Data Collection, Survey Methods, Sampling Techniques and Investment Appraisal Techniques for Amazon

This presentation discusses the data collection, survey methods, sampling techniques and investment appraisal techniques used by Amazon. It also covers the role of accounting in investment and pricing decisions.

BUSINESS ACCOUNTING, BUSINESS ANALYSIS AND
PRINCIPLES OF MARKETING
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHOR NOTE

CONTENTS
1. Source of Data Collection
2. Survey Methods
3. Sampling Techniques
4. Questionnaires
5. Collection and Collation of Data
6. Role of Accounting in Investment and Pricing Decisions

1. Source of Data Collection
Data
Sources
Primary Sources
Data collected Directly
from the Field of Survey
Secondary Sources
Data collected from previous
records, journals, websites, etc

1. Source of Data Collection
• Selected Organization: Amazon
• Data Source: Primary Sources

2. Survey Methods
Survey
Methods
Questionnair
e
Advantages
Questions
asked are
closed
ended
Disadvantag
es
Respondents
answers are
limited
Interview
Advantages
Chances of
asking
follow-up
questions
Disadvantag
es
Time
consuming
• The best survey method to collect data is by making Questionnaire for Amazon
• To make the study, more than 20 members has to be questioned.
• Interviewing more than 20 participants is time consuming

2. Sampling Techniques
• Most appropriate method of sampling for this study is Simple Random
Sampling
• The chance of making an error is minimum
• Very little information about the sample is required for the analysis
Sampling
Techniques
Probabilistic
Sampling
Simple Random Sampling (SRS)
Stratified Sampling
Cluster Sampling
Systematic Sampling
Multistage Sampling
Non Probabilistic
Sampling
Volunteer Samples
Haphazard (Convenient)
Samples

4. Questionnaire
• Questionnaire is closed ended
• Questions are to be rated on a likert scale of 1 to 5
1-Strongly
agree
2-agree
3-average
4-disagree
5-Strongly
disagree

4. Questionnaire
Questions
1 Amazon have the fastest delivery in the global market 1 2 3 4 5
2 The condition of the item you buy are guaranteed under the
Amazon delivery
1 2 3 4 5
3 When you buy a product from Amazon it will always be
delivered in time
1 2 3 4 5
4 The Amazon delivery agent respects always the instructions
given by the buyer
1 2 3 4 5
5 When you receive a wrong delivery from Amazon you will be
refunded
1 2 3 4 5
6 Amazon always reimburse damaged products upon delivery 1 2 3 4 5
7 Amazon always ask their customers for a feedback after every
delivery
1 2 3 4 5
8 Amazon have one of the best delivery service in the market 1 2 3 4 5
9 Amazon response quickly for any report or changes from the
client in the delivery time
1 2 3 4 5
10 The delivery service of Amazon in developing and growing fast
comparing to similar companies
1 2 3 4 5

5. Collection and Collation of Data
• Tabulation
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.
• Graphical Representation
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.

5.1 Tabular Representation
Ratings for
Item Condition
on Buying
Count of
Responses
1 2
2 5
3 13
4 5
Grand Total 25
Ratings for
Growth of
Amazon
Services
Count of
Responses
1 1
2 11
3 12
5 1
Grand Total 25

5.2 Graphical Representation
8%
24%
56%
12%
Replies quickly for changes required
1
2
3
4
Ratings for
Quick Reply by
Amazon
Count of
Responses
1 2
2 6
3 14
4 3
Grand Total 25
The following is a pie chart showing the proportion of respondents
who have given their ratings for the factor that Amazon replies quickly to
change the defected products. The table beside represents the same data in a
tabulated format. From the figure and table, it can be seen clearly that very
little proportion of respondents disagree to the fact of fast reply. Thus, this
service of amazon is good enough for the users.

5.2 Graphical Representation
1 2 3 4
0
2
4
6
8
10
12
14
2
5
13
5
Growth of Amazon
Ratings
Counts
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.1 2 3 51
11 12
1
Customer Rating on Item
Condition
Ratings
Counts
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 that the growth of the company is
a average and not too fast.

1.3 Budgeting: Tactical
Budgeting
• 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:
• Maximization of net income
• Sales
• Return on total assets
• Return on total equity
• Earnings per share

Computations of Unit Cost:
• 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.
• 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.

Investment appraisal techniques:
• The investment appraisal techniques that have been
adopted by Amazon includes the following
• Net present value
• Internal Rate of Return

Investment Appraisal Techniques:
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.

Investment Appraisal Techniques:
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.
• 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:
• Amazon makes the use of the external sources of finance
to obtain fund for its business.
• Debt Financing
• Preferential Issue of Shares

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.

Preferential 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.
• The outstanding amount of shares of Amazon represents
the company’s market that is spread across the in the
form of shares outstanding.

Thank You