INFORMATION by dffhrtcv3

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									INFORMATION
 DATA versus INFORMATION
• Data – collection of facts or numbers that
  have been not yet been processed into
  specific information.

• Information – data that has been processed
  into some form that will aid decision
  making.
SOURCES OF INFORMATION
1. PRIMARY

•   Information that has been gathered by the firm
    itself.

•   E.g. Observations, Interviews

•   Can be very important information to the firm.
• ADVANTAGES              • DISADVANTAGES

• Correct for the         • Can be expensive
  purpose for which it
  was gathered            • People may have lied

• Likely to be up-to-date • Difficult and time-
                            consuming to collect
• Know the source of
  the information         • May contain
                            researcher bias
• Competitors do not
  have access
2. SECONDARY

•   Information that has been gathered by
    someone else but the firm uses it for their
    own purpose.

•   E.g. Newspapers, the Internet

•   This source of information is not as good
    as primary.
• ADVANTAGES            • DISADVANTAGES

• Less expensive that   • May not be totally
  primary information     relevant

• Easier to access      • May be bias

• Can get it from a     • May be out of date
  variety of sources
                        • Available to
                          competitors
3. INTERNAL

•   This is information that comes from inside
    the business.

•   E.g. Employee details, Financial Accounts
• ADVANTAGES             • DISADVANTAGES

• Easy to access         • Can be expensive to
                           set up systems
• Once systems are in
  place, information     • If it is a new firm they
  should be accurate       may not have a lot of
                           internal information
• Can help set targets
  based on previous      • Need to regularly
  performance              update the records
4. EXTERNAL

•   Information that comes from outside the
    firm.

•   E.g. Government Statistics, Competitors
    Annual Accounts.
• ADVANTAGES              • DISADVANTAGES


• Can be easy to get.     • Time consuming to
                            gather.

• Often cheap to obtain   • May be out of date

• Gain useful             • Could be unreliable or
  information about the     bias.
  external environment.
  (PESTEC)                • Available to
                            competitors
    TYPES OF INFORMATION
•   This is how the sources of information can be
    presented.

1. Written – info presented as text.

•   E.g. Letters, email, memos

•   Good for confirming verbal info, easy to collect
    and can be kept to look back on.
2. Oral – communicated by speaking/verbal
   or sound.

•   E.g. telephone, presentations, meetings

•   You get an immediate response, good for
    discussions but there is no record kept and
    people may forget.
3. Pictorial – info in the form of
   pictures/photos.

•   Can easily be remembered, communicates
    info fast, used to emphasise a point.

•   However, can be hard to get a picture that
    shows what you mean.
4. Graphical – through the use of graphs
   and charts.

•   E.g. pie chart, line graph, bar graph

•   Good for showing numerical data clearly,
    can be used to make comparisons.
5. Numerical – information in the form of
   numbers

•   E.g. tables, spreadsheets

•   Allows for financial forecasts to be made,
    perform calculations.
6. Quantitative – info that can be measured.
   Normally expressed in numbers

•   E.g. Harry Potter has sold 700 million
    copies.

•   Ross High has 980 pupils
7. Qualitative – info based on opinions and
   judgement.

•   Tends to be more descriptive, allows the
    firm to get to know what people think of
    their product etc.

•   However, info could be bias.

•   E.g. Cheese and Onion crisps are great!
  VALUE OF INFORMATION
• See sheet.
    USES OF INFORMATION
1. Monitor and Control the Business

•   Info can help to check that the firm is
    running smoothly.

•   Help check the progress of the firm and
    highlight any problems.
2. Assist in Decision-Making

•   Owners and managers need to make
    important decisions, therefore need good
    information.

•   Poor decision-making can have a negative
    effect on the firm
3. Measure Performance

•   Can be used to help evaluate how the firm
    is performing financially.

•   E.g. could look at sales targets and see if
    they are being met.
4. Identify New Business Opportunities

•   Can use information to see if there are any
    gaps in the market that the firm can
    exploit.

•   This will help the firm continue to meet
    the needs of their customers.

								
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