Tesco Versus Sainsbury Financial Performance Analysis Finance Essay

Tesco Versus Sainsbury Financial Performance Analysis Finance Essay Food retailing has traditionally been highly competitive with significant pressure on margins and cost control. The UK retailers like Tesco, MS, Sainsburys, Asda faced further challenges when the consumer confidence index surged due to the financial crisis and job losses. Still, food retailers seemed to have found successful anti-crisis policies when compared to the performance of their high-street competitors (Brand Republic, February 2009). The report hereto would investigate and compare the financial performance of two of the largest UK food retailers J Sainsbury plc and Tesco plc. The scope of the analysis would be the three latest financial years 2007-2009. The main analytical technique would be ratio analysis looking at companies profitability, performance and financial stability. Latest share information would also be examined briefly. The report would start with a short introduction of both businesses, proceed to a comparison between them based on certain ratios or indicators and end with a conclusion identifying which business performed better in the last three years. Tesco plc Company Profile Tesco plc is a UK-based retail business being number one in its home market and the third worlds largest retailer in terms of revenue after Wal Mart and Carrefour (Tesco, 2010). The company was established by Jack Cohen in 1919 in East London as a grocery selling stall. He expanded the business and in 1947 Tesco plc was floated on the London Stock Exchange (Tesco, 2010). At present Tesco has operations across varied retail segments and in about 15 international locations including Europe, US and Asia (Tesco, 2010). As per latest company data Tesco has a portfolio of 2Â  306 stores in the UK and its UK market share reached 30,7% in 2009 (The Guardian, Nov 2009). Tesco has further 2Â  400 stores internationally (Tesco, 2010). The corporate strategy of business and geography diversification of Tesco was initiated in mid 1990s with the aim of broadening the business scope in order to deliver strong sustainable long-term growth. Currently, the business includes also financial services and the Tesco mobile since 2003. Currently, Tesco plc has a market capitalization in excess of GBP 33b and employs about 440Â  000 people. Terry Leahy was appointed for a CEO in 1997 (Tesco, 2010). J Sainsbury plc Company Profile J Sainsbury plc is the corporate entity of the food retail chain Sainsburys. The company is UK-based and is currently the third largest supermarket chain in the UK with an estimated market share of approximately 16.3% (Sainsburys, 2010). Sainsburys was initially founded in 1869 as a family business by John James Sainsbury and his wife Mary Ann. The business expanded quickly and became the largest grocery retailer in 1922 (Sainsburys, 2010). It kept its leadership position up until the mid 1990 when due to internal problems and loss of focus it was replaced by Tesco and Asda (becoming second largest retailer in 2003, The Telegraph, June 2009). Presently, as per latest company information, Sainsburys consists of a chain of 525 supermarkets, 303 convenience stores, a Real Estate Division managing some of the store properties and a Financial Services Division (Sainsburys Bank, offering insurance, credit cards, loans, etc.). The company employs about 150Â  000 employees (Sainsburys, 2010). The business serves over 18.5 million customers a week, as the product range already includes clothing and home furnishing lines. Online shopping and delivery is also available to the Sainsburys customers. With respect to ownership and management, J Sainsbury plc is publicly traded company listed on the London Stock Exchange and ranks into the FTSE 100 index. The Sainsbury family has approximately 15% interest in the company. Justing King with a number of top management position in the UK retail industry was appointed for CEO of J Sainsbury plc. David Tylor is the chairman of the board. (Sainsburys, 2010) Tesco plc and J Sainsbury Financial analysis The section would present the financial analysis of both Tesco and Sainsburys. The analysis will be based on the calculation of a number of ratios measuring profitability, efficiency, financial standing and investment opportunities. As discussed by Berk and DeMarzo (2007), ratio analysis is most powerful when the results for a given company are compared with the ones of a close competitor, the industry average or to the historical trend for the same company. Thus, the analysis would cover a period of three years 2007-2009 and would contrast the performance of both companies which are considered to be a very close business match. Both companies performance would be benchmarked to the industry average indicators where appropriate. The calculations are based on financial information available in the company annual reports. Profitability analysis As discussed by Atrill (2002), profitability measures (ratios) show how a company uses its resources. Profit margins show how much the business is able to retain in excess to the cost of its operations. Return ratios, on the other hand, indicate if it is able to generate enough return for the capital supplier. Return on capital employed (ROCE) represents the overall return on the all capital employed (equity and debt) in the business. As discussed in the business valuation literature (Palepu, 2004), there is empirical evidence that ROCE is affected by market forces and mean reverts in long-term and for mature companies. The level of mean-reversion is towards the long-term weighted-average cost of capital (WACC) of about 8-10%, suggesting elimination of abnormal profits over long periods of the business life. Looking at the ROCE of both companies, Tesco fits in the expectations with its measure declining from 13% in 2007 to 9% in 2009. On the contrary, Sainsburys operates substantially below the average at 4-5% ROCE over the period. It is further alarming that Sainsburys ratio is on decreasing trend in 2009. It should be kept in mind that the ratios may be affected by the accounting practices, as the so-called dirty-surplus items are usually put in the equity section of the balance sheet. F urther, the ROCE itself does not give information where the performance comes from. So, decomposition of the ratio is needed (ROCE = RNOA+FLEV EFFECT) Return on net operation assets (RNOA) behaves similarly to ROCE, as in long-term RNOA levels of old companies have proven to mean revert to average levels between 8 and 15%, as companies with lower RNOA levels tend to increase and visa versa (Palepu, 2004). In the particular case, we can see that Tesco again generates higher return of about 8-5% compared to 3% for Sainsburys over the three year period. It can also be noted that the Sainburys RNOA is stable over the period while the one of Tesco decreases almost 50%. A possible reason may be disproportionate addition of assets compared to the sales growth. Investigating this further, we see that Tescos sales grew by 10% and 13% in 2008 and 2009 respectively, while its total assets grew by 22% and 53% for the same period. Sainsburys shows a more proportionate behavior of growth with sales increasing 3% and 5% in 2008 and 2009 and total assets growing by 5% and -1% over the same period. The 5% sales growth in 2009 is even more impressiv e when noted that it is achieved by the same asset base as in 2008. Still, for a better understanding of the profitability drivers, RNOA can be further decomposed to the expression NOPAT margin*asset turnover. Looking at the profit margins of both businesses, expectedly their margins are low due to the saturation of the industry. Tescos gross profit margin (GPM) has been stable at about 7,5%, while the one of Sainsburys decreased from 6,8% in 2007 to 5,5% in 2009. Still, both companies operate at substantially higher margins than the industry average of 2,2% (Reuters). The further vertical analysis of the income statements shows that the decrease in Tescos GPM translates into decreasing operating profit margin as well (from 6,2% to 5,9%), while Sainsburys actually achieved a stable increase in the OPM of 0,6% over the three years period. Sainsburys performance suggests management involvement in operational efficiency and cost control trying to improve the bottom line. However, the after tax profit margin of Sainsburys actually decreased with 0,4% to 1,5% in 2009. Tesco NOPAT margin also decreased over the period, but is materially higher being 4% in 2009. As suggested by Palepu (2004), mat ure industries with high level of competition are normally expected to compensate low margins with high turnover. The asset turnover ratio (ATO) is an efficiency measure rather than profitability one. However, it would be considered here as it has direct effect on the overall ROCE. The ATO ratio shows how effectively the assets of the company are used to generate sales (Berk and DeMarzo, 2007). Empirical evidence shows that it tends to stay constant over time except when some new technology is introduced and efficiency of operations is improved (Palepu, 2004). Retail industry is not technology-intensive and substantial changes in ATO are not expected to occur over short periods as the scope of the analysis hereto. Still, Tescos ATO decreased notably from 1,72 in 2007 to 1,18 in 2009. The anomaly can be explained with the aggressive growth in assets (22% and 53% in 2008 and 2009 respectively) which did not translate into the same level of sales growth. On the contrary, Sainsburys ATO improved slightly from 1,78 in 2007 to 1,88 in 2009 being again an evidence of tight efficiency control and focus. Sainsburys definitely compensate lower profitability with much higher efficiency of operations. Both companies operate at ATOs higher than the industry average of 0,26 (Reuters). Efficiency measures working capital management Working capital management and its components are further indication of a company operational efficiency. As explained by Weetman (2003), the working capital cycle presents the proportion of the operating activities that need to be covered with long-term financing. Thereby, the longer the cycle, the greater the need to employ long-term debt in operations rather than in investment activities. The inventory turnover in days for both Tesco and Sainsburys is 16-18 days and 13-14 days respectively. The period is quite short, even though it is in line with the expectations for the retail industry. Still, Sainsburys perform slightly better in terms of inventory management. Sainsburys seems to have also better receivables collection management with its days receivables being below a day opposed to Tescos days receivables of 1,85 days in 2009. The measure increased slightly (with 0,5 days) for both companies over the three years. Still, a good explanation of the trend may be the increased number of card payments and online shopping volume over the years. In terms of negotiating credit from suppliers (days payables) both companies pay settle payables within 35-36 days on average in 2009. However, the measure has been increasing for Tesco (from 32 days in 2007), while decreasing for Sainsburys (from 39 days in 2007). Being times bigger, Tesco would be expected to have better negotiation power over its suppliers, however Sainsburys also managed to stay competitive in this respect. Overall, calculating the total length of the working capital cycle for both, we obtain negative numbers due to the short inventory and receivables cycles and the long credit lines with suppliers. The result suggests that Tesco and Sainsburys have healthy short-term financial management and they actually utilize suppliers financial resources. Solvency and liquidity analysis As indicated by Atrill (2002), solvency and liquidity ratios indicate the ability of a business to cover its current liabilities, as well as its long-term financial health and stability. In short-run ability to cover debt-servicing payments, as well as other trade claims, is vital, while the capital structure and the debt burden on the total assets is more important in long-run. Tesco has healthy current ratio close to 6 in 2009 (about 3 in 2007-2008) and a quick ratio strictly above 1 for the whole period. However, Sainsburys financial position is quite different. Both ratios are below 1 and have been following a decreasing trend over the three years period. Food retailing is high turnover industry and definitely is not considered to be among the high volatility ones. Thus, current and quick ratios below one are normal. Still, Sainsburys ratios are materially lower even than the industry average (Sainsburys quick ration was 0,31 in 2009 compared to 0,82 for the industry). Still, it is positive that the company has healthy interest coverage which appears negative due to interest income being more than interest expenses. Tesco also has good interest coverage of 8 in 2009 (decreasing from 12 in 2007). In terms of solvency, as expected from the industry context, both companies have relatively high debt levels at about 50% of equity. The levels are twice the industry average of 24% (Reuters). Tesco loaded on debt aggressively in 2009 with its financial leverage reaching 50% in order to finance expansion. Still, this is not considered as a serious threat given the good performance and short-term financial stability indicators. Share price analysis Tescos share price has been fluctuating over the past 3 years between 300p and 470p. It currently trades at about 445p a share and has been increasing since April last year from its low at 300p per share. Sainsburys share price seemed to be a bit less volatile in short-term, even though it traded in the range of 280 600p over the 3 years period. The price went through a few significant drops and adjusted to an annual average of 330p for the last year. In terms of multiples, both Tesco and Sainsburys trade at P/E ratios close to 16 indicating high confidence of investors in the future growth of the businesses. Still, Tesco trades at a bit better P/B of 2,60 compared to Sainsburys P/B of 1,44 (Reuters). Generally, both P/B ratios are low, still it needs to be accounted that the industry is very competitive and mature. Analysts seem to be more confident in Tescos performance (Bar Cap Wealth Management), with Tesco being a buy and Sainsburys being hold as at the last recommendations available (Reuters). Conclusion Financial analysis and ratio analysis in particular are only one of the tools that a potential investor may and should use. The analysis is mostly based on accounting information (companys annual reports) that due to accounting practices may not fully reflect the market value of a company. Furthermore, the analysis examines the past performance of a company and it may be a point considering its future abilities, but it is in no way decisive. Past cannot be used as a determinant of the future. Applied to Tesco and Sainsburys, the tool revealed useful baseline for further study of the companies. Tesco can definitely be seen as a leader in growth and profit margins. However, it performed relatively poor in terms of efficiency compared to Sainsburys. Still, as both companys report annual accounts early in the year, the information analyzed failed to account for the later fast growth in like-for-like sales of Sainsburys at 7,8% compared to 4,3% of Tesco (The Telegraph, June 2009) and the announcement of aggressive expansion plans. Still, assuming the markets have reacted efficiently, the information should be captured in the current share prices of companies.

An invesigation of the contribrution

Over the years, there have been many definitions of insurance but the most accepted definition is that given by ALAN WILLET in 1901. He defined insurance â€Å"As the accumulation of reserves for the purpose of contingencies†. Thus it is a business activity wherein some people or parties who are subject to certain risk pay monthly or yearly premium to an insurance company to transfer the burden of such risks.Insurance also may be defined â€Å"as a contract whereby a person called the insurer or the assure agrees in consideration of money paid to him called the premium by another person called the insured or assured to indemnify the latter against losses resulting to him on the happening of certain events†¦. J. O. Rusk (1991)†. The origin of insurance initially had a connection with ships and cargoes achieving a spread of risk.This origin dates back to as early as BBC (carter, 1991) when the â€Å"Babylonians developed a system of loans on maritime ventures whereb y the loans were not repayable in the event of the loss of the venture†, to the emergence of modern insurance development which owes its credence to Great Britain, though insurance Ewing introduced into Britain by the Lombard in the 14th and 1 5th centuries (Cooker, 2002). Insurance is an intangible service paid for and received at a future date.The technicality of insurance makes it obvious for uneven incidence of risks when there are infinite numbers of identical risks. It is also a risk transfer mechanism which provides enormous benefits to the individual/organizations (both profit and non- profit), government and socio-economy at large. Every individual or organization is faced with the likelihood of a loss, injury, destruction of life or properties; hence, it is asserted that â€Å"Risk is concomitant of life† (Chipolata 2006). In other words, risk is unavoidable.Since It is a form of risk management primarily used to hedge against the risk of a contingent, uncerta in loss, it is therefore because of the liability of an organization to predict the future that insurance is purchased. 1. 2 DEFINITION OF RISK The term risk is a simple notion which cut across a layman's definition to the technicalities of business practices. When someone states that there is risk in a particular situation or context, be it business or an event, the ordinary listener understands what it means on the face of it. What then is Risk?This question can easily be answered by adopting a generally accepted definition of Risk by a renowned scholar, Dry Matthias G. Healer. He defines it as the possibility that positive expectation of a goal-oriented system will not be achieved (uncertainty) and this will be due to either certain human or inhuman factors. Furthermore, risk refers to the uncertainty that surrounds future events and its outcomes. It has an expression which looks again at likelihood and impact of an event with the potential to influence the achievement of organiz ations objectives.When â€Å"risk† is said to exist, there is also the likelihood that expected results may not match those results hoped for I. E. A deviation. Benjamin Franklin in his book observed that in this world nothing can be said to be certain, except death and taxes. Yet there is some uncertainty about those two phenomena: no one can be sure when he/she will die, and tax rules and rates are frequently changed. In fact, the whole of life is surrounded by uncertainty. In some situation uncertainties are within the control of individuals or firm, others are part of the environment in which our lives operate.However, the word ‘risk used here changes. Insurance is an unsought good and the uncertainty in future events is what is being insured. Insurers' profitability in any portfolio depends largely on the frequency, the severity of its impact and its final results (uncertainty). Uncertainty is not merely a dimension of threats, hazards and risks but opportunities w hich if anticipated may result in a reward. The risk is the thing which is insured, the insured peril, the expected claims cost for any given policy, or as a general term for unwanted and uncertain future events. 1. 3 RISK MANAGEMENT AND INSURANCEOrganizations had long practiced various parts of what has come to be called risk management. Risk management is attempting to identify and manage the threats that could severely impact or bring down an organization. The management of risk is a fundamental aspect of entrepreneurial activity. Entrepreneurs manage the risk of accidental loss by weighing the costs and benefits of each alternative. In a structured risk management process, this involves: 1. Identify and analyze the loss exposure. 2. Formulate alternatives to dealing with such exposure 3. Select the apparent best techniques to treat exposure .Implement the decisions made 5. Monitor the effectiveness of the decisions implemented. Those who do not apply a structured process still m ake decisions about risk, although sometimes by default rather than design. For industrial or commercial firm, the objective of risk management may be to maximize profits, or to increase revenue, net worth or perhaps market share over some period, or to achieve a combination of several objectives, or Just to stay in business. Managing a multitude of internal and external risks is one of the most significant challenges facing organization set up today.Insurance serves a number of valuable functions that are largely distinct from other types of financial intermediaries. In order to highlight specifically the unique attributes of insurance, it is worth focusing on those services that are not provided by other financial services providers, excluding for instance the contractual savings features of whole or universal life products. The indemnification and risk pooling properties of insurance facilitate commercial transactions and the provision of credit by mitigating losses as well as th e measurement and management of non diversifier risk more generally.Typically insurance contracts involve small periodic payments in return for protection against uncertain, but potentially severe losses. Among other things, this income smoothing effect helps to avoid excessive and costly bankruptcies and facilitates lending to businesses. The scope of an economy's insurance market affects both the range of available alternatives and the quality of information to support decisions. For example, a manufacturer might produce only for the local market, forgoing more lucrative opportunities in distant markets in order to avoid the risk of losing goods in shipment.Transport insurance can mitigate this loss exposure and enable the manufacturer to expand. Similarly, to avoid the risk of total loss from drought, a commercial farmer may keep half of his seed in reserve. 1. 4 INSURANCE CONTRIBUTION TO AN ORGANIZATION Insurance through effective risk management contribute specialized expertise in the identification and measurement of risk. This expertise enables them to accept carefully specified risks at lower prices than non-specialists. They also have an incentive to collect and analyze information about loss exposures, since the more precisely they measure the cost of risk, the more they can expand.Over the years, the realization of risk management with the help of insurance has contributed enormously in achieving organizational goals severally. For instance, 0 It guarantees as far as possible, that the organization will not be prevented from pursuing its other goals as a result of losses associated with pure risks. 0 It contributes to profit by controlling the cost of risk for the organization 0 It can also reduce expenses through risk control measures (insurance) and as such increasing income.As a result, the insurance market generates price signals not only to manufacturing sector but to the entire economy, helping to allocate resources to more productive uses. In surers also have an incentive to control losses, which is a significant social benefit. Most fundamentally, the availability of insurance enables risk averse individuals, entrepreneurs and organizations to undertake higher risk, higher return activities than they would do in the absence of insurance, promoting higher productivity and growth. . 5 PROBLEM ANALYSIS All manufacturing companies are set up with a primary objective to produce goods that meet the needs of their customers and also to maximize profit. In the process of manufacturing goods the company is often exposed to varying and diverse risk(s) which affects all the factors of production. In as much as these factors are exposed, the logical conclusion is that the income of the company is threatened.Human lives are exposed to industrial injuries which sometimes end up in death, permanent or temporary disability, properties could be destroyed through fire out break or explosions, and liabilities could be incurred arising fro m the consumption of the product. When less emphasis is placed on these loss exposures, it will definitely lead to the demise of the company. This project therefore, will look at the effect of insurance in manufacturing sector and also whether manufacturing companies who place major significant on insurance are successful in their total business effort all other things being equal. . 5 PURPOSE OF STUDY As earlier mentioned, the aim of any manufacturing company is to maximize profit and ensure customer satisfaction. It is quiet obvious that in carrying out production the organization is exposed to so many risks. This study is focused on the effect of insurance in manufacturing these products, in essence, how risks that could not be voided, minimized, reduced or retained can be transferred to insurance companies while the organization focuses its attention to its real business. Our study seeks: 1. To find out how risks/ loss exposures has been managed in Banana breweries 2.To examine the effect of insurance in the development of the organization (Banana Breweries) as a case study 3. To examine risks that they have managed by way of transfer to insurance and how adequate are the various insurance covers. 4. To consider the extent to which insurance has contributed to the attainment of the corporate goals of Banana Breweries 5. To make policy recommendations on how insurance will assist to further develop Banana Breweries, GAMBLE, and The Gambia. 1. 6 RELEVANT RESEARCH QUESTIONS The research exercise is set out to answer the following questions: 1 .What is the level of insurance awareness in the manufacturing sector of The Gambia 2. Does insurance enhance corporate development 3. Has your company ever sustained any unusual, large or unique losses either insured or uninsured 4. Is insurance an effective risk transfer mechanism. Due to time and other constraints, the researchers had to narrow the scope of their duty to Banana Breweries co. Ltd and Gamble in The Gamb ia. The study shall focus on the effect of insurance in the above listed companies as well as its benefits.It will assist the company to continue appreciating the role that insurance plays in their activities, and also serve as a means of reviewing improvement measures in place which hopefully will bring about uncovered areas of loss exposures to their operations. 1. 9 SIGNIFICANCE OF STUDY All manufacturing companies exist to ensure that the shareholders maximize their wealth. Companies therefore undertake economic activities for profit. However, in heir pursuit of this venture all the factors of production are exposed to one risk or the other.Those study is primarily laying emphasis on the essence of insurance which will significantly aid the manufacturing concern to achieve their broad objectives, through a well coordinated and scientific measurement and assessment of the various risks that the manufacturing company is exposed to. The study will assist the company to continue app reciating the role that insurance plays in their activities, serve as a review of existing measures in place and hope to bring out uncovered areas of risks to their operation.

Ebp Evidence Based Practiced

Running head: EVIDENCE BASED PRACTICE1 Evidence Based Practice San K. So Nevada State College EVIDENCE BASED PRACTICE2 Abstract Evidence based practice is an important aspect of nursing and many other disciplines. It is needed to build upon and/or modify current practices. Evidence based practice has made hospitals and medical facilities nationwide use policies and procedures that closely match the guidelines suggested by certain research. For example, the use of foley catheters and the regulations for the use has been greatly modified due to research based data.The guidelines are used to prevent catheter-associated urinary tract infections. Evidence based practice also has influenced the use of certain treatments for premature babies and how nursing orientation is done. This article will touch upon many aspects that research and evidence based data has changed and/or improved, so patient care is maintained safely and effectively. Keywords: EBP (evidence based practice), CAUTI (cathe ter-associated urinary tract infections), JACHO (The Joint Commission), WHO (World Health Organization).SBAR (The Situation, Background, Assessment, and Recommendation) bronchopulmonary dysplasia (BPD). EVIDENCE BASED PRACTICE 3 Evidence based practice (EBP) is an approach to healthcare wherein health professionals use the best evidence possible to make clinical decisions (Blais and Hayes, 2011). It involves complex and conscientious decision-making based not only on the available evidence but also on patient characteristics, situations, and preferences.Evidence based practice involves many steps along the way and have influence hospital policies and procedures. For example, the use and maintenance of in-dwelling foley catheters has been research upon and new practices are suggested. The new research and data had many purposes, like increase patient safety; decrease catheter-associated urinary tract infections, and how nursing will maintain the catheters. In this paper we will exami ne the use of evidence-based practice in regards to catheter-associated urinary tract infections.In the hospital, there are appropriate indications for indwelling urethral catheter and if those indications are not present then the physician needs to prescribe alternative methods of urinary drainage. Some indications per hospital policy is patient requiring prolong immobilization, perioperative use for urologic surgery, anticipated prolong surgery and the need to monitor urine output during surgery, critically ill patients that require strict input and output monitoring, patients with urinary retention and to improve comfort at end of life care.Indwelling catheters are not to be used for convenience for the medical staff. Once an indwelling catheter is indicated, then there are guidelines to maintaining the catheter. Sterile technique needs to be use while inserting the catheter to prevent infection. EVIDENCE BASED PRACTICE 4 As per policy nursing staff need to perform catheter care at least once a shift and as needed. The continuation reassessment of the indication needs to be done also. The catheter needs to be secured to the patient and the collection bag needs to be lower than bladder level.The collecting tube needs to be free of kinks and dependent loops. The collection bag should be emptied routinely. If the catheter has been in for three days or longer, the nurse should provide daily reminders to the physician recommending the removal of the foley catheter, unless it is still indicated. The nursing staff and medical team need to provide education to the patient and the family during the duration of the catheter. These guidelines closely match the recommendations noted on the National Guideline Clearinghouse website. The hospital nursing staff tries to follow these guidelines closely.Our hospital has a self-made monitoring sheet that helps the nurse and the charge nurse to monitor the indwelling catheter and ensure daily care and reassessments are done. T he sheet allows the charge nurse and on-coming nursing staff to closely monitor if the patient is at risk for CAUTI. If a patient does develop a fever and has an indwelling catheter, then urine samples are obtain to rule out infection related to the catheter. The guidelines closely match our current hospital policy, but re-analyzing the guideline would help fine tune many other aspects of the policy (Allen and Donohue and Gilmore, 2010).Along with Guideline for prevention of catheter-associated urinary tract infections, I also use other evidence-based techniques in my practice as a pediatric nurse. EBP shapes how we give report at the end of the shift. The Situation, Background, Assessment and Recommendation communication was developed from research, like the EVIDENCE BASED PRACTICE 5 one done in a northern Arizona hospital on the pediatrics/perinatal service department. The research was explained in the article, Collaborative Communication: Integrating SBAR to Improve Quality/Patie nt Safety Outcomes.Cynthia Beckett and Gayle Kipnis wrote the article explaining the importance and research supporting the use of SBAR during hand-off communication. This study surveyed nursing staff and physicians during and after the research. The integration of SBAR format helped this study achieve their two goals: increase effective communication and improvement of staff and patient satisfaction in care. As with the article, SBAR has made hand off communication to other nurses, physicians, and other discipline staff effective.The SBAR format paints a better picture of how the patient is doing and what is his current status. It also helps with further educating the staff. For example, when I am receiving report from a seasoned nurse and she recommends certain interventions, I am able to ask the needed questions to understand her recommendations; it provides an opportunity for a new nurse to learn the reasons behind certain interventions. EBP can be also applied to certain treatm ents over others. An example of such application is inhaled nitric oxide in preterm infants.A study done at John Hopkins University Evidence-based Practice Center in 2010 was an attempt to review the evidence on the use of nitric oxide on infants born at or before thirty-four weeks gestation age and need to receive respiratory support. Treatment for acute respiratory failure usually contributes to the development of bronchopulmonary dysplasia (BPD) or pulmonary hypertension. The purpose of this evidence report is to address if nitric oxide increase survival and/or reduce the occurrence of brochopulmonary dysplasia, are there short term EVIDENCE BASED PRACTICE 6 r long term risk in the therapy and if the effects of inhaled nitric oxide therapy on BPD. The data collected and information was based on medical research, like certain clinical trials and other researches on Medline, EMBASE, the Cochrane Central Register of Controlled Studies, and PsycInfo databases. The information extract ed from these databases range from 2009 to 2010. The data collected was analyzed and the applied to the questions listed above. The results show that infants treated with nitric oxide did not decrease or increase the mortality rate in infants in the neonatal intensive care.There is inconclusive data regarding the short and long-term effects of inhaled nitric oxide. The research report does indicate there is no evidence that supports the use of inhaled nitric oxide in preterm infants with BPD. This research report is significant for nursing because it provides further education of the nursing staff. If a nurse is well versed in current treatment and their effectiveness, then they can assist the care for the patient along with the physicians and respiratory therapist (Beckett and KIpnis, 2009). Another aspect of nursing that EBP can be applied, is on management level.We discussed how it is applied on skills and treatments, but now we are going to see how EBP can improve the management of the nursing profession. In What Is the Latest Evidence on Nursing Orientation, written by Mary Krugman, the author examines the idea of nursing orientation. Is there a magic number of hours that is most effective to convey information to the new hires and also keep the cost for the hospital within reasonable limits. The article reviewed literature on this topic written in the past five years, spanning from 2006 to 2011. They selected twenty-nine articles to review.The selected articles they were organized and summarized by graduate nurse orientation and EVIDENCE BASED PRACTICE 7 general orientation. The results showed that there was a gap in the general orientation versus graduate nurse orientation. There are many suggestion that professional development specialist should modify the traditional way of framing an orientation. There are studies that suggest that critical care nurse orientation should be provided to all levels of nursing. It becomes hard to challenge and keep the n ew hire engaged when all hospital orientation go over the same nursing concepts.The research implies that one must know your audience and modify the orientation as the day progresses. This article was not a study, but an implementation project. The ideas in the article would help the management and education team redesign how they orientate new hires. Sitting in a room and watching videos may not be the most effective way to organize nursing orientation. Integrating more hands on during orientation would better prepare new hires and new graduate nurses with the transition to the career. This idea would help make my hospital orientation become more interesting and engaging.The traditional way of orientation lack hands on and physically being on the unit. This would not really cost more than the classroom form of orientation. EVIDENCE BASED PRACTICE 8 Summary Implementing evidence-based practice is a vital part of nursing and other professions. The application of the data from researc h and data collect help improve and modify all nursing aspects. It can shape certain practices done in the clinical setting, like how we maintain central venous lines, how we prevent catheter acquired urinary tract infections and as basic as hand hygiene.EBP also influence treatment options. Clinical data and or trials help provide new information on standard of care compared to new innovative treatment, as seen in the use of nitric oxide in preterm infants. We are able to compare the effectiveness treatment options to better serve the patient. EBP can also be used to improve nursing management. EVIDENCE BASED PRACTICE 9 References Allen MC, Donohue P, Gilmore M, et al. Inhaled Nitric Oxide in Preterm Infants. Rockville (MD): Agency for Healthcare Research and Quality; 2010 Oct. Evidence Reports/Technology Assessments, No. 195. ) Available from: http://www. ncbi. nlm. nih. gov/books/NBK56325/ Beckett, C. , & Kipnis, G. , (2009). Collaborative Communication: Integrating SBAR to Impro ve Quality/Patient Safety Outcomes. Journal for Healthcare Quaility. 5(31), 19-28. Blais, K. , & Hayes, J. S. (2011). Professional nursing practice, concepts and perspectives. (6 ed. , p. 184-185). Upper Saddle River, NJ: Pearson. Krugman, M. , (2011). What is the latest evidence on nursing orientation. Journal For Nurses in Staff Development. 27(6). 310-312.

The Pros of Mosquitoes and Their Important Roles

Not much love is lost between people and mosquitoes. If insects can be credited with evil intent, mosquitoes seem determined to wipe out the human race. As carriers of deadly diseases, mosquitoes are the  deadliest insect on Earth. Each year, hundreds of thousands of people die from malaria, dengue fever, and yellow fever after being bitten by a disease-carrying, blood-sucking mosquito. The Zika virus can harm fetuses if a pregnant woman gets bitten, and chikungunya can cause debilitating joint pain. If these diseases affect a large population at once, the outbreak can overwhelm local health care, the UN reports. Mosquitoes also carry diseases that pose serious threats to livestock and pets. At the very least, these bloodthirsty insects are major annoyances, biting humans with a persistence that can be maddening. Knowing this, is there an intrinsic value to keeping them around? If we could, should we just eradicate them all off the face of the earth? The answer is mosquitoes do have value. Scientists are divided as to whether theyre worth it, though. The Long History of Mosquitoes on Earth Mosquitoes populated this planet long before man. The oldest mosquito fossils date back some 200 million years, to the Cretaceous period.   More than 3,500 species of mosquitoes have already been  described from various parts of the world, of which only a few hundred species bite or bother humans. In fact, only female mosquitoes bite humans. Males lack the parts to penetrate human skin.   Benefits Many scientists agree that mosquitoes present more of a hassle than they have value. The mere fact that they are the reason for so many human deaths a year is reason enough to wipe them off the planet. However, mosquitoes serve important functions in numerous ecosystems, serving as food for many species, helping filter detritus for plant  life to thrive, pollinating flowers, and even affecting the herding paths of caribou in the tundra. Last, scientists are looking at the mosquito for potential medical treatments. The Food Web Mosquito larvae are aquatic insects  and, as such, play an important role in the aquatic food chain. According to Dr. Gilbert Waldbauer in The Handy Bug Answer Book, Mosquito larvae are filter feeders that strain tiny organic particles such as unicellular algae from the water and convert them to the tissues of their own bodies, which are, in turn, eaten by fish. Mosquito larvae are, in essence, nutrient-packed snacks for fish and other aquatic animals. In addition, while species of mosquitoes eat the  carcasses of  insects  that drown in the  water,  the mosquito larvae feed on the waste products, making nutrients such as nitrogen available for the plant community to thrive. Thus, the elimination of those mosquitoes  might affect plant growth in those areas. A mosquitos role on the bottom of the food chain does not end at the larval stage. As adults, mosquitoes serve as equally nutritious meals for birds, bats, and spiders. Mosquitoes seem to represent a considerable biomass of food for wildlife on the lower rungs of the food chain. Mosquito  extinction, if it is achievable, could have an adverse effect on the ecosystem. However, many scientists suggest that the ecosystem could eventually rebound and another species could take its place in the system. Acting as Pollinators Only the females of some mosquito species need a meal of blood to get the proteins necessary to lay eggs. For the most part, male and female adult mosquitoes depend on nectar for energy. While retrieving nectar, mosquitoes pollinate plants to help to ensure that different types of plant life thrive.  When mosquitoes pollinate  plants, especially the aquatic ones around which they spend much of their lives, they help perpetuate these plants. These plants provide cover and shelter for other animals and organisms. Medicinal Lessons? Although the mosquito has been a known vector for spreading disease all over the world, there is some hope that mosquito saliva may  have some potential use for the treatment of the No. 1 worldwide killer of humans: cardiovascular disease. One promising application is the development of anticlotting drugs, such as clotting inhibitors and capillary dilators. The composition of mosquito saliva is relatively simple, as it usually contains fewer than 20 dominant proteins. Despite the great strides in knowledge of these molecules and their role in blood feeding, scientists still know only about half of the molecules found in the insects saliva.