Type: Process Essays
Sample donated: Margaret Rogers
Last updated: July 19, 2019
Task 16The moment when your company starts using information thatisn’t correct it can have serious consequences for your company.
Everything youdo with the information afterwards is incorrect meaning that the business wouldbe going heading downhill. If you don’t get one fact right, or give out falseof incorrect information then the company is completely in the wrong directionwhich can damage the company. RelevanceIf the company like Amazon gathers information, but it is thewrong information and isn’t relevant then, it isn’t useful to the company andit has potential to wreck the company’s image because of the scale of theimpact it will make.
It will be hard to undo the damages made and the amount ofmoney spent on getting the wrong information then will therefore waste thecompany’s time and money. Companies like Amazon would choose to research on theproducts they sell, researching in the products that they don’t sell would beunnecessary and waste of time.The dangers of using information that is not relevant wouldbe cause the companies like Amazon to lose customers meaning losing highvolumes of sales. For instance, if Amazon puts Alexa for £30 in their websitesand the customers are charged £50 due to the employee’s mistakes. Amazon wouldreceive high numbers of complaints and it will put staff in under-pressure notonly that they Amazon would lose lots of its loyal customers. Furthermore, ifthe Amazon is selling a laptop and the description of that is nothing to do withit. I highly doubt that product is going to be profitable to Amazon as thedescription does not match the product.
As a result, it will confuse thecustomers and they may choose not to buy that product which lowers the salesmade by Amazon. As we can see that using information that is not relevant canlead to loss of profits made by firms. QualityThe quality of the information would have impact in everysector of the business.
The quality of information depends on the way theinformation is conducted, handled, the way it is processed, what theinformation is about and does it have a good quality description. Furthermore,if the market research is done by inexperienced staff than it is likely to beinaccurate due to lack of experience in the field. The quality of informationis vital to the company such as Amazon because Amazon would need to makedecisions based on the information they have gathered. Faulty in theinformation can lead to the bad decision which can lead to lose in marketshares and profits.The dangers of using information that is not good quality,it can put Amazon to fall back and the competitors would have advantage overAmazon.
Poor data quality can lead to disastrous decisions being made, badsales forecasts and lost deals for Amazon. Furthermore, high standard of infomust be provided by sales team as managers or directors need to know which itemis doing well and the items that are getting declined so they can replace thatwith another product. Most importantly, if the stock-checker staff gives badquality of information to managers and they may order the item they don’t needand this can be problematic will certainly delay the process of distributionwhich can upset the customers and they may end of leaving bad review forbusiness like Amazon which will give them bad reputation. Reliability of Data SourcesReliableis the information that the department receives, it should be beneficial andreliable to that department otherwise, if it isn’t then it is a complete wasteof time. The reliability will also depend on where the information is comingfrom as the information from government is verified and is 100% accuratewhereas the information form the Wikipedia isn’t guaranteed as anyone can writeit. If the business like Amazon uses the information from wiki they must verifythat info before using it for any purpose. The dangers of using information that is not reliable for couldlead them getting banned from advertising and have all your advertising rightsremoved.
This could result in the company collapsing. Furthermore, using theunreliable information it can lead to bad customer service which can damagetheir reputation which will ultimately affect their sales in long term.ValidityValidity is used to determine whether research measures whatit intended to measure and to approximate the truthfulness of the results.large companies like Amazon have to ensure that the information is valid andprecise as the bad information could misleading. The dangers of usinginformation that is not valid using the wrong information could lead todamaging their reputation, customers, shareholders etc. Furthermore, it maydistance themselves from the brand due to unprofessional behaviour.
Dependingon the type of information there is potential for legal proceedings to bebrought against the company. If the product states that their products arekeepable of flying then, the product must meet the purpose and must do what itstates in the description if it doesn’t customers won’t trust that company,brand etc., and will never buy the product from there again. Therefore, Amazonneed to monitor what their suppliers put in their description.Time FrameMost of the data have time frame which determines how longit is relevant for, this can be affected by the content of the data. It isimportant that businesses such as Amazon to use information that is up to date.As soon as information is published it is often regarded as out of date becausesomething in that information will change. If the company is launching a newproduct and they haven’t done recent market research and they are relying onthe market research that was done 10 years then, they are bound to makemistakes as a result their product will be failure.
This is because the dataused is old and isn’t up to date as this generation wants and needs differentthings than people wanted 10 years ago.In addition, the dangers of using information that is not upto date could lead to bad decision making during the process of marketing. Weall know the consequences of inaccurate information being analysed it couldlead to numerous bad for business which affect business in long-term if not inthe short-term. Furthermore, if the Amazon’s sales are suffering and to stay inthe market Amazon posts its old information to convince its investors to staywith an Amazon.
If the investor found about this they may choose to leave andstop investing in Amazon which can cause the Market to collapse –losingshareholders, suppliers etc. Amazon can get sued for providing falseinformation and they might get banned from marketing for certain years whichwill affect business.Cost EffectiveCost effective is when the company gets the data inreasonable about of money and is very effective. It is often said you pay forwhat you get, and this can be true in relation to information. If decide to payan external company for carrying out some research on your behalf, and anothercompany is offering to do the same for a quarter of the price, will theinformation be good? Companies like Amazon don’t have time and they hirecompanies to do questionnaire for them therefore, choosing which company to dosurvey may be tuff decisions they might make.
Big companies would have trustedcompanies that they have been working with the for long time and they know thatthey are going to provide accurate data which Amazon can benefit from.The dangers of using information that is not cost effectivecould be misleading and unprofessional. For instance, If Amazon decides tocarry out market research but only carry it out their quieter areas, are theygetting the best quality, up to date, relevant and appropriate data? Where asif they carry out the market research in busy it might be costly as they mightneed more people for them to work, however it may provide better quality ofinformation. It may be wise for Amazon to pay extra for the information that isbetter than sneaking out the bad data to save money.AccessibleAccessible information is information that you canunderstand. What makes information accessible is different for differentpeople; there is no one size fits all as people often have different needs.
Amazon cannot use information that they cannot understand, it is no good to them.For example, if their finance teams produce reports on figures that they areunsure what they actually mean, that information cannot be used and the companycannot benefit from, in another words its useless to them.The dangers of using information that is not accessible canlead to poor-decision making which increase the chances of them making errorswhich is not good when it comes to business and it can damage the company image.To prevent this from happening Amazon could train their staff to provide themto with more beneficial information that Amazon can use. If they know how toanalyse the data, they are likely produce the information which company can useand benefit from.
AppropriateThe choice of appropriate data collection methods should bebased on the research questions, design, sample, and the possible data sources.The technique used for data collection should gather information that willallow the research questions to be answered, take into account thecharacteristics of the sample, and provide information that is linked to eachintended learning outcome. More appropriate and precise the data is the betterthe outcome would be. If the communication between the firm and the customersis good and there is high chance that business is going to be successful. The dangers of using information that is not appropriate forcompanies like Amazon would be misleading and silly. Anything that Amazon putson advertisement or in website should be reasonable.
If the ads show somethingand the customers are given different item than there will be high numbers ofcomplaints by customers which will certainly put customers service staff inpressure and will certainly add stress which isn’t good for any business. Ifthe Amazon receives bad review they need to act wisely, responsibly and respondin a way that is simple, short and sweet. Most importantly, they need to ensurethat they don’t upset the customer further which can lead to blame wars whichis bad for the business. Lastly, for improvement Amazon must ensure that theyregularly update their websites and have latest products offering for theircustomers this the best way to sustain customers for long-term.