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UnitedHealth Group PESTLE
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PESTEL Analysis of UnitedHealth Group

by Shamsul

PESTEL Analysis of UnitedHealth Group

This PESTEL analysis of UnitedHealth Group will largely highlight the macro business environment of the company. PESTEL is the short form of political, economic, social, technological, environmental, and legal factors. They have a huge impact on the business performance of UnitedHealth Group. A slight change in these factors can directly impact the company’s business operations and processes. They can also hurt the entire healthcare and insurance sector in the world.

PESTEL is a great tool for analyzing all the aspects of a business. All these factors are external factors and help to find the external business environment of the company. Let’s have a deep look at it!

 
Political Factors
 
Without any doubt, political factors greatly impact how any organization does business. The overall profitability of UnitedHealth Group is dependent on this one factor. Being an international company, they face different challenges in different countries. In other words, the company depends on the political system and environment of the country in which it operates. A company like UnitedHealth Group can’t operate smoothly in a saturated political environment. It is necessary for UnitedHealth Group to closely analyze the following political factors before venturing into a specific market.
 
     
  • Don’t forget to analyze the political system and its stability in the country, plus, the importance of insurance and healthcare plans in the region.
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  • Level of exploitation in the country, especially in the healthcare industry.
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  • The intervention of healthcare institutions and bureaucracy.
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  • Legal structure or procedure for contract implementation.
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  • IPP (Intellectual Property Protection).
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  • Tariffs and trade regulations in the healthcare sector.
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  • Preferred trading associates.
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  • Anti-trust laws.
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  • Pricing strategies and regulations.
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  • Incentives and tax rates.
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  • Overtime and minimum wage policies.
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  • Work week limitations.
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  • Employee benefits.
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  • Safety regulations in the health and insurance sector.
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  • Labeling and other related complexities.
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Economic Factors
 
So many economic factors directly impact the business of companies like UnitedHealth Group. They are exchange rate, saving rate, foreign exchange rate, and inflation rate. They are responsible for the smooth working of the company. Competition standards are the micro business factors that influence the competitive advantage in the market. In order to predict economic trends, UnitedHealth Group should understand several factors such as growth rate, customer spending power, and inflation rate. We have summed up some economic points below:
   
 
     
  • What kind of economic system the country follows? Don’t forget to analyze its stability as well.
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  • Intervention from the government institutions in the healthcare and insurance sector.
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  • How effective are financial markets in the country? Should they raise capital in the market or not?
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  • What is the quality of infrastructure in the healthcare and insurance sector?
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  • What are the opportunities for host companies in the country’s economy?
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  • How skilled is the workforce in the industry?
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  • What is the literacy rate in the country?
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  • What are the labor costs and overall productivity level?
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  • Recession
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  • Recovery rate
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  • Prosperity rate
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  • Interest rates
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  • Economic growth rate
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  • Inflation
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  • Unemployment trends
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  • Flexible income
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Social Factors
 
Population and culture are two crucial aspects of social factors. Society plays a huge role in making or breaking a company’s success. Customer preferences and shared beliefs are also very important for the company’s overall functioning in the competitive market. UnitedHealth Group should conduct surveys to understand the customers’ needs and pain points. As a result, they can make an effective marketing strategy to engage with the audience. The organization should incorporate the following social factors into this PESTEL analysis:
 
     
  • Skill level of the people and demographics.
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  • Power and class structure in society.
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  • Education standard in the country and education level.
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  • Gender roles.
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  • Social conventions.
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  • Spirit for startups and individual businesses.
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  • Attitude towards health and environment.
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  • Leisure preferences.
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Technological Factors
 
Today, the thing that is disrupting businesses is technology. We want to give an example from the transportation industry. Lyft and Uber have completely transformed the concept of taxi service. Now, people prefer these innovative services over traditional taxis. Moreover, automotive companies are manufacturing electric vehicles and Tesla is one of the biggest examples. Being a healthcare company, it is imperative to constantly innovate by investing in the latest technologies and infrastructures. This is the only way to make your business relevant and profitable. Don’t forget to take the following technological factors into your consideration:
 
     
  • Technological advancements have been made in the health and insurance sector in recent years.
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  • Rate of technological advancement in the country, more specifically in the industry.
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  • Cost structure in the industry related to technology.
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  • Impact of technology on the supply chain and production units.
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  • Diffusion of technological advancements.
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Environmental Factors
 
Every market has its own standards and trading norms. The case goes the same for the environmental standards. It is an important factor that can impact a company’s business operations. Before penetrating any country, UnitedHealth Group should understand its liability and environmental laws. The environmental laws in North America are quite different than European countries. We have summarized some key environmental factors that you should evaluate before entering new regions or countries:
 
     
  • Climate change.
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  • Changing weather.
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  • Recycling and waste management.
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  • Environment pollution.
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  • Approach towards green products and services.
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  • Efforts for manufacturing renewable energy sources.
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  • Air pollution.
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  • Water pollution.
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  • Rare species.
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Legal Factors
 
In several countries, the legal system or framework is not so strong. Due to this reason, they fail to protect the IPRs (Intellectual Property Rights) of the companies. A company like UnitedHealth Group should carefully investigate these factors before making a big move. The company’s overall competitive advantage and profitability depend on this factor. The following are some important legal factors to consider before starting your business in a new market:
   
 
     
  • Anti-trust laws in the health and insurance sector.
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  • Discrimination laws (from the beginning of the career, promotion, and retirement).
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  • Intellectual property laws.
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  • Copyright.
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  • Patents.
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  • Employment laws.
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  • E-commerce and consumer protection.
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  • Customer service.
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  • Safety laws.
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  • Health laws.
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  • Data breaches.
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  • Data protection laws.
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We hope this PESTEL Analysis of UnitedHealth will serve you for the study purpose. Keep reading this post to better understand the UnitedHealth Group business.
 
 
SWOT Analysis of UnitedHealthcare
   
 
 
 
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  PESTEL ANALYSIS  
 
 
BusinessMarketingSWOT & PESTLE 
 
How PESTEL Analysis Supports Creating Business Strategy?
 
 by Shamsul   
 
 
 
 
 
 
How PESTEL Analysis Supports Creating A Business Strategy?
 
 
 
PESTEL analysis is a fundamental piece of strategic planning. Without a strategic system for the outside variables that could influence an organization, businessmen may lose their upper hand in a market and never recuperate. Be that as it may, the devices a PESTEL analysis gives will separate you from the challenge, giving your business that a considerable advantage it needs.
 
As the business condition is persistently venturing into new markets, seeing how these new markets can recognize noteworthy risks.
 
Before you can start overwhelming an emerging or evolving market, it’s imperative to comprehend PESTEL’s structure and figure out how your group can roll out these improvements productively.
 
 
 
Definition of PESTEL Analysis: 
 
PESTEL is a device to analyze the elements of progress in a business condition. These are viewpoints a business ought to evaluate: contenders, markets, the direction of tasks and conditions.
 
Francis Aguilar who is a professor at Harvard University is believed to be the maker of PEST analysis in 1967, in spite of the fact that it has experienced a few changes throughout the years to get to the current PESTEL abbreviation:
 
 
 
     
  • Political.
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  • Economic.
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  • Social.
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  • Technological.
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  • Environmental.
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  • Legal.
    •  
 
 
A PESTEL Analysis is Valuable for These Four Basic Reasons: 
 
     
  • It will assist you with seeing business openings, or give you preemptive guidance of potential risks.
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  • It uncovers the future changes a business will confront. This causes you to adjust what you are doing, so you are prepared to transform, rather than against it.
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  • It causes you to abstain from starting tasks when you visit another country, city, or markets that are probably going to increase the external pressures.
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  • It will put certainty behind departmental research of market assessments confronting any theories.
    •  
 
 
 
How to Use PESTEL Analysis for Various Departments?
 
It’s imperative to direct it from the beginning; PESTEL can be utilized for various causes, for example, business, strategic, marketing, product and organization planning.
   
 
At this stage, colleagues from various divisions need to meet up to share key data they hold to guarantee it is a perfect review. Regardless of whether you are at the office or working in a remote location, probably the most ideal approach to finish a PESTEL analysis is by utilizing an online device that can be finished cooperatively.
 
Managers at company offices can divide members into little groups to deal with one of the six other external drivers. In the PESTEL layout, make sticky-notes labels which section will deal with any specific PESTEL factor. Since everybody would approach this layout, the workers can join any section in order to complete a specific factor of this special analysis.
 
 
 
Presently, we should investigate the six external drivers of PESTEL in more profundity.
 
 
 
P of PESTEL Analysis
 
Political: 
 
The principal factor to notice is the manner by which the country’s government mediates in the national economy. Consequently setting strategies or rules for corporate activities. This incorporates the condition of government laws, for example, import & export policy, tax assessment approach, venture & competition strategy, purchaser security plan, and labor laws. It’s likewise imperative to take a view of security levels or unsteadiness, debasement, speed of changes and progressiveness of lawmakers.
 
 
 
While thinking about the Political elements, here are a few inquiries you should reply:
 
     
  • Who are the partners of the corporate unit in a more extensive association?
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  • Who represents us and who criticizes us?
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  • When is an election in our neighboring country, state or city? What are their political decisions? How could this bring change in regional or local policy?
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  • Could any pending tax collection or lawmaking changes influence our business, either emphatically or adversely?
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  • In what capacity will business guidelines, alongside any arranged changes to it, influence our business?
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E of PESTEL Analysis
 
Economical: 
 
Next, you need to notice the extensive prudent atmosphere your business is working in, both from the customer’s side and the government’s economy. How steady is the present economy? Is it developing, stagnate, or going down? What’s more, for the customer, their buying power relies upon salary level, rate of joblessness, savings, accessibility of credit and total debit. It is critical to invest some energy inquiring about the current, and future financing costs, trade rates, and inflation.
 
While thinking about the Economical components, here are a few inquiries you should reply:
 
     
  • Do we know a budget limit? Is it practical? Does it deliver us adequate flex to attempt things?
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  • How would we oversee costs?
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  • What is our data about the rising or falling incomes of clients? How is this liable to change in the coming years?
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  • How are monetary patterns affecting us?
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  • Has an interest in our items developed/declined/remained the same?
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  • Which clients can deliver more profits to us?
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  • What is the rate of unemployment? Will it be anything but difficult to fabricate a trained workforce? Or on the other hand, will it be costly to appoint skilled persons?
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S of PESTEL Analysis
 
Social: 
 
The interest in some items changes with the changes in social dispositions. In this way, it’s critical to take a view of the current socio-traditional circumstances. This spreads things, for example, age and populace development rate, strict convictions, sexual orientation standards, class structures, web utilization propensities, customs and convictions, health awareness and decisions about lifestyle. This area likewise covers changes that may influence the workforce: expanding life expectancy of the populace, a pattern toward fewer kids, the gender gap. The general awareness level of the public in all these points is also important.
 
 
 
While thinking about the Sociological variables, here are a few inquiries you should reply:
 
     
  • How do strict convictions and decisions about lifestyle influence the people?
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  • Are generational moves in the structure of mind liable to influence what we are doing?
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  • What social systems of mind and social taboos could influence our business?
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  • Have there been late socio-traditional changes that may influence this?
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  • What are our general public health, training, and social level? How are these changing, and what effect does this have?
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T of PESTEL Analysis
 
Technological: 
 
This area might not have ever been as significant as it is today because of the extraordinary pace of mechanical progression we are at present encountering. The mechanical elements you have to inspect incorporate accessibility of innovation accessible to you and to the client, utilization of computerization, data innovation, Research, and Development motivating forces, biotechnology, social life, screen size, and web security.
   
 
 
 
While thinking about the Technological elements, here are a few inquiries you should reply:
 
     
  • How well do we use innovation?
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  • Are there any new advancements that we could be utilizing?
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  • How have foundation changes influenced work designs (e.g., levels of remote working)?
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  • What would we be able to gain from the information we gather?
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  • How would we measure our own presentation?
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  • Do any of our rivals approach new advances that could reclassify their items?
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  • How could mechanical advances influence the business going ahead?
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E of PESTEL Analysis
 
Environmental:
 
Environmental elements that can influence a business to incorporate climate, particularly environmental variations and catastrophic events, changes to bundling and materials, recycling and cultural dismissals to specific materials, such as plastics, straws, and shopping packs. Likewise, the accessibility and cost of crude materials can be a significant worry in certain businesses.
 
 
 
While thinking about the Environmental elements, here are a few inquiries you should reply:
 
     
  • The conditions we work in, what functions admirably and what needs improvement?
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  • How would we compare all the industrial revolutions, items and strategies?
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  • How would we remain adjusted to our destinations and what we have faith in?
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  • Are there any current environmental projects/organizations our product can involve?
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  • How might we source, exchange and test the items?
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  • Is all that we do morally sound?
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L of PESTEL Analysis
 
Legal: 
 
Moreover, in the present worldwide economy, it’s significant that business supervisors have intensive information about the significant laws. Furthermore, it secures the business ventures, purchasers and society in all business sectors they work in. These laws incorporate Health and security guidelines, Copyright encroachment, Employment laws, Data insurance laws, Consumer assurance laws, just to give some examples.
 
 
   
 
While thinking about the Legal variables, here are a few inquiries you should reply:
 
     
  • How are we affected by changes to legislation and guideline?
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  • How would we keep ourselves consistent?
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  • What countries do people work in?
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  • Are our staff supported by Unions?
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  • Do we know all about the Data Protection Laws?
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Main Tips to use PESTEL Analysis: 
 
We have discussed some important points about the PESTEL Analysis in this article. Readers who have further questions should think about the associated contents. On the other hand, they can also send us cases to learn more about the effectiveness and application of this analysis.
 
Try to understand the modern applications of PESTEL Analysis. Not only the bigger organizations but the small businesses can also use this analysis. It has multiple advantages for users of various levels.
 
You may also find some critical technical issues while conducting the PESTEL analysis. Moreover, don’t forget to consult an expert if you have a technical issue with the results of the analysis.
 
 
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