Understanding Business and Management Methods - Research Paper Example

Understanding Business and Management Research Methods 14 January There is a constant blaming between the practice sector and the academic sector. The research focuses on the article Does Academic Management Accounting Lag Practice? A Cliometric Study (MacDonald & Richardson 2011). The research delves in a critical analysis of the article. The practice’s passing the blame for the companies’ financial downfall on academe is uncalled for. The above article states correctly states the application of the textbook theories to the workplace, especially the retail marketing environment, is at odds with the academic community. The research conducted shows that accounting education does not fill the needs of practice (workplace). The workplace aims to fill the clients’ demands (Catanach 2009). Elizabeth Smith confirmed the research (2009). In addition, the American Accounting Association research indicated there was a gap between practice and education (Hopwood 2010). The variance between what the practice needs and what the education sector (universities, colleges and other learning institutions) offers is widening through the years. The article states that the schism between the education sector and the practice of accountancy profession emerged during the 1900s. The schism continues to widen until the present generation. In fact, many stakeholders insist that most of the accounting lessons taught in the classroom environment are irrelevant to what the practice sector needs. From the 1940s to the 1960s, the demand for university educated accountant increased significantly. In response to the demand of the workplace, the universities granted a 400 percent accounting degree increase. The academic community increased in terms of faculty members and accounting graduates (MacDonald & Richardson 2011). The academe focuses on ensuring graduates are equipped with the basic management and accounting technologies (Gediehn 2009). The teachers are required to explain the importance of the income statement for decision making activities (Schwartz 2008). Simulated case studies will reduce the gap between education and retail marketing environment practice (Humphrey 2007). In terms of the accounting profession, the article first article correctly discloses the widening gap between what the universities offer and what the workplace needs, a metamorphosis. The metamorphosis of the business and accounting schools from simple learning institutions to become social science training spheres. The integration of the social science concepts into the accounting education program is of the significant factors that precipitated to the increasing gap between what the schools offer and what the workplace needs. The widening gap between what is taught within the classroom walls and the workplace needs continues to escalate to unprecedented levels during the last 50 years. Johnson and Kaplan‘s research entitled Relevance Lost, emphasized that the simple models and outdated research techniques of the academic community does not snugly fit the intricate demands of the workplace. The two researchers opined the schools equipped the future workplace managers and accountants to use inappropriate cost data. Consequently, the data eroded the American companies’ competitiveness in the global marketplace (MacDonald & Richardson, 2011). The academe’s ethical accounting theories should influence the current practice environment (McPhail 2009). In addition, the accounting education is continually reviewed to meet the workplace needs (Wagner 2010). The article’s research correctly focuses on the application of statistical methods and theoretical models to historical data. The research centers on determining the current lag in the knowledge transfer between management accounting practice and the university’s training of the accounting and management students. The article vividly identifies the value –added concepts and hard to find resources in an institution, the concepts are needed to ensure the firm stays abreast of or ahead of the competitors in the same marketing segment. The term equates to Market value- accounting book value (Pinto 2010). College textbooks state the value chains of the concepts focus on segregating a firm into its strategically relevant activities to increase management focus on more pressing issues (Kannegiesser 2008). Technically, the value added concept represents the difference between revenues and cost of the revenues (Baumol 2010). The academe training adds value to a person hired by private companies (Baron 2007). Competitive advantages occur when the company has resources that are not only rare but also inimitable, the graduate. Institutional frameworks are in place to close the gap between practice and education (Vestergaard 2009). Companies prefer workers with Academic expertise (Herrmann 2011). The related article Value Chain for Strategic Management Accounting in Higher Education (Hutaibat 2011) rightfully mentions that the strategic cost management concept prioritizes the maximization of cost data explicitly directed at one or more of the different steps of the strategic management cycle. The concept includes value chain analysis, cost driver combination and strategic positioning analysis in the preparation of the strategy-relevant cost data. The profit potential affects the drive to close the gap between the schools and the real world (Gerber 2011). Further, the article rightfully focuses on the organization’s maximising its organizational resources and capacities to develop and retain one a responsive academic organisation. The entity’s value chain offers a useful tool to operate and implement the right strategy. Porter developed the value chain concept. The value chain extends beyond the academe’s institutional boundaries. The academe also creates links between the academe’s suppliers as well as the academe’s customers, the students. Accountants are trained to maximize the value chain to achieve organizational goals (McQuaig 2010). The educational institution’s value chain correctly includes several factors. The factors include identifying, acquiring, and focusing the entity’s scarce resources to retain its current top research and education level within the global market segment, education. The research focused on addressing problems arising from real world situation. The research rightfully included a selected group of academic students. The students answered questionnaires. The respondents included school employees. The three areas of the research are perception of the academic actuality that includes the fierceness of the academic community, referring to topics that include the tightness of financial funds, the continuing strain between research and teaching. Value chain analysis research includes the teaching areas. The value chain concept is a useful tool for pinpointing the critical success factors needed to attain an advantageous position in the academic marketplace (Hutaibat 2011). The critical factors rightfully include the time element. The factors focus on the academic staff, funding, as well as the time spent. The research findings include the academe’s difficulty of hiring the best minds. The best minds prefer the private sector or public sector jobs. Normally, the non-academic jobs have higher salaries compared to the academic positions. In fact, one glad school officer was happy when ten applicants vied for a vacant faculty job. The strategic cost analysis can be effectively used by other non-education entities to create and retain a competitive market segment advantage. Based on the above critical analysis, there is a constant passing of the blame between the practice sector and the academe sector. The article Does Academic Management Accounting Lag Practice? A Cliometric Study (MacDonald & Richardson 2011) explains there is gap between the academe and application of accounting theories to the workplace, especially the retail marketing environment sector. The practice and academe must resolve their different approaches to resolving financial situations. Indeed, the article rightfully states the workplace, especially the retail marketing environment officers must not pass the blame for their companies’ careless and fraudulent maneuvering’s financial downfall on the academe. Part II Research on the schism between Academic lessons and Retail Marketing’s reporting needs. Summary A retail marketing research was conducted along the busy streets of London. The research focused on the retail store establishments. The research focused on the marketing establishment’s opinion on the academe’s job of training the students to be more adaptive to the accounting reporting needs of the retail establishments. The research shows diverse conclusions. The different gender and status levels have the same perceptions. The different status classification and age levels have different perceptions. The limitations are clear. The retail research focuses on London residents. The marketing research centers on the age and status of the respondents. The research focuses on the classification and age of the respondents. A similar research should be repeated in Scotland and Wales, focusing on Apple Smartphones to negate or affirm the London research Indeed, the practice (workplace), especially the retail marketing environment, must not blame the academe for the failure of practice to implement college textbook theories and procedures. Introduction. There is a constant bickering between the academe and practice (workplace). The retail marketing research is sufficiently important because it produces new useful information. The hypothesis predictions are logically stated and clearly predicted. Prior related work influences the findings, conclusion and interpretation. The practice sector’s accusations state the academe snubs the practice’s needs. The research focuses on the academe’s desire to fill the needs of the retailer. In terms of scope and delimitation, the survey was conducted with two questions asked from 50 respondents passing along a busy London street. The percentage tool and the Analysis of variance were used to generate the findings and analysis data. The hypothesis is: 1. There is no significant difference on question 1 when the respondents are grouped according to gender, status, classification and age. Related Literature. The college textbooks state that the income statement is an important tool for the decision making process. The same textbooks indicate the income statement shows that total amount of revenues generated by the company in one accounting period (Brigham 2011). The sales amount is generated by selling the company’s products or services (Gitman 2008). Different companies sell different products (Weihrich 2009). Different companies offer diverse services (Kotler 2006). Next the company’s income statement shows the total amount of cost. The cost is the amount paid for purchasing the raw materials, labor paid, indirect manufacturing costs, and purchase price of a merchandising organisation’s products (Fraser 2011). The same textbook-based income statement shows that the gross profit is arrived at by deducting the total cost of revenues from the total amount of revenues, an ethical issue (Noreen 2006). Some scrupulous companies falsify the income statements to present a better picture of the company (Kieso 2011). The Enron and WorldCom cases is a classic example of a company presenting falsified income statements indicating that the company is generating profits (Rittenberg 2009). The company’s accountant, management, and external auditors connived to violate the college textbook principles by presenting falsified income statement indicating that company is generating profits (Wheeler 2011). The implementation of the above classroom textbook theories and procedures in the preparation of the Enron and WorldCom income statements will uncover the company’s net loss situation (Bauer 2009). The WorldCom case also shows that the company’s accountant, management, and external auditors connived and conspired to present falsified financial statements. In the same manner, the company presented a falsified income statement stating the company was generating profits (Wheeler 2011). However, the implementation of the strict college textbook theories of accounting’s income statement preparation would show that the income statement will divulge a net loss figure (Soltani 2007). The stakeholders lost their hard-earned cash because they erroneously relied on WorldCom’s falsified income statement indicating the company generated profits (Mallin 2006). The accounting textbooks will indicate when and who to record each business transactions. The accounting textbooks will indicate when each journal entry (Weetman 2006). The practice or workplace is liable for not recording the liabilities in order to fraudulently indicate the company is in better financial health to the different stakeholders (Ricchiute 2006). Due to the noncompliance with college accounting textbooks, the academe should not be blamed for the failure of businesses (Ricchiute 2006). There are different stakeholders using the financial statements for their decision making activities (Hilton 2007). A financial statement that indicates the company is generating a net loss will drive the average supplier stakeholders from their client company (DuBrin 2009). A net loss income statement indicates the company may not last long. A net loss will indicate the company may file for bankruptcy in the next few months (Warren 2009). The current and prospective investors are eager to grab a copy of the company’s latest income statement, balance sheet, and statement of cash flows (Moyer 2009). Using the financial report, the investors will be encouraged to invest their hard earned cash and other assets in the company (Warren 2008). On the other hand, a net loss income statement will drive away the interested current and prospective stockholders or investors (Newton 2009). The managers are interested to hold a copy of the latest financial statements (Daft 2010). The financial statements serve as proof of their performance (Heller 2006). A net income figure indicates the manager fared well during the indicated accounting period (Brinkerhoff 2009). The accounting textbooks explain the importance of financial statement analysis in the decision making process (Gibson 2010). The current ratio (Stolowy 2006) indicates the company’s ability to use the current assets to pay the currently maturing liabilities (Khan 2006). The return in investment ratio indicates the length of time the company will be able to recover its investments (Besley 2008). The debt to equity ratio (Birkinshaw 2010) indicates the relationship between the company’s obligations and the stockholders’ equity portion of the balance sheet (Koontz 2006). The receivables turnover indicates how long the receivables will be converted into cash (Sollenberger 2008). The inventory turnover indicates how long inventory will be converted into cash (Hilton 2011). The profit ratios indicate the success or failure of the retailer, including the Smartphone entities (Horngren 2009). Failure of the practice or workplace to implement the college textbook’s financial statement analysis will increase the probability of entity bankruptcies in London (Hansen 2006). Methodology: A survey was conducted along a busy street in London. The surveys were answered by 50 eager respondents. The research uses the descriptive frequency approach. Likewise, the research included the use of the chi –square to determine of there is a relationship between the respondents’ gender, status, classification and age and the two questions. The questions are: 1. Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment needs? ( )Yes/1 ( ) No/2. SPSS software was used go generate and analysis the gathered research data. The percentage formula, P= (f/N) x 100 was used. The chi-square formula, X2 = E(O – E)2 Where: X2 = Chi –square E = Expected Frequency O = Observed Frequency E = Chi -square Findings/Results and Discussion. Table 1 GENDER Frequency % Valid Male 22 44.0 Female 28 56.0 Total 50 100.0 A research was conducting in London. The respondents are composed of 50 respondents passing along a busy street in London. Table 1 states that there are 22 male respondents. There are 28 female respondents. The males represent 44 percent of the entire survey respondent population. The female respondents are 56 percent of the total survey respondents. Thus, there are more female respondents when compared to the male respondents. Table 2 Status Table 2 states that there are 33 single respondents. There are 17 married respondents. The single respondents represent 66 percent of the entire survey respondent population. The married respondents are 34 percent of the total survey respondents. Thus, there are more single respondents when compared to the married respondents. Table 3 Classification Frequency Percent Valid Academe 19 38.0 Practice 31 62.0 Total 50 100.0 Table 3 states that there are 19 academe respondents. There are 31 practice (workplace) respondents. The academe respondents represent 38 percent of the entire survey respondent population. The practice or workplace respondents are 62 percent of the total survey respondents. Thus, there are more practice (workplace) respondents when compared to the academe respondents. Table 4 states that there are 13 respondents belonging to the 18-22 age range. There are 25 respondents belonging to the 23-26 age range. There are over 12 respondents belonging to the Table 4 Age Frequency % Valid 18– 22 13 26.0 23-26 25 50.0 Over 26 12 24.0 Total 50 100.0 over 26 age range. The 18 -22 age range respondents are 26 percent of the total survey respondents. The 23 -26 age range respondents are 50 percent of the total survey respondents. The over 26 age range respondents are 24 percent of the total survey respondents. There are more respondents belonging to the 23-26 age respondents. Analysis of Variance: QUESTION 1: Gender Table 5 Significant difference between respondents’ Gender and answer to question 1 . Value Df Pearson Anova .061(b) 1 N of Valid Cases Critical Value 50 3.841 The Analysis of Variance focuses on the realistic plan to collect data from 50 respondents passing along a busy London street. The focus is on the ethical issues relating to the gender, status, classification and age influences of the respondents in relation to question 1. The research rules out alternative explanations for results for being too insignificant to the data analysis and interpretation. The table 4 shows if there is a significant difference between the gender of the respondents and the question “1. Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment, needs? ( ) Yes/1 ( ) No/2”. The computed F value at 1 degree of freedom is .061. The critical F value is 3.841. The respondents are composed of 50 respondents passing along a busy street in London. Since the computed F value is lower than the critical F value, there is no significant difference between the respondents’ gender and the answer to question 1. Therefore, the different gender levels have the same perceptions. The null hypothesis is accepted. Status: Table 6 Significant difference between respondents’ status and answer to question 1. Value Df Pearson Anova .009(b) 1 N of Valid Cases Critical Value 50 3.841 The table 5 shows the relationship between the status of the respondents and the question “1. Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment, needs? ( ) Yes/1 ( ) No/2”. The computed F value at 1 degree of freedom is .009. The critical F value is 3.841. The respondents are composed of 50 respondents passing along a busy street in London. Since the Computed F value is lower than the critical F value, there is no significant difference between the respondent’s status and the answer to question 1. Therefore, the different status levels have the same perceptions. The null hypothesis is accepted. Classification: The table 6 shows the relationship between the classification of the respondents and the question “1. Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment, needs? ( ) Yes/1 ( ) No/2”. The computed F value at 1 degree of freedom is 16.099. The critical F value is 3.841. The respondents are freedom is 15.099. The critical F value is 3.841. Table 7 Significant difference between respondents’ Classification and answer to question 1. Value Df Pearson Anova 16.099(b) 1 N of Valid Cases Critical Value 50 3.841 The respondents are composed of 50 respondents passing along a busy street in London. Since the Computed F value is higher than the critical F value, there is a difference between the respondents’ classification and the answer to question 1. Therefore, the different classification levels have different perceptions. The null hypothesis is not accepted. Table 8 Chi Square Test of relationship between respondents’ Age and answer to question 1. Value Df Pearson Chi-Square 5.992(a) 2 N of Valid Cases Critical Value 50 5.991 Further, the table 7 shows the relationship between the age of the respondents and the question “1. Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment, needs? ( ) Yes/1 ( ) No/2”. The computed F value at 2 degree of freedom is 5.992. The critical F value is 5.991. The respondents are composed of 50 respondents passing along a busy street in London. Since the Computed F value is higher than the critical F value, there is a significant difference between the respondents’ age and the answer to question 1. Therefore, the different age levels have different perceptions. The null hypothesis is not accepted. Conclusions: The research shows diverse conclusions. The different gender levels have the same perceptions. The null hypothesis is not accepted. The different status levels have different perceptions. The null hypothesis is not accepted. The different classification levels have different perceptions. The null hypothesis is accepted. The different age levels have different perceptions. The null hypothesis is accepted. Indeed, the practice (workplace), especially the retail marketing environment, must not blame the academe for the failure of practice to implement college textbook theories and procedures to generate bottom line profits. The limitations are clear. The retail research focuses on London residents. The marketing research centers on the age and status of the respondents. The research focuses on the classification and age of the respondents. There are clear recommendations. A similar research should be repeated in Scotland and Wales, focusing on Apple Smartphones. The two other researches will justify or negate the current London general retail research. It is justifiable policy to include the current well-research London project as part of the current body of similar researches under schism between academe theories and retailer practice financial report needs. References: Baron, A., 2007. 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Weetman, P., 2006. Financial and Management Accounting. London: Prentice Hall Press. Weihrich, H., 2009. Management . London: McGraw-Hill Press. Wheeler, K., 2011. IT Auditing: Using Controls to Protect Information Assets. London: McGraw-Hill. Appendix Retail Survey Do you think there is a significant variance between what the schools teach and what the practice (workplace), especially the retail marketing environment, needs Personal Profile: Gender : Male ( ) Female ( ) Status : Married ( ) Single ( ) Classification: Academe ( ) Retail workplace ( ) Age: 18 – 22 ( ) 23- 26 ( ) Over 26 ( ) Survey Questions: 1. Are the school’s accounting lessons appropriate for recording the retail establishment’s revenues? Yes ( ) No ( ) 2. Are the school’s accounting lessons appropriate for recording the retail establishment’s advertising expenses? Yes ( ) No ( ) 3. Are the school’s accounting lessons appropriate for recording the retail establishment’s sales commission expenses? Yes ( ) No ( ) 4. Are the school’s accounting lessons appropriate for recording the retail establishment’s transportation expenses? Yes ( ) No ( ) 5. Are the school’s accounting lessons appropriate for recording the retail establishment’s store inventory reporting? Yes ( ) No ( ) 6. Are the school’s accounting lessons appropriate for recording the retail establishment’s Sales office clerk’s salaries? Yes ( ) No ( ) 7. Are the school’s accounting lessons appropriate for recording the retail establishment’s cost of sales? Yes ( ) No ( ) 8. Are the school’s accounting lessons appropriate for recording the retail establishment’s electricity expenses? Yes ( ) No ( ) 9. Are the school’s accounting lessons appropriate for recording the retail establishment’s store rent expenses? Yes ( ) No ( ) 10. Are the school’s accounting lessons appropriate for recording the retail establishment’s store telephone expenses? Yes ( ) No ( ) 11. Are the school’s accounting lessons appropriate for recording the retail establishment’s store repair? Yes ( ) No ( ) 12. Are the school’s accounting lessons appropriate for recording the retail establishment’s store maintenance? Yes ( ) No ( ) 13. Are the school’s accounting lessons appropriate for recording the retail establishment’s sales representative’s salary expenses? Yes ( ) No ( ) 14. Are the school’s accounting lessons appropriate for recording the retail establishment’s customer entertainment expenses? Yes ( ) No ( ) 15. Are the school’s accounting lessons appropriate for recording the retail establishment’s sales representative’s gasoline and oil expenses? Yes ( ) No ( ) Majority answer : Yes ( ) No ( ) Appendix B Breakdown of answers of 1st 15 respondents.           Majority Respondent Gender Status Classification Age Answer 1 Male Single Retail Over 26 Yes 2 Male Single Academe 23 - 26 Yes 3 Male Single Academe Over 26 Yes 4 Male Single Academe Over 26 Yes 5 Male Single Retail Over 26 No 6 Male Single Retail 23 - 26 No 7 Male Single Retail 18-22 No 8 Female Married Academe 23 - 26 Yes 9 Female Single Retail 18-22 No 10 Male Single Academe 23 - 26 Yes 11 Female Single Academe 23 - 26 Yes 12 Male Married Academe Over 26 Yes 13 Male Single Retail 18-22 No 14 Female Single Academe 23 - 26 No 15 Female Single Academe Over 26 No             50 Total respondents         Read More