Business_Research_Methods_Part_Ii

Business Research Methods Part II Beginning in 2008, Chrysler LLC’s financial situation reached the point where bankruptcy seemed the only viable option for the company. A sharp decline in sales coupled with a struggling economy put Chrysler on the brink of financial collapse. In early spring of 2009, the company had no choice but to file for bankruptcy. This paper will focus on the research data collection along with the collection method. In addition, the paper will include a list of questions given to researchers as well as the classification of data presented. The null hypothesis for this experiment is: Decreased sales led to Chrysler’s bankruptcy. The alternative hypothesis for this study is: Decreased sales did not lead to Chrysler’s bankruptcy. In order to address the hypotheses, data gathered from publicly available sources replaces the need for new primary research. The resulting data will assess the potential impact of the different influences and their importance. The research will adopt a quantitative approach with the identification of relevant statistics used to assess the sales performance of Chrysler. By using existing sources for the collection of data, the methodology will bring the data together to determine any correlation or patterns between the different influences. One or more of the following factors influenced Chrysler’s decreases in sales: decreased vehicle production, increased fuel costs, higher unemployment rates. Questionnaire The questionnaire acts as a guide for researchers to use in order to get them to collect data related only to the factors listed above. Since different companies throughout the years have owned Chrysler, viewing annual reports for production amounts proved difficult. Instead, the team chose to concentrate on the number of cars sold as an alternate means of collecting the information. Comparing the number of cars sold by Chrysler to the total amount of cars sold in the US is another way to gather data related to the team’s hypotheses. In addition, another variable that has been identified as a potential influence has been the cost of gasoline; therefore, the cost of gasoline will need to be identified in a meaningful context, such as the average cost of gasoline on a per mile basis. Finally, economic influence is considered as a factor. This figure assesses overall unemployment with an annual figure to determine if there is a correlation between unemployment and Chrysler car sales patterns. The contents of the questionnaire given to researchers are below: 1. Did Chrysler sales decrease prior to the company filing for bankruptcy' 2. Had sales decreased during prior periods of Chrysler’s history that did not lead to bankruptcy' 3. Did the number of cars sold decrease prior to the bankruptcy' 4. Did the price of gas rise during the time period leading to the bankruptcy' 5. Did unemployment rates rise during the time period leading up to the bankruptcy' Data The data collected is from a number of sources. Each year, figures on the sale of Chrysler cars are released. Shown in the first column of Table 1, the performance of Chrysler is assessed using the number of cars sold each year. The second column, change in sales, has been calculated from sales figures, and will provide data that may be used in the assessment. Three sets of independent variables were collected. The first is the total number of vehicles produced (in thousands) in the US. The second independent variable is the cost of gasoline. This has been assessed as the cost in cents per mile given at current prices. Both the production levels and cost of gasoline have been taken from the Bureau of Transport Statistics. The last independent variable is the unemployment rate. The data is taken as a seasonally adjusted figure for December of each year. Classification The number of cars sold, number of vehicles manufactured, cost of gas per mile, and unemployment rates are all interval numbers. Each factor presents meaningful data that have intervals between the numbers. In addition, each can be used to rank and assess the levels within the set scales. The change in sales and the seasonally adjusted unemployment rates are ratio numbers. Conclusion The data gathered in this study took a qualitative approach. The change in sales increased in years 2010 and 2011 even though gas prices were higher than in all previous years. In addition, unemployment was higher than when the company declared bankruptcy. The number of cars manufactured steadily decreased in the years prior to the bankruptcy and increased post-bankruptcy. Sales did decrease by nearly 65% from 1999 to 2009, which would clearly indicate the decreased sales could have led to the bankruptcy. However, the study is does not support the null hypothesis that decreased sales led to the bankruptcy, since Chrysler was also producing less cars per year. Therefore, the alternative hypothesis would be supported by the study that decreased sales did not lead to Chrysler’s filing for bankruptcy.   References The Auto Channel, (2001, Jan), Chrysler group announces year-end and december sales, http://www.theautochannel.com/news/press/date/20010103/press033497.html accessed on 25th May 2013 The Auto Channel, (2003, Jan), Chrysler group reports u.s. december sales, http://www.theautochannel.com/news/2003/01/04/152240.html accessed 25th May 2013 The Auto Channel, (2004, Jan), Chrysler group reports december 2003 sales increase of 2 percent, http://www.theautochannel.com/news/2004/01/05/175827.html accessed 25th May 2013 Bureau of Transport Statistics, (2013), Table 1-15: Annual U.S. motor vehicle production and factory (wholesale) sales. Retrieved May 25, 2013 from http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation _statistics/html/table_01_15.html, accessed on 25th May 2013 Bureau of Transport Statistics, (2013), Table 3-17: Average cost of owning and operating an automobile. Retrieved on May 25, 2013 from http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/national_transportation _statistics/html/table_03_17.html Chrysler, (2013), [online] www.chrysler.com accessed 25th May 2013 Economagic, (2013), Unemployment Rate: SA, [online] http://www.economagic.com/em- cgi/data.exe/blsln/LNS14000000 accessed 25th May 2013   Appendix A: Statistical Evidence Table 1: Statistical evidence regarding Chrysler and influences in their market Dependent variables Independent variables Year Number of vehicles sold* Change in sales** Number of vehicles manufactured in the US (In thousands)*** Average cost of gas per mile (current costs in cents)**** Seasonally adjusted unemployment rate***** 1999 2,638,561 13,025 5.6 4% 2000 2,522,695 -4.40% 12,774 6.9 3.90% 2001 2,273,208 -9.90% 11,425 7.9 5.70% 2002 2,205,446 -3% 12,280 5.9 5.70% 2003 2,127,451 -3.30% 12,087 7.2 5.70% 2004 2,206,024 3.70% 11,960 6.5 5.40% 2005 2,304,833 4.50% 11,947 9.5 4.90% 2006 2,142,505 -7% 11,260 8.9 4.40% 2007 2,076,650 -3.10% 10,752 11.7 5% 2008 1,453,122 -30% 8,672 10.1 7.30% 2009 931,402 -36% 5,709 11.4 9.90% 2010 1,085,211 17% 7,743 12.3 9.30% 2011 1,369,114 26% 8,655 14.2 8.50% *Bureau of Transport Statistics (2013), table 1-15. **The Auto Channel (Jan. 2001, 2003, 2004), Chrysler group reports. **Chrysler.com (2013). *** Bureau of Transport Statistics (2013), table 1-15. ****Bureau of Transport Statistics (2013), table 3-17. *****Economagic (2013). Unemployment rate.