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 AND SIMULATION RESEARCH IN BUSSINESS.

Submitted to : Sir, Muhammad Younus Mazari Submitted by: Faizullah khan Roll # AH-52299 Cell no 03469175441

ACKNOWLEDGEMENT

2nd Assignment
Observation experimentation and simulation for research in business

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 RESEARCH IN 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 submit this report to my honorable teacher Mr.Muhammad Younus mazari , whose guidance; support and encouragement enable me to complete this assignment.

2nd Assignment
Observation experimentation and simulation for research in business

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 the topic 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.

2nd Assignment
Observation experimentation and simulation for research in business

Introduction to Topic: Observation, experimentation and simulation

Business research is a systematic inquiry that provides information to 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 collect observation, experimentation and simulation required for making certain decision and analysis. In this context we will emphasize on observation, experimentation and simulation Methods.

Observation :
Observation is found in almost all research studies, at least at the exploratory 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. The decision to use observation as the major data collection method may be made as early as the moment the researcher moves from research questions to investigative questions. The latter specify the outcomes of the study. If the study is to be something other than exploratory, steamily observation employs standardized procedures, trained observers, schedules for recording, and other devices for the observer that mirror the scientific procedures of other primary data methods.

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

2nd Assignment
Observation experimentation and simulation for research in business

Observation is one of the few options available for studying records, mechanical processes, lower animals, small children, and complex interactive processes The act or the faculty of observing or taking notice; 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 judgment upon what one has observed; a remark. or

Performance of what is prescribed; adherence in practice; observance. The act of recognizing and noting some fact or occurrence in nature, as an aurora, a corona, or the structure of an animal. Specifically, the act of measuring, with suitable instruments, some magnitude, as the time of an occultation, with a clock; the right ascension of a star, with a transit instrument and clock; the sun's altitude, or the distance of the moon from a star, with a sextant; the temperature, with a thermometer, etc.

Their two type of observation.

Non behavioral observation.

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 the secondary data sources, such as books in library, hot news online, national documents. Maybe these resources are obtained easily and inexpensive, and maybe 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 for observation. Physical condition of a previous also so important Behavioral observation: If people choose the behavioral observation, they need some employees to enjoy in the research to monitor the movements by the research targets or

2nd Assignment
Observation experimentation and simulation for research in business

they need to use the machines to record the changes. 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 language or movement of a individual. the body

Linguistic analysis. What was the pitch of the individual during the observation? Extralinguistic analysis. Rat of specifying in observation are the rat of specifying hand or not. Spatial analysis. Special analysis included vocabulary of utilization of vocabulare.
Experimentation: Definition: Research method for testing different assumptions (hypotheses) by trial and error under conditions constructed and controlled by the researcher. During the experiment, one or more conditions (called independent variables) are allowed to change in an organized manner and the effects of these changes on associated conditions (called dependent variables) is measured, recorded, validated, and analyzed for arriving at a conclusion.

2nd Assignment
Observation experimentation and simulation for research in business

Advantage and experimentation.

Advantage.

disadvantage

of

The experiment comes closer than any primary data collection method to accomplishing this goal. the foremost advantage is the researchs ability to manipulate the independent variable .consequently the probability that change in the depended variable are a function of that manipulation increases also , a control group serves as a comparison to assess the existence and potency of the manipulation . The contamination from extraneous variables can be controlled more effectively than in other design. The convenience and cost of experimentation are superior to other method. Repeating an experiment with different subject group and condition .lead the discovery of an average effect of the independent variable across people, situation and times. Researcher can use naturally occurring events and to some extent, field experiments.

Disadvantages:

The artificiality of the laboratory the primary disadvantage of the experimental method. Many subjects perception of a contrived environment can be improved by investment in the facility. Generalization from no probability sample can pose problems despite random assignment. The extent to which a study can be generalized from college students to managers or executive is open to question.

2nd Assignment
Observation experimentation and simulation for research in business

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

must

2nd Assignment
Observation experimentation and simulation for research in business

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 and experiment. 2):_The act of imitating the behavior of some situation or some process by means of something suitably analogous (especially for the purpose of study or personnel training) (Computer science) the technique of representing the real world by a computer program; "a simulation should imitate the internal processes and not merely the results of the thing being simulated. 3):_Simulation is the imitation of some real thing, state of affairs, or process. The act of simulating something generally entails representing certain key characteristics or behaviours of a selected physical or abstract system

2nd Assignment
Observation experimentation and simulation for research in business

(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 in more 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 James Gamble. 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

PRACTICAL STUDY

2nd Assignment
Observation experimentation and simulation for research in business

impeding 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 local manufacturing base.

BRANDS IN PAKISTAN:
Head & Shoulder

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.

2nd Assignment
Observation experimentation and simulation for research in business

These are the Principles and supporting behaviors, which flow from their Purpose 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.

2nd Assignment
Observation experimentation and simulation for research in business

Build 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 order management 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.

2nd Assignment
Observation experimentation and simulation for research in business

OBSERVATIONS
When an observation is focused on one following department item / aspect of action or the direct structured event, then it known as structured Observation. I have visited stores and found observation about the particular item Head &. Shoulder shampoo; data are showed in the tabular form under below.

Departmen Location tal Store Name

No. No. of Showca of Showcas for for all articles PC; Competit articles

No. No. of showca of showca displayi displayin g II&S ng r&c articles items

Esa Jee Departmental store

Sadder 2.00

Rawalpindi 1 5.00 Main CSD Near CSD Lal kurti, Rwp 2 5 .0 0 BestDay Dept Blue Area

2.50
150

1.00 2.00 1 .50

100 2.50

Store

Islamabad.

20.00

3.00

The Methods of collecting primary data for research in business

2nd Assignment

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.

The Methods of collecting primary data for research in business

2nd Assignment

They 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.

WEAKNESSES
Safeguard 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.

The Methods of collecting primary data for research in business

2nd Assignment

Due to this growing market, there are lots of opportunities for P&G to exploit this growing market by introducing new soaps. P&G has a good corporate image among consumers. Therefore, they can get maximum share from the soap industry by introducing multiple brands of soaps because they have already different soaps in their international health and beauty care product line. Due to rising awareness among people, switching trend toward health care soaps is high. Therefore, it is a good opportunity to capture this segment through efficient marketing practices.

THREATS
Increasing market share of local Producers. The local Producers are playing an important role in soap industry, because they are providing low price soaps and try to penetrate in their local market by replacing the branded products. Threat of new entrants is also present. As Lever Brothers is a potential threat in soap industry, because they are already involved in different related businesses and providing raw material for soap production to different manufacturing companies like Colgate Palmolive, etc. Increasing inflation in the country is also a major threat of P&G because it is reducing the purchasing power of consumers.

The Methods of collecting primary data for research in business

2nd Assignment

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.

The Methods of collecting primary data for research in business

2nd Assignment