Theranos: From Billions To Nothing

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Theranos “From Billions to Nothing”

INTRODUCTION

Theranos is a health technology company that was founded by a Stanford dropout in 2003. Its name was derived from a combination of the words "therapy" and “diagnosis." It is known for having the ability to perform several tests on a very little amount of blood and provide a diagnosis for a variety of illnesses.

It was started by Elizabeth Holmes at the age of 19 when she was a student Stanford University. She used her educational trust fund as start up capital for the company and recruited a Stanford professor to be on the Board of Directors. A year after it was established the company had raised six million dollars from its investors and the company’s net worth was estimated to be around thirty million. By 2010 the company had raised about ninety million dollars …show more content…

We have identified the stakeholders would be the customers, investors, partners (Walgreens), and employees. Theranos was an attractive new startup, and its founder Elizabeth Holmes was even referred to as the next Steve jobs so what went wrong?

Our first alternative that Theranos could have taken would be to do nothing. This alternative means that Theranos knows its process is flawed and decides to take no action to fix it or notify its customers of the misinformed results of their blood tests.

The benefits for the stakeholders is as followed: For the Customer, there are no benefits if Theranos doesn’t take any actions. For the investors, if Theranos takes no actions and business continues as usual, they will continue to receive high returns on their investments. For its partner Walgreens, it will continue to see an inflow of customers wanting to utilize their services. For its current employees, they will continue to have employment and company wide success may lead to new job

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