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2nd Assignment Observation experimentation and simulation for research in business

ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration)

Assignment # 2

BUSINESS RESEARCH METHOD (5529)

Topic: OBSERVATION, EXPERIMETATION ANDSIMULATION RESEARCH IN BUSSINESS.

Submitted to : Sir, Muhammad Younus MazariSubmitted by: Faizullah khanRoll # AH-52299

Cell no 03469175441

ACKNOWLEDGEMENT


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All praises to Almighty Allah, the most Gracious, the most

Beneficent and the most Merciful, who enabled me to complete this

assignment.

I feel great pleasure in expressing my since gratitude to my teacher,

for his guidance and support for providing me an opportunity to

complete a productive research study of my topic

THE observation, experimentation and simulation FOR RESEARCHIN BUSSINESS.

My special thanks and acknowledgments to Mr. Muhammad Suhail

for providing me all relative information, guidance and support to

compile the practical study at Procter and Gamble Pakistan.

I will keep my hopes alive for the success of given task to submitthis report to my honorable teacher Mr.Muhammad Younus

mazari , whose guidance; support and encouragement enable me

to complete this assignment.


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EXECUTIVE SUMMARY

This assignment is a research-oriented activity, which represents

both the theoretical and practical implication of the topic. In the first

section of this assignment, I explain the theoretical aspect of thetopic and all major parts has been explained which are involved in

the method of observation, experimentation and simulation for

research in business in business research. For empirical study, I

select Procter and Gamble Pakistan. and compare their ways of the

method of observation, experimentation and simulation for research

in business instruments.


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Introduction to Topic:

Observation, experimentation and simulation

Business research is a systematic inquiry that provides informationto build business decisions. Before starting any sort of business,the businessman needs certain information about the product,people and market. The purpose of research is to collectobservation, experimentation and simulation required for makingcertain decision and analysis.In this context we will emphasize on observation, experimentationand simulation Methods.

Observation :

Observation is found in almost all research studies, at least at theexploratory stage. Such as data collection is known as simple

observation. Its practice is not standardized, as one expect,because of the discovery nature of exploratory research. Thedecision to use observation as the major data collection methodmay be made as early as the moment the researcher moves fromresearch questions to investigative questions. The latter specifythe outcomes of the study. If the study is to be something otherthan exploratory, steamily observation employs standardizedprocedures, trained observers, schedules for recording, and otherdevices for the observer that mirror the scientific procedures of

other primary data methods.

What is observation?The definition given by Donald R. Cooper & PamelaS. Schindler1998


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2nd Assignment Observation experimentation and simulation for research in businessObservation is one of the few options available forstudying records, mechanical processes, loweranimals, small children, and complex interactive

processes

The act or the faculty ofobserving or takingnotice; the act of seeing, or of fixing the mind upon,anything.

The result of an act, or of acts, of observing;

view; reflection; conclusion; judgment.

Hence: An expression of an opinion orjudgment upon what one has observed; a remark.

Performance of what is prescribed; adherencein practice; observance.

The act of recognizing and noting some fact oroccurrence in nature, as an aurora, a corona, or thestructure of an animal.

Specifically, the act of measuring, with suitableinstruments, some magnitude, as the time of anoccultation, with a clock; the right ascension of a star, witha transit instrument and clock; the sun's altitude, or the

distance of the moon from a star, with a sextant; thetemperature, with a thermometer, etc.

Their two type of observation.

Non behavioral observation.


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2nd Assignment Observation experimentation and simulation for research in business Behavioral observation.

Non-behavioral observation:If people choose the no behavioral observation,they need to collect the useful information from thesecondary data sources, such as books in library,hot news online, national documents. Maybe theseresources are obtained easily and inexpensive, andmaybe not. People use the historical information to

support their research.Three types of non-behavioral observation.1. Record analysis.2. Physical condition analysis.3. Physical process analysis.4. Record analysis.

Record previous knowledge about the subject

previously done word like literature review

Physical condition analysis.Observation condition like physical condition.

Physical process analysis.What type of process physically deputed forobservation. Physical condition of a previous alsoso important

Behavioral observation:If people choose the behavioral observation, theyneed some employees to enjoy in the research tomonitor the movements by the research targets or


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2nd Assignment Observation experimentation and simulation for research in businessthey need to use the machines to record thechanges.

There are four type of behavioral observation.

1. Non verbal analysis.2. Linguistic analysis.3. Extralinguistic analysis.4. Spatial analysis.

Non verbal analysis.During the observation what was the bodylanguage or movement of a individual.

Linguistic analysis.What was the pitch of the individual during theobservation?Extralinguistic analysis.Rat of specifying in observation are the rat ofspecifying hand or not.

Spatial analysis.Special analysis included vocabulary of utilization ofvocabulare.

Experimentation:Definition:Research method for testing different assumptions(hypotheses) by trial and error under conditionsconstructed and controlled by the researcher. During theexperiment, one or more conditions (called independentvariables) are allowed to change in an organized mannerand the effects of these changesonassociated conditions(called dependent variables) is measured, recorded,validated, and analyzed for arriving at a conclusion.
http://www.businessdictionary.com/definition/research.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.businessdictionary.com/definition/testing.htmlhttp://www.businessdictionary.com/definition/assumptions.htmlhttp://www.businessdictionary.com/definition/trial.htmlhttp://www.businessdictionary.com/definition/error.htmlhttp://www.investorwords.com/11391/under.htmlhttp://www.businessdictionary.com/definition/condition.htmlhttp://www.investorwords.com/10902/researcher.htmlhttp://www.businessdictionary.com/definition/independent-variable.htmlhttp://www.businessdictionary.com/definition/independent-variable.htmlhttp://www.businessdictionary.com/definition/change.htmlhttp://www.businessdictionary.com/definition/organized.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.businessdictionary.com/definition/changes.htmlhttp://www.investorwords.com/9376/cut_down_on.htmlhttp://www.businessdictionary.com/definition/associated.htmlhttp://www.businessdictionary.com/definition/dependent-variable.htmlhttp://www.businessdictionary.com/definition/method.htmlhttp://www.businessdictionary.com/definition/testing.htmlhttp://www.businessdictionary.com/definition/assumptions.htmlhttp://www.businessdictionary.com/definition/trial.htmlhttp://www.businessdictionary.com/definition/error.htmlhttp://www.investorwords.com/11391/under.htmlhttp://www.businessdictionary.com/definition/condition.htmlhttp://www.investorwords.com/10902/researcher.htmlhttp://www.businessdictionary.com/definition/independent-variable.htmlhttp://www.businessdictionary.com/definition/independent-variable.htmlhttp://www.businessdictionary.com/definition/change.htmlhttp://www.businessdictionary.com/definition/organized.htmlhttp://www.investorwords.com/9552/effect.htmlhttp://www.businessdictionary.com/definition/changes.htmlhttp://www.investorwords.com/9376/cut_down_on.htmlhttp://www.businessdictionary.com/definition/associated.htmlhttp://www.businessdictionary.com/definition/dependent-variable.htmlhttp://www.businessdictionary.com/definition/research.html


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Advantage and disadvantage ofexperimentation.

Advantage. The experiment comes closer than any primary datacollection method to accomplishing this goal. the foremostadvantage is the researchs ability to manipulate theindependent variable .consequently the probability thatchange in the depended variable are a function of thatmanipulation increases also , a control group serves as acomparison to assess the existence and potency of themanipulation .

The contamination from extraneous variables can becontrolled more effectively than in other design.

The convenience and cost of experimentation are superiorto other method.Repeating an experiment with different subject group and

condition .lead the discovery of an average effect of theindependent variable across people, situation and times.Researcher can use naturally occurring events and to someextent, field experiments.

Disadvantages:The artificiality of the laboratory the primary disadvantageof the experimental method.Many subjects perception of a contrived environment can

be improved by investment in the facility.Generalization from no probability sample can poseproblems despite random assignment.

The extent to which a study can be generalized fromcollege students to managers or executive is open toquestion.


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Conducting an experiment:

We discuss seven activities the researcher mustaccomplish to make the endeavor successful.1. Selecting relevant variables.2. Specifying the treatment levels.3. Control the experimental environment.4. Choose the experimental design


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Simulation.

Definition of simulation:

1):_It is a process to create an artificial environment

that looks like the actual and natural Environment.Simulation work when no observation andexperiment.

2):_The act of imitating the behavior of somesituation or some process by means of somethingsuitably analogous (especially for the purpose of

study or personnel training)

(Computer science) the technique of representingthe real world by a computer program; "asimulation should imitate the internal processesand not merely the results of the thing beingsimulated.

3):_Simulation is the imitation of some real thing,state of affairs, or process. The act of simulatingsomething generally entails representing certainkey characteristics or behaviours of a selectedphysical or abstract system


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PRACTICAL STUDY(Procter and Gamble Pakistan)

INTRODUCTION OF THE COMPANY

Proctor and Gamble of Pakistan is a subsidiary of Procter and Gamble USA

established in1990 and started production in 1991.The P&G Company were

founded in 1837 in Cincinnati, Ohio and from the very beginning have been a

leading manufacturer and marketer of the consumer goods. Company sells

more than 250 brands in more than 130 countries and its operations are inmore than 70 countries. It is therefore also rated in the top 25 of the

FORTUNE 500 companies.

Procter and Gamble is actually the name of two persons William Procter

and JamesGamble. Both of them wives were sisters and their father in-law

asked them to become partners. In the start Procters business was candle

making and Gambles business was soap making. The Partnership year

1837 was a difficult time to start the business although Cincinnati was a

bustling market place; the nation was gripped by financial panic. Hundreds of

banks were closing around the country. In the 1850s, despite rumors of an


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2nd Assignment Observation experimentation and simulation for research in businessimpeding civil war in the US, they built a new plant to sustain their growing

business.

Later they pioneered one of the nations profit sharing programs and were

among the first in American industry to invest in the research laboratory. By

1890, the fledgling partnership between the Procter and Gamble had grown

into multi million dollar corporation .Television in USA introduced in

1939and P&G is the only company that commercialize its product just after

five months .With the passage of time P&G acquire different other companies

to enhance the business. In 1980, as it approached its 150th

anniversary, P&G was poised for a most dramatic period of growth in its history. Company

serves 106000emloyees allover the world.

P&g is a recognized leader in the development, manufacturing and marketing

of superior fabric & home care, baby care, feminine care, tissues & towel,

beauty care, health care, and food.

PROCTER AND GAMBLE IN PAKISTAN:

P&G started its operations in Pakistan in 1991. First it introduces its brand of

Head& Shoulder After that it gave brand of Vicks and Olay oil.

Now company has eleven brands in Pakistan .The yearly sales consistently

doubled during the past three years. P&G Pakistan establish localmanufacturing base.

BRANDS IN PAKISTAN:

Head & Shoulder


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2nd Assignment Observation experimentation and simulation for research in business Pert Plus

Vicks

Pentene

Rejoice

Camay

Safeguard

Pampers

Always

Ariel

TOTAL SALES OF P&G IN PAKISTAN:

In 1991 =1.1Billion Rs

In 2001= 12 Billion Rs

Employees:

There are 300 employees with 12 managers serving on 150,000 stores in

Pakistan. And all over the world the no of employees is 106,000.

MISSION STATEMENT

We will provide products and services of superior quality and

value that improve the lives of the world's consumers.

As a result, consumers will reward us with leadership sales, profit

and value creation, allowing our people, our shareholders, and

the communities in which we live and work to prosper.


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These are the Principles and supporting behaviors, which flow from theirPurpose and Values.

They show respect for all individuals

The interests of the company and the individual are inseparable.

They are strategically focused in their work.

Innovation is the cornerstone of their success.

They are externally focused

They value personal mastery

They seek to be the best.

Mutual interdependency is a way of life

GOALS

Think globally act locally

Build major global brands through strong programs based on local

understanding.

Improve the environmental quality of its products, packaging and operations

around the world.

Produce quality products at very competitive costs.


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2nd Assignment Observation experimentation and simulation for research in businessBuild superior relationships with all the parties who contribute to fulfilling

their corporate purpose, including their customers, suppliers, universities and

government.

OBJECTIVES

Bring together transactional activities such as accounting and ordermanagement in a single organization to provide services to all p&g units at

best in class.

Remains on the cutting edge of the industry.

To be a thought leader within each corporate function.

To be the first consumer goods company in Pakistan.

Be competitive with other high quality companies in order to help, attract,

motivate and retain the talent needed to lead and grow P&Gs business.

Strive to be best in all areas of strategic importance to the company.


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2nd Assignment The Methods of collecting primary data for research in business

SWOT ANALYSIS

STRENGTHS

Heavy and impressive promotional plan for safeguard.

Strong social & corporate image of P&G.

Strong financial position of company.

More concern towards total quality management.

Highly health caring product, safeguard gives protections against germs.

Direct contact with customers.

P&Gs good relations with the supplier.

Strong emphasis on environmental prosperity.

Worldwide research and technology, engineering and manufacturing.

Well-established and renowned distributors.

Highly enthusiastic sales team of the company.


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2nd Assignment The Methods of collecting primary data for research in businessThey identified directly influence group such as wives and children in their

target market.

Fifth-lowest Injury/Illness Rate for employees.

Fourth-lowest lost Workday Rate for employees.

Fifth-lowest property loss.

WEAKNESSESSafeguard is available in limited pack sizes; only two sizes are available. One

is 125 gm and other is 75 gm.

Unwilling to serve low-income market. Price is especially very high

towards lower income groups.

Due to limited manufacturing facility, they cannot reduce production cost

of the safeguard. But now expansion is being made in hub plant to increase

production of safeguard. One Plant start production since 10th of April.

OPPORTUNITIES According to the information obtained by Chamber of Commerce and

Industry Lahore, the soap market is growing at an annual rate of 9.8%. The

main reasons for this growth are:

Rapid growth in population,

High urbanization

Increase in awareness among people about new advancements.


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CONCLUSION

Surveys are more efficient and economical than observation. Information

can be gathered by new well chosen questions that would take much more

time and effort to gather by observation. In this research report 1 used both

of them primary source of collecting data (Observation & Questioner).

Observation method shows PG has captured 50% of market share but

survey (questioner) shows about 60% of market share of PG, particularly in

shampoo's consumer among them 50% are using Head & Shoulder that

Procter & Gamble claim the same ratios market share, therefore survey

method result is more near to the company's claim.


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