Business Analysis

1111 Words5 Pages
Business Analysis Part I Paper

Rhonda Ellis-Thomas

MGT/521

University of Phoenix

Dr. Shane Howell

March 21, 2012

Business Analysis Part I Paper

Assuming the role of the mutual fund manager and after conducting a SWOT analysis, the decision has been made to select the Fortune 500 Company UnitedHealth Group to invest in. UnitedHealth Group operates in all 50 states and is based out of Minnetonka, Minnesota. The purpose of this paper is to identify the company’s internal and external stakeholders, describe their wants and needs, and explain how the company is fulfilling those needs.

UnitedHealth Group

UnitedHealth Group is a prominent health care company, serving more than 75 million
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3.) Strong presence in high margin health services business. In addition to UnitedHealth Group’s leadership position in the health benefits market segment, UnitedHealth Group has strong information and technology based health services platform through its business segments which is Ingenix, OptumHealth and PrescriptionSolutions. The “CNN MONEY” (2012) website states Ingenix is one of the largest health information, technology and consulting companies in the world. The UnitedHealth Group derived $2.3 billion of revenues from Ingenix which contributed $284 million (excluding $200 million in goodwill impairment and business line deposition charges) of operating profit, and an operating margin of 12.1% during FY2010. After conducting a thorough SWOT analysis the UnitedHealth group it was discovered that the weaknesses are a significant level of indebtedness affecting financial flexibility for business expansion and the options backdating allegations had negative impact on investor confidence. 1.) Significant level of indebtedness affecting financial flexibility for business expansion. The UnitedHealth Group had a long term debt (less current maturities) of $8.7 billion in FY2010 as compared to that of $7.5 billion in 2006 ("Research and Markets", 2012). 2.) Options backdating allegations had negative impact on investor confidence. The manner in which permitting an option that is dated prior to the date that the company
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