ELEMENT 1: OBTAIN INFORMATION RELEVANT TO BUSINESS ISSUES
1. What are the key information requirements that should be looked at when gathering information?
The key information requirements are:
Information purpose: examine purpose which end user requires given information. The purpose is assisting when we have to determine the type of information that we need to provide. Scope: who requires information? Determining the scope of required information will allow us to determine the amount of data we need to obtain and amount of processing that is required. Form: determine most suitable form of information (visually, orally, written) Presentation: form of presentation, handouts and level of presentation Resources available: amount of data and information that is required to present I simply affected by the resources we have available
2. What are the three major resource constraints that may be placed by budgets? Briefly explain each constraint. Scope:
The scope has to be set how wide the information is going to be – depending on the coverage of the topics. When defining the scope of the information required it will allow you to set the amount of data we need to gain and the amount of processing that might be required. Time:
The time depends on the project – the wider it is the more time it takes to work through the resources. The money that we get to finish this project also affects this. So when the budget is not that high, we won’t be able to spend much time for it. Expertise:
The expertise is affected by the money we have. A hired specialist for a project cost money and if the budget is not enough for someone to assist us we need to research and study the topic to help ourselves. The disadvantage of not having an expert is that it could affect the results, as it might not be that accurate without having the 100% knowledge about it.
3. Information for management decision-making comes from two different sources. What are they? Explain each source.
Information for management decision-making can come from either internal or external sources. Internal sources are giving us information, which was obtained within an organisation by our employees and the relative database management systems. External sources come from outside an organisation that can be statistical information centres, industries, government, suppliers or general organisations. Those sources can have disadvantages though as they could slightly differ from the specific information we are looking for.
4. Name two disadvantages of internal sources.
When using internal data from our accounting and management information systems, it can have disadvantages: The first disadvantage is that when we are using that gathered information is, that the systems are made to satisfy many different information needs – so this means the data can be too rigid and may be inappropriate for the decision we have to make. The second disadvantage is that we could have a problem in regards to accuracy. For example sales reps can be exaggerate wit their activities. So this leads to a problem when we have to analyse the data.
5. Name a few questions that should be considered when deciding if the information for decision-making is relevant? Who? (Applies to the agency that is collecting the data for us. Will their work be honest?) Why? (Why was a particular piece of data collected? This reveals the intentions and motives behind information being created) How? (How did we do the research? What methods were used?)
What? (It is important to determine whether the information gathered is difficult to use or inadequate for our needs)
ELEMENT 2: ANALYSE INFORMATION AND KNOWLEDGE
6. Name FIVE forms of reporting information and briefly explain each form. Statistical information: generated by using statistical computerised applications such as SPSS. In most cases the result is put in numbers or a table (or chart, graph). Graphical information: giving a...
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