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Quantitative
Quantitative means the description with numbers and statistics. It is discussing with the
area of proportions, amount, or measurements such as how many customers, competitors
and so on. It is telling the researcher what the consumer consume or how people buy
goods or consumer services. Quantitative also means quantity. It is relating with the
number, quantity and measurement. Information which that can be expressed or counted
numerically also called quantitative and it can be represented in graphs, histograms and
tables. Besides, quantitative is a form of research or data collection that gathers
information into numerical form. It also can be put into categories, in rank order or
measured in units of measurement.
Qualitative
Qualitative means quality which is referring to the information that approximates but do
not measure the amount of things such as why consumers consume the things. Apart from
that qualitative also is a form of research or data collections that gathers information that
is not in numerical form. Qualitative do not appear in external financial appear reports
because qualitative items cannot be easily converted into dollars. Items cannot be
quantified into amounts we called qualitative. They include touchy-feely considerations
such as employee morale, community and environmental effects, and the companys
public image.
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Quantitative
Means quantity
Qualitative
Means quality
Discuss the information about
approximates not measure the
amount of things.
Cannot converted into dollars
Financial information
Non-financial information
To do with money
information
It is a basis on providing direction
security
Example of financial information is
the company. Thus, the managers need to take this into consideration to ensure that the
revenue gain by the bank is able to cover its expenses for the new branch to prevent incur
of losses. Managers should prepare and estimate the expenses that are needed by the new
branch by preparing budget plan.
Cash flows are important to keep the operation of the bank, so managers need to
take this into consideration too. Examples of cash inflows in bank are fixed deposits and
interest of loan; cash outflows are short-term and long term loan provided by the bank.
Hence, managers need to ensure that the operation of the new branch will provide more
cash inflows to the company and thus increase the company revenue. They also need to
consider there are sufficient cash for the bank to provide its cash outflows services.
Capital employed represents the capital investment necessary to keep the
business to function, such as stocks or share and long term liabilities. Managers need to
ensure that the operation of a new branch will increase the capital employed of the
company by increasing attracting more investors and potential people to take long term
liabilities. This will increase the contribution to the companys ability to generate its
revenue.
Non-Financial
The non-financial information that the managers need to consider is estimate
potential number of loan applied and approved. They need to take into accounts about
the customers background and ability to return their debts before they approve the loans.
They also need this information to decide the type of loan that suits them.
Furthermore, managers need to consider the number of customers. By opening a
new branch, managers need to estimate the increasing amount of customers. They need to
try their best to attract customers to invest in their bank rather than other commercial
banks which are their competitors. Hence, by opening a new branch, more customers
should be attracted.
Managers need to do marketing survey when looking for the operating location
to ensure that the new branch has a strategic location. Managers should take into
consideration about the surrounding environment such as the safety of the place and take
into account of their competitors in that area.
Managers need to ensure that by opening a new branch, they can increase their
average response time to the customers to increase customers satisfaction. To achieve
this, managers have to ensure there is adequate number of skilled and quality employees
to support the new branch and make sure the new branch in operating under a controlled
and fluent manner.
b) AirAsia Bhd
AirAsia Berhad is a Malaysian low-cost airline headquartered in Kuala Lumpur. It was
established with the dream of making flying possible for everyone with the simple but
strong slogan, Now Everyone Can Fly since year 2001. It provides low-cost service
and operates with its extremely low operating cost. It was named the Worlds Best LowCost Airline and the Best Low-Cost Airline in Asia at the 2011 Skytrax awards for 5
consecutive years from year 2009 to year 2013.
Example:
Recently, AirAsia Berhad is facing some problems as its demand for flights has increased
but the existing aircraft available is unable to satisfy its current demand. Thus, the
company now planned to purchase new aircraft. The managers need to decide the number
of aircraft needed to purchase based on the financial and non-financial information.
Financial
Firstly, managers need to consider the cash flows. Cash flows are the important financial
information which should be considered by the company before make the decision of
purchases the new aircraft. The liquidity of cash flows can affect the decision of Airasia
Berhad in buying the new aircraft. If the Airasia Berhad insufficient in the cash flows, the
plan of buying the new aircraft will be rejected.
AirAsia Berhads managers also should consider about the operating expenses per
traffic in the purchases of new aircraft. The managers should be able to foreseen the
increase in operating expenses after the purchase of the new aircraft. The operating
expenses per traffic should be well planned to avoid unnecessary expenses.
As the new aircraft is bought, the managers should consider about whether they should
increase the charges per passenger. They should consider this because the purchase of
new aircraft has increased the company cost, so they should decide whether the cost
should be charged to the passenger or the company itself.
Apart from that managers must consider the fuel expenses and staff cost before purchase
the new aircraft. Since a new aircraft is bought, there will be an increase in fuel expense
and staff cost. Thus, managers need to take these into consideration to ensure that the
company has enough revenue to cover all these expenses.
Non-Financial
The first non-financial information that the managers need to take into consideration is
number of passengers seats installed in aircraft. Managers need to determine the
number of passengers that can fit in a aircraft of each model to determine the model of
the aircraft that they should purchase. For example, Airbus A320-200 and Airbus
A320neo consist of 180 passengers each, so, to fit in more passenger managers should
consider these 2 types of aircrafts.
The next non-financial information that needs to take into consideration is the quality of
employees. To maintain the reputation of AirAsia, the company should consider training
a new group of employees to supply the needs for the new aircraft. A better quality of
employees is needed to increase customers satisfactions and to ensure there are enough
staff to service more customers in the new aircraft.
Managers need to decide whether by purchasing a new aircraft will help the company in
improving its punctuality. According to the customers feedbacks, there are many
criticisms towards the frequently delayed flights. Hence, managers need to make sure that
this problem can be solved by increasing purchasing new aircraft as the company main
aim is to increase customers satisfaction.
Number of routes also needs to consider by managers as non-financial information.
According to the information which has recorded in the report, AirAsia Bhd. owned 72
aircrafts and flies over 61 domestic and operates more than 142 routes to 78 destinations
with 400 flights daily covering Asias country. Until today, it has flown over 55million
guests across the region. So, if Airasia Berhad buys the new aircraft, the manager should
discuss about the number of routes which can arrange for the new aircraft.