You all know by now (September 2018) that Amazon has become the second company a
ID: 388312 • Letter: Y
Question
You all know by now (September 2018) that Amazon has become the second company after Apple to become a trillion dollar market value company on the world.
Read the news at the following web site. https://www.npr.org/sections/thetwo-way/2018/01/30/581804474/amazon-berkshire-hathaway-and-jpmorgan-chase-launch-new-healthcare-company (Links to an external site.)Links to an external site.
The news is about Amazon, Berkshire Hathaway and JP Morgan joining hands to start a new healthcare company. It is non-profit and its customers are the 950,000 employees of the three companies. In the article it is mentioned that there were several precedents to this news event. NPR's Scott Hensley tells Morning Edition there is precedent for the case of a non-health care company wading into the health care business — "in fact, it has happened repeatedly." "One of the most prominent examples is what is now Kaiser Permanente, a big provider of health care in this country. It started with the Kaiser shipyards and providing, first, workers comp kind of care and, later, more integrated health care for employees," Scott explains. Employees and shareholders are two important stakeholders of any firm.
Do some Internet research on the history of Kaiser Permanente, and then for each of the two stakeholder groups (employees and shareholders), state in your post two drawbacks (negatives) of the proposed joint venture of the three companies (Amazon, Berkshire Hathaway and JP Morgan). Be concise and clearly demarcate your answers by numbering your responses in your post.
Explanation / Answer
Kaiser Permanente had the workers and employees insurance business that initially gave it a boost to go further in healthcare services. Likewise the Amazon, Berkshire Hathaway and JP Morgan group can too do the same with larger scale understanding that they are already big business.However there are drawbacks to the venture for healthcare by this group.
The drawbacks are:
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