INDEPENDENT UNIVERSITY BANGLADESH

Take Home Assignment

Course: MBA 504:

Business Research Methodology

Submitted to
Faiz Chowdhury
Lecturer.
Independent University, Bangladesh.

Submitted by
Md.Muhibbul Hasan
ID No: 1710984
Department: Masters of Business Administration
 Business Benchmark Analysis
The first step in business research is to assess performance of the company over the year in terms
of sales, revenue, and profit. Also cost are important because if cost of production increase then
unit profit, that is profit declines.
(a) Sales: Figure of sales is not given, But we know that, Sales = Total revenue / Unit price
So, Sales in 2009 = USD 43650000 / USD 6700 = 6514 MT jutes
Similarly Sales in 2010 is = USD 36225000 / USD 6750 = 5366 MT jutes
We can calculate that growth in sales is -17.6% over the 2 years between 2009 and 2010
This implies average growth in sales of -8.8%.
(b) Revenue: We shall calculate relevant figures for Revenue in the same way.
We can calculate that growth in Revenue is -17% over 2 years between 2009 and 2010
This implies average growth in revenue of -8.5% per year.
(c) Total Profit: As to profit, first we shall examine what has happened to total profit between
2009 and 2010. In our given problem there is no total cost so I assume fixed cost is 0 so now
variable cost is our total cost. So Total profit was in 2009 is 320000 USD and 2010 is -75000
USD.
We can calculate the growth in total profits is -123% over 2 years between 2009 and 2010.
This implies average in total profits -61.5% per year
(d) Unit profit: Next is to examine what happened to unit profit
We know that Unit profit = Price – Average cost
Unit profit in 2009 is 49 and 2010 is -14 and the growth in unit profit is -129%
(e) Cost: The growth in total cost is -16.22% in 2 years.

Questions Answers:

1. It is clearly observed that between 2009 and 2010 there was poor growth in sales its -17.6% it
means the company sell more MT jutes in 2009 compared to 2010. It’s not a good sign
Now come to revenue, the growth in revenue is also poor it’s again -17% between 2009 and
2010 because company earn more revenue in 2009 compared to 2010.
And the profit in 2009 company’s total profit is 320000 USD and 2010 is -75000 USD it’s a
huge gap between 2009 and 2010.
So 2009 is better year for this company and 2010 is disaster.
2. The growth in total profits is -123% over 2 years between 2009 and 2010.This implies average
in total profits -61.5% per year. So we see that the total profit is very poor it has negative figure.
In 2009 this company’s total profit was 320000 and 2010 is -75000 so it’s not good for the year
2010.

3. NO. Its decreasing over time in 2009 this company’s unit profit is 49 and 2010 is -14.

4. The company’s overall performance is very bad, every part of the company has weak area in
sales, revenue, unit profit all this part is decreasing because the year in 2010 the company’s
performance in disaster that’s why its fall down.

5. The cost of production is increased in 2009 the cost of production is 6651 USD and 2010 is
6764 USD.

6. If we see from 2001 to 2010 the price is not rapidly growth but it increased. In 2005 the price
is decreased 6300(2004) to 6100 USD per MT. and the next year is also increased to 6500(2006).
In 2009 and 2010 there are only 50 USD increased.

7. A depreciating currency has multiple impacts. When the Taka depreciates against other
currencies, our exports become cheaper and, inversely, imports become more expensive. As an
example, if the value of Bangladesh's taka goes down against the dollar, say from Taka 75 per
dollar to Taka 85, we pay more for petroleum imports in terms of Taka, but our garments
become cheaper for Macy's and Walmart customers. This simple example illustrates the reason
why countries let their currencies depreciate, to boost exports and stimulate demand for domestic
products.

8. I would like to add Total cost because without total cost we cannot calculate the total profit
and so on. So including total cost is important.

9. Unit profit, cost of production, revenue is the weak area of the company.
 Bivariate and multiple Regression Analysis with SPSS

Questions Answers:
1. There are 8 variables in our data table there are two variable that are considered to be as
dependent variable they are Export of jutes and Price of plastic moulding compound. Because
export of raw jute is the main factor to be as dependent variable on the other hand price of plastic
moulding compound the main competitor of jute products is plastic products if the demand for
plastic product rises, then the demand of raw jute will fall.

2. For this model Export of raw jute is our Dependent variable because export of raw jute is the
main factor of the country and it has some relationship with other factors.

3. Price of raw jute – there is relation between exports of raw jute. If the price of jute in domestic
market rises significantly then the company’s variable cost will rise and push up average cost.
World population – more raw jute will be sold if the population of the world increases. Higher
world population means higher demand for raw jute in the international market.
Price of moulding compound – if the price of plastic moulding compounds rises, then the
demand for jute products and, for that matter, the demand for raw jute will rise in the
international market.
And other independent variable is global exchange rate, per capital income, revenue, variable
cost
4. Here Exports of raw jute is our Dependent Variable and Export price is independent variable

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .616a .380 .302 811.396

a. Predictors: (Constant), export_price

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 3222093.890 1 3222093.890 4.894 .058b

Residual 5266906.110 8 658363.264

Total 8489000.000 9

a. Dependent Variable: Exports

b. Predictors: (Constant), export_price
 Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) -3690.573 5669.957 -.651 .533

export_price 2.675 1.209 .616 2.212 .058

a. Dependent Variable: Exports

Now export of raw jute is our dependent variable and per capital income is our independent
variable- we find the export price = revenue/export of jute
 Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .621a .385 .308 807.795

a. Predictors: (Constant), percapitaincome

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 3268732.998 1 3268732.998 5.009 .056b

Residual 5220267.002 8 652533.375

Total 8489000.000 9

a. Dependent Variable: Exports

b. Predictors: (Constant), percapitaincome

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 4091.711 2136.852 1.915 .092

percapitaincome .154 .069 .621 2.238 .056

a. Dependent Variable: Exports

So now we have to compare this two regression model and find out which one is fit or reliable
model in this model we have same dependent variable and two different independent variable
which are export price of raw jute and per capita income.
Here we see the predictor per capita income has better model because its Adjusted r square is
better than predictor export price, F statistics is also better in predictor per capita income
So predictor per capita income is better model compared to predictor export price.
5. ENTER method

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 1.000a 1.000 1.000 16.669

a. Predictors: (Constant), percapitaincome, export_price,

priceofplasticmoulding, Exchangerate, variable_cost, price_rawjute,
popuation, Revenue

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 8488722.152 8 1061090.269 3818.955 .013b

Residual 277.848 1 277.848

Total 8489000.000 9

a. Dependent Variable: exports

b. Predictors: (Constant), percapitaincome, export_price, priceofplasticmoulding, Exchangerate,
variable_cost, price_rawjute, popuation, Revenue

Coefficientsa
 Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 9322.946 1334.811 6.984 .091

export_price -.114 .525 -.026 -.217 .864

Revenue 2.166E-5 .000 .137 .407 .754

variable_cost .000 .000 .952 3.688 .169

price_rawjute -1.070 .268 -.268 -3.997 .156

Exchangerate -5.341 3.526 -.024 -1.515 .371

priceofplasticmoulding .151 .271 .018 .559 .675

popuation -.044 .034 -.109 -1.295 .419

percapitaincome .030 .025 .120 1.180 .448

a. Dependent Variable: exports

Stepwise Method

Model Summary

Adjusted R Std. Error of the

Model R R Square Square Estimate

1 .964a .930 .921 273.018

2 .999b .999 .998 41.717

a. Predictors: (Constant), Revenue

b. Predictors: (Constant), Revenue, export_price

ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 7892690.783 1 7892690.783 105.887 .000b

Residual 596309.217 8 74538.652

Total 8489000.000 9
2 Regression 8476818.055 2 4238409.027 2435.478 .000c

Residual 12181.945 7 1740.278

Total 8489000.000 9

a. Dependent Variable: exports

b. Predictors: (Constant), Revenue
c. Predictors: (Constant), Revenue, export_price

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2492.721 622.843 4.002 .004

Revenue .000 .000 .964 10.290 .000

2 (Constant) 9101.275 373.057 24.397 .000
Revenue .000 .000 1.316 54.950 .000

export_price -1.905 .104 -.439 -18.321 .000

a. Dependent Variable: exports

So we estimated all possible predictors with one dependent variable export of jute is our
dependent variable and we follow two methods one in ENTER and the other one is STEP-
WISE method
In enter method our adjusted r square is better compared to step wise method and f statistics
is also better in enter methods but in significant value in step wise method is better than enter
method.

6.
(a) 100 percentage of variation in Exports is explained by the model. It is a reliable model.
Because here adjusted r square is 100 percent that means 100 percent change in the
dependent variable (Exports).

(b) The significance of F is 1.3 percent which is lower than 5 percent that means the model is
significant

(c) The t-statistic for constant in coefficients is 9 percent which is more than 5 percent. It
signifies the model is not reliable or fit.

(d) Among the predictors are given in the model is fitted by us is reliable