Business Research Methods - Essay Example

?Methodological Approach to Find, Select and Analyse the Data: The researcher initially prepared to present an overview of the construction industry across the world. Secondary data were gathered from relevant databases and libraries to facilitate the comparison amongst the construction industries of the United States (US), the European countries and the Asia Pacific Region. Parallel data were then analysed and compared with the equivalent information pertaining to the United Kingdom (UK). Amongst the available data, those that apply to recent years - in particular, the years 2005 to 2009 - were selected for inclusion in the research paper. Trends were detected through the tabulation of related figures and the preparation of bar graphs and pie charts that served to clearly illustrate the movement, direction or trend from one year to the next. The researcher proceeded to focus on the construction industry in UK. Primary data were generated by way of conducting interviews and giving out questionnaires for both selected industry major players and for randomly selected representatives of the industry market. Research is basically done to gather data in a systematic manner and to interpret such data in the same systematic manner; throughout the process, the purpose of discovering relevant truths should be clearly imprinted in the mind of the researcher (Saunders, Lewis & Thornhill, 2007: 5). The procedures to gather primary data were done to document the sentiments and views of the people in the industry in their various post. Both similarities and differences amongst the answers they provided to uniform questions were recorded and analysed to further analyse the impact of the prevailing industry condition on the individual characters making up the industry group. The data gathered were not limited to the construction industry. In order to establish a sound basis for the correlation between the growth of the industry and other economical factors such as inflation, the Gross Domestic Product (GDP) and the population growth, these data were as well obtained from reliable secondary sources. Target Users of the Industry Profile: This industry profile is generally prepared for the use of the public. It provides an overview of UK’s construction industry vis-a-vis those of other countries without delving too much on the more specific details about it. This report can be revised to suit any particular group of users. After all, a research paper can only be useful to the extent that it addresses the concerns and needs of its reader. This truth applies to all written works, including industry profiles and management research papers. Researchers must be mindful of and responsive to the concerns and interests of practitioners - the users of the finished reports - for their research output to serve a purpose and become valuable (Bryman & Bell, 2007: 5). To serve the needs of the Small and Medium Enterprises (SMEs), it can be made to cover more useful details including the needs and demands of the country’s construction industry that can, in turn, be catered to by the SMEs. These needs and demands of the industry can be analysed using supply value chains that would efficiently demonstrate how the needs of the industry as a whole can actually be addressed by properly organising SMEs to produce the required volumes and quantities of the necessary products or to provide the required services. To serve the needs of Multinational Enterprises (MNEs), more data on the investment opportunities and incentives that are offered by the UK government should be incorporated in the report. The comparative advantages of UK, as well, as the next expansion site of MNEs in the construction industry should be drummed up. Tax holidays and other corporate benefits offered by the country to MNEs should be covered in detail. Meanwhile, independent investors who might wish to buy shares of construction companies that are listed in the bourse would want to see the individual financial performance indicators of the industry leaders and to have them compared with the counterparts of the other industries. This report should, then, cover the important figures that individual investors consider before buying shares; these figures include Earnings per Share (EPS), Price-Earnings Ratio (P/E Ratio), Profitability Ratios and the Returns on Capital and Assets. Institutional investors and mutual funds would similarly want to take a look at these data. These users would want to see the levels of risk and returns that go with investing funds in the construction industry players of their choice. Final Report Outline: 1. Construction Industry Overview The construction industry undeniably has a huge impact on the society; the industry has contributed to all the areas and civilizations across the world today (Liebing 2000). In particular, the construction industries across the globe have experienced economic boom at varying times during the last decade. One thing that is common, though, is the stunted growth of the industry in all the major economies of the world in the year 2008 when the sub-prime market bubble has burst. The same is true with the United Kingdom (UK). Statistics show that the construction output in UK has decreased by 3% from the 3rd to the 4th quarter of 2010. The same output figure is, however, 8% higher compared to the equivalent figure in 2009. The volume of new work output for the 4th quarter of 2010 is 2% less than for the 3rd quarter; it is, however, 15% higher than the figure for the 4th quarter of 2009. These figures show that despite the slowdown in the industry in the 4th quarter of 2010, the year 2010 – as compared to the previous year – has relatively been a better year for the construction industry. Statistics further show that the trends reflected amongst the various industry sectors are not consistent. (Building Cost Information Service Online 2011) 1.1 Global Construction Industry The past decade has witnessed significant price movements and growth in the prime property markets in the U.S., European and the Asia Pacific Regional Markets. The following segments of this Industry Profile brings to light the developments in the construction industries of the world's major economies in the recent years: 1.1.1 The U.S. Market 1.1.2 The European Market 1.1.3 The Asia Pacific Regional Market 1.2 Domestic Construction Industry The year 2010 ushered in growth for the construction industry, which is amongst the country’s industries that have been badly hit by the financial crisis. While the years 2008 and 2009 reflect the dire consequences of the financial crisis that has maimed nations across the globe, the year 2010 has proven to be a better year for the construction industry in UK. 1.2.1 Overview This portion should detail the segments of the country's construction industry, which is the sixth largest industry therein in terms of its share of total Gross Domestic Product (Adamson & Pollington, 2006: 1). This portion should also include the overall trend therein during the recent years. Generally, projects have become larger in size, more complex in design and more expensive to build; they also have taken longer periods of time to complete (Ofori 1990: 11). The industry's sectors were derived from the article entitled, "UK Construction Industry Overview." The data regarding the industry's sectors should be comparable and uniform, if possible, to facilitate the analysis thereof. 1.2.2 Housebuilding Sector This portion should describe the housebuilding sector and should include data on the development and performance of this sector of the industry during the recent years. 1.2.3 Infrastructure Sector This portion should describe the infrastructure sector and should include data on the development and performance of this sector of the industry during the recent years. 1.2.4 Industrial Construction Sector This portion should describe the industrial construction sector and should include data on the development and performance of this sector of the industry during the recent years. 1.2.5 Commercial Construction Sector This portion should describe the commercial construction sector and should include data on the development and performance of this sector of the industry during the recent years. 1.2.6 Building Materials Sector This portion should describe the building materials sector and should include data on the development and performance of this sector of the industry during the recent years. 1.3 Main Industry Players The biggest industry players of the country include AMEC plc, Balfour Beatty plc, and the Kier Group. This part of the industry profile should provide a brief background of each of the major players. The background should next be followed by their operational and financial performance during the recent years. Again, comparable data should be obtained and included in the profile to facilitate analysis and comparison among the industry's major players. 1.4 Findings After gathering primary and secondary data, a theoretical framework would have to be developed (Sekaran & Bougie 2009: 69) to eventually set the foundation of the hypotheses developed during the conduct of the research. The Appendices: Appendix I: Global Construction & Engineering Industry Value Source: EBSCO Industries, Inc. (Article: Global Construction & Engineering) This appendix is designed to illustrate the global value of the construction and engineering industry for the years 2005 to 2009. The graph also charts the percentage of year-to-year growth of the construction and engineering industry during the period. It shows that since the year 2007, the industry's annual growth has been on a decreasing trend and that the drastic year-on-year decrease in the country's construction and engineering industry value occurred in the year 2009. Appendix II: Global Construction & Engineering Industry Segmentation Source: EBSCO Industries, Inc. (Article: Global Construction & Engineering) This appendix is designed to show which parts of the globe has the biggest share of the total construction and engineering industry value for the year 2009. The pie chart easily facilitates the comparison amongst the share of Europe, the Americas and Asia-Pacific in the total industry value for the given year. Specifically, the foregoing pie chart shows that the Americas has had the biggest share of industry value for the year 2009 and that Asia-Pacific has a share that is 4% less. It shows that Europe has bagged the smallest share at 29.2 percent. Appendix III: Prime Residential Yields in London, New York and Hong Kong Source: Knight Frank Wealth Report 2010 This appendix provides an illustration of the downward trend of the prime residential yields in three selected cities of Europe, the Americas and Asia-Pacific. It shows that while the prime residential yields in all three places have been onto a downward direction from the year 2000 to 2009, it is Central London that has turned out to have the highest figures year-on-year during such period. While this graph may be of no help in analysing other sectors of the construction and engineering industry, it gives a valuable view of the prevailing climate in the housebuilding sector of the UK industry. Appendix IV: US Construction & Engineering Industry Value Source: EBSCO Industries, Inc. (Article: Construction & Engineering Industry Profile: United States) This appendix is designed to illustrate the value of the construction and engineering industry in the United States for the years 2005 to 2009. The graph also charts the percentage of year-to-year growth of the construction and engineering industry during the period. It shows that since the year 2006, the industry's annual growth has been on a decreasing trend. Appendix V: US Construction & Engineering Industry Segmentation Source: EBSCO Industries, Inc. (Article: Construction & Engineering Industry Profile: United States) This appendix is designed to show which segment of the construction and engineering industry of the United States has the biggest share in the total industry value for the year 2009. The pie chart easily facilitates the comparison between the Non-Residential Building and the Civil Engineering segments of the industry. Specifically, the foregoing pie chart shows that the Non-Residential Building segment has the bigger share of industry value for the year 2009 compared to the Civil Engineering segment. The former has 52.0 percent while the latter has 48.0 percent. While this applies to the year 2009, the data in this appendix can be related to the recent data on New Residential Construction in 2011, as provided by the US Census Bureau. Appendix VI: UK’s Construction Output Source: Building Cost Information Service Online (Article: Construction Demand - Construction Output) This appendix tabulates the comparative increase or decrease in the output of the various construction sectors in terms of prices. It compares the figures for the fourth quarter of 2010 and those for the third quarter of the same year. It next compares the same figures for the fourth quarter of 2010 with the equivalent total figures for the fourth quarter of the previous year (2009). This analysis shows that while most of the construction sectors had reduced output in the fourth quarter of 2010 compared to the third quarter of the same year, the same industry sectors turned out to deliver increased outputs in the fourth quarter of 2010 as compared to the same quarter of the previous year. Despite the stunted growth of the industry sectors in the fourth quarter of 2010, the year 2010 has turned out to be a year of positive growth for the entire industry as compared to 2009. Appendix VII: UK Construction & Engineering Industry Value Source: EBSCO Industries, Inc. (Article: Construction & Engineering Industry Profile: United Kingdom) This appendix is designed to illustrate the value of the construction and engineering industry in the United Kingdom for the years 2005 to 2009. The graph also charts the percentage of year-to-year growth of the construction and engineering industry during the period. It shows that since the year 2007, the industry's annual growth has been on a decreasing trend and that the drastic year-on-year decrease in the country's construction and engineering industry value occurred in the year 2009. Appendix VIII: UK Construction & Engineering Industry Segmentation Source: EBSCO Industries, Inc. (Article: Construction & Engineering Industry Profile: United Kingdom) This appendix is designed to show which segment of the construction and engineering industry of the United Kingdom has the biggest share in the total industry value for the year 2009. The pie chart easily facilitates the comparison between the Non-Residential Building and the Civil Engineering segments of the industry. Specifically, the foregoing pie chart shows that the Non-Residential Building segment has the bigger share of industry value for the year 2009 compared to the Civil Engineering segment. The former has 55.4 percent while the latter has 44.6 percent. Appendix IX: UK Construction & Engineering Industry Value Forecast Source: EBSCO Industries, Inc. (Article: Construction & Engineering Industry Profile: United Kingdom) This appendix relays that the construction and engineering industry of the United Kingdom is estimated to grow annually in varying degrees from the year 2010 to 2014. While the growth figures projected for the years 2011 and 2012 are more robust at 3.9 percent and 5.0 percent respectively, the years 2013 and 2014 are projected to deliver modest annual growths at 0.7 percent and 2.5 percent respectively. Appendix X: UK Macroeconomic Indicators Source: EBSCO Industries, Inc. This appendix provides the macroeconomic indicators pertaining to the years 2005 to 2009 so as to facilitate the analysis of the correlation between the performance and condition of the construction and engineering industry during those years, and the corresponding applicable economic data. The macroeconomic indicators included in this appendix are the country's size of population and Gross Domestic Product (GDP) figures both at constant 2000 prices and at current prices. Appendix XI: The Survey Questions Author Andrews has written that the extent of details covered by research questions would depend on the boundaries or parameters that have been set for the research (2003: 7). For the purpose of writing an industry profile, the following questions should be made part of the Survey Questions or the Questionnaires that are serve as tools for gathering primary data: For industry players: a) Has the year 2010 been a relatively good year as compared to 2008 and 2009? b) Would the upcoming year be a good time to increase the company's project portfolio or would it be better to indefinitely put off new projects? c) What procedures can the government do to fast-track the recovery of the country's construction and engineering industry? d) Which sector of the construction and engineering industry do you think will be first to bounce back after the setback brought in by the financial crisis? e) What strategies have been implemented by your company management to stay profitable in spite of the financial crisis? f) What marketing promotional campaigns will your company launch to boost your revenues? g) Should the construction and engineering industry of the country be getting more assistance from the government? If so, in what form? h) Should the government allow the entry of foreign players in the country or should the government, instead, make it difficult for them to enter the UK construction market? For industry customers: a) Would the upcoming year be a good time to buy properties or to put up a new home? b) Has the financial sector (e.g., banks) been charging benevolent rates for housing loans or should these rates be lowered? c) Do you feed that there have been more and better employment opportunities in the country this current year? d) Do you feel confident enough about your job security and the continuity of your income source to avail of a housing loan this current year? e) What kind of housing package would you prefer? Describe it. List of References Adamson, D. & Pollington, T. (2006) Change in the Construction Industry. Oxfordshire, UK: Routledge (Taylor & Francis Group) Andrews, R. (2003) Research Questions. Cornwall, UK: MPG Books Bryman, A. & Bell, E. (2007) Business Research Methods. United Kingdom: Oxford University Press Building Cost Information Service Online (2011) Construction Demand – Construction Output [online] available from < http://service.bcis.co.uk/V3_BCIS/ template.html?E0045> [20 February 2011] Corporate Watch (2011) UK Construction Industry Overview [online] available from [20 February 2011] EBSCO Industries, Inc. (2011) Global Construction & Engineering [online] available from < http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?hid=8&sid= b1c586e3-8c75-4f61- 8923-70e996150674%40sessionmgr15&vid=1> [20 February 2011] EBSCO Industries, Inc. (2011) Construction & Engineering Industry Profile: United Kingdom [online] available from [20 February 2011] EBSCO Industries, Inc. (2011) Construction & Engineering Industry Profile: United States [online] available from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?hid=8&sid =cc51bffd-9eeb-475c-a505-931b9ad7f20c%40sessionmgr13&vid=8> [20 February 2011] Knight Frank (2011) Wealth Report 2010 [online] available from < http://www.knightfrank.com/ wealthreport/Documents/pdfTheWealthReport2010.pdf> [20 February 2011] Liebing, R. (2000) The Construction Industry: Processes, Players and Practices. UK: Pearson Education Prentice Hall. Ofori, G. (1990) Construction Industry: Aspects of Its Economics and Management. Singapore: Singapore University Press Saunders, M., Lewis, P. & Thornhill, A. (2007) Research Methods for Business Students 4th Ed. England, UK: Pearson Education Limited Sekaran, U. & Bougie, R. (2009) Research Methods for Business: A Skill Building Approach 5th Ed. West Sussex, UK: John Wiley & Sons Ltd. US Census Bureau (2011) US Census Bureau (2011) ‘New Residential Construction in January 2011’ U.S. Census Bureau News [online] available from < http://www.census.gov/const/ newresconst_201101.pdf> [20 February 2011] US Census Bureau (2011) ‘New Residential Construction in January 2011’ U.S. Census Bureau News [online] available from < http://www.census.gov/const/ newresconst_201101.pdf> [20 February 2011] Read More