Escalating Costs of Social Health Insurance Essay Example for Free

Escalating Costs of Social Health Insurance Essay Unlike any other country in the world, the United States continually experience rising cost of healthcare provision. Wolfe (1999) reports that healthcare costs has been increasing at a high rate for decades, it is estimated that every 40 months, the share of Gross Domestic Product (GDP) spent on healthcare goes up by 1 percent. Health expenditure which stood at 12. 3 percent of GDP in 1990 increased to 16. 0 percent of GDP in 2006 and is projected to reach 20 percent in the next 7 years. Between 2005 and 2006 alone, healthcare spending increased by 6. 7 percent, exceeding nominal GDP growth by 0. 6 percent, to a whooping $2. 1 trillion, representing an estimated $7,000 spending per person (Kuttner 2008; Catlin et al 2008). Various factors including inflation, aging population and advances in medical technology has been indicted as been responsible for the global increase in health expenditures, however, the American situation appears to be peculiar. Kuttner (2008) contends that the proliferation of new technologies, poor diet, lack of exercise, the tendency for supply (physicians, hospitals, tests, pharmaceuticals, medical devices, and novel treatments) to generate demand and the culture of the American litigation, resulting in excessive malpractice litigations and the practice of defensive medicine, all adds together to ensure that the country experiences the largest and fastest growth in health expenditures, while at the same time, defeating efforts at cost containments. Like every other developed country, health insurance systems, especially social health insurance systems constitute the primarily methods of health financing (Carrin and James, 2004). This arrangement ensures that most of the cost of healthcare are paid by third parties, either through public establishments, as in social (public) health insurance systems, or by private bodies, as in private health insurance system, or in some cases, a mixture of both (Wolfe, 1999). The mixture of private and social health insurance is present in almost every country, with variations in their coverage. While in most European countries, social health insurance is deeply ingrained in societal fabric and provides the largest source of funding and insurance coverage (Saltman, 2004), the vast majority of Americans receive their health insurance coverage through employer based private insurance, with the rest of the country covered by any of the several public health insurance programs (Glover et al 2003). It is estimated that employer private health insurance covers approximately 63 percent of the population, with 51 percent of these amount covered by their own employers, while the remaining 41 percent are covered as a workers dependent; 14 percent are covered by public programs, 5 percent covered by individual insurance policies while an estimated 17 percent of the population are uncovered by any insurance (Devi, 2005). Medicare is largely regarded as the primary national (social) health insurance program in the United States, providing coverage for an estimated 44 million Americans over the age of 65. It is also estimated that Medicare provides health insurance coverage for about 7 million Americans under the age of 65 who have a disability or chronic condition (Fact Sheet, 2007). Social health insurance is a vital part of any countrys health care and health financing program, in some part of Europe, there is a general contention that social health insurance is not just an insurance arrangement, but a way of life, they are seen as a part of a social incomes policy that seek to redistribute wealth and health risk evenly amongst the population, however, the rising costs of these systems, not just in the United States but across the modern world, threatens the system. Before an analysis of the costs and factors driving costs of social health insurance systems, especially in America and in other European countries, it is important to first briefly describe the underlying principles of the social health insurance system and its difference from the private health insurance programs. This will be followed by a description of the United States Medicare program and some social health insurance programs in selected European countries and then a look at the costs of these programs. Steps taken towards cutting costs of the social insurance programs and the differences in cost cutting approaches between the United States and European Union countries will be examined. Lastly, future approaches that could help ameliorate the financial challenges facing the United States public insurance programs shall be recommended. Social Health Insurance Social health insurance, in its basic principle, in any society achieves a set of societal objectives through its peculiar form of financial cross subsidies, which covers redistribution from the healthy to the ill, from the well off to the less well off, from the young to the old and from the individual to the family. This redistributive focus of any social health insurance program distinguishes it from what is nominally regarded as insurance, thus, in several societies, it entrenches solidarity, income redistribution and is thus seen as a key part of a broader structure of social security and income support that sits at the heart of civil society (Saltman, 2004:5) Saltman and Dubois (2004) contend that although Germany is considered the source of the modern day form of social health insurance, when it codified existing voluntary structures into compulsory state supervised legislation in 1883, the history of social health insurance (SHI) dates back longer to the medieval guilds in the late Middle Ages. However, they agreed that the structure and organization of SHI over time has considerably evolved; the number of people covered has increased from a small number of workers in particular trades to a larger portion of the population, the central concept SHI has evolved from wage replacement a death benefit into payment for and or provision of outpatient physician services, inpatient hospital care and drugs; thirdly, the administrative structure of SHI has also evolved from cooperative workers association to state mandated legislative character, beginning with Germany in 1883 and the most recent, 1996 in Switzerland. Structurally, social health insurance everywhere possesses three common characteristics. Social health insurance programs are administered privately in both funding and in the provision of health services; as a result of their private administration, social health programs are self regulating, and lastly, as a consequence of their independence and self regulation, social health insurance programs are relatively stable, both in organizational and financial terms (Saltman, 2004). As a fall out of these structural characteristics, social health insurance posses several core components that differentiate them from private health insurance programs. Under SHI, the raising of funds is tied to income of beneficiaries, usually in the form of a transparent and fixed percentage of wages. As a result, contributions are risk independent and thus encourage maximal risk pooling. Also, collection and administration of revenues for the program are handled by not-for-profit and sometimes, state run funds and these funds are usually managed by board members that are usually representative and elected. The United States Medicare program posses most or all of the characteristics of a social health insurance program. For over 40 years, the program has successfully provided healthcare access for the elderly and millions of people with disability. It is regarded as the nations single largest health insurance program and it covers a wide range of the society for a broad range of health services. For example, Potetz (2008) report that one out of ever five dollars spent on healthcare in 2006 came through the Medicare program. The program is also reported to fund, at least, one third of all hospital stays, nationally. In most European countries too, national, public (social) health insurance programs reportedly covers a large proportion of the population, in most cases, reaching up to 100 percent coverage. Saltman and others (2004) reports that in Austria, Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland and from 1995, Israel, all have health insurance systems where (public) social health programs plays predominant roles in organization and funding of health care services, where between 60 to 100 percent of the population are mandatorily covered. They further argue that even countries like Finland, Sweden and the United Kingdom, Greece and Portugal that have a tax funded National Health Service schemes, segments of SHI based healthcare funding also exists. Explaining the difference between social health insurance programs and private health insurance, Thomson and Mossialos (2004) contend that private health insurance play very insignificant role in the health systems of several European countries, either in terms of funding or access to healthcare. Unlike in the United States where more than 60 percent of the population are covered by private employer based insurance, private health insurance programs covers a relatively small proportion of the population and accounts for less than 5 percent of the total health spending, with the exception of France, Germany and the Netherlands. The most common difference between social and private health insurance includes eligibility, risk pooling and benefits. For social health insurance programs, contributions are mostly based on a fixed or varying proportion of wages, without regard for risks, thus a wider proportion of the people are eligible and benefits i. e. health services offered are broader with less out of pocket costs (Thomson and Mossialos, 2004; Saltman 2004). For private health insurance, the reverse is the case in most situations. Especially in for-profit private health insurance systems, contributions are adjusted according to risks and for the most part high risks individuals are rejected or expected to pay higher premiums. Consequently, eligibility requirements are strict; out of pocket expenses might be higher, while services provided vary significantly across programs, depending on an array of factors. Depending on the generally functions and services offered by private health insurance, the relation to social health insurance can be substitutive, complementary or supplementary. Substitutive private health insurance programs provides insurance covers that is otherwise available from the public programs purchased by individuals or groups who are excluded from the SHI. The larger proportion of the US society is excluded from the public insurance programs, which are usually available to the elderly, the disabled or the very poor, the rest of the population must rely on private employer based insurance. However, in European countries with effective SHI, only certain individuals with income above a certain upper threshold are excluded from the public insurance program e. g. in Netherlands and Germany, while the rest of the population are eligible. Complementary private health insurance programs provide cover for services not fully covered by the SHI programs or totally excluded, the Medicare + Choice plans is an example of such covers. Lastly, supplementary private health insurance provides cover for faster access and also increased consumer choices for individuals who can afford it (Thomson and Mossialos, 2004). Eligibility and Coverage  The United States Medicare program is essentially for the elderly, thus, individuals are eligible for Medicare coverage if they are citizens of the United States or have been a permanent legal resident for five continues years and over 65 years old. Individuals younger than 65 years of age can also be eligible for Medicare coverage if they are disabled and have been on the Social Security Disability Insurance (SSDI) or the Railroad Retirement Board benefits for a period of two years. Further, individuals with end state renal disease (ESRD) or Amyotrophic Lateral Sclerosis (ALS) known as Lou Gehrig’s disease also qualifies for Medicare coverage. However, many people with disability do not qualify for SSDI benefits and by extension, Medicare. To qualify for these benefits, disabled individuals must have a family member under age 65 who have a work history which included Federal Income Contribution Act tax (FICA), an individual may also qualifies for SSDI on the FICA contributions of a parent as a Childhood Disability Beneficiary (CDB) or as a disabled spouse of a deceased spouse. Whichever qualification route applicable, an individual qualifies for Medicare two years after he/she starts receiving the SSDI benefits, except for the Lou Gehrig’s disease where Medicare benefits starts in the first month SSDI payments are received or in the case of the ESRD where Medicare benefits starts within three months of the first dialysis (Fact Sheet, 2007). As of 2007, it is estimated that Medicare provides cover and health services to about 43 million Americans. This figure is expected to double to 77 million by 2031 when the baby boomers of the post World War II period start to retire. However, as mentioned previously, SHI in European countries offer universal coverage that is mandatory in some countries. Coverage for these countries varies from 63 percent in Netherlands to 100 percent coverage in France, Israel and Switzerland. In most of these countries, it is usually the highest income groups that are either allowed or required by law to leave the social health programs for private health insurance (Saltman, 2004:7). Benefits Benefits for Medicare members have continually been modified. The original program has two parts, Medicare Part A and part B. The Part A program known as Hospital Insurance, covers hospital stays with stays in skilled nursing facilities for limited periods if certain qualifying criteria are met. Such criteria include the length of hospital stay, which most be three days, at least, excluding the discharge day and stay in skilled nursing facility must be for conditions diagnosed during the hospitalization. Medicare Part A allows up to a maximum of 100day stay in skilled nursing facilities, with the first 20 days completely paid for by Medicare and the remaining 80days paid in part and requiring a co-payment from the beneficiary. The Medicare Part B covers services and products not covered by Part A, but on an outpatient basis. The benefits under this coverage includes physician and nursing services, laboratory diagnostic tests, influenza and pneumonia vaccinations x-rays and blood transfusions. Other services include renal dialysis, outpatient hospital procedures, Immunosuppressive drugs for organ transplant recipients, chemotherapy, limited ambulance transportation and other outpatient medical treatments carried out in a physicians office. This coverage, to some extent, also includes medical equipments like walkers, wheelchairs and mobility scooters for individuals with mobility problems, while prosthetic devices, such as breast prosthesis after mastectomy or eye glasses after cataract surgery are also covered. The recently added Part C and D of the Medicare benefits slightly deviate from the original Medicare concept. After the Balanced Budget Act of 1997 came into effect, Medicare beneficiaries were allowed the option of receiving their Medicare benefits through private health insurance plans if they do not want to go through the original Medicare plans. These became known as Medicare + Choice as beneficiaries could choose any private health insurance plans and have it paid for by Medicare. The Medicare + Choice or Part C arrangement later became known as the Medicare Advantage Plan after the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 came into effect. The Part D plan, on the other hand, covers mainly prescription drugs and anyone in the original Plan A or B is eligible for this plan. However, in other to receive the benefits of the Plan D, a beneficiary must enroll and be approved for a Stand-alone Prescription Drug Plan (PDP) or Medicare Advantage plan with prescription drug coverage (MA-PD). However, because Plan D is effectively operated by private health insurance companies, there are no standardized benefits, like the plan A and B; the private insurance companies could choose to cover some drugs or classes of drugs and not cover others, with the exception of drugs excluded from Medicare coverage. Beneficiaries are therefore restricted to the drugs coverage of the plans they choose (Merlis, 2008; Potetz, 2008). Contributions towards Social Health Insurance Medicare financing, like social health insurance everywhere, is financed through a complex mix of taxes, contributions, co-payments and the likes. The most important source of financing for the Medicare expenditures is through the payroll tax imposed by the Federal Insurance Contributions Act and the Self-Employment Contributions Act of 1954, while other sources of financing includes general revenue through income taxes, a tax on Social Security benefits, and payments from states required for the Medicare drug benefits which started in 2006. In addition to these, beneficiaries also contribute directly to Medicare financing through premiums, deductibles and co-insurance. It is reported that income cases, physician do charge beneficiaries an additional out-of -pocket balance billing to cover for services rendered (Potetz, 2008). The federal payroll taxes are paid by the working population or by the beneficiaries throughout their work history. The tax equals 2. 9 percent of gross wages, with half (1. 45 percent) deducted from the workers salary and the other half paid by the employer. Initially, there was a ceiling on the maximum amount any single person can contribute; however, beginning from 1994, the maximum limit was removed. Self employed people who do not have an employer to cover the other half of their taxes are mandated by law to pay the full 2. 9 percent of their estimated earnings. However, the contributions from the beneficiaries vary considerably depending on the plan and also range from premiums, deductibles, co-payments or in some cases, the balance billing mentioned previously.

Macroeconomic Policies during the Recession of 2008-2009

Macroeconomic Policies during the Recession of 2008-2009 Renyuan Feng An Assessment of Macroeconomic Policies during the Great Recession of 2008-2009 Brief Introduction From 2008-2009, US economy suffered the severe recession from the impact of the global financial crisis. From 1990s, United States has experienced the huge amount of the saving inflows from the other emerging markets (Bernanke, 2009). However, the financial institutions invest these savings with the poor way to develop the sub-prime mortgage and push the real estate price increasing. The sub-prime mortgage loans were provided to the people with poor credit score as the no income, no job and no asset groups. Meanwhile, these bad loans were securitized in the financial market and traded as the financial instruments to provide numerous profits for the financial institutions and Wall Street bankers (Thomas, Hennessey, Holtz-Eakin, 2011). The low interest rate and the increase of housing price had provided new opportunities for these foreign saving inflows. The burst of housing bubble has led the high proportion of defaults on subprime mortgage. With the fall of largest financial institu tion, the whole financial system suffered the damage. Later, this financial crisis has become contagious into the global scale and finally created one of the most serious financial chaoses in the beginning of the new century. During these months, US economy has experienced the severe negative influences as the real GDP fell at a 6% annual rate and the employment positions have been reduced in the large amount every month. The usage of confusing financial instruments as credit-default swaps and collateralized debt obligations in the financial market has been blamed as one of the significant reasons for the crisis (Weisberg, 2010). Meanwhile, the other main causes for this Great Recession could be included as the international global imbalances, the low interest rate for the monetary policy, the lack of regulation for the new financial instruments and conflicts of interest in the financial rating agencies (Bernanke, 2009). Fiscal Policies in Action To deal with this economic recession, US government has passed the American Recovery and Reinvestment Act in 2009. The act aims to develop more new employment and maintain current ones, to stimulate the economy and invest the economic growth and to improve the transparency of government spending. At the same time, the government would provide around $787 billion financial support for the tax cuts, funding for unemployment benefits and funding for grants and loans (Recovery.gov, 2009). The government requires the usages of Recovery funds need to be reported every year to maintain its transparency. The government would also provide financial support to the local school districts. All these actions would help the country’s economy to leave the negative influence from financial crisis. However, the strategies which focuses on the government spending and taxes cut are still be discussed by the economic scholars because the effect of them are hard to be observed and examined(Wilson, 2012). Monetary Policies in Action One of the most significant monetary policies is that the Federal Reserve to support the economy is that usage of quantitative easing. It is the approach that the central bank uses its printing machines to make more notes to buy the assets (Reddy, 2010). This way could effectively decline the notes’ yield and the interest rates of the debt market. This strategy could help the homeowners to refinance their loans because the borrowing costs have been reduced. The investors also are guided into the share markets and bond markets by the market to increase the value of these securities (Reddy, 2010). It could help the US exporters because it weakens the US dollar. The whole process could push the asset prices and inflation expectations, reduce the exchange rate and real interest rates. From 2008 to 2010, the Federal Reserve has bought about $1.7 trillion of Treasury and asset-backed securities to push the economy away from the recession. The economists have predicted that this acti on could reduce 0.5% of the long term Treasury yields and also the rates in the private credit markets. It also helps the asset market, especially the real estate market to increase the prices. This activity could have the possibility to build up another round of the financial bubble because of the higher yields in riskier assets. The quantitative easing could effectively reduce the value of the US dollar and start the currency war. However, it increases the risks of pushing up the prices of commodities and increasing the inflations. The effects and risks of this policy are still the controversial topics. Have the Fiscal Policies Worked? The Fiscal Policy as ARRA actually helps the economy recovery for months. With the implementation of this act, the economy performance was significantly influenced. The real GDP showed the stable growth from the autumn of 2009. The private payroll employment also grew in about 2.2 million from 2010 to 2011(Council of Economic Advisers, 2011). Some measures have the fiscal stimulus has the effect on the increasing level of GDP from 2011. The strong growth of GDP has begun from the third quarter of 2009 and remained the good trend for the economy in the following months. The result is similar with other results from different analysts. Until 2011, the estimation from CEA showed the employment has been increased between 2.2 to 4.2 million (Council of Economic Advisers, 2011). In 2008 and 2009, the employment market has suffered the serious decline because of the impact from the recession. The fiscal policy of ARRA has raised the concerns of the Federal Government into the job market. Fr om the first quarter of 2011, the payroll employment has kept the steady increase in the following months. This result was the significant increase to help more people to work and increase their income. The Federal government has effectively cut its spending and tax in the amount of $697 billion which has followed the estimation of the act. The huge amount of the tax cuts would still continue in the next year plans. The individual tax cuts and the state fiscal relief which occupied the large proportion in the government spending have been paid more attention to deal with. The public investment spending on infrastructure and clean energy have been increased from only $7 billion in 2009 to $182 billion in 2011. It is because this act aims to develop the long-term strategies for the economy. The demands of improving infrastructure and clean energy could effectively increase the competitiveness for the country’s future economic development. These results have been compared with t he other results from different models (Council of Economic Advisers, 2011). There were no significant differences among them. Additionally, the study from Moody’s Analytics model also supported that the current fiscal policies have contributed a lot in to the increase of GDP, jobs and inflation (Blinder Zandi, 2010). After examining the results in different scenario, the study showed that the financial stimulus played an important role in the economic performance. Have the Monetary Policies Worked? The Monetary Policy actually failed to stimulate the economy. First of all, after many rounds of quantitative easing activities, the economy still remains weak. The national economy is in the low-growth environment with the poor GDP performance. The GDP in 2010 was just 2.9% which was the result with both contributions from fiscal policies and monetary policies. Meanwhile, the performance in employment market was also bad with the high unemployment rate of 9.2%. The financial support with more than $2.1 million in the job market actually worked nothing in theses months. All these bad performance have added more pressure to the Federal Reserve. Even though the value of US dollar has been decreased in the global market, the export market could not contribute sufficiently to support the economy. US government was also blamed to control its exchange rate in the global exchange market. On the other hand, the monetary policy has stimulated the creation of the new asset bubble. The impact f or the huge amount of notes in the financial system has shown in the economic performance. The inflation faced the huge challenge in the increasing prices of commodities. The SP has increased twice than last year at 8%. Residents have to face the increase in the commodity. However, the government believed this inflation was still in control and with few risks. The IPO has become the next bubble in the financial market which was the result of commodity boom and asset bubble (Groth Randazzo, 2011). This monetary policy has driven the US Federal Government into one wired situation with the mix of stagnant wages, high unemployment, high inflation and the asset bubble. The government believed that there were no threats from the inflation and asset bubbles. However, the capacity for the government to identify the potential risks and the effect of the current policy were still doubted by the economists. The government policy influenced the indicators for government to adjust its policies has become one of the paradox in the decision making process. All these results could show the failure of quantitative easing policy. Conclusion Currently, US Federal Government has implemented several fiscal and monetary policies to help the economy recover from the chaos of global financial crisis. With the combination of government spending cuts, tax cuts and quantitative easing, the US economy has shown increasing trend. With the comparison from different studies, the fiscal policies have successfully improved the performance of the economy. The government should continue the sustainability of economic development and maintain the concentration into the employment market. On the other hand, the monetary policy as quantitative easing did not show the significant effect on the economy. The increasing inflation and the potential new asset bubbles have brought more challenges to the Federal Government. In this aspect, the government must pay more attention into these two areas to avoid increasing likelihood for the other crisis. The government must adjust both monetary and fiscal policies to achieve the goal. References Bernanke, B, S. (2009). Four Questions about the Financial Crisis. Retrieved from http://www.federalreserve.gov/newsevents/speech/bernanke20090414a.html Blinder,A, S., Zandi, M. (2010). How the Great Recession Was Brought to an End. Retrieved from http://www.princeton.edu/blinder/End-of-Great-Recession.pdf Council of Economic Advisers. (2011). The Economic Impact of The American Recovery and Reinvestment Act of 2009. Retrieved from http://www.whitehouse.gov/sites/default/files/cea_7th_arra_report.pdf Groth, J., Randazzo, A. (2011). The Failure of Quantitative Easing. Retrieved from http://reason.com/archives/2011/07/15/the-failure-of-quantitative-eaRecovery.gov. (2009). The Recovery Act. Retrieved from http://www.recovery.gov/About/Pages/The_Act.aspx Reddy, S. (2010). How It Works; When It Doesn’t Retrieved from http://online.wsj.com/article/SB10001424052748704506404575592722702012904.html Thomas, B., Hennessey,K., Holtz-Eakin, D. (2011). What Caused the Financial Crisis? Retrieved from http://online.wsj.com/article/SB10001424052748704698004576104500524998280.html Weisberg, J. (2010). What Caused the Economic Crisis. Retrieved from http://www.slate.com/articles/news_and_politics/the_big_idea/2010/01/what_caused_the_economic_crisis.html Wilson, D, J. (2012). Government Spending: An Economic Boost? Retrieved from http://www.frbsf.org/publications/economics/letter/2012/el2012-04.html

Analysis of Pepsi Co in India

Analysis of Pepsi Co in India PepsiCo is the largest snack and non alcoholic beverage manufacturing company in the world. Its product range includes grain based snacks, carbonated and non- carbonated beverages and foods. It operates through four operating segments: Frito-Lay North America (FLNA), PepsiCo Beverages North America (PBNA), PepsiCo International (PI) and Quaker Foods North America (QFNA).It sells its products in 200 countries with major operations in the US, Canada, Mexico and the UK. It distributes its branded products through multi channels such as direct stores, broker warehouses, food service centers and vending machines. PepsiCo in India PepsiCo entered India in 1988 and concentrated on three focus areas soft drink, snack foods and food processing. PepsiCo got permit to import cola conecnterate and to sell soft drink under Pepsi label in Indian market and in return to export juice concenterate from Punjab. Main objective put forward was To promote the development and export of Indian made and agro based products and to foster the introduction and development of PepsiCo products in India. Pepsico entered in India in the form of joint venture with PAIC holding 36.11%, voltas 24%, PepsiCo holding 36.89%. ISSUES: PepsiCo was coupled with the punjab card. They made certain commitments to Indian cental government.PepsiCo specifically supported national priorities in area like export and agriculture. Some of the commitments are as follows: 1) the project will create employment for 50000 peope nationally, including 25000 jobs in Punjab alone. 2) 74% of total investment will be in food and agro processing. 25% will be in manufacturing of soft drinks. 3) PepsiCo will bring advanced technology in food processing and provide thrust by marketing Indian products abroad and giving them global market. 4) 50% of total production will be exported. 5) an agro research center will be established by PepsiCo with ICAR and PAU. 6) no foreign brand name will e used for domestic sales. 7)export import ratio will be 5:1. FAILED COMMITMENTS: Within few years pepsi was recorded as one of non compliance companies that did not fulfill the commitments it made to Indian government. The company nowhere met its obligations. On September 4,1991 george fernandes said that Pepsi co has failed to meet its commitments and the company became a challenge to the government. The failed commitments are as follows: 1)EMPLOYMENT COMMITMENT: Employment generated by PepsiCo 1990-91 1991-92 direct indirect direct Food processing 169 9903 170 Administration 117 432 179 Bottling 497 15115 560 Total 783 25450 909 Source: data taken from balance sheets of pepsi foods ltd. Pepsico by 1996 increased the employment figure to 2400 which was just 3% of the commitment made. Branch name commitment Pepsi committed not to use its brand name pepsi in india. During first year pepsi used Indian brand name Lehar pepsi bt with the introduction of new policy in 1991 pepsi immediately changed its drink name from lehar pepsi to pepsi. Export commitment: Pepsi commited that 50% total product will be exported but instead of exporting its own products it exported basmati rice, tea, leather products Agro research center: No agro research center was established. PepsiCo, Inc., SWOT Analysis Strengths Weaknesses Strong Growth Prospects Efficient Use of Resources Expanding Operating Margin Declining Market Share in Sector Overdependence on Few Customers Geographical Concentration Opportunities Threats Huge Potential in the Emerging Markets Increasing Bottled Water Market Growing Organic Foods Market Highly Competitive Market Private Label Brands Gaining Momentum Global Economic Conditions PepsiCo, Inc. PepsiCo, Inc.- Financial and Strategic Analysis Review Reference Code: GDCPG35119FSA Page 2 PepsiCo, Inc. SWOT Analysis SWOT Analysis Overview PepsiCo, Inc. (PepsiCo) is one of the leading snack and beverage companies in the world. Dominant market position and diversified brand portfolio are its strengths. Further, the rising demand for bottled water and strategic acquisitions could ensure a strong future. However, poor profitability and overdependence on a few customers are areas of concern to the company. Highly competitive market and growing demand for private label products coupled with global economic slowdown could also impede the companys growth. PepsiCo, Inc. Strengths Strength Strong Growth Prospects The company was trading at a price/earnings (P/E) ratio of 16.16 at the end of fiscal year 2009. This was above the SP 500 companies average* of 9.2. A higher than SP 500 companies average P/E may indicate that the company may have high growth prospects which is reflected in its stocks premium pricing. Investors may be expecting higher earnings growth in the future compared to other companies in the SP 500 index. Strength Efficient Use of Resources The companys return on equity (ROE) was 35.4% for fiscal year 2009. This was above the SP 500 companies average* of 12.9%. A higher than SP 500 companies average* ROE may indicate that the company is efficiently using the shareholders money and that it is generating high returns for its shareholders compared to other companies in the SP 500 index. Strength Expanding Operating Margin The companys operating margin was 18.61% for the fiscal year 2009. This was above the SP 500 companies average* of 14.7%. A higher than SP 500 companies average* operating margin may indicate efficient cost management or a strong pricing strategy by the company. The companys operating profit was USD 8,044.00 million during the fiscal year 2009, an increase of 15.59% over 2008 while the net profit was USD 5,946.00 million, an increase of 15.64% over 2008. The operating margin has increased 252 basis points (bps) over 2008, which may indicate managements high focus on improving profitability. Strength Strong RD Activities PepsiCo has a strong RD arm that focuses on various activities, which could help the company in cost reduction and process improvement, quality assurance, process control, and system development. The company also places emphasis on developing new manufacturing methods, improving on the existing manufacturing processes, new product developing and improving the existing products. For the fiscal year 2008, the company spent USD 388 million on its RD initiatives, against USD 364 million in 2007. Thus, such a strong focus on RD activities provides the company with an edge over its competitors in generating higher operational performances. New product and technology innovations also strengthen the companys innovating capabilities and provide a source of future revenues for the company. Strength Diversified Brand Portfolio PepsiCo boasts of a broad brand portfolio in the beverages and snacks categories, which helps it cater to the diverse needs of its customer base. The top 18 brands of the company generate USD 1 billion or more each in annual retail sales. Some of the major brands offered by the company include Pepsi, Mountain Dew, Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and Tropicana Seasons Best. This diversified brand portfolio of the company provides it with the economic stability and an edge in attracting and retaining a diverse customer base. It also helps the company to mitigate the risks associated with overdependence on a particular brand or product category. Strength Dominant Market Position PepsiCo enjoys a leading market position that helps it attract and serve a diverse customer base. The company is one of the leading snack and beverage companies in the world. It is engaged in manufacturing, marketing and sale of a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages and foods. The company sells its products in more than 200 countries. It is the market leader in the US savory snacks market with a market share of about 39%. It is also the leader in the US liquid refreshment beverage category with a market share of 25%. Furthermore, the company occupied 52nd position in the Fortune 500 rankings in 2009. The Frito-Lay brand is the worlds leading manufacturer of snacks. This dominant market position helps the company diversify its risks associated with the cyclical nature of most of these markets and puts the company at an advantage over its rivals while expanding its product lines. PepsiCo, Inc. PepsiCo, Inc.- Financial and Strategic Analysis Review Reference Code: GDCPG35119FSA Page 3 PepsiCo, Inc. Weaknesses Weakness Declining Market Share in Sector The companys compound annual growth rate (CAGR) for revenue was 7.34% during 2005-2009. This was below the SP 500 companies average* of 11.1%. Further, the company reported revenue of USD 43,232.00 million during the fiscal year ended December 2009, a decrease of 0.04% from 2008. A lower than SP 500 companies average* revenue CAGR may indicate that the company has underperformed the average SP 500 companies growth and lost market share over the last four years. The companys underperformance could be attributed to a weak competitive position or inferior products and services offering or lack of innovative products and services. Weakness Overdependence on Few Customers Overdependence on a few customers has been a major area of concern to the company. A significant portion of the companys revenues are generated from few customers. For instance, in 2008, sales to Wal-Mart and Sams West, Inc. represented 12% of the companys net revenue. The top five retail customers represented about 32% of its 2008 North American net revenue, of which Wal-Mart (including Sams) accounted for about 18%. The loss of one or more of the top customers in any of these segments could have a material adverse effect on the results of these segments. Due to overdependence on a few customers, the company may not be able to find suitable alternatives to sell its products in time if any of these customers is unable to buy the products on terms favorable to the company. Weakness Geographical Concentration PepsiCos overdependence on the US market for its revenues exposes the company to various risks associated with geographical concentration. Though PepsiCo has operations in various geographic regions, a majority of its revenues still comes from the US. During the fiscal year 2008, the company generated 52% of its total revenue from the US region. Further, during the fiscal year 2009, PepsiCo generated over 71% of its revenues from North America. This dependence on the US could impact its operational and financial performance in the event of any economic, political or climatic change. It also could restrict its market share and growth opportunities. PepsiCo, Inc. Opportunities Opportunity Huge Potential in the Emerging Markets The company could benefit from the growing markets in the Asia Pacific region. According to the World Bank, the GDP growth rate of high income countries came down from 2.6% in 2007 to 0.4% in 2008. The economies of these countries are expected to have contracted by 3.3% in 2009. Despite the global economic slowdown, the emerging and developing economies recorded a GDP growth rate of 8.1%, 5.6% and 1.2% during 2007, 2008 and 2009, respectively. Growth in the East Asia and Pacific region (especially China) as well as in South Asia (especially India) has been resilient. This was mainly due to the massive fiscal stimulus package in China and Indias skillful macroeconomic management. Chinas GDP grew at 9% in 2008 and 8.4% in 2009, while Indias grew at 6.1% and 6% respectively, during the period. The growing economy in these countries has generated new employment opportunities for the residents and has provided a boost to their earnings. Rise in disposable income has changed their buying behavior. Now more and more people are buying luxury and lifestyle goods unlike in the past when they used to confine their spending to basic necessities. Customers in the emerging countries are becoming more brand conscious and prefer to buy branded goods. With competition at its peak and markets getting saturated, the company can look out for new growth avenues in these regions. Opportunity Increasing Bottled Water Market The strong growth in the bottled water market is emerging as a major boon for the company. The global bottled water industry has been witnessing strong growth over the past few years, especially in the US. Bottled water is sold mostly in the industrialized countries where it costs between USD 500 and USD 1,000 per cubic meter, compared to USD 0.50 for municipal water in states such as California, US. With the strong profitability offered by the segment, many players have started foraying into the bottled water business. The demand for bottled water has also been on the rise in emerging countries. PepsiCos established presence in the bottled water segment, along with its strong brand image puts the company at a competitive edge over its rivals in attracting and retaining a loyal customer base. The strong distribution network also helps the company to cater to a geographically diverse customer base. Opportunity Growing Organic Foods Market The company has a significant opportunity to grow as the demand for organic food is set to rise by an average of 18% in the US by 2010, according to the Organic Trade Association (OTA). Rising Health consciousness in the US has made the organic foods segment one of the fastest growing segments in the food retailing industry. Though, the organic food segment represented a mere 2.8% of the US food and beverage market, the organic food market in the region generated USD 21.2 billion in 2007. According to a recent report from the OTA, the global demand for organic products has been growing at USD 5 billion a year. PepsiCo offers its all natural and organic product line under the Tropicana and Quaker brands in the US. The company can thus capitalize on its distribution network and organic food offerings to increase its market share and revenues. PepsiCo, Inc. PepsiCo, Inc.- Financial and Strategic Analysis Review Reference Code: GDCPG35119FSA Page 4 Opportunity Strategic Acquisitions Strategic acquisitions offer a strong growth opportunity for the company, especially while foraying into new markets or launching new products or services. The company has grown over the years by acquiring or merging with some of the major brands like Frito Lays, Quaker Oats, Gamesa and Sabritas. Further, in October 2009, the companys Pepsi Bottling Ventures, LLC signed a Letter of Intent to acquire the assets of Pepsi Cola Bottling Company of Conway-Myrtle Beach, Inc., the Pepsi-Cola franchise bottler based in Conway, South Carolina. Earlier, in August 2009, PepsiCo Inc. entered into definitive merger agreements with its two largest bottlers, The Pepsi Bottling Group, Inc. (PBG) and PepsiAmericas, Inc. (PAS). Under the agreement, PepsiCo will acquire all of the outstanding shares of common stock of these two bottlers. Currently, the company owns 33% and 43% of the outstanding shares of PBG and PAS respectively. During the same period, the company also announced an agreement to acquire Brazils largest coconut water company, Amacoco Nordeste Ltda. and Amacoco Sudeste Ltda. (Amacoco). Earlier, in April 2008, PepsiCo acquired the UK based vitamin water brand, V Water. These mergers and acquisitions offer a steady revenue source, apart from geographical expansion for the company. PepsiCo, Inc. Threats Threat Highly Competitive Market Growing competition could impact the business operations of the company. The company faces stiff competition from the various companies that are in the business of beverages, snack and food products. Key competitors include General Mills, Inc., Groupe Danone, Hershey Foods Corporation, Nestle S.A., Coca-Cola Company, The Procter Gamble Company, The Kraft Foods, Inc., National Beverage Corp., Jones Soda Co. and Kellogg Company. Apart from the established players in the developed countries, the players from emerging countries too are competing hard to garner maximum market share in their respective regions. If the company fails to maintain product quality and consumer loyalty, this intense competition could reduce the sales volume of the company, thereby hampering its market position. Threat Private Label Brands Gaining Momentum The growing demand for private label products has been a major area of concern to the company. According to a report by the Confederation of the Food and Drink Industries of the EU (CIAA), there is a shift in the consumer spending towards private label products. Also, it is observed that the private label products have reached as high as 48% in traditional retailers and 94% in discounters. In the UK, almost all the top 30 retailers witnessed an increase in the private label share in 2008. Private labels may become even more popular due to the current economic slowdown. Apart from low prices, the increasing quality of private label products has been driving away the sales of branded products. Thus PepsiCo faces a major challenge from these private label manufacturers in sustaining its growth. Threat Global Economic Conditions The company faces a major challenge in sustaining its revenue growth due to the slowdown in the global economy, especially the US. The banks have tightened their credit lending process thereby affecting the consumers shopping ability. Even the market volatility concerns have made them shop only for basic and essential goods, thereby creating a major challenge to the goods manufacturers whose sales have been on the decline. According to The World Bank, overall global GDP contracted by 2.2% in 2009, with 1.2% growth rate in the developing economies well below the 5.6% growth rate in 2008. In 2009, the GDP growth in the US weakened to -2.4% while in the Eurozone, GDP contracted more sharply by 3.9% from 0.5% in 2008. Further, the global output is expected to expand by 2.7% in 2010, and 3.2% in 2011 still below the 5% generated in 2007. Thus, adverse economic conditions could adversely affect the demand for the companys products, which poses a major challenge to the company in sustaining its revenue growth. Growth strategies Transforming its beverage portfolio PepsiCo sought to transform its beverage portfolio by increasing the health and wellness quotient of its products through RD. It has strengthened. its carbonated soft drinks (CSDs) segment, comprised of Pepsi, Diet Pepsi and Mountain Dew. In 2007, it launched Diet Pepsi Max in the US. It is a zero calorie energy drink and targets young men. It also introduced the high caffeine Mountain Dew Game Fuel in 2008, aimed at video gamers. PepsiCo has also introduced new carbonated juice drinks such as Izze, which is free of caffeine, refined sugars and artificial ingredients and is naturally sweetened with fruit juice. Izze fruit juices primarily targets carbonates customers who want alternatives to artificially sweetened soft drinks. Growth through partnerships PepsiCo concentrates on partnerships and joint ventures to expand its operations. In 2007, it extended the scope of its partnerships with Starbucks and Unilever on RTD beverages, and is expanding into other categories through acquisitions. In January 2008, it announced plans to acquire Penelopa nuts and seeds in Bulgaria, and in 2006, it purchased Duyvis nuts business. Also In 2006, the company entered the salted snacks business in New Zealand with the acquisition of Bluebird Foods, and expanded its snacks business in Brazil with the purchase of Lucky snacks.

Mark Antony :: essays research papers

Mark Antony is one of the most famous people of Roman history. He was one of the most superior generals and a crucial statesman in his time. A comrade and patron of Julius Caesar, Antony was an ideal military tactician and leader of the people. He was a man who started out for the people but eventually became hungry for power and empire expansion. Mark Antony was a military and political leader in Caesar's time who rose to the highest of Roman power but eventually lost everything due to his greed. Marcus Antonius was born in 83 BC, the son of a noble Roman family, related to the Roman leader Julius Caesar. His father died when he was young and soon after his mother remarried P.Lentulus. Lentulus found him self in trouble and was strangled by Cicero for his involvement in the Catiline Affair. This changed Antony’s early life severely and he promised one day he would meet up with Cicero and kill him. Mark Antony’s military career started when he was young. His first travels were to Syria where he was soon promoted to a Calvary Commander, and sent off to Judea and Egypt. Antony was later sent to Gaul where he served under Caesar. He was so superior to his peers that at the age of 22 he became Tribune of the People. Soon Antony became a quaestor with a reputation of being a speaker on behalf of Caesar’s interests while he was no there. It was during this period in Rome where Antony met Fulvia. Fulvia also had a hate for Cicero from her last marriage. They soon were married and Antony was making his way higher in the Roman world. In 49BC, he received the title of Augur (priest and soothsayer). It was during this same year that he vetoed the Senates attempt to take Caesar’s command. Antony left Rome and traveled to Gaul until things cooled down where he went back to watch over Caesar’s interests. Caesar soon became enemies against Pompey, Antony tried to defend Caesar and was kicked out of the senate. Antony soon fled with Caesar to get ready for battle. Antony commanded a wing of Caesar’s Legions at the battle of Pharsalus in 48 BC where Pompey was defeated. Following the battle in 44 BC, Antony became co-consul with Caesar. When Caesar was assassinated on the Ides of March, 44 BC, Antony immediately took all of Caesar’s possessions including papers, residences, and other assets.

The Founding Story of Salamis :: Cyprus

The Founding Story of Salamis Teucer announces, â€Å"Despair in no way, tomorrow we will set out upon the vast ocean [for a new homeland in Cyprus].† At the end of the Trojan War, Teucer returned to his home island of Salamis (an island near Greece) carrying news of his brother, Ajax’s, death to his father, King Telamon. The king cursed Teucer for not preventing his brother’s death nor did he avenge his brother’s death on Odysseus. King Telamon had mistakenly thought that Teucer had abandoned Ajax in his moment of need because he had his eye on the throne and future kingdom of Salamis. It was on this reasoning that King Telamon made his decision to banish Teucer from his island homeland of Salamis. Humiliated and dejected, Teucer sails away with his soldiers in search of Cyprus in hopes of making this island their new home. On the way, Teucer’s ship is blown off course. After several days of being lost in the Mediterranean Sea, Teucer lands on the shores of Egypt. He had heard that the famous prophetess Theonoe lived in Egypt. She had been born with the gift of divine knowledge of all things present and to come. He decides to go ashore to seek out an oracle or revelation from Theonoe. If he spoke with Theonoe, Teucer had confidence he would know the correct course to take to get to Cyprus. He says: â€Å"The reason of my coming to this royal palace was a wish to see the famous prophetess Theonoe. I wish to ask how I shall steer a favorable course to the sea-girt shores of Cyprus; for there Apollo hath declared my home shall be, giving to it the name of Salamis.† Teucer – son of King Telamon Instead of finding Theonoe, he stumbles into a beautiful woman, Helen. She says to him, â€Å"Who are you and where are you going? Teucer responds by telling her about his participation in the battle of Troy and that he has been exiled from his birthplace, the island of Salamis by his father King Telamon. Teucer also tells her that he had been sailing to Cyprus to make a new home but has lost his way. He says he is looking for Theonoe to learn from her the quickest course to Cyprus. Helen replies that Cyprus is easy to find but he should leave Egypt soon before the king of the land, son of Proteus, finds him there. The Founding Story of Salamis :: Cyprus The Founding Story of Salamis Teucer announces, â€Å"Despair in no way, tomorrow we will set out upon the vast ocean [for a new homeland in Cyprus].† At the end of the Trojan War, Teucer returned to his home island of Salamis (an island near Greece) carrying news of his brother, Ajax’s, death to his father, King Telamon. The king cursed Teucer for not preventing his brother’s death nor did he avenge his brother’s death on Odysseus. King Telamon had mistakenly thought that Teucer had abandoned Ajax in his moment of need because he had his eye on the throne and future kingdom of Salamis. It was on this reasoning that King Telamon made his decision to banish Teucer from his island homeland of Salamis. Humiliated and dejected, Teucer sails away with his soldiers in search of Cyprus in hopes of making this island their new home. On the way, Teucer’s ship is blown off course. After several days of being lost in the Mediterranean Sea, Teucer lands on the shores of Egypt. He had heard that the famous prophetess Theonoe lived in Egypt. She had been born with the gift of divine knowledge of all things present and to come. He decides to go ashore to seek out an oracle or revelation from Theonoe. If he spoke with Theonoe, Teucer had confidence he would know the correct course to take to get to Cyprus. He says: â€Å"The reason of my coming to this royal palace was a wish to see the famous prophetess Theonoe. I wish to ask how I shall steer a favorable course to the sea-girt shores of Cyprus; for there Apollo hath declared my home shall be, giving to it the name of Salamis.† Teucer – son of King Telamon Instead of finding Theonoe, he stumbles into a beautiful woman, Helen. She says to him, â€Å"Who are you and where are you going? Teucer responds by telling her about his participation in the battle of Troy and that he has been exiled from his birthplace, the island of Salamis by his father King Telamon. Teucer also tells her that he had been sailing to Cyprus to make a new home but has lost his way. He says he is looking for Theonoe to learn from her the quickest course to Cyprus. Helen replies that Cyprus is easy to find but he should leave Egypt soon before the king of the land, son of Proteus, finds him there.

Evaluating Internet Sources Essay

The Internet is a great place, especially for students, because it has a vast number of information that can be used for academic purposes. Young people are very much updated when it comes to technology and prefers to do things with their gadgets and computers. Due to this, most companies and organizations have put up a website over the Internet so that they can reach out to everyone, anywhere in the world. However, putting up websites is not only for legitimate companies and organizations. As a matter of fact, anyone can create a website about anything if they know how to read and click a mouse. There are numerous websites over the Internet that are created by people who pose as someone who is knowledgeable about a certain topic but is completely the opposite when looked at closely. It is therefore important for students to learn how to evaluate Internet sources if they are valid and credible to be used for academic purposes. Robert Harris from the website Virtual Salt has come up with ways on how to evaluate Internet sources properly. He first advises researchers to determine what kind of information they are looking for because this way, it would be easier for them to screen the data that websites provide. He then goes on to say that researchers should always look out for important information that websites should provide including the author, author’s title or position, author’s organizational affiliation, date of page creation or version, and author’s contact information (Harris, 2007). These would tell a researcher if the data posted on the website is valid and accurate enough to be trusted and used. Another important thing that students need to remember is the CARS checklist, which stands for credibility, accuracy, reasonableness, and support (Harris, 2007). While credibility seems very hard to check, Harris provides ways to know if a particular source is credible. First, the author of the website or of a certain work should have his or her credentials posted on the website. Contact information should also be included. This way, people who want to communicate with the author would not have much difficulty trying to locate the author. A website can also be credible by undergoing quality control. Errors, either grammatical or technical, should make a person suspicious of the website’ credibility. Researchers should also make sure that the information on the website is accurate and up-to-date. Thus, it is very important for authors and webmasters to constantly update their websites and see if changes should be made. They should indicate when a particular site was updated and created so that researchers would know if the whole website is still being monitored by the authors. All websites that tries to provide information to the public should never be biased. Content should be written with fairness and moderateness, according to Harris. He indicates that if there is some hint of one-sidedness, researchers should think twice whether they should trust the website or not. Finally, information is always better if there are evidences that can support it. This is not to say that every website should have supporting material just for them to be considered â€Å"valid† in terms of evaluating them. However, there are some things that need support including statistical data or current events and certain things that people say should be documented especially if they are known people. Many students are not aware that there are websites and other electronic types of information that should not be used for academic works. Some professors do not even allow their students to lift material from the Internet because of the damage it brings to their works. Still, it is hard for them to restrict students from Internet usage and this is why students and other researchers should learn how to evaluate Internet sources properly. Reference Harris, R. (2007, June 15). Evaluating Internet Research Sources. Retrieved September 15, 2008, from http://www. virtualsalt. com/evalu8it. htm

Critical reflection essay Essay

Critical reflection may be defined as analysing, observing, questioning of assumptions and learning through experience. Critical reflection is thought upon at all times by most people on a day-to-day basis. Predominantly reflection is done when an error has occurred. Whether it be reflecting on a personal relationship, work, family or even Critical Reflection critical reflection about one’s upbringing. Nursing professionals are required to critically reflect at all times so to help them learn from their mistakes, be empowered, keep positive work consistent and importantly to provide the best care possible to all their patients. There are a number of tools available to help nurses and midwives through this process. Most nursing professionals have faced some sort of negativity, mistakes by others or themselves sometime in their profession. Critical reflection is an important process for nurses to be able to not only deal with these situations but to help them learn and grow from them so if they ever face a similar situation they are equipped with the right knowledge and tool. One tool that is available to nursing professionals, for their critical reflection process, is the Gibbs’ Reflective Cycle. The Gibbs’ Reflective Cycle consists firstly of the description of what happened followed by the feeling on the situation, evaluation of the experience, analysis, conclusion and lastly the action plan if a similar situation occurred (Dempsey and Wilson, 2010). Although the critical reflection process may seem simple it may be in depth depending on the situation at hand. Lucas (2012) states that many people don’t understand the concept, process and importance of critical reflection and may not take the time to think about and utilise the critical reflection tools such as the Gibbs’ Reflective Cycle. Williams (n.d.) writes that critical reflection is well processed by students in theory but when it comes to actioning it in their practical it is often not done in the right way or order. The life expectancy of indigenous people in Australia is 12 years less than non-indigenous people meaning that critical reflection tools may need a change and there has been a wide curricular reform in medical education (Ewen, Mazel and Knoche, 2011). Clinical reflection in clinical placement is the best way to learn for nursing students (Henderson, 2011). Change is happening at all times. Change is happening to social, structural and political issues and with this health professionals need to always critically reflect with the demands of society and the growing population of the world (Bowden, n.d.). It is highly important for nurses to critically reflect on a day-to-day basis because their patient and situation vary. Apart from doctors, nurses administer all medications and thus have to have a great reflection tool so to enhance their knowledge and understanding as to not make any errors. Reflection is key for nursing professionals not only because they will provide the best care possible but also for the nurses own peace of mind so they can have a great balance in their home and work domains. In Australia there are policy and procedure regulators for nursing professionals. Code of Ethics for Nurses in Australia sets the standards for human rights, international covenant on economic, social and cultural rights and international covenant on civil and political rights. Code of Ethics for Nurses in Australia Supports the Code of Professional Conduct for Nurses in Australia who set the standards for the way professional nurses are to advocate their profession within and outside their domains. National Competency Standards for the Registered Nurse sets standards to the regulatory framework to help nurses and midwives achieve competent and safe care. Nursing professionals have to follow policies and procedures at all times in their work thus the importance of critical reflection. Conclusion In conclusion, the evidence to critically reflect is overwhelming. Nursing professionals are expected to provide the best care possible because the public naturally entrust in them. Although critical reflection is a natural process in most peoples thought process, there are tools available that will aid in the reflection process, such as The Gibbs’ Reflective Cycle. It can now be identified how important it is to critically reflect, for nurses, because patients’ lives are usually in the hands of the nurses who look after them. Government bodies set the standards for all nurses and midwives in the way they should advocate their profession, care for their patients and importantly for nurses to have the right education and learning strategies. Reflection Researching for this essay has made me appreciate nursing professionals more than I already had. I truly now understand the importance of critical reflection. Before I started the Bachelor of Nursing degree, I thought my studies would predominantly be about how to slap on a band aid, heal wounds and learn about rules and regulations but now I have realised that it takes a whole lot more to be a great nurse. We not only need to learn the practical side of nursing but more importantly be emotionally ready to become a registered nurse or midwife. I have read so many articles and books for this essay and it makes me even more proud to become a nurse and one day my dream of becoming a midwife. I am 28 years old and am at university for the first time in my life. I was scared when I first started university but now I have been reassured that I am on the right path and am very excited for my future and what it may bring.