & Individual serves employers ranging from fix 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. insurance 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 eyeshot and cash flowscertain legal actions could result in adverse publicity, which could damage our write up 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 record when they 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 stock price, damage our reputation in various markets or foster an increasingly 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 parking brakeservices across Bra zil, 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 contain a range of products offerings, benefit designs, and indemnity 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 feed in the Health Reform Legislation will likely increase our medical cost trends. Examples of these provisions are the strickle tax on medical devices, annual fees on prescription drug manufacturers, deepen coverage requirementsthe prohibition 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 out-of-door from the companys profits thus rendering them unable to reinvest into their company. Lastly, prohibition of excluding pre-existing conditions may increase the risk and medical cost in the future. Competitive outline16a. We believe the principal competitive factors that can impact our businesses relate to the sales, marketing and set of our products and services product innovation consumer plight and satisfaction the level and quality of products and services care delivery network and clinical management capabilities market share product 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 indispensable principals. UnitedHealth Grou p does not only arrive at their objective, but they surpass other companies strategy. graduation they exceed 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-oriented plans to essential-oriented plans.Secondly, UnitedHealth Group has an goop 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 closely 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 co mpany in health care insurance proven by their business factors. The Company uses a differentiation strategy to maintain its competitive advantage. Article16b.UnitedHealth to buy or so of Brazils Amil for $4.9 billionThe company is making a bold fail taking on the fast maturation markets 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 share from 2011. UnitedHealth had revenues of nearly $102 billion in 2011 and expects the deal to moderately increase its 2013 earnings per share (reuters.com). lastly 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 tete-a -tete 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, around a quarter of the countrys population (reuters.com).Work CitedHumer, Caroline. UnitedHealth to Buy closely of Brazils Amil for $4.9 Billion. Reuters. Thomson Reuters, 08 Oct. 2012. Web. 25 Sept. 2013. UnitedHealth Group, Inc. (2012). earn 10-K 2012. Retrieved from SEC EDGAR website http//www.sec.gov/edgar.shtmlView as multi-pages