2.4.6
Qualitative and Quantitative Research
Qualitative and quantitative research can give a business data to support, inform and justify business decisions.
Qualitative research
- Qualitative research generally collects information about opinions and views rather than things that can be quantified (put into numbers).
- For example, research into whether customers think the customer service at Waitrose is good is qualitative research.
Quantitative research
- Quantitative research collects factual information on things that can be quantified (put into numbers) and recorded easily.
- For example, research into the number of Ford Focus cars sold in the UK last year is quantitative research. It is not based on an opinion, but is based on statistics/data.
Financial Data
Financial data is quantitative data that contains information about the financial performance and financial position of a firm. The financial statements published by firms and internal data about sales and profits are examples of financial data. The uses of financial data include:
Internal performance assessment
- Financial data can be used by internal management to assess the financial performance of a firm.
- Financial data is useful in spotting when the firm is not doing well and getting to the bottom of why it is not doing well.
- Business managers can use the financial data to spot trends and see if the firm is growing and becoming more or less profitable.
Investor assessment
- Financial data can be used by potential investors to see if it is worth investing in the business.
Competitor assessment
- Financial data can be used to compare a firm’s performance to the performance of their competitors.
- This gives a benchmark of how the firm should be performing compared to how they are actually performing.
Limitations of financial data
- Financial data is not as factual as it might seem. Sometimes it is based on people’s judgment or computer modelling.
- Financial data may only give a snapshot of financial performance at one point in time. This can be misleading as it may not take into account external factors or competitors’ behaviour.
- Looking only at one firm’s financial data does not always give a good idea of that firm’s performance.
1Enterprise & Entrepreneurship
1.1The Dynamic Nature of Businesses
1.2Spotting a Business Opportunity
1.3Putting a Business Idea into Practice
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Business Revenues & Costs
1.3.4Costs - Calculations
1.3.5Revenue - Calculations
1.3.6Business Profits & Break-Even Analysis
1.3.7Profits & Losses - Calculations
1.3.8Interest - Calculations
1.3.9Cash & Cash Flow
1.3.10Cash & Cash Flow 2
1.3.11Cash Flow - Calculations
1.3.12Sources of Business Finance
1.3.13End of Topic Test - Business in Practice
1.3.14Grade 9 - Business in Practice
1.3.15Exam-Style Questions - Business in Practice
1.4Making the Business Effective
2Building a Business
2.1Growing the Business
2.2Making Marketing Decisions
2.2.1Product
2.2.2Product Life Cycle
2.2.3Price
2.2.4Pricing Methods
2.2.5End of Topic Test - Product & Price
2.2.6Grade 9 - Product & Price
2.2.7Promotion & Advertising
2.2.8PR & Sales Promotions
2.2.9Sponsorship & Product Placement
2.2.10Promotional Mix
2.2.11End of Topic Test - Promotion
2.2.12Application Questions - Promotion
2.2.13Exam-Style Questions - Promotional Mix
2.2.14Place & Wholesalers
2.2.15Direct to Consumer
2.2.16E-commerce & M-commerce
2.3Making Operational Decisions
2.3.1Job Production
2.3.2Batch & Flow Production
2.3.3Working with Suppliers
2.3.4Effective Supply Chains
2.3.5Just In Time & Just In Case
2.3.6Managing Quality
2.3.7Total Quality Management
2.3.8The Sales Process
2.3.9End of Topic Test - Operational Decisions
2.3.10Grade 9 - Operational Decisions
2.3.11Exam-Style Questions - Managing Stock
2.4Making Financial Decisions
2.5Making Human Resource Decisions
Jump to other topics
1Enterprise & Entrepreneurship
1.1The Dynamic Nature of Businesses
1.2Spotting a Business Opportunity
1.3Putting a Business Idea into Practice
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Business Revenues & Costs
1.3.4Costs - Calculations
1.3.5Revenue - Calculations
1.3.6Business Profits & Break-Even Analysis
1.3.7Profits & Losses - Calculations
1.3.8Interest - Calculations
1.3.9Cash & Cash Flow
1.3.10Cash & Cash Flow 2
1.3.11Cash Flow - Calculations
1.3.12Sources of Business Finance
1.3.13End of Topic Test - Business in Practice
1.3.14Grade 9 - Business in Practice
1.3.15Exam-Style Questions - Business in Practice
1.4Making the Business Effective
2Building a Business
2.1Growing the Business
2.2Making Marketing Decisions
2.2.1Product
2.2.2Product Life Cycle
2.2.3Price
2.2.4Pricing Methods
2.2.5End of Topic Test - Product & Price
2.2.6Grade 9 - Product & Price
2.2.7Promotion & Advertising
2.2.8PR & Sales Promotions
2.2.9Sponsorship & Product Placement
2.2.10Promotional Mix
2.2.11End of Topic Test - Promotion
2.2.12Application Questions - Promotion
2.2.13Exam-Style Questions - Promotional Mix
2.2.14Place & Wholesalers
2.2.15Direct to Consumer
2.2.16E-commerce & M-commerce
2.3Making Operational Decisions
2.3.1Job Production
2.3.2Batch & Flow Production
2.3.3Working with Suppliers
2.3.4Effective Supply Chains
2.3.5Just In Time & Just In Case
2.3.6Managing Quality
2.3.7Total Quality Management
2.3.8The Sales Process
2.3.9End of Topic Test - Operational Decisions
2.3.10Grade 9 - Operational Decisions
2.3.11Exam-Style Questions - Managing Stock
2.4Making Financial Decisions
2.5Making Human Resource Decisions
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