Business Analysis

Business Analysis assignment

BUSINESS ANALYSIS

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................1
QUESTION 1...................................................................................................................................1
a) Significance of population ......................................................................................................1
b) Importance of sampling technique..........................................................................................1
QUESTION- 2.................................................................................................................................3
1) Difference between primary and secondary data....................................................................3
2) Advantages and disadvantages of primary and secondary data..............................................4
QUESTION 3...................................................................................................................................6
a) Mean........................................................................................................................................6
b) Mode........................................................................................................................................7
c) Standard deviation...................................................................................................................7
QUESTION- 4.................................................................................................................................8
Importance of the effective management information system in making the sound decisions...8
REFERENCES..............................................................................................................................11
APPENDIX....................................................................................................................................12

MAIN BODY
QUESTION 1
a) Significance of population
In the research terminology, population can be referred as a comprehensive group of
individuals, institution who have some common characteristic that helps researcher to comply
with the defined aim and objectives of research. The common features include same institution,
object which makes them different from the group of other people (Muntaner and Navarro,
2020). Significance of a population is to generalize the results from observation of a sample and
there is a close relationship between sample and population. Such that sample allows the
researcher to conduct a survey on individuals from population so that effective conclusion can be
drawn by considering the statistical analysis. Therefore, it is necessary for the researcher to
ensure those characteristic which represented in sample from population.
In the context of conducting a survey of colleagues to determine their response to their
possibility in order to introduce the holiday pay per scheme, population has been selected by
considering quantitative research. In this, scholar has to select a population of all the colleagues
i.e. 100. This in turn signifies that there before conducting a survey or a primary research, there
is a need to select a population that assist to drawn valid outcomes.
Another importance of population within a primary research is such that it make reliable
estimates of population with less time, efforts and money (Agénor, 2020). So it can be stated that
cleaning information from total population gives deeper insights into target population as
compares to partial samples. Through population, researcher eliminate the risk of biased sample
selection and able to derive valid outcomes as well. For example, in order to analyse the
employee retention rate within Tesco, researcher identify the population and then select sample
in order to examine the satisfaction or retention level within a specific organization.
So it can be stated that through population, investigator is able to select the sample size as
per their research, however it helps to generalize the results from target which has already
selected from population.
b) Importance of sampling technique
Sample refers to the smallest number from a largest group that is used in statistical testing
when population size is quite large. Through sample, researcher is able to answer the research
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questions and generalize the findings as well. There are numerous sampling techniques which
used by the scholar as per their defined aim. Some of them are as mentioned below:
Simple random sampling: In this, each member of the sample has an equal opportunity to
be chosen and it is an unbiased representation of a group. So, data is collected from a large
population in which some of the samples are randomly selected that helps to derive valid
outcomes (Tripathi, Khatri and Mamde, 2020). Out of 100 population size, 50 employees of a
company are randomly selected in order to examine their satisfaction level towards a
workplace’s working environment. It is highly used by the scholar because of easy to use and
accuracy of representation and also, there is no easier method exists to extract the research
sample from large population.
Systematic sampling: It is a type of probability sampling method in which sample are
selected as per the random starting point within a fixed periodic interval. Thus, the interval is
called sampling interval and can be easily calculated by the scholar as well (Sharma, 2017).
After simple random sampling method, scholar uses systematic sampling because of its
popularity and it also includes the methodology of eliminating the phenomenon of clustered
selected. For example, in the population size of 1000 people, researcher selects every 100th
person as a sample in every 12 hours. This in turn shows that scholar has decrease the chances of
low probability of contaminating the data that derived the best results as well.
Stratified sampling: It involves the division of population into smaller sub-groups by
considering the attributes and characters like income and educational attainment. Such type of
sampling is used by researcher because it enables them to obtain sample population from each
sub-group (Bindah, 2019). For example, in order to examine the consequences of obesity,
researcher want to conduct a study upon UK people in which three different sub-groups can be
defined i.e. children, adults and aged group. Therefore, such type of sampling is used in order to
categorize the impact upon different groups. However, it has been examined that the method is
costly and time-consuming that is not used frequently by researchers.
Quota sampling: It is a type of non-probability sampling method in which researcher
develop a sample that involves individual in order to represent a population so that effectual data
can be collected in order to respond the research answer. Also, the samples can be generalized to
an entire population and also derive the results quickly as compared to other methods (Huang
and et.al., 2019). Further, the quota sampling is cost-effective and also used by those who have a
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low budget. For example, researcher can divide a population by the state in which they live in,
income or education level, gender that helps to answer the research questions and derive valid
outcomes as well.
Snowball sampling: It is a technique which is used by the researcher when respondents are
asked to help scholar in order to determine other potential subjects (Snowball sampling:
definition, method, advantages and disadvantages, 2020). For example, in order to determine the
level of customer satisfaction among members of a Manchester, then it is not easy to collect the
data by using primary research, unless the member of a club are agreed to have a direct
conversation with researcher. Also, the sampling technique is entirely based upon referrals and
that is why, also known as chain-referral sampling method. However, it also analysed that it is
mostly used in the business study in order to determine the complexities within a business in
effectual manner. Further, this method did not want to expose the identity of any chosen
participants and that is why, the confidentiality of a participant maintained and helps to derive
the best outcomes as well.
In order to conduct a survey, scholar uses simple random sampling method in which
some colleagues will be randomly selected that helps to determine their views regarding a
holiday pay. Also, it is considered one of simplest and time saving sampling technique as
compared to other methods. However, it has been also analysed that with the help of random
sampling, scholar is able to determine the perception of holiday and if they are not satisfied then
it companies might make alterations in order to justify the method. So, it can be stated that with
the help of simple random sampling method, sample has been selected from the population in
order to examine the satisfaction level of colleagues.
QUESTION- 2
1) Difference between primary and secondary data
The data pertaining to any study can be classified into two categories one is the primary
data and the other is the secondary data :- Primary data- This is the first-hand information that is being collected by the researcher
related to the particular research topic through the conduction of the various interviews,
experiments, surveys etc. to gather the data in order to draw the conclusion in respect of
the research problem. It can either be generated by questionnaires, personal interviews or
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through the observation of the scholar. The data has higher levels of the accuracy and
reliability as it exactly serves the needs and is being collected with the proper investments
of time (Mohajan, 2018). John Lewis partnership plc generally prefers surveying its
customers, employees and the related parties so that they are assured regarding the
decision that is taken by them like introduction of the new product.
 Secondary data- The secondary data pertaining to the research is one which is already
existing in the form of large data files as it has been collected by someone earlier. If the
data is similar to the research topic then in that case the past data can also be referred by
the scholar for undertaking the study. This is the historical data that can be in the form of
the government publications, scholarly articles, journals, books, internal records of the
organization and the verified data files that are existent in the organization. This is
relatively less effective in comparison to the primary data as this is not specifically
serving the needs of the research topic but instead proves to be very economical for the
scholar conducting the research (Xue and et.al., 2017). The management of the John
Lewis base their decision of the target market based on their competitors data regarding
the potential customer base.
For example, in order to identify the satisfaction level of the employees within a specific
company, primary research can be used in which interview and survey can be conducted. Also,
through this method, scholar is able to examine the overall performance and did not take much
time to generate the results. Whereas, in order to investigate the impact of obesity over the
individuals, only secondary data collection has been used that assist to examine the results
effectively. So, it can be stated that data collection methods are used to collect valid information
which in turn helps to answer the research question and conduct study in precise manner.
2) Advantages and disadvantages of primary and secondary data
Primary data
Advantages:-
 One of the most significant advantages of gathering the primary data is that it is very
specific and caters to the needs of the research that is being conducted by the scholar. The
data is fully controlled by the one who is collecting it and so there are no requirements of
the modifications that are to be made in the collected data by the organization.
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 The authenticity and accuracy of the data is comparatively higher as compared to the
secondary data and also is not affected by the personal bias in the organization and that is
the reason that it is reliable in nature as well (Crini and Lichtfouse, 2019). The
management of John Lewis can base their decisions on this data with complete assurance.
 The ownership and the control of the data remains with the researcher who is collecting
the data and shall be responsible if wants to make it public or obtain the copyright of the
same. Primary data always provide up-to-date information which assist to conduct study in
better manner. Further, it is also helps to provide fresh information that assist to collect
data directly from the field in real-time use.
Disadvantages:-
 One of the major disadvantages of the company is that collecting the primary data is the
costly and the time-consuming affair which is one of the negative aspects of the primary
data of the business. Such that researcher have to develop a team and they have to start it
from beginning which might lead to negative results as well.
 The other shortcoming is that in some situations it becomes highly complex and difficult
for the scholars and so in that case it is being avoided.
 Apart from that also if the population is large and varied in nature wherein the sample is
not able to be defined then the researcher neglects performing the primary data search.
Secondary data
Advantages:-
 The biggest advantage is that such data is easily accessible for the company without
putting in much efforts and also without requiring the specialized knowledge and skills
by the management and their employees.
 Apart from that it is also less time-consuming and also cheap as compared to the primary
data collection by the company. It helps the scholar develop the newer insights about the research topic apart from the
primary data that is collected and the John Lewis can sooner draw conclusions for the
business decisions that needs to be taken.
Disadvantages:-
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 Such data shall be requiring the modifications as per the needs of the specific study that is
being undertaken. It may also contain the part that is irrelevant or is outdated for the
business to use and for this the proper scrutiny has to be done by the organization.
 The authenticity and the reliability of the data is also very less as it may have been
affected by the personal biases of the prior researchers and can affect the results of the
study (Johnston, 2017).
 The research of the John Lewis was affected as some viable sources on which the
company could easily rely upon were being patented and were not available publicly for
the use of the company.
QUESTION 3
Data set
Sales revenue liquidity
2017 11374 3393 3879
2018 11597 3364 3640
2019 11747 10151 2436
2020 12317 10772 2127
a) Mean
In order to calculate the mean, following steps can be taken which are as mentioned
below:
Step 1: Put the value within formula = sum of all the number / number of items
Step 2: calculate the values of each sub section
Sales: 11374 + 11597 + 11747 + 12317 = 47035
Revenue: 3393 + 3364 + 10151 + 10772 = 27680
Liquidity: 3879 + 3640 + 2436 + 2127 = 12082
Step 3: Put all the values upon step 1
Sales = 47035 / 4 = 11758
Revenue = 27680 / 4 = 6920
Liquidity = 12082 / 4 = 3020.5
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b) Mode
It is the repetitive number presented in the dataset, whereas as per the defined data, there
is no number repeat, so mode will be null.
c) Standard deviation
SD = square root of sum of | x – mean|^2 / total number
Step 1: calculate the mean of all the variables.
Sales = 11758
Revenue = 6920
Liquidity = 3020.5
Step 2: find the square of the distance from each data point
Sales:
X (X – mean ) (x-mean) ^2
11374 11374 – 11758 = -384 147456
11597 11597 – 11758 = -161 260176
11747 11747 – 11758 = -11 121
12317 12317 – 11758 = 559 25281
Revenue:
X (X – mean ) (x-mean) ^2
3393 3393 – 6920 = -3527 12439729
3364 3364 – 6920 = -3556 12645136
10151 10151 – 6920 = 3231 10442592
10772 10772 – 6920 = 3852 14837904
Liquidity:
X (X – mean) (x-mean) ^2
3879 3879 – 3020 = 859 737881
3640 3640 – 3020 = 620 384400
2436 2436 – 3020 = -584 341056
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2127 2127 – 3020 = 893 787449
Step 3: Apply the formula
Sales = square root of 147456 + 260176 + 121 + 25281 / 4
= square root of 300323 / 4
= 402.48
Revenue = square root of 12439729 + 12645136 + 341056 + 14837904 / 4
= Square root of 50365361 / 4
= 4097.2
Liquidity = square root of 737881 + 384400 + 341056 + 787449 / 4
= square root of 2250786 / 4
= 868.09
The excel sheet is attached in Appendix which signifies that the value of mean, mode and
standard deviation is equal.
QUESTION- 4
Importance of the effective management information system in making the sound decisions
Business analysis is recognized as a valuable tool for a business because it assists
companies to make viable changes in order to improve the organization performance and attain
the defined goals as well. However, on the critically note, most of the businesses consider
business analysts as a costly method, but it helps to reduce company's cost in order to increase
the ROI and lower down the project cost. So, it can be stated that through business analysis,
business may take technical experts that helps in business growth by taking reviews of all the
stakeholders. Also, provide solutions that actually need to lower down the business risk and
enhance business value. Thus, it can be stated that with the help of an effective management
information systems, company is able to make silent decision for the welfare of a business so
that it assist to generate the best outcomes.
The effective management information system is very critical to the business in the
effective decision-making process of the company that is undertaken by the assigned managers.
The data pertaining to the organization has to be used for getting the deeper insights about the
current trends and relatively the future projections are being made in case of budgeting which
proves to be sound for the company enhancing the level of growth and prosperity in the
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organization (Weston and et.al., 2019). The management information systems shall be updating
with all the newer information pertaining to the operations, external market conditions and the
changing scenarios based on which the management of the company can effectively formulate
the decisions and assist in the planning and the achievement of the goals in the organization.
In the dynamic and the changing business environment of the company it is essential that
the company uses the quality management information system so that the information is being
supplied to the management on the continuous basis and that they can direct the flow of the
operations towards the achievement of the organizational objectives. It assures that within the
available resources of the company, human element and the techniques used by the management
they can formulate effective decisions such that mission and the vision of the company gets
fulfilled. In this, task technology theory can be applied that holds the information technology
abilities which match user task in order to create a positive impact over the business (Young-
Harry, Oparanma and Ejo-Orusa, 2018). However, there are many approaches used by
companies that help to make effective decision and also generate the best outcome for the future
growth of a business.
Masuin, Latief and Zagloel (2018) also agreed with the statement that in order to make
sound decision, effective management information system play a crucial role as a part of a
process. It is so because it regularly provide effective information to managers which allow them
to make decision based upon data instead of assumptions. However, certain data and analysis
also consider very useful in order to make better decision that helps to attain the defined mission
of a company. The rationale behind choosing the method is such that it understand the
implication of a decisions and also collate raw data in such a format that enable decision makers
to determine pattern and trend from raw data. So it can be stated that with the help of effective
MIS, company is able to make effective decision by analysing its future growth. Jiang (2020)
also supported that MIS helps to improve personal efficiency and accelerates problem solving
speed. Further, it assists to facilitate the interpersonal communication and also promote learning
and training of a business so that future results will automatically improved.
There are range of management information system available that assist business in its
smooth functioning such that inventory control that is used by top retail industry like Tesco,
Marks and Spencer in order to monitor inventory system. Whereas, enterprise collaboration is
used by the Human resource of a company in order to maintain strong relationship with
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employees and other business organizations. Hence, it can be stated that there are range of MIS
available in the market which can be used by companies as per their demand. Moreover, it
provides a data tp determine non-performing areas an also leads a business towards better
productivity and efficiency by analysing the customer needs. Also, it helps in enhancing better
quality of decision-making and improve communication within a workplace that in turn assist to
facilitate organizational transformation. That is why, Management information system assist in
improving the overall performance of a company and assist in better decision-making process as
well. Further, to meet the changing need of a business, it is necessary to implement or comply
with technology so that it assist to improve overall performance and developing team work. So,
it can be stated that MIS helps organizations to make effectual decision and reduce the chances
of risk as well.
It is clearly identified that the major function of MIS is to aid as well as improve the
decision making process of a company. Along with this, in this digitalized era businesses uses
range of information system that helps to enhance the profitability of a business so that it
improve bottom line of a company effectually. That is why, it can be stated through secondary
research that MIS actually help in improving the overall business decision so that companies are
able to generate the better outcome. For example, Honda uses Management information system
in own premises that helps to getting right kind of information as per the changing need of
market. Through this, company reduce cost, enhance productivity and maximize profit that helps
to generate the best outcome as well. Therefore, it has been examined that in order to get the
right information, company have to use such systems that helps to maximize the customer
satisfaction level and improve business operations as well. The same can be conducted by using
effective management information systems either in financial department, IT department,
inventory analysis or else. Hence, to support higher management or authority, MIS assist to
make effectual decision that takes a business at further level of success.
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REFERENCES
Books and Journals
Agénor, M., 2020. Future directions for incorporating intersectionality into quantitative
population health research. American journal of public health, 110(6), pp.803-806.
Bindah, E. V., 2019. Adoption of snowball sampling technique in an exploratory study of
disabled entrepreneurship. SAGE Publications Ltd.
Crini, G. and Lichtfouse, E., 2019. Advantages and disadvantages of techniques used for
wastewater treatment. Environmental Chemistry Letters. 17(1). pp.145-155.
Huang, S. T. and et.al., 2019. A rapid sampling technique for isolating highly productive lipid-
rich algae strains from environmental samples. Biofuel Research Journal. 6(1). p.920.
Jiang, Q., 2020, July. Design and Implementation of Company Financial Management System
based on J2EE Technology. In Journal of Physics: Conference Series (Vol. 1578, No. 1,
p. 012145). IOP Publishing.
Johnston, M. P., 2017. Secondary data analysis: A method of which the time has
come. Qualitative and quantitative methods in libraries. 3(3). pp.619-626.
Masuin, R., Latief, Y. and Zagloel, T. Y., 2018, September. Information system development on
web-based in integrated management system through improving knowledge
management to increase organization performance of construction company (A
conceptual framework). In 2018 International Conference on Information Management
and Technology (ICIMTech) (pp. 49-54). IEEE.
Mohajan, H. K., 2018. Qualitative research methodology in social sciences and related
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Sharma, G., 2017. Pros and cons of different sampling techniques. International journal of
applied research. 3(7). pp.749-752.
Tripathi, R., Khatri, N. and Mamde, A., 2020. Sample Size and Sampling Considerations in
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Xue, L. and et.al., 2017. Missing food, missing data? A critical review of global food losses and
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Young-Harry, D. L., Oparanma, A. O. and Ejo-Orusa, H. A., 2018. Management information
system and organizational performance of Seven-Up Bottling Company in Aba and Port
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61.
Online
Snowball sampling: definition, method, advantages and disadvantages. 2020. [Online]. Available
through: < https://www.questionpro.com/blog/snowball-sampling/>.
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APPENDIX
Excel
Sales revenue liquidity
2017 11374 3393 3879
2018 11597 3364 3640
2019 11747 10151 2436
2020 12317 10772 2127
Mean 11758.75 6920 3020.5
Mode #VALUE! #VALUE! #VALUE!
standard
deviation
402.482608
3199
4097.24012
80211
868.098496
7157
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