Why Study Logic Essay Example | Topics and Well Written Essays - 250 words

Why Study Logic - Essay Example Reasoning is the ability to seek out a conclusion. (Morsanvi, Handley 2011) Reasoning is used to understand how something is and why it is. After understanding facts about something, one is then able to use reason to conclude. Sometimes this reasoning is done without being consciously aware. This has an effect on whether or not one is able to reason well decisions or reason bad decisions. When an individual is not aware of the proper way of reason this can prevent them from achieving an important lifelong skill. This skill is the ability to understand the theory behind reasoning. Understanding the theory behind reasoning will help with so many different aspects in life. Understanding the theory behind reasoning allows for better problem solving and the ability to communicate better with others. Without the study of logic one may have difficulties communicating and understanding others and why others make certain decisions. Morsanyi, K., & Handley, S. J. (2011). Logic feels so good—I like it! Evidence for intuitive detection of logicality in syllogistic reasoning. Journal Of Experimental Psychology: Learning, Memory, And Cognition,

Dr Pepper Snapple Group Inc Essay Example for Free

Dr Pepper Snapple Group Inc Essay Dr Pepper Snapple group, Inc. is a major integrated brand owner, bottler, and distributer of nonalcoholic beverages in the United States. In 2007 they had net sales of $5.748 billion, 21 manufacturing facilities and approximately 200 distribution centers in the United States. They are the number one Company in carbonated soft drink products in the United States. Their business strategy is to invest most heavily in their key brands to drive profitable and sustainable growth by strengthening consumer awareness, developing innovative products, and brand extensions to take advantage of evolving consumer trends, improving distribution and increasing promotional effectiveness. Dr Pepper Snapple Group, Inc. also wants to focus on driving growth in their business with emerging categories, through brand extensions, new product launches, and selective acquisitions of brands and distribution rights. The company has a future goal of significantly increasing the number of branded coolers and other cold drink equipment over the next few years, which is expected to provide an attractive return on investment. The company also intends to leverage its integrated business model to reduce costs by strategically creating greater geographic manufacturing and distribution coverage and to be more flexible and responsive to the changing needs of large retail customers by coordinating sales, service, distribution, promotions, and product launches. A question came into play of whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company in 2008. With the company’s current strengths, business strategy, and positive reputation, it would seem to be a good move. But one must first consider the competition, customer, and if the company itself can successfully introduce a new product to a specific market. The company has several succinct strengths. They have a strong portfolio of leading consumer- preferred brands. This means that they have a diverse portfolio of bottlers, distributors, and retailers with a wide variety of products and provide a foundation for growth and profitability. Their Snapple brand is also a leading ready to drink tea. Overall, in 2007 more than 75 percent of Dr Pepper Snapple Group, Inc. volume was generated by brands that hold either the first or second position in their category. The strength of these key  supporting brands has served as a platform for lunching innovations and brand extensions in the past such as Accelerade RTD, a ready to drink sports drink that launched in late May 2007. The company therefore had experience in what it truly meant to create a new branded energy drink which would serve to be useful, as the strategy would be similar. Entering a new product market. A second strength the company possesses is their Integrated Business Model. This provides opportunities for net sales and profit growth through the alignment of the economic interest of its brand ownership and its bottling and distribution business. Thirdly, they have strong and long standing customer relationships. This is so important for the success of a company. They have a wide range of strong relationships from bottlers and distributors, to national retailers, large food service, and convenience store customers. They also have strong relationships with some of the most important U.S. retailers including Walmart, Safeway, Kroger, and Target. Another strength is their attractive positioning within a large, growing, and profitable market. They hold the number three position in the United St ates, Canada, and Mexico beverage market. The company has a great competitive edge, as they cater to the need for convince and the demand for product with health and wellness benefits more so than any of their competitors. Dr Pepper Snapple Group, Inc. also has a broad geographic manufacturing and distribution coverage. They have 21 manufacturing facilities and approximately 200 distribution centers in the United States. The company has strategically laced their warehouse at or near bottling pants and geographically dispersed them across sales regions to ensure company products are available to meet consumer demand. This enables them to better align their operations with customers, reduce transportation costs, and have greater control over the timing and coordination of new product launches. Another strength is their strong operating margins and significant stable cash flows. The breadth and strength of the Dr Pepper Snapple Group, Inc. product portfolio has enabled the company to generate strong operating margins, which combined with relatively modest capital expenditures, have delivered significant and stable cash flows. This in turn creates stockholder value by enabling the company to consider a var iety of alternatives, such as investing in its business, reducing debt and returning capital to its stockholders. Lastly, they have an experienced executive  management team. They all have an average of more than 20 years of experience in the food and beverage industry. The team has a broad experience in brand ownership, bottling, distribution, and enjoys strong relations both within the industry and with major customers. They also have diverse skills that support operating strategies, including driving organic growth through target and efficient marketing, reducing operating costs, enhancing distribution efficiencies, aligning manufacturing, bottling, distribution interests, and executing strategic acquisitions. Dr Pepper Snapple Group, Inc. realized they had a weakness, as they were the only major nonalcoholic beverage company with no energy drink brand of their own. They also recognized an opportunity, no company had yet positioned themselves as an adult energy drink. Going into the Energy beverage market also seemed to correlate with what their future and current goals were. Industry analysts were projecting an average annual growth rate of 10.5 percent from 2007 to 2011. Also, since their current demographic was more health conscious then the c ompetition, which gives them a competitive competency, they also had another untapped opportunity to market their energy drink by differentiation. Currently, there are five major competitors that dominate the U.S. energy beverage market: Red Bull North America, Hansen Natural Corporation, Pepsi-Cola, Rockstar Inc., and Coca-Cola. Pepsi and Coca-Cola also compete with what Dr Pepper already offers from an industry and market point of view. Sadly, when it comes to advertising funds available, Dr Pepper has some funds available, but not nearly close to what Red Bull has. With that being the case, we feel that an avoidance of the competition, by going the route of a product innovation technique by means of differentiation, would be the best route for Dr Pepper Snapple Group, Inc. to be successful. There are some warning signs in the industry. The energy beverage market has experienced product proliferation and price erosion in recent years. Proliferation resulted from line extensions new packaging and size, and market segmentation. Existing brands also typically offer regular and sugar free verities which have a sizeable share already in the market. Brand position typically emphasizes an energy boost, metal alertness, refreshment, and taste. This is why our product differentiation positioning is so important for the brand to be truly successful. Several opportunities for product differentiation exist. One of which are the ingredients. Specifically, a new brand could augment the energy and mental alertness benefits by increasing the amount of herbs, vitamins, and natural ingredients. Secondly, no brand has positioned itself as an adult energy drink. Adults between the ages of 35 to 54 consumed energy beverages at a rate that was only slightly less than consumers under 24. Thirdly, the packaging. All the energy brands on the market lacked meaningful differentiation. They all looked the same. With the product, they felt it would be smart to introduce a new drink with a re-sealable lid, something that would stand out in the crowd. The current energy beverage consumer typically consists of males between the ages of 18-24. Energy beverages are most often consumed in the afternoon, the second most popular time of day is morning consumption. Convenience stores and supermarkets are the dominant off-premise retail channels for energy beverages. In general, energy beverage manufactures with a broad product line and an extensive distribution network have had the greatest success in gaining shelf space in supermarkets and mass merchandisers for their brand. This would correlate with Dr Pepper Snapple Group Inc. strength of having great relationships with their vendors. We would recommend that they follow suit with partnerships with the dominate off-premise retail channels, but as a more health conscious beverage. The solution that we came up with for the Dr. Pepper Snapple Group was to incorporate all of these opportunities into a new product called RAM, which stands for Real Alive Micro-Nutrients. The product’s target market will be adults ages 25- 44 both males and females, who are interested in their health. In specific we are targeting the working middle class. Our average consumer would be someone working long hours that need constant energy throughout the day, even after work when they need to go home and take care of their families. They are constantly on the go and busy. When developing a new product you must implement the marketing mix. The first being the product, RAM energy drink. Our product is focused on providing the same alert and energized feeling as traditional energy drinks, without including ingredients that have harmful side effects. Other drinks such as Red Bull can lead to dangers such as cardiac arrest, headaches, insomnia, type two diabetes, and many other health issues (Top 10  Energy Drink Dangers). Our new product RAM, will be replacing ingredients that lead to these dangers with more vitamins. For example our product will not include ingredients such as Carnitine, Guarnana, Ginseng, and Ginko Biloba. All of which are commonly used in energy beverages but there presence is not clearly reflected on their labels. Inst ead they cover it up by listing them as â€Å"part of a 5000- mg energy blend† these ingredients can be extremely dangerous (Higgens). Instead, we will have ingredients such as Iron, Biotin, Zinc, Omega -3 fatty acids, antioxidants, Vitamins A, B1, B2, B3, B5, B6, B9, B12, C, D. All of these attributes to healthy energy levels but are a more natural way of doing so. Another detail of RAM will be lower calories, right now out of the five leading companies in the energy beverage market, not including sugar free products, Monster has the lowest calories being 200 per 16oz can. We want our product RAM to be around 150 calories per bottle, with only about 25 grams of sugar. Compared to Monster, which has 54 grams of sugar. RAM will also only be made up of natural flavors with no added artificial flavors or colors added, whereas the other lead competitors all ad coloring and most admit to adding artificial flavoring when some do not list the specification, which usually means they are trying to hide something. We want our customers to know every little ingredient that makes up RAM and hopefully this will build trust and r elationships in return. Many people are just now starting to notice all of the potential dangers that energy drinks contain, which is why our product will stand out as a healthier choice that offers the same benefits. The look of our product will be completely unlike any other energy drink, which are usually un-sealable cans. RAM will be sold in a 17 ounce recyclable cardboard bottle with a re-sealable screw on cap, similar to those that Vita Coco coconut water uses. This type of bottling will fit better with the target market’s lifestyle because the container will be easier to bring on the go with no spills or messes. They are also able to drink some now and easily save the rest for later. When designing the prototype of the bottle we choose the colors dark blue and black so that they would be gender neutral and attract the more mature market. The label is also clear and easy to read. We suggest that RAM only starts off introducing two flavors and see how they perform and introducing a new flavor wi thin the next 8 months of the campaign. The two flavors to start  with might be RAM berry and citrus, because they are common and consumers might be more willing to try. From there they can extend the product line even further by offering a sugar-free option and even being sold in packs of four or large cases. The next aspect of the marketing mix to look at with RAM is pricing. We think that it is best to price themselves competitively at about $2.15 a bottle. Which is only a few cents cheaper than drinks such as Monster and Amp depending on the location. The third part of the marketing mix is place. Dr Pepper Snapple Group, Inc. has a wide range of strong relationships from bottlers and distributors, to national retailers, large food service, and convenience stores, such as 7-11, and their customers. They also have strong relationships with some of the most important U.S. retailers including Walmart, Safeway, Kroger, and Target. Building on their current strength of market channels, we felt that off premise retailers wo uld represent the best choice for the product to be carried. Lastly, we have to figure out the promotion that will be used for RAM. Since our funds are low compared to competitors, and we are going to avoid any conflict, we will be focusing on giving out samples while the product is being first introduced. We recommend the company hires sales reps to go to local grocery stores, with whom they already are doing business with, to give out samples to customers for them to try the new drink. It would also be a good idea to promote the new brand at events such races, athletic games, and concerts that our target market would be attending. This can be as simple as setting up a tent offering free samples and coupons. We also recommend using social media as a platform because it is extremely cost efficient and we can easily select our target. By means of analyzing the company’s strengths, tactics, opportunities, weaknesses, and threats, we were able to come up with a product that would be successful. Dr Pepper Snapple Group, Inc. vision statement says, â€Å"It is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun, and flavor for generations, and our sales are poised to keep growing into the future.† We feel that by building on their current strengths and marketing a product by means of differentiation through its ingredients, demographic, unisex packaging, and partnerships with loyal vendors, we will have a success with RAM. Real, Alive, Micro-nutrients. Works Cited Higgens, John. Energy Beverage: Content and Safety. (2011). Print. Top 10 Energy Drink Dangers. Caffeine Informer. 24 Apr. 2012. Web.

The management of wound dressings whilst on placement

The management of wound dressings whilst on placement This reflective piece will look at the management of wound dressings whilst on placement in the community. I will use the Gibbs model of reflection this will allow me to describe the event, explore my thoughts and feelings, make an evaluation on the event and then analysis different components which can be explored separately including different dressings and why they are used, finally I will conclude and action plan looking at if this happened again what I would do differently. Whilst on placement in the community I visited a lady who had chronic leg ulcers on both legs and the district nursing team had been visiting this lady for a number of years. The lady had oedematous legs and poor mobility and sat in a recliner chair although the chair was never reclined. I had visited the lady previously on a number of occasions and had applied her dressings and documented what I had done and the dressings used in her district nursing records. On this occasion the lady requested that I didnt put the K-lite dressing on and allows the other nurse do this, as previously when I had dressed her legs she stated the dressing had become loose. I mapped the dressing so that the notes had an up to date record of the size of the wounds and washed and redressed the legs as per the plan of care. The plan of care stated to wash the legs apply aqualcel ag silver this is used for wounds that have a high level of exudates, then atruman was applied covered by mesorb, comfifast yellow then K-soft and then I passed over to the Registered Nurse (RN) to apply the final layer, whilst she applied the final layer I documented the notes that the leg had been mapped, washed and redressed as per the plan and noted that strikethrough was on the dressing prior to removal I also noted the patients level of pain at the time of the cleaning and mapping of the wounds and also after the legs had been redressed. I documented the patients records that the patient had been advised to elevate the legs when resting to aid healing. When the patient advised me that she would prefer the RN to do the top layer I felt like my confidence had been knocked. The patient had never said this before and always stated not to wrap the dressings too tight as she found it very uncomfortable. I told her that I didnt do them too tight as she always stated not to do so and apologised to her that they had fell down and in future would ensure that they werent too tight but would not fall down either. When I left the patients house with the RN she told me that this lady does this to all the new nurses that visit her and not to worry about it. Pressure sores and leg ulcers are classed as chronic wounds and are defined as slow healing wounds with the likely hood of reoccurrence and the pain that a patient feels may be severe and ongoing (Dealey 1999). The dressing plays a major part in the reduction of pain and by choosing the wrong dressing this can cause discomfort when removing the dressing and the nurse needs to avoid this by using careful assessment prior to administering the dressing (Dealey 1999). For a wound to heal the key is to have successful wound management, the nurse should use a wound assessment tool this will ensure that there is valid reliable and also consistent information documented. Wounds need to be regularly reassessed to ensure that evaluation is given on the treatment that the patient has received. When making a wound assessment this should include the location of the wound, the cause, etiology, tissue type the size and the exudates and finally the level of pain the patient is experiencing (Prescribing Nurse Bulletin). To achieve optimum healing the role of the nurse is to be able to select the most appropriate dressing for the wound, this is to be based on the most up to date evidence, and recent development of new dressings makes this a challenge for the nurse (Lansdown 2004). The wound should be assessed for slough and necrosis, signs and symptoms of infection and wound malodour. The patients records need to be documented to state if the wound is healing, e.g. granulisation and epithelisation (White 2005). The ideal wound dressing that will meet the treatment objective and promote the wound from further injury would be a moist wound healing dressing, that manages excess exudates and prevents the wound from maceration and further wound breakdown, ensure that it prevents the exit and entry of organisms, it will cause minimal trauma at the time of removal and is cost effective (Northern Health and Social Services Board NHSSB 2005). One important factor in wound dressings is to ensure that dressings get the maximum exposure to the wound bed. This can be achieved by a dressing that decreases the voids and spaces where bacteria can thrive (Jones etal 2005). Aquacel Ag dressings contain Hydro fibre Technology and it gels on contact with the exudates and micro-contours to the wound bed this helps to eliminate voids or spaces where bacteria and fluid can collect it maximising exposure of the wound to antimicrobials. It is presented as a soft sterile, non-woven pad and is impregnated with ionic silver (Aquacel Ag 2006). This dressing can absorb a large amount of fluid and helps to prevent exudates leakage onto the periwound skin. The dressing can be left in place for up to 7 days however should strikethrough be evident on the dressing then the dressing needs to be changed (NHSSB 2005). It has been recognised that silver is an effective antimicrobial agent (Thomas and McCubbin 2003). It has proved that it is effective against methicillin and vancomysin-resistant strains of bacteria (Lansdown 2002) Atrauman dressings are made of a fine mesh of hydrophobic, polyester fibres and have mesh pores with a smooth surface this effectively counteracts adhesion to the wound by preventing new tissue from penetrating the dressing and allowing the exudates to pass through, this means that the dressing is easy to remove and causes minimum discomfort to the patient and also to the wound. The dressing is highly permeable to air and water vapour and has been found to be very well suited to the management of infected wounds (Hartmann 2010). In recent years Honey has been found to benefit wound healing, clinically topical honey treatment has been found to possess antimicrobial properties, promote autolytic debridement, deodorise wounds and stimulate the growth of wound tissues to quicken healing, it also stimulates anti-inflammatory activity helping to reduce pain, oedema and exudates (White 2005). A fast rate of healing has been reported in wounds treated with honey (Ahmed 2003) it helps the developing of a clean granulating wound bed (Stephen-Hayes 2004) It is clear that wound management is a complex area and the it is the nurses responsibility to ensure that they give the correct care to the patient and they use the dressings that are selected on their knowledge and understanding of what the dressing will achieve they need to be constantly aware of new products available to treat the wounds. By regular assessment of the wound they will be able to see if the dressing selected is helping to promote wound healing. I am aware that if I wish to work in the community I would need a good knowledge of dressing that is used in wound management. I know that I am likely to meet patients who try to make me doubt my ability however this is something that I know I will over come as my confidence builds and I become more used to working in the community.

Frankenstein is perceived as a horror story. Essay -- English Literatu

Frankenstein is perceived as a horror story. When we analyse the monster, however, the story becomes much more complex. Discuss this statement with close reference to Shelley’s presentation of the monster in the novel. Frankenstein is a novel with great hidden depths and a whole new outlook on life itself. Frankenstein was written in 1818 by Mary Shelley. The novel was a deep insight to a number of things, this including the gothic period. In her 1831 introduction to the novel, Shelley declared her desire to ‘curdle the blood, and quicken the beatings of the heart’ This was the first of many signals to the reader that Frankenstein should be placed in the genre of the gothic Frankenstein was written with a great ‘scare factor’ from Gothicism which is part of the Romantic Movement. At that period in time-Gothicism was extremely popular as it was exciting, dark and dramatically horrifying. The book had a tendency to tap into people’s fears. It made the impossible become reality and the absurd become believable. However, Frankenstein was much more than just a horror story and because of this, it was written to deal with more complex issues/themes. Frankenstein was written with such great detail and invisible links to more larger arguments. It deals with issues such as; is it right to play God? Is it right to judge on appearances? Also, HOW and WHY a physically hideous murderer is the most sympathetic character in the novel. The novel also contains elements of science fiction with victor and his ‘great experiment’. At that period in time, science and technology was just beginning to progress at such an alarming pace and inventors were extremely enthusiastic towards science. Victor Frankenstein ... ...nthusiasm for science and the French revolution meant she was used to seeing corpses. This was also incorporated within the novel when she made references to bringing the dead back to life. Mary Shelley’s presentation of the monster shows us that we should never judge on appearances and there is always more to a person than what meets the eye. So in an odd way then, Shelley leaves us to decide whether we think ‘the monster’ IS human or NOT and the ways our experiences shape us into the people we become. In addition to this-the story of Victor Frankenstein and his great creation is much more than a typical horror story. It is an insight to Mary Shelley’s life and a way of describing her pain and loneliness. So, to conclude Frankenstein is a ‘horror’ story which in fact is enormously realistic and covers everyday issues and a diverse amount of themes.

The Pink Cow

On the beautiful sunny beach day of March 12, 2008, I visited the Florida Gulf Coast University’s art complex. The first thing I noticed upon entering the art complex was a pink cow. This pink cow consumed my total attention. I hardly noticed anything else. I was so fascinated and taken away by this pink cow that, as I studied this extraordinary painting, it became clear serious precise art techniques were carefully used to design this creation taking attention off everything else in the gallery. It’s a Pink Cow painted by expert artist, Andy Warhol, uses professional levels of sophisticated art coloring and design elements communicating fun, happy environments to the subconscious minds of youthful crowds occupying the buildings wherever his art work hangs. The only reason art sells is because it inspires emotions, controlling mind manipulation atmospheres from fun to conservative. It’s a Pink Cow painting’s strongest identity is color and subject content. This wall paper image created by famous pop artist Andy Warhol made excellent use of shocking contrasting coloring and design in It’s a Pink Cow. It’s a Pink Cow’s shocking hot pink everyday farm animal peaking through a barn door with a light green background which is lit up by the bright yellow sun invokes feelings of pleasure, comical, social interactions. Color invokes moods. â€Å"We learn from color specialists that rooms painted in different colors tend to cause different reactions. Certain blues are cool, certain greens are relaxing, certain reds are warm and comforting. â€Å"(Blair 43) Observing It’s a Pink Cow, and applying our knowledge about art techniques, it is clearly obvious the artist shows creative potential of colors capacity. Normally green is known as evoking feelings of calmness, quietness, seriousness. However, it is totally unlikely this painting containing a sensible green filling in the background to be observed in a church, senior citizens ballroom or a political business meeting room. In some of these different paintings, the background is yellow. In this particular artwork shown in the museum, the background overlooking the picture is grass green. Reflections of bright yellow sunlight shinning on the green grass gives the neutral nondistracting color pizzazz. Adding sunlight to the earth toned green shades is equivalent to adding Hip-Hop music to church choir music. When artists are working at designing original pieces in a highly competitive market full of talented people, it is not enough to design something that it’s only contribution is being pretty. That is why creative arts are popular for breaking traditions. Warhol’s theme in this painting was showing the unique possibilities by applying extraordinary colors to ordinary objects. In this painting, it is not only a pink cow looking at everyone looking at the painting. By coloring a traditionally black or brown object, such as a cow in any bright shade, it is now the bright tint looking at the viewer. A person looking at the painting mood’s are altered on a level they do not realize. A hot fluorescent pink cow’s head looking out the barn holds the person attention, making them look twice at his artwork. The innocent visitor to the art museum first wonders about themselves upon looking at the pink cow. For reassurance, they stand silently to see if their friend accompanying them says anything first. Their friend is doing the same thing. Then the worker at the art gallery passes by, comments on the pink cow and the art museum visitor is now relaxed. The artist’s main objective is to influence or alter people’s moods, and that is what this painting did. Artists selectively chooses the use coloring, lines, forms, shapes etc†¦innovatively to target their selected audience. A green grass providing the background for trees in a landscape would not have the same effect. Andy wanted to sell to the younger generations. Here he is using vivid colors to capture the fun minded light hearted generation. The subject content works in conjunction with coloring creating a surprising and unexpected product making an artists statement that can only be accurately interpreted by the artist. The colors and the subject matter conflict greatly. Bright vivid colors and a pink cow is a symbology of fun. Of all the animals to choose from, why did he choose a cow? A cow is not really a symbology of fun. Looking at paintings such as these peaks curiosity, it draws attention inviting the viewer to investigate more into the artwork. It is necessary to have an idea of history, including the artists personality and style is necessary to make sense of the painting. It’s a Pink Cow appears like it may be a totally improvised, but the sources say differently. â€Å"Once he's chosen something from the chaos of everyday reality to preserve in his art — particularly in his paintings and sculpture — Warhol works extremely hard â€Å"at getting the image absolutely right,† says Leo Castelli. â€Å"He doesn't simply arrive at an image easily and then repeat it senselessly — as many think. That cow wallpaper took him over a year to define. â€Å"(Pratt 53) The only reason art sells is because it inspires emotions, controlling mind manipulation atmospheres from fun to conservative. It’s a Pink Cow was created to provoke laughter, or comical atmospheres. Of all the paintings in the art gallery, this painting stood out. Hanging this painting in the room of a child or young person’s apartment is great for developing and stimulating imaginations. This is especially true if someone was to elaborate on it this art piece, and make the cow sing, dance or tell jokes.

Humana Case Essay

The purpose of this memo is to analyze Humana’s business model and its spin-off solution. We think Humana’s problems were severe enough to implement restructuring plans within the company. First of all, Humana’s administrative cost ratio was 16.1% and medical loss ratio stood at 85.9% (increased from 84.4% in 1991). The stock price was declining from $34.5/share in May 1991 to $21.63 in May 1992. In addition, the entire hospital industry is suffering losses in the long-term because of increases in operating costs, decreases in average hospital stays (occupancy rate declining to 47%, national average occupancy rate was 69%), and growing competition. The margin is diminishing and the PE ratio is lower in both industry averages. Spin-off is ideal since the hospital industry is shrinking and Humana’s profit from hospital starting to decline. A decision made early will still allow Humana a higher valuation on hospital business. The separate income statement is listed below. As presented, the after-tax net income of Humana Hospital and Health Plan are $314M and $ 41M. After we compare the asset sizes of comparable companies, we decided that the PE ratio for the Hospital business should be 13.0x, equal to that of National Medical Enterprises, as they are closer on the asset size. The PE ratio for Health Plan business should be 17.0x, equal to the average of United Healthcare and U.S. Healthcare, for the same reason. Thus, the value of these two businesses separate will be $4,087M and $694M. The Market value using current PE ratio for the whole Humana Company is $3,550M. Therefore, a spin-off of these two segments (assuming tax rate is 36%) will create an extra value of approximately $1,231M. Humana should assign most of its debt to the hospital business and keep sufficient cash in the health plan segment. According to the exhibits, the proportion of debt distributed to hospital and health plan is 5:1. Health Plan business could expand itself and enjoy further profit and growth, while the hospital business could start eliminating parts that are not profitable or carries much capacity. Kaiser has 6.5 million members and 7700 beds. This means feeding more people into the hospitals and a higher occupancy ratio. Humana has 1.7 million members and 17829 beds, significantly less occupancy. Both of the hospital and health plan industries enjoy higher PE valuation ratio than Humana as a company does, which indicates that this integrating strategy doesn’t fulfill the fullest of their respective potential. There is no other option that’s more sensible since they all have their respective flaws. New price structure compensates their margin to sell more services, yet their hospital’s occupancy ratio will not increase and they will lose on the Medicare deals. Selling off hospitals may help gain profit and independence. However, it will be extremely undervalued (6.0x EBITDA ratio). Leverage buyout is not feasible either because Humana’s marketable securities are occupied, thus no sufficient fund. Stock buyback will not help Humana to deal with hospital section’s occupancy and profitability problem. Finally, the feasibility of ESOP remains uncertain, as it didn’t measure whether employees have the ability to purchase and whether synergy has been compensated.