Business Analysis and Principles of Marketing - MyAssignmenthelp.com

Question: Discuss about the Business Analysis and Principles of Marketing. Answer: Sources of Data Collection This study is performed on the organization Amazon. To conduct the study, data has been collected. The data has been collected by making a questionnaire which is attached at the end of the report. Primary sources of Data Collection Data which is collected directly from the field of survey is known as primary data. The data that is required for the purpose if the study is collected (Mulholland and Jones 2013). This type of data is collected with the help of interviews, fieldwork, surveys and communications via internet. In this case, investment decision of an individual, that is whether a person will invest in buying any product from amazon totally depends upon the person. Thus, data collected on this variable will be primary. Secondary Sources of Data Collection Secondary data is the type of data which is not collected directly from the field of the research. Instead, the data is already pre-recorded. This type of data is usually collected from newspapers or articles, from company websites or reviews. The data that is necessary for the research purpose is collected from these sources (Mulholland and Jones 2013). In this study, Pricing of an article and costing of an article is dependent on the company. These are prefixed by the company for the customers to buy. Thus, this type of data will be available on the company website and hence the data is secondary. Methods and Presentation of Data Survey Methods The data collected for this research is primary source as the data is collected with the help of a questionnaire. The responses of the respondents will be considered as data and analysis will be conducted based on this data. Another primary source of data collection is by interview. To conduct this type of study, more than 20 respondents will have to be questioned. This is extremely time consuming. Thus, the interview method of data collection is not considered. In case of questionnaire, the responses of the respondents will be limited. This will help in the analysis process (Bharti and Bharti 2014). Sampling Techniques There are various sampling techniques which can be used for data collection. The two main techniques include Probabilistic sampling and non-Probabilistic sampling. Non-probabilistic sampling is not considered unless absolutely necessary as the chances of making error is maximum in this technique. Probabilistic sampling is of 5 main types Simple Random Sampling (SRS), stratified sampling, cluster sampling, systematic sampling and multistage sampling. Among all these types of sampling techniques, simple random sampling is the simplest and convenient type of sampling. In SRS technique, a minimum information about the data helps in sampling unlike the other techniques and the chances of sampling error is minimum (Cressie 2015). Hence this method is used in this case. Questionnaire The questionnaire method is also the most convenient way of data collection as the questions are closed ended (Petrozzi 2013). The participants will not be able to answer whatever they want which will create a problem while analysis. In this questionnaire, all the answers are to be rated on a likert scale with 1 being strongly agree and 5 being strongly disagree. Presentation of Data Tables Data collected from any survey is always unorganized. To organize these data, it is usually arranged in a tabulated form so that the data can be easily understood by everyone. This method of organizing data is known as tabulation of data. Table 1: Responses on item condition Ratings for Item Condition on Buying Count of Responses 1 2 2 5 3 13 4 5 Grand Total 25 Table 2: Responses on growth of Amazon Services Ratings for Growth of Amazon Services Count of Responses 1 1 2 11 3 12 5 1 Grand Total 25 Graphs These tabulated data are usually represented in the form of graphs. This way the data will be more visible to everyone and can be understood with much more clarity. The nature of the data can be understood much more clearly with the help of the graphical representation. From the graph in Figure 1 it can be seen that most of the respondents have given average ratings on the condition of items delivered by Amazon. 11 out of 25 respondents agreed that the condition is good. Not much people are dissatisfied with the product quality. Thus, Amazon produces good quality products. Figure 1: Customer rating on item condition Around 20% of the respondents disagree to the fact the company Amazon does not show any significant growth compared to the other companies of the same type. Maximum respondents say that the growth of the company is average and not too fast. This can be seen in Figure 2 Figure 2: Customer Rating on Growth of Amazon Services Budgets: Tactical Budgeting: Amazon makes the use of the quantitative executable decision that is derived by the companys strategic operational decisions (Akintoye 2014). Decisions relating to specific level of cash forms the part of Tactical Budgeting. Specific level of credit terms is considered by Amazon in arriving at the budget decision. While framing budgets the level of inventory and specific selling price is decided by Amazon. Tactical Decision of Amazon includes Maintaining a specific level of cash Decisions relating to specific terms of credit Budget decision relating to specific level of inventory Budgeting decision for specific price level Long run Budget Decision: The budget decision of Amazon is particularly critical since it is based on the setting of the profitability objectives. Amazon makes the use of profitability objectives while making budgets and undertakes the decision of maximizing the sales. The profitability objectives that management of Amazon undertakes in the long run budget decision includes Maximization of net income Sales Return on total assets Return on total equity Earnings per share Computations of Unit Cost: As Amazon deals in large number of produces it computes the unit cost by tracking its fixed and variable cost associated with the product. Amazon derives the cost per unit from the variable cost and fixed costs that is incurred by the company during the process of its business. Variable cost of amazon includes direct materials that varies unevenly in proportion to the number of units produced (Drury 2013). Amazon incurs a fixed cost for its assembling facilities. Some common fixed costs incurred by amazon includes amortization and depreciation, mortgage and interest payments relating to the property tax. Investment appraisal techniques: The investment appraisal techniques that have been adopted by Amazon includes the Net present value and Internal Rate of Return. Net Present Value: The tool of net present value undertaken by Amazon provides the company with the effective method of assessing a project. The company makes the use of the Net Present Value to differentiate between the project cost relating to the cash outflows and the amount of cash flow produced from that project. Amazon makes the use of the NPV as the tool for ascertaining the discounted rate to compensate for the uncertainty of those future inflow of cash. Amazon by using the discounting future cash flows compares between the present cash and the future cash flows and provides the company with the net present value. Internal Rate of Return: The internal rate of return is used by Amazon presents them with the discount rate that is largely used by the company to determine the amount of return it can anticipate to realize from the specific project (Magni 2013). Amazon often places more value on the percentages than on the numbers since percentage provides Amazon is better able to create more meaningful impact in assessing the investment projects. Sources of Finance: Sources of finance: Amazon makes the use of the external sources of finance to obtain fund for its business (Bhowmik and Saha 2013). The main sources of finance for Amazon are stated below Debt Financing: The sources of Finance that is available with Amazon is Debt Financing. Amazon raised $16 billion to fund in the form of debt. The company has announced that it issues debt in order to finance its proposed $13.7 billion deal of purchasing the entire food market. Issue of Shares: Amazon raises funds through issue of shares as the company has the outstanding amount of authorized shares of 494 million that is held by the company. Reference Akintoye, I.R., 2014. Budget and Budgetary Control for Improved Performance.European Journals of Economics, Finance and Administrative Science, (12), pp.9-11. Bharti, S. and Bharti, B., 2014. Fundamentals of Statistics.Textbook of Hospital Administration, p.345. Bhowmik, S.K. and Saha, D., 2013. Sources of Finance. InFinancial Inclusion of the Marginalised(pp. 61-71). Springer India. Cressie, N., 2015.Statistics for spatial data. John Wiley Sons. DRURY, C.M., 2013.Management and cost accounting. Springer. Magni, C.A., 2013. The internal rate of return approach and the AIRR paradigm: a refutation and a corroboration.The Engineering Economist,58(2), pp.73-111. Mulholland, H. and Jones, C.R., 2013.Fundamentals of statistics. Springer. Petrozzi, S., 2013. 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