Researh And Design
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Running Head: RESEARCH AND DECISION MAKING
Research and Decision Making Assignment
University of Phoenix
Managerial Decision Making MBA/510
CoffeeTime Research and Decision Making
CoffeeTime is a chain of coffee bars which has experienced significant success in North America and in Asia. This business features a variety of the worlds finest coffee beverages and snacks. CoffeeTime is planning to expand operations in India. The organization lacks important demographic and market information on Southern Asia. CoffeeTime faces significant challenges which include target cities, target segment and the expected revenue per outlet. This paper discusses the types of data, limitations of data obtained and analysis of existing secondary information which CoffeeTime will use to make effective business decisions.
What does CoffeeTime Really Know, and What might CoffeeTime Learn from More Research
What does CoffeeTime truly know about the various locations in India? At first not much as they are customizing their research model to answer the following questions: “Which city or cities should Coffee Time enter, who is the target segment, what is the expected revenue per outlet” (University of Phoenix, 2002). Some of the facts that CoffeeTime knows about India is that they are “one of the most powerful economies in South Asia, Indias economy is based on a mixture of village farming, modern agriculture, information technology, and a wide range of manufacturing industries” (University of Phoenix, 2002). CoffeeTime also knows that “recent industrial and investment reforms have provided new opportunities for Indian business persons and an estimated 100 million to 200 million consumers. India has a strong entrepreneurial class and a central government that recognizes the continuing need for market-oriented approaches to economic development” (University of Phoenix, 2002).
CoffeeTime is using a market research company to compile information about India. Based on the perceptual map given to CoffeeTime from Total Access, their market research company, they will need to over view 12 cities based on the cities cultural outlook and the degree of affluence. Total Access then provides further information to each city based on various demographics, leisure and lifestyle, infrastructure, and competition. This information will be used to development a survey that will offer CoffeeTime further insight to each city. Information obtained through the surveys will allow CoffeeTime to obtain valuable data that can be used to select profitable and successful locations in South Asia.
Data Validity and Reliability
“CoffeeTime has identified India among other South Asian economies as a bright prospect. The management of CoffeeTime is considering the option of entering India” (University of Phoenix, 2007). CoffeeTime has three questions it wants to find out before they make the decision of entering South Asian. Which cities to enter? Target segment? What is the expected revenue per outlet? Without understanding the data surrounding the respective questions, it will be difficult for CoffeeTime to evaluate their options. “The quality of the data collected through the use of surveys is influenced by the quality of the survey. Two of the most astute questions you can ask when designing and evaluating statistical studies and surveys are as follows: “Is it valid?” and “Is it reliable?” The first means, “Does it measure what it is supposed to measure?” The second means, “If I collected that data again using exactly the same technique, would my conclusions be the same? Validity and reliability are the hallmarks of good statistics” (Lind & Mason, 2003). CoffeeTime needs reliable data to predict which cities provide the optimal chance of success for CoffeeTime in India.
The available research helps CoffeeTime to eliminate cities by showing us they lack population and have low cultural outlook. Delhi, Mumbai and Kolkata are the largest cities and have the highest monthly income which makes them good areas for CoffeeTime stores. Some variables reflect cities data such as frequent malls visits, number of malls in each city, monthly incomes, age, education levels, and the level of competition in each of the cities. “The success of research hinges on (1) how clearly we conceptualize (2) and how well others understand the conceptions we use” (Cooper & Schindler, 2003). The one area of limitation for CoffeeTime is addressing the question of expected revenue per outlet. The survey has limited the companys ability to obtain the answer to one of the three main concerns of entering the new marketplace.
Secondary and Primary Research
CoffeeTime must use as much data as possible to make the best business development decisions for the new India market. An inexpensive, quick, and readily available way to do this is through the use of secondary data. “Secondary data is data that is neither collected directly by the user nor specifically for the user, often under conditions not known to the user” (Haley, 2003). Examples of secondary data include published reports, economic documents, census,