Dear MBA students,

As agreed please find attached the Mid Term Exam, you should:
1. Answer ALL questions, Part1 & Part2
2. Use your text book, extra text book, the internet, and other references.
3. DON'T discuss or share, by any means of communication, with any other class students (even for those w
4. It is NOT ACCEPTED to just copy and paste from any source, your interpretation and write-up is a MUS
5. Reply with your file .xls, of your answer to ME ONLY ashraf@ashrafelsafty.com .
6. MUST include your first name and family name WITHIN the file name (ex.: DrAshrafElsafty-RM-ESLS
7. Use BLUE color for your text answers, or just fill in the shaded blocks.
8. Email directly to ME ONLY no later than agreed deadline day and time (Wednesday 29th May201

Again we are studying to learn, and we are now leveraging our learning capacity and measuring our knowledge le
So please focus on your time and answers to learn while filling the exam.

Wish you all the best of luck.

Kind Regards,
Dr. Ashraf Elsafty
Adjunct Professor, Strategist
Strategic Management & Research Methods.
ESLSCA, MIU, Riti/MsM cairo outreach.
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Dr. Ashraf Elsafty
Research Methods
ESLSCA 39 D
Mid term Exam
Part ONE

Part 1:
When is Applied research, as distinct from Basic research, useful? (2 lines)

Critique the following research done in a service industry as to the extent to which it meets “the
hallmarks of scientific investigation”. (1 paragraph)
The Friendly Telephone Company: Customer complaints were mounting, and letters of complaint regarding
the problems they experienced with the residential telephone lines were constantly pouring in at the
Friendly Telephone Company. The company wanted to pinpoint the specific problems and take corrective
action. Researchers were called in, and they spoke to a number of customers, noting down the nature of the
specific problems they faced. Since the problem had to be attended to very quickly, they developed a
theoretical base, collected relevant detailed information from a sample of 100 customers, and analyzed the
data. The results are expected to be fairly accurate with at least an 85% chance of success in problem solvin
The researchers will make recommendations to the company based on the results of data analysis.

How would you describe the research process? (1 paragraph/4-5 statements)

Why is it important to gather information on the background of the organization? (1 paragraph)

How would you go about doing a literature survey in the area of business ethics? (3 lines)

What is the purpose of the literature survey? (2 statements)

Why is appropriate citation important? What are the consequences of not giving credit to the source
from which materials are extracted? (3 statements)

“The problem definition stage is perhaps more critical in the research process than the problem
solution stage”. Discuss this statement. (3 lines)

Offer a clearly focused problem statement in the broad area of corporate culture. (1 statement)

Below is the gist of an article from Business Week. After reading it, (a) identify the broad problem
area, (b) define the problem, and (c) explain how you would proceed further. (a; 2 lines, b; 1
statement, c; 3 statements)
While Chrysler’s minivans, pickups, and sports utilities take a big share of the truck market, its cars trail
behind those of GM, Ford, Honda, and Toyota. Quality problems include, among other things, water leaks an
defective parts.

What is the problem statement in the following situation? (1 statement)

Employee Loyalty: Companies benefit through employee loyalty. Crude downsizing in organizations during
the recession crushed the loyalty of millions. The economic benefits of loyalty embrace lower recruitment
and training costs, higher productivity of workers, customer satisfaction, and boost the morale of fresh
recruits. In order that these benefits may not be lost, some companies, while downsizing, try various
gimmicks. Flex leave, for instance, is one. This helps employees receive 20% of their salary, plus employer-
provided benefits while they take a 6-12 month sabbatical, with a call option on their services. Others try
alternatives like more communication, hand-holding, and the like.

How would you define the problem in the following case? (3 lines)
Accounting Gets Radical: The GAAP (Generally Accepted Accounting Principles) do an unacceptable job of
accounting for the principal activities of the Information Age companies. Today, investors are in the dark
because the accounting is irrelevant. The basic purpose of accounting is to provide useful information to he
investors make rational investment, credit, and similar decisions, but today’s most important assets and
activities – intellectual capital and knowledge work – are totally ignored. Professor Robert A. Howell wants
to reform the accounting system with the goal of making clear the measurement of how companies produce
cash and create value.

Because literature survey is a time-consuming exercise, a good, in-depth interview should suffice to
develop a theoretical framework. Discuss this statement. (in one paragraph or two).

Good models are complex. What’s more, a good model should include both moderating and mediatin
variables. Discuss this statement. (one or two paragraphs).

Academic researchers usually develop more complex and elaborate models than applied
researchers. Discuss this statement. (yes or no, with reasoning).

In an applied research context you do not need to explain the relationships between the variables in
your conceptual model. Discuss this statement. (one paragraph of reasoning).

For the following case titled Sleepless Nights at Holiday Inn (published in Business Week and adapte
here):
a. Identify the problem, b. Develop a theoretical framework, c. Develop at least four hypotheses.
Sleepless Nights at Holiday Inn: Just a few years ago, Tom Oliver, the Chief Executive of Holiday Hospitality
Corp., was struggling to differentiate among the variety of facilities offered to clients under the Holiday
flagship – the Holiday Inn Select designed for business travelers, the Holiday Inn Express used by penny
pinchers, and the Crowne Plaza Hotels, the luxurious hotels meant for the big spenders. Oliver felt that
revenues could be quadrupled if only clients could differentiate among these. Keen on developing a viable
strategy for Holiday Hospitality which suffered from brand confusion, Tom Oliver conducted a customer
survey of those who had used each type of facility, and found the following. The consumers didn’t have a clu
as to the differences among the three different types. Many complained that the buildings were old and not
properly maintained, and the quality ratings of service and other factors were also poor. Furthermore, whe
word spread that one of the contemplated strategies of Oliver was a name change to differentiate the three
facilities, irate franchises balked. Their mixed messages did not help consumers to understand the
differences either. Oliver thought that he first needed to understand how the different classifications would
be important to the several classes of clients, and then he could market the heck out of them and greatly
enhance the revenues. Simultaneously, he recognized that unless the franchise owners fully cooperated wit
him in all his plans, mere face lifting and improvement of customer service would not bring added revenues

Exercise 4.1 (From your text book)

State the dependent variable and why.

Exercise 4.2
State the dependent variable.

Exercise 4.3
Fill in the below table :
Variable type
independent variable
independent variable
dependent variable

Exercise 4.5
Fill in the below table :
Variable type
independent variable
dependant variable
moderating variable
Answer

applied research is useful when we try to solve currently experienced

problem in our business.

research have specific PURPOSE (find reason of complaints), researchers

follow scientific way when conducting this research so RIGOR is exist, also
TESTABILITY do exist since they try to proof their theoretical base by
collecting data and analyzing it, for PRECISION AND CONFIDENCE I think
that reached value 85% at least is quite enough, this research is OBJECTIVE
since the researchers build their conclusion from actual data, finally they
were searching only one problem (low customer satisfaction)so PARSIMONY
do exists.

the process of finding solutions to a problem after a thorough study and

analysis of the situational factors, or it can be defined as an organized,
systematic, data-based, critical, objective, scientific inquiry or investigation
into a specific problem, undertaken with the purpose of finding answers or
solutions to it.

Information gathered on the background of the organization will be useful

when talking with managers and other employees and rising appropriate
issues related to the problem.

(1) Identify of published and unpublished work from secondary data source,
(2) Evaluate these date in relation to the business ethics (3) Document my
work.

Literature survey highlights the problem, and summarizes the work done so
far on the topic.
citation is important to convince the reader that (1) the researcher is
knowledgeable about the problem area and has done the preliminary
homework that is necessary to conduct the research, and (2) the theoretical
framework will be structured on work already done and will add to the solid
foundation of existing knowledge. not giving credit have unpleasent
consequences including legal action taken through copyright protection laws,
plus this will reduce the value of our research.

problem definition stage is most important because no amount of good

research can find solutions to the situation if the critical issue or the problem
to be studied is not clearly pinpointed.

To what extent do management personable attitude and employee

involvement in decision making accounts for employee satisfaction.

a. The broad problem: Chrysler is a large company in cars manufacturing to

maintain its position in the market it should improve its market share in cars
market, bad quality control affects directly on chrysler's car market share.

b. Problem statement: to what extent do Quality control affect Chrysler's car

market share?

c. make a literature review about Quality control for cars manufacturing,

make theoretical framework containing important variable and conceptual
model describe how these variable relate to each other, make hypotheses and
check validity of this hypotheses through collecting data and analyze it.

Problem statement. How to increase employee loyalty during the recession

Crude downsizing?
Problem Definition: how to make good accounting system with the goal of
making clear the measurment of how companies produce cash and create
value.

this statement is not correct, because literature survey provides a solid

foundation for developing the theoretical framework, it identifies the
variables that might be important, as determined by previous research
findings, this in addition to other logical connections that can be
conceptualized, forms the basis for the theoretical model.

this statement is not correct, since a good model is based on a sound theory.

yes, because in basic research we make some contribution to existing theories

and models, in such a case, it is not always possible to use existing theories or
explanations for relationships between variables. As a result, we will have to
rely on our own insights and ideas.

That is because In an applied research context we apply existing theories to a

specific context. This means that arguments can be drawn from previous
research, which will contain explanation of the relationships between the
variables in our conceptual model.

Problem Statement: to what extent do brand confusion and service quality

affect on revenue.
Theoretical Framework: dependent variable is revenue, independent
variable is (1) Brand confusion, (2) Quality of service, (3) Proper
maintenance, moderating variable is franchise owners cooperation.

quality of service

revenue

proper maintenance

franchise
brand confusion owners
cooperatio
n

Hypotheses: (1) If awareness of clients of different offers increased revenue

will increase. (2) If service quality is enhanced revenue will increase, (3) If
maintenance done properly revenue will increase, (4) If franchise owners
cooperate service quality and maintenance will be enhanced thus revenue
will increase.

The dependent variable is performance

The dependent variable is product desirability

Variable Name
supervision
training
production level

Variable Name
off-the-job classroom training
productivity
age
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Dr. Ashraf Elsafty
Research Methods
ESLSCA 39 D
Mid term Exam
Part TWO

Part 2: To be answered at the shaded cells only.

Business research can be described as a systematic and organized effort to investigate a specific probl
solution.
a. T
b. F

Research done with the intention of applying the results of the findings to solve specific problems curre
basic research.
a. T
b. F

Research done primarily to make a contribution to existing knowledge is called basic, fundamental, or pure
a. T
b. F

Applied research is not scientific in nature.

a. T
b. F

Ethics in business research refers to a code of conduct or expected societal norm of behavior while conduct
a. T
b. F

Ethical conduct applies to the researchers who undertake the research, but not to the respondents who pro
a. T
b. F

The main distinction between applied and basic business research is that the former is specifically aimed a
the latter has the broader objective of generating knowledge and understanding of phenomena and problem

a. T
b. F

Both basic and applied research has to be carried out in a scientific manner.
a. T
b. F

The first step in research is to know where the problem areas exist in the organization, and to identify as c
need to be studied and resolved.
a. T
b. F

Identifying the critical issues, gathering relevant information, analyzing the data in ways that would help d
of action, are all facilitated by understanding business research.
a. T
b. F

Knowledge gained by the findings of basic research cannot be applied by organizations to solve their own p
a. T
b. F

‘Rigor’ related to scientific investigation refers, amongst others, to:

a. The probability that our estimations are correct.
b. The idea that a simple model that explains a certain phenomenon has preference over a complex model.
c. The fact that findings are generalizable.
d. The fact that a study has a good theoretical base.

‘Confidence’, as a characteristic of scientific investigation, refers to:

a. The probability that our estimations are correct.
b. The idea that a simple model that explains a certain phenomenon has preference over a complex model.
c. The fact that findings are generalizable.
d. The fact that an investigation has a clear theoretical foundation.

An inductive investigation starts with an observation of empirical data.

a. T
b. F

A deductive investigation is based on theoretically logical reasoning.

a. T
b. F

It is not always possible to meet all the hallmarks of science in full. Comparability, consistency, and w
research.
a. T
b. F

Which of the following is a hierarchical listing of the hypothetico-deductive research method?

a. Identify a broad problem area - Define the problem statement - Develop hypotheses - Determine measu
of data
b. Identify a broad problem area - Define the problem statement - Determine measures - Data collection -
of data
c. Define the problem statement - Identify a broad problem area - Determine measures - Develop hypothe
of data
d. Identify a broad problem area - Develop hypotheses - Determine measures - Data collection - Data analy

A literature survey helps the development of the theoretical framework and hypotheses for testing.
a. T
b. F

Which of the following answers is not an objective of preliminary research?

a. One does not run the risk of “reinventing the wheel”.
b. Important variables that are likely to influence the problem situation are not left out of the study.
c. The problem statement can be made with precision and clarity.
d. To determine whether a variable is an independent variable, a dependent variable, a mediating variable

A frequent problem in terms of feasibility is that the problem statement is too broad in scope.
a. T
b. F

From an academic perspective research is relevant if:

a. Nothing is known about a topic.
b. Much is known about the topic, but the knowledge is scattered and not integrated.
c. Much research on the topic is available, but the results are (partly) contradictory.
d. Established relationships do not hold in certain situations..
e. All of the above.

A hypothesis is unrelated to the theoretical framework.

a. T
b. F

The ________________ is the variable of primary interest to the researcher.

a. Independent variable.
b. Intervening variable.
c. Moderating variable.
d. Dependent variable.
A marketing manager believes that sales promotion has a positive effect on sales. Although he believe
consumers he also believes that it is nevertheless contingent on the price consciousness of consumers.
What would be the dependent variable here?
a. Profits.
b. Sales promotion.
c. Pice consciousness.
d. Sales.

Job satisfaction is:

a. An independent variable.
b. A dependent variable.
c. A moderating variable.
d. This is not clear based on the above information.

A theoretical framework contains all possible variables that have an effect on the dependent variable.
a. T
b. F

A conceptual model describes how the concepts in your model are related to each other.
a. T
b. F

A theory attempts to explain relationships between the variables in your model: an explanation should b
are theorized to exist among the variables.
a. T
b. F

Theory is needed in basic research but not in applied research

a. T
b. F

Another term for independent variable is predictor variable.

a. T
b. F

A theoretical framework represents your beliefs on how certain phenomena (or variables or concepts) ar
you believe that these variables are associated to each other.
a. T
b. F
In what way do the concepts causality and correlation relate to each other?
a. Causality is a necessary and sufficient condition for correlation.
b. Causality is a necessary but not sufficient condition for correlation.
c. Correlation is a necessary but not sufficient condition for causality.
d. Correlation is a necessary and sufficient condition for causality.

Dictionary definitions provide a useful basis for the operationalization or measurement of your concepts in

a. T
b. F

What cannot be seen as purpose of a causal study?

a. Understanding the dependent variable.

b. Predicting the dependent variable.
c. Making sure that all relevant variables are included in the study.
d. Explaining variance in the dependent variable.

If a bank manager wants to analyze the relationship between interest rates and bank deposit patterns of c
investigation.
a. T
b. F

A marketing manager aims to investigate the relationship between customer satisfaction and store loyal
will have to be collected from Syrian stores and the ‘unit of analysis’ is the country.
a. T
b. F

Wish you all the best of success.

Dr. Ashraf Elsafty

Answer, ONLY using A or B or C or D or E

a
a

a
a

d
d

a
c