Primary And Secondary Research Commerce Essay

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Without any other thought a researcher always faithfully records his observations. Only few of these statements of observation are certified as true and accept as the ground for laws and theories. According to Bryman and Bell (2007) perspective there are two ways of drawing conclusion by certify what is true or false in the observations. They are Induction and deduction. Deduction is wholly based on logic where as empirical evidence is basis for Inductive approach. Therefore, in our present case we will use the inductive approach. Since our research conclusion and recommendations will be drawn by gathering data from the targeted case study company.

According to Saunders et al., (2007) the data that has already been collected for a specific purpose is called secondary data, where as the new data that has been collected for the same purpose using various methods is called primary data.

In order to meet the research objective or to answer the research question researchers first collect the already existing data which is related to the research topic. According to Kervin, 1999 for Saunders et al., (2007) secondary data helps as a source to begin to answer, or to answer research question. Secondary data could be both quantitative and qualitative, that data mostly may be a raw data that has been collected from various sources internet databases, academic journals and Books etc. Thos data is mostly used for survey type, case study type research and multiple sources etc. The main disadvantage of this method doubts about validity of the available data and lack of updates in data sources.

Primary data is that never gather before or that never exist before. It involves methods like questionnaires, interviewing, observations etc. Both the methods are complementary to each other. Major advantage using primary data collection technique is that enables researcher to find the data that suit his purpose. On the other hand its strong disadvantage is that it is time consuming since lots of time is needed for the analysis and organizing the collected data and sometimes expensive.

HISTORY

The SINOPEC is one of the major petroleum and Chemical Corporation in China incorporated in 2000 and according to 2009 turnover, SINOPEC is the largest company in china in producing crude oil and petrochemical products. It was the Chinese first petroleum company listed in Hong Kong, London, shanghai and New York. In 2001, Sinopec Corporation entered in to Shanghai stock market where as in entered in to Global market in 2000. The basic operations of Sinopec and its subsidiaries group include the following:

Exploring

processing crude oil into refined oil products producing

Producing and trading crude oil and natural gas

Distributing and marketing refined oil products and distributing chemical products.

Trading and transporting

The SINOPEC group has the products like LPG, natural gas, Oil products, catalyst, fuel card and Asphalt and it also responsible for environmental protection, occupational safety and occupational health.

STRATEGIC CHALLENGES:

In the time of financial crisis in 2009, firm faced a number of challenges in terms of production and operations. In starting of year 2009 it faces a downfall of price and demand for petro products and also it faces some problems in marketing and while refining. Despite the challenges, the Company achieved impressive results by taking a series of proactive measures including vigorous efforts to develop new markets, targeted management for refinement on details, as well as structural adjustments.

1) MARKET CONDITION:

The Chinese SINOPEC Corp economy was highly affected in times of Global financial crisis; the company has taken significant changes in 2009. The Chinese government taken new plans and implemented to overcome the issue and promotes economic growth and implemented some policies like fiscal policy and monetary policy. In the beginning of year 2009, the price and demand for petro chemical products drop down on a year-on-year basis. Later, the market gradually raised and price came to normal situation at the end of first quarter year.

2) BUSINESS REVIEW AND PROSPECTS:

REFINING SEGMENT: The firm expanded its throughput and refineries running at fullest capacity. In 2009, the company takes advantage from the achievements made by upgrading the crude oil refineries and increased the production of gas and jet fuel. The sales of asphalt, LPG and petrol were increased and expanded the contracts of processing client-supplied materials. The firm produces 164 million tons of crude oil in 2007 where as it increased to 171 in 2008 and 183 in the year of 2009. The detailed summary of production of refining segment is given below:

2009

2008

2007

Gasoline, diesel and kerosene production(million tons)

113.69

107.37

98.28

Of which: Gasoline(million tons)

34.43

29.65

26.55

Diesel(million tons)

68.86

69.74

63.41

Kerosene(million tons)

10.39

7.99

8.32

Light chemical feedstock(million tons)

26.87

23.12

24.00

Light products yield(million tons)

75.54

74.75

74.48

Source: SINOPEC annual results 2009

PRODUCTION AND EXPLORATION SEGMENT:

In financial crisis 2009, the firm implemented new strategy for oil and gas resource by reducing the price and also reduce the production in times of low demand. This new strategy improves the company production values, market expenditure and also saves the raw petroleum resources. The firm produces 42.42 million tons of crude oil and 8.5 billion cubic meters of natural gas comparing the increase of 1.5 to 2% from recent year. The detailed summary of production and exploration segment is given with the following table:

2009

2008

2007

Crude oil production(mmbbls)

301.15

296.80

291.67

Natural gas production(bcf)

299.01

293.07

282.59

Newly added proved reserve for crude oil(mmbbls)

280.19

114.02

20.67

Newly added proved reserve for natural gas(bcf)

78.38

921.60

3756.67

Proved reserve for crude oil(mmbbls)

2820

2841

3024

Proved reserve for natural gas(bcf)

6738.70

6959.31

6330.81

Proved reserve for oil and natural gas(mmboe)

3943

4001

4078

Source: SINOPEC annual results 2009

MARKETING AND DISTRIBUTION:

The firm successfully expanded its marketing business by adapting new market strategies and marketing promotions and approaches. It was successful because of well established frame work and marketing technologies and also the firm has strong brand which was mainly helpful to marketing the product in to market. Also the company reached total number of about 29000 work stations. The company sold 120 million tons of oil products in the year 2009 which has been increased from previous years and slightly improved than 2008. The detailed summary of marketing and distribution frame work is given in the following table:

2009

2008

2007

Total domestic sales(million tons)

124.02

122.98

119.39

Of which: retail volume(million tons)

78.90

84.10

76.62

Direct sales volume(million tons)

25.61

19.63

20.75

Wholesale volume(million tons)

19.52

19.25

22.60

Avg annual throughput per station

2715

2935

1697

Total no. of service stations

19698

29279

29062

Of which: firm operated

29055

28647

28405

Of which: franchised

643

632

657

Source: SINOPEC annual results 2009

CHEMICALS:

In 2009, the Company made tremendous efforts to explore the market, strengthen the integration among production, sales and research, improve customer services and establish the strategic alliances with major clients. The main chemical production facilities operated at full capacity since March amid the unfavorable market circumstances. Fujian ethylene project was completed and put into production. Tianjin ethylene project achieved mechanical completion. In 2009, the Company produced

6.713 million tons of ethylene with a year-on-year increase of 6.7%, and sold 40.8 million tons of chemical products. The detailed summary of chemical segment from last few years is given in the following table:

2009

2008

2007

Ethylene

6713

6280

6534

Synthetic resin

10287

9643

9660

Synthetic rubber

884

834

800

Synthetic fiber monomer and polymer

7798

7264

8018

Synthetic fiber

1302

1260

1417

Urea

1752

1649

1565

Units: thousand tones

Source: SINOPEC annual results 2009

STRUCURE OF SINOPEC:

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