Factors that compelled Tesco to exit the Japanese Market Free Essays

Executive summary Tesco is the third largest retail company in the world after Wal-Mart Stores Inc. and Carrefour SA. The paper provides an overview of Tesco PLC and its market expansion strategy in competitive markets, specifically Japan. We will write a custom essay sample on Factors that compelled Tesco to exit the Japanese Market? or any similar topic only for you Order Now The paper briefly provides information on Tesco’s entry into the Japanese retail market. It provides details of the factors that compelled Tesco to exit from the Japanese retail market. It is argued that other foreign retail companies had failed in the Japanese market primarily due to unique shopping habits of Japanese consumers. Synopsis of the Case study Tesco is a UK based retailer company founded in 1919 (Humby, 2008). The company is the third-largest in the world in terms of sales, behind Wal-Mart Stores Inc. of the United States (US) and Chain Carrefour SA of France (Humby, 2008). Tesco carried out extensive research spanning several years in its strategy to expand its market to other already established and emerging markets internationally. Tesco embarked on expansion, into new markets, establishing new stores in the US, entering emerging markets in Central Europe and Japan through acquisition and entering markets like South Korea and Malaysia through a joint measure (Tesco’s internal data, 2009). At the end of August 2011, Tesco announced its exit from Japan where it had entered the market through acquisition. Tesco’s exit from Japan was motivated by its failure to establish enough scalable business after its 8 years operation in Japan, the economic and demographic factors which have affected the purchasing trends among the Japanese, Japanese consumers switched from purchasing branded luxury products in Tesco stores and preferred more affordable private labels. In addition there were a series of food safety scares that hit the Japanese retail market and Tesco’s British business format. Additionally, Tesco failed to compete with department and supermarket stores in Japan. The paper critically assesses the factors that compelled Tesco to withdraw from the Japanese Market. The company has in excess of 500,000 employees in its chain stores around the word. Tesco aims at delivering a consistently strong customer offer based on each customer visit and transaction by focusing on the Group’s core business purpose. Tesco enjoys a 30% market share in the British grocery market making it the biggest player in retail business in the UK. Other players are Asda with 16.9% of the market, Sainsbury’s with 16.4%, Morrison’s with 11.5% and Co-op/Somerfield with 9.2% of the market share (Tesco’s internal data, 2009). Theoretical framework Tesco has expanded its presence to about 5400 chain stores operating in 14 markets outside the UK. The company has grown its business value and operations to become the third-largest retailer in the world behind Wal-Mart Stores Inc. of the US and France’s retail Chain Carrefour SA (Tesco’s internal data, 2009). Tesco’s main business focus is to expand its business in established markets and emerging markets around the world. With a focus to expand its business operations, Tesco operates about 1400 stores in Asian countries of Japan, China, Thailand, Malaysia and South Korea. Tesco began its expansion to the Asian market in 1998 when it acquired a 75% majority controlling in Thailand’s Lotus, a chain of 13 hypermarkets for 111 million British pounds. In March 1999, Tesco further expanded its business expansion strategy in the Asian market with a joint venture with Samsung in South Korea. In 2002, Tesco entered the Malaysian retail market through a joint venture with a local company called Sime Darby Behad (Tesco’s internal data, 2009) The collapse in asset values caused by financial crisis in the late 1990s significantly facilitated the company’s expansion in South-East Asia. Tesco expanded its market into the Japanese market in 2003 by acquiring a controlling interest in the C Two-Network Co, a discount supermarket chain. However, in September 2011, Tesco PLC took the decision to withdraw its retail business operations from the Japanese market and sold off its operations consisting of 129 chain stores. The stores were in the Tokyo area and other stores operating under the Tesco brand, Tesco Express and supermarkets under the Tsurukame brand. The supermarket sector in Japan is fiercely competitive and unprofitable. From the case study, it seems clear that Aeton and Itoh Yokado, the two largest supermarket groups in Japan are struggling to make profit even though they enjoy huge economies of scale. Tesco and other global supermarkets with their plentiful capital failed to successfully penetrate the Japanese market. Despite Tesco’s intending to offer low prices on bulky purchases, things did not turn out to be successful and eventually Tesco had to exit the market. Sogo and Seibu, a big-name in Japanese departmental stores failed to dig into the Japanese retail market. Tesco, and other foreign players like Carrefour and Wal-Mart moved to fill the gaps left by the ailing domestic retailers in the general merchandise store (GMS) segment by setting up their stores or forging an alliance with a domestic player. Despite the business strategy, Tesco and other foreign retailers struggles to successfully penetrate into the difficult Japanese market. Answer to the question. At the end of August 2011, Tesco announced its exit from Japan. The following are the factors that compelled Tesco to withdraw from the Japanese Market. Economic and demographic factors that have affected the purchasing trends among the Japanese. The Japanese grocery retail is a mature market valued at US$370 billion, and it’s the second largest in the world behind the US market. The Japanese grocery sales per capita boosts as the highest in the world at more than US$ 3,300 in a year. However, the market still remains troubled. A combination of economic and demographic factors have resulted in the grocery retail market slipping by 1.2% in 2004 (Tesco’s internal data, 2009). Since the bubble burst in early 1990s, the Japanese economy has been in the doldrums, followed by deflation in the consumer price in subsequent years. Since the economic downturn, consumer confidence has never fully recovered. In relation to demographic factors, the population growth has been stagnant in recent years, resulting in diminished volume growth opportunity, in the retail market. The consumption patterns of the Japanese have changed along with the demographic shifts and varying lifestyles. The birth rate is declining and the population is ageing. High levels of unemployment have prompted people to migrate to city areas that provide more work options. The consequence is an increased demand for freshly prepared and convenience Japanese-style foods. The foods are readily available in at food halls and convenience stores in department stores. The Japanese masses have not widely embraced Western cuisines resulting in a bumpy ride and the eventual fallout of the both the domestic and foreign retailers such as Tesco. In July 2011, supermarket sales in Japan diminished by 1.2% overall to 1.05 trillion Yen. The fall has been recorded for the last 20 consecutive months based on a year-on-year comparison. In July 2011, a decline of -0.6% in food was recorded, -2.7% decline in household products, -0.8% decline in clothing, -1.7% decline in services and a decline of -3.3% in miscellaneous items (Tesco’s internal data, 2009). The statistics indicate that supermarket sales were dwindling, and Tesco found it hard to continue operating within such a difficult environment (Williamson, 2013). Tesco failed to establish enough scalable business after its 8 years operation in Japan. According to CEO, Philip Clarke, Japanese shopping habits were very different from those envisioned in business strategies and business processes of Tesco. According to Clarke, the British consumers enjoy carrying out a â€Å"big shop† once in a week since there is enough room to keep their shopping. In contrast, for many Japanese, space is premium and carrying out a big shop is not an option. Tesco, like other foreign retail companies, failed to adapt fully to the local shopping habits of the Japanese consumers. Consumers switching from branded luxury products in Tesco stores to more affordable private labels. Despite the demand for staple food and household items remaining flat, some consumers switched from purchasing branded luxury products to private labels that are more affordable. However, the penetration of such private labels products has not been popular compared to branded products because the Japanese consumers are still conscious of the product brand of the item they purchase. A series of food safety scares hit the market. The outbreak of Bovine Spongiform Encephalopathy (BSE) in Japanese cows, use of non-approved additives in packaged foods and product origin being mislabeled eroded consumer confidence and caused a series of food safety scares in the grocery retail market. The British business format of Tesco failed to compete with department and supermarket stores in Japan. The people of Japan put much emphasis on the quality and freshness of food items. They, therefore, prefer to shop many times in a week instead of carrying out a single bulk shopping in a weekly basis. Departmental store food halls began offering high price but high quality foods while low priced standard food products were offered by supermarkets. Although discount stores started increasingly introducing fresh food product to encourage more customer visits, they were considered to be at the lower end of the market along with convenience stores. The small retail channels have increased their market share in recent years because their business format meets the Japanese consumers’ preference for shopping several times each week. They have also widened their range of services such as the provision of added-value services, bill-paying facilities, cash machines and delivery services. The small retail channels business format is in contrast with Tesco business format. As a result, Tesco faced a challenge of penetrating the highly competitive business segment. The Japanese people are highly demanding and fussy consumers who need to be provided with a wide selection of goods and foodstuffs. The Japanese consumers also value freshness of their produce, and they are likely to question of the stock in a hypermarket such as Tesco. Japanese consumers make frequent visits to many different stores per week instead of carrying out a one stop-shop within a single supermarket store. Conclusion In summary, the expansion strategy taken by Tesco into the Japanese market was a well-timed one. However, the Japanese market posed many difficulties which prevented Tesco penetrating the market and achieving profits. Despite that Tesco invested many resources and formulated strategies to gain the Japanese retail market, its failure to establish a business format to suit the Japanese consumers’ lifestyle envisaged its eventual exit. Other foreign retail companies such as Carrefour SA of France had failed to attain profit. Economic factors also led Tesco’s exit as consumers changed preference. The consumer patterns of the Japanese can be difficult to accommodate and formulate a business format to suit their demands and lifestyle. References Humby C, et al. (2008) Scoring Points: How Tesco Continues to Win Customer Loyalty. London: Kogan Page Publishers. Tesco’s internal data, 2009 (www.tesco.com) Williamson C, et al. (2013) Strategic Management and Business Analysis. London: Routledge. How to cite Factors that compelled Tesco to exit the Japanese Market?, Essay examples

Global Business Capital Market Integration

Question: Discuss about the Global Business for Capital Market Integration. Answer: Introduction: The first variable for consideration is level of income in the foreign market. Income is amount of money earned by individual of a certain country in a specified period of time (Rudd Whelan, 2002). Level of income determines the purchasing power of an individual in a household. The higher the level of disposable income the more an individual in able to make more choices and buy products (Bayoumi McDonald, 1994). Argentina has a GDP of US$58.6B while Brazil has US$ 1772.6B. Considering GDP per capita, Brazil has US$ 8670 while Argentina has US$ 13588. It therefore clear that an individual in Argentina has a higher level of income as compared to Brazil and it recommendable to sell product to them because they have a higher purchasing power compared to Brazilians. The second socio economic factor to consider is demographic of a country. Demographic refers to population of human being in country (Blanchard Gal, 2011). It entails the number of people in a country that are presumably the consumers of countrys market. Demography of a country determines the amount of quantities consumed within a given period of time. Argentina has a population of 43.1 million people in 2.7 million square kilometers while Brazil has 207.8 million people in 8.4 million square kilometers. The population density of Argentina is 16 individual per kilometer compared to 25people in Brazil. This shows that the Brazilian market has more potential customers and therefore recommendable. The third variable of consideration is wealth of a nation. Wealth is general prosperity in welfare and valuable material (Myers, 2006). Wealth determines the lifestyle that individual adopt and consequently preference and tastes of products. A wealthy society is health conscious and tends to buy products that have health benefits. Argentina has a Gini index of 42.7 whileus Brazil has 51.5. This shows that Brazil has a wide gap of inequality in terms of income among its citizens compared to Argentina. Argentina has also recorded a higher HDI of 0.836 compared to Brazil of 0.755. The records also show that Argentina is 92% urbanized while Brazil is 86%. These results show that Argentina is wealthier than Brazil and therefore recommendable to venture in. The other variable is occupation of individuals in a country. Occupation refers to productive activities that an individual is engaged on. It involves the rate of unemployment and the expectation of employment (Tian, 2014). Occupation determines earnings of individuals in an economy and future expectations. Argentina has an unemployment rate of 6.5 while that of Brazil is 6.8. Also the inflation of Argentina is 10.6% compared to 9% of Brazil. These results show that Argentina has a lower unemployment rate and higher inflation rate which shows that more individuals are employed and there is possibility of increased employment with higher inflation in comparison to Brazil. Therefore it recommendable to venture in Argentina market based on this variable. Benefit from economies of scale: First movers in a market are able to work on their production and operating costs to minimize the over time (Bayoumi McDonald, 1994). They are sable to trade in large quantities that enable them benefit from economies of scale. This is centrally to Kallara Tea firm which has to start it operations at high costs of production due to limited production and small market. Skills and experience: First movers have an advantage of skills and experienced gained over a period of time compared to new entrant. Early entrants have existed in the market are able to understand the dynamism within the market and thereby able to operate appropriately with skills to meet their objectives. This is not the case to Kallara Tea since it has to stay in the market for quite good time to understand the market and avoid fluctuations. Established market share: Early entrants have a guaranteed market share that they have established over years. They are able to establish their product brand and customer base. This isnt available for Kallara Teas product and they have to operate in the market without guaranteed sales. Inflexibility: First movers in the market are established in the market to extent that they are not flexible. They are not able to shift markets due to established supply chains and investments laid down over years. Therefore, these firms are not able to change market even when the conditions of the markets are unfavorable. For instance Kallara Tea can predict unfavorable market conditions in the future and shift to another country which will not be an expensive move compared to entry entrants. Disruption from new Technologies: Early entrants are continuously faced by a challenge to adopt new technology. Since they are established with their existing technology, it becomes hard for them to adopt new efficient technologies in production and selling of their products (Grimwade, 2000). Kallara Teas products are able to easily adopt new technologies in their processes compared to early mover in the market. Slow adoption of changes: Early entrants have established processes that are hard to change and require a lot of time to adopt change. With recent changes in consumers tastes and preferences, first movers are not able to change with the same rate of changes happening in the society. For instance, it easy and fast for Kallara Tea to incorporate current changes in consumer tastes and preferences compared to early firms that have been in the market for years. References Bayoumi, T. McDonald, R. (1994). Consumption, income, and international capital market integration (1st ed.). London: Centre for Economic Policy Research. Blanchard, O. Gal, J. (2011). Labor Markets and Monetary Policy: A New-Keynesian Model with Unemployement. SSRN Electronic Journal. https://dx.doi.org/10.2139/ssrn.920959 Grimwade, N. (2000). International trade (1st ed.). London: Routledge. Kozmetsky, G., Williams, F., Williams, V. (2004). New wealth (1st ed.). Westport, Conn.: Praeger. Myers, R. (2006). The wealth of nations in the twentieth century (1st ed.). Stanford, Calif.: Hoover Institution Press. Mobius, M. (2012). The Little Book of Emerging Markets (1st ed.). New York: Wiley. Nafziger, E. Nafziger, E. (2006). Economic development (1st ed.). Cambridge: Cambridge University Press. Rudd, J. Whelan, K. (2002). A note on the cointegration of consumption, income, and wealth (1st ed.). Washington, D.C.: Divisions of Research Statistics and Monetary Affairs, Federal Reserve Board. Tian, X. (2014). The Hope of the Country with a Large Population (1st ed.). Dordrecht: Springer.

me Essays (191 words) - Military Discharge, , Term Papers

me it all about me fuck everyone else you do know me like the world knows me i am not an angel nor i am not the devel i am the man you want to be and i am the man you dont want to be like you do not speak of me out of fear but you speak of me out of envey PV2 Lewis, Pursuant to paragraph 1-16, AR 635-200, this constitutes a formal counseling session concerning your noted deficiencies. You will be given a reasonable period of time to rehabilitate yourself into a productive, satisfactory Soldier. If your performance/conduct continues to be unsatisfactory, you may receive punishment under Article 15, UCMJ, or may be processed for separation. If you are separated for unsatisfactory performance, you could receive an Honorable, General, or Other than Honorable (OTH) Discharge. A General or OTH Discharge could severely prejudice you in civilian life. Additionally, an OTH Discharge could deprive you of many or all military and Veterans benefits to include forfeiture of all educational benefi ts. Any further misconduct or unsatisfactory performance may cause you to be eliminated without further counseling.

Fentanyl Transdermal Patch and Fatal Adverse Reactions Essays

Fentanyl Transdermal Patch and Fatal Adverse Reactions Essays Fentanyl Transdermal Patch and Fatal Adverse Reactions Paper Fentanyl Transdermal Patch and Fatal Adverse Reactions Paper The fentanyl transdermal system is used to manage pain. Unlike other pain killers this system manages moderate to severe chronic pain, which other means like opiod combination cannot manage. Safety concerns This system’s safety is only guaranteed if used according to the conditions recommended in the Canadian product monograph. Duragesic is the brand name under which the fentanyl transdermal system has been marked since the year 1992. Two generic products were introduced in July 2006. They are Ran Fentanyl and Ratio-Fentanyl transdermal systems. There have been numerous reports of serious adverse reactions which Health Canada suspects that they are linked to fentanyl transdermal patches. Health Canada is closely monitoring this situation. Fatal outcomes involved opioid-naive adolescents who are suspected to have abused the medication. AR with a fatal outcome linked to fentanyl trandermal patches There were fifty-two AR reports with a fatal outcome being linked to fentanyl transdermal patches. These were submitted to Health Canada from January 1, 1992 to December 31, 2007. : A total of six cases of AR were due to dose initiation and titration. Prescriptions to oploid-naive patients were three, quick titration doses two and one high initiation dose. There was also one case of use concomitant with other central nervous system depressants. The death occurred within twenty-four hours after initiation. CNS depression due to combination of the medication with other CNS depressants was reported as the cause of death. A death was also reported due to interaction between CY3A4 inhibitor and fentanyl transdermal. It occurred less than four days after being initiated during fentanyl transdermal therapy. Six patients died due to patch application by the patients. Four of the patients applied more than the prescribed medication while one patient applied a new patch with the old patches on. Another patient changed the patch daily instead of every three days. There were three fatalities due to caregiver application of the patch. One case was due to the caregiver attempting to reduce dosage by folding the patch in half. Another case was due to the caregiver administering new patch while the old one was on. Still one more case was due to the caregiver pressing on it because it did not stick, thereby leaking fentanyl transdermal and overdosing the patient. One fatality occurred due to a patient using a patch prescribed for another patient. The sixty-four year old man applied the patch prescribed for his wife. The patient became unresponsive, vomited and aspirated. He died five days later due to pneumonia and renal failure. Five fatalities occurred due to accidental overdose. One patient was elderly and underweight. Another died of cardiac arrhythmia as a result of overdose fentanyl and antidepressants. Another had toxic levels of fentanyl after the second dose. The other two cases had limited information and could not be immediately established. Intentional overdose with suicide missions was evident in four of the cases while those of intentional drug abuse of the fentanyl patches were a massive twenty-five (MacMorran, 2008). Health promotion initiatives Health care professionals should therefore follow the directions available in the fentanyl transdermia patches product monographs. It is essential for patients, caregivers and their respective families to be guided on using the product safely. This includes safe storage of the drugs, preventing their accessibility for abuse and to prevent any accidental overdose. Rectification steps Following death reports linked to inappropriate use of the medication, the Canadian product monograph had to be revised in 2005. This was in order to emphasize this safety information. Subsequent advisories followed again in September 2005. A number of publications have followed suit in highlighting safety issues related to the medication use. Health Canada received 105 reports from Jan 1, 1992 to December 31, 2007. According to these reports, the ARs are suspected of being closely associated with fentanyl transdermal patches and one fatal case was reported. Twenty-seven of these reports were received after the last risk communication by Health Canada. The data were analyzed as part of monitoring AR reports. This was to identify any potentially preventable incidents and increase awareness on the product’s safety. In some cases there was no evidence to link the deaths to fentanyl transdermal. This was the case in thirty-three out of the 105 of these reports. In twenty such cases, there was insufficient information in the report for any meaningful evaluation (Raymond et al, 2004). Personal interest held by the advisory The drug advisory has challenged me personally to come up with alternative drugs that can serve the same purpose but are less risky. Proper administration and usage of drugs has also been emphasized. I have been encouraged to handle any drugs carefully. It has brought a very clear realization that people’s lives are at stake and we have to be very careful. Impact of the advisory on a practicing nurse in 2008 The advisory has had a significant impact on the practicing nurse. They have to be very careful not to administer the Fentanyl patch to any more patients unless under prescription and strict following of instructions. This has led to seeking alternative drugs. The altenative drugs have their own short-comings which the patients may not be used to or even aware of. In cases where usage of Fentanyl cannot be abandoned, very strict measures have had to be taken to avoid misuse, overdose and abuse. This has added some extra responsibilities to the nurses. References Canadian Safety Bull. (2006). Fentanyl transdermia: a misunderstood dosage form. 6 (5). Canada Safety Bull (2007). Fentanyl patch linked to another death in Canada. Duragenic (2007). Fentanyl transdermal System: product monograph. Janssen-Ortho Inc: Toronto. MacMorran, M. (2008). Fentanyl transdermia patch and fatal adverse reactions. Canadian Adverse Reaction Newsletter. Raymond, B. et al (2004). Respiratory arrest in adolescents. Duragenic. Canadian Adverse Reaction News. 14 (4): 1-2

Summer Jobs Might be Harder to Find This Summer

Summer Jobs Might be Harder to Find This Summer From lifeguarding at the local pool to mowing lawns, most adults have fond memories of the summer jobs of their youth. But is this generations-old tradition going the way of the dinosaur? A recent report from JPMorgan Chase (JPM) indicates that it may be. Let’s take a closer look at this phenomenon, along with what it means for this year’s crop of employment-seeking teens and young adults. The 411 on Youth EmploymentJPM’s January 2015 report, â€Å"Building Skills Through Summer Jobs: Lessons From the Field,† reveals some unhappy statistics: less than half (46 percent) of young people who sought out summer employment in 2014 ended up landing jobs. This decline was consistent across nearly all industries.But it’s not just lack of jobs that’s the problem. It’s also a decline in youth employment in general. Over the past 12 years, there has been a near 40 percent drop in summer youth employment, with just over a quarter of young adults ho lding paid summer jobs in recent years.The outlook grows even more grim based on findings that economically disadvantaged youth, in particular, are even more impacted by the employment shortage.It’s no surprise that these less-than-optimistic figures led JPM’s Head of Workforce Initiatives Chauncy Lennon to conclude, â€Å"Young people are facing an employment crisis.†More Than a Loss Of JobsWhile the loss of jobs in itself is concerning, another factor is equally unsettling: the loss of skills which would otherwise be acquired on the job. After all, the expression goes that the â€Å"best way to get a job is to have a job.† And with the American workforce already facing a shortage of qualified workers, this decline in opportunities will only further slow the pipeline of trained employees into the workforce.Unfortunately, the situation is something of a vicious cycle. While some of the job cuts may pertain to the replacement of workers by technology and t he hiring of older works, a report from the Federal Reserve Bank of Boston, â€Å"Uncertain Futures: Youth Attachment to the Labor Market in the United States and New England,† yields another reason: a shift toward job openings which require more experience and skill than the typical high schooler brings to the table. But how can they be expected to develop these experiences and skills without a job market willing to take a chance on them?Searching for SolutionsWhile in the past the government has funded skills training programs, growth of these initiatives has stagnated in recent years. According to JPM, the solution is for employers to begin designing summer jobs focused on helping American teens and young adults gain the skills they need to succeed. To that end, JPM is in the process of investing $5 million over the next two years in summer youth programs within several American cities to support the growth of youth talent.But in the meantime what should teens do who are l ooking for work? Lennon recommends the importance of networking - from friends and family members to online job boards. And while finding these jobs may not be as simple a matter as opening up the â€Å"Help Wanted† section of the newspaper, perseverance offers significant payoffs - both for young adults and the economy their talent and experience will fuel.

Business Ethics and Social Responsibility of Coca-Cola Company Assignment

Business Ethics and Social Responsibility of Coca-Cola Company - Assignment Example The Company identifies HIV/ AIDS as a world epidemic and observes the role of the workplace in preventing and limiting its spread. Coca-Cola has also collaborated with several NGOs and pharmaceuticals companies in Africa in providing services such as free HIV testing and counseling, antiretroviral drugs provision, caring for children orphaned by AIDS and creating international preventive and awareness campaigns (Zhang 2010).  This CSR project implemented by Coca-Cola Company is currently covering an estimate of over 60,000 systems Coca-Cola employees together with their partners and children (Zhang 2010). By implementing such a CSR project, Coca- Cola Company is not only exercising its ethical and social responsibility to its employees in Africa but also strategically protecting its businesses and operations. The stakeholders at the Coca-Cola Company include its customers, suppliers, governments, non-governmental organizations (NGOs), industry, academia, industry, bottlers, and par tners. Coca-Cola is a multinational business that covers an extensive consumer base in over 200 countries (Zhang 2010). Currently, the company stands as the World’s No. 1 still and sparkling beverage distributor.  It also boasts of over 500 brands and some of its notable brands include, Diet Coke, Coke Zero, Minute Maid, Fanta, Sprite and Del Valle.

Care of the Adult Patient Assignment Example | Topics and Well Written Essays - 3000 words

Care of the Adult Patient - Assignment Example Aside from giving the patient the opportunity to ask questions concerning his treatment and care, it is equally important to know that the patient is physically, psychologically, and socially fit to undergo the surgical procedure (Holland and Chady, 2012; Pudner, 2005). Often times, the process of conducting social assessment is essential in preparation for the patient’s discharge planning (Holland and Chady, 2012). Psychological assessment is normally conducted to ensure that the patient is mentally and psychologically fit to undergo laparotomy whereas the physical assessment is often conducted to ensure that the patient is physically healthy before undergoing the surgical procedure. Due to peritoneal irritation, patients with small bowel obstruction are at risks of experiencing restlessness. Because of the sudden decrease in the patient’s intravascular volume or septic shock, there are cases wherein patients with small bowel obstruction may experience hypovolemia which includes hypotension or tachycardia (Rosenthal, Zenilman and Katlic, 2011). Patients with diabetes are at risks of experiencing high blood pressure and heart diseases (Dillon, 2007, p. 32). Therefore, it is crucial that the physical assessment should include examining the patient’s vital signs such as blood pressure and heart rate. Patients with small bowel obstruction may also experience having fever (Dillon, 2007, p. 603). This is possible because of the abnormalities that are taking place within the human body. Therefore, a significant part of the physical assessment should include taking the patient’s body temperature. Patients with either partial or at the early stage of small bowel obstruction normally have stool or air within the colon (Norton et al., 2003). To detect signs of air and masses, it is necessary on the part of the nurses to perform physical abdominal exam such as the abdominal palpation (Dillon, 2007, p. 17, 64). To