Business Research Methods

COMPANY DATA AND DECISION MAKING

INTRODUCTION

Data is very important to any organization . It enables managers to keep track on companies ' transaction . Proper data observance in companies is vital and it should be prepared without taking into account any personal motive or interest

How the company misused the data

The company 's financial statement were governed by very soft accounting rules as were reveal after investigation was done . The company 's management had been doing insignificant amount of risk transfer for their finite reinsurance transactions i .e . there was inadequate

risk transfer . Through the available data relating to company transaction the company management manipulated its own earnings and other financial statements such as balance sheet to suit their personal interest (Kimberly , 2000

Ethical implications of misuse of data

It leads to problematic continuity of companies since companies which misuse data cannot prosper in a competitive economy hence may cease from doing business . Using erroneous output data results to inaccurate financial statements (Nancy Kelvin , 2004

Results of misuse of data by the company

It led to firing of companies officials after they violated the company 's cooperation policy AIG 's stock price has plummeted by more than 20 since the company disclosed receiving subpoenas earlier Misuse of data by the company resulted in dishonest report being published i .e . AIG manipulated its own earnings and balance sheet through use of reinsurance agreements which was a kind of a new twist (Sruti , 2003

Limitations and significance of data

Some of the AIG 's data does not give a true representation of company 's financial statements . Such data can streamline earnings of the company while hiding losses made by the company hence does not give true financial position of the company , due to voluminous accounting data and other financial transaction records

Data has great significance in any company the economic welfare of the company and the consequences of its operations as portrayed by annual financial reports are therefore an intricate and ever changing web of facts and conjectures , where the dividing line between the two is largely unknown to information users . With the current state of economic and financial projections and a broad move toward increased fair-value measurement of assets and liabilities , company 's data are potentially useful to investors and shareholders of a company because they are primary means by which company 's credibility is conveyed (Kimberly 2000

Opportunities offered by technology for business

There exist various technologies that companies can employ in to increase efficiency and effectiveness . Organization can employ data mining technique to exam their database for proper monitoring of trends , relationships , and outcomes to enhance overall operations and to enable management discover new patterns that may allow them to better serve customers

Conclusion

Poor financial statements and transactions processing system create great problems in organization . This can lead to high chances of fraud bad rigging which may end up paralyzing companies operations . Data used in organizations should be relevant and should not be misused to reveal true position...