37

747 CHAPTER III

748 RESEARCH METHODOLOGY

749 This chapter presents the methodology and approach in the conduct of the

750 study. It also presents an overview of plans, designs and activities in coming up

751 with a research study. Specifically, this chapter discusses the research design,

752 sources of data, respondents of the study, research instrumentation, data

753 gathering procedures and statistical treatment of data.

754

755 Research Design

756 In order to see the general picture of the competitive strategies, cost

757 minimization practices, and their benefits to ALINDECO’s profitability, liquidity

758 and efficiency manufacturing their product, the descriptive research method was

759 used.

760 Descriptive method of research is a more in-depth research that answers

761 the questions what and how.1 It attempts to gather quantifiable information that

762 can be used to statistically analyze a target audience or a subject. It can provide

763 a rich data set that often brings to light new knowledge or awareness that may

764 have otherwise gone unnoticed or encountered. It is particularly useful when it is

765 important to gather information with disruption of the subjects or when it is not

766 possible to test and measure large numbers of samples. It allows researchers to

767 observe natural behaviors without affecting them in any way.

768

769
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770 Sources of Data

771 For the purpose of this study, it made use of various sources to obtain

772 needed data and information. In gathering data for this research, the responses

773 to the questionnaire given to the respondents served as the primary source of

774 data. The secondary/supplementary sources of data were derived from printed

775 materials such as books, journals, unpublished theses etc. and some was

776 retrieved from published electronic sources which include general websites.

777

778 Respondent of the Study

779 The respondent of the study was the finance and accounting head of

780 ALINDECO. The head will answer the questions regarding the competitive

781 strategies, cost minimization strategies and the benefits of these strategies to the

782 firm’s profitability, liquidity and efficiency. The respondent is of knowledge of the

783 whole process that happens in the manufacturing firm.

784

785 Research Instrument

786 A questionnaire used in gathering data in this study. The researchers after

787 reviewing some related studies constructed their own questionnaire that is to be

788 administered to the respondents. The questionnaire has three (3) parts. Part 1

789 determined the competitive strategies adopted by the firm in the process of

790 production. Part 2 consisted of items that determined the cost minimization

791 practices used by the firm in terms of asset utilization and direct cost incurrence.
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792 Part 3 consisted of items that determined benefits of cost minimization strategies

793 adopted by the company in terms of its profitability, liquidity and efficiency.

794 Data Gathering Procedure

795 The researchers secured a letter from the Adviser and the Dean to

796 conduct interviews to the respondents using the questionnaire they constructed.

797 Upon approval, the researcher will immediately ask for ALINDECO’s permission.

798 Once permitted, they discuss the significance of the study to the respondents.

799 Then the researcher will personally administer the research instrument to the

800 respondents. After the questionnaire has been given, it will be collected by the

801 researchers after a day or two to give the respondents enough time to answer

802 and at the same time not to add pressure on their part.

803 After collecting the accomplished questionnaire, the data from it will be

804 used as the bases of analysis and interpretation.

805

806 Statistical Treatment

807 The Descriptive Statistics is used as a tool of analysis. The cost

808 minimization strategies which answer the Problem 1 were measured using the

809 questionnaire checklists. The descriptions used were the following categories: 3

810 – Always Adopted, 2 – Sometimes Adopted and 1 – Never Adopted. Problem 2

811 was answered in part 2 of the questionnaire. The descriptions used were the

812 following categories: 3 – Always Practiced, 2 – Sometimes Practiced and 1 –

813 Never Practiced. Part 1 and 2 of the questionnaires were measured using

814 Likert’s Scale of Measurement.2 Part 3 of the questionnaire answered Problem 3

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815 which was also a checklist consisting of various ranges to measure the

816 company’s profitability, liquidity and efficiency through ratio analysis.

817

COST MINIMIZATION
SCALE COMPETITIVE STRATEGIES
PRACTICES
3 Always Adapted Always Practiced

2 Sometimes Adapted Sometimes Practiced

1 Never Adapted Never Practiced

818

819

820

821

822

823

824

825

826

827

828

829

830

831

832

833

834
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835 Notes

1Types of Research Design; sourced at http://www.scholarshipfellow.com/

research-design-types-research-design/; accessed on August 28, 2018.
2Likert Scale; sourced at http://www.britannica.com/topic/Likert-Scale;
accessed on August 28, 2018.