What is a non-quantitative approach in a business?
“Non Quantitative or qualitative approach to business is defined
as making decisions by talking to customers, taking their opinion,
understanding their beliefs and values. It’s about people and their
opinion about your business.”
The non-quantitative approach to business can be used to discuss
a problem with a small sample group of people one on one in an
unstructured manner and use it as a basis for making a quantitative
analysis for a larger audient or target segment.
The nonquantitative or qualitative approach measures other
parameters besides figures, data, and statistics, some of them are
as follows:
- Individuals mind
- Perception
- Beliefs
- Emotions
- Intentions
We can use nonquantitative approach for business discussion, to
discuss a few as follows:
- Conduction a personal interview telephonic or face to face
where an informal discussion can be initiated on an unstructured
topic, the interviewer can get a good insight into the ideas,
belief, and thought the process of the individual.
- Group discussion and Conference calls can also be initiated to
discuss initial business strategies like pricing strategy of a
competitor and where we want to position ourselves. This can be a
free exchange of ideas and an open discussion without any laid out
parameters which will be defined after the conclusion of this
meeting. The thought process of senior management and stakeholders
will be understood regarding the pricing options and entry-level
strategy.
Why is it so popular for firms to quantify their political
risks?
“Political risk is defined as the risk faced by businessman and
investors by the political decisions/ conditions which directly
impact the organizations financial and strategic business
planning.”
Measuring political risks of the country and the region is
critical for the following reasons:
- To measure the success of the business in the region.
- To determine the ease of entry of the organization into the
market.
- To study the economic viability of the business in the
country.
- To arrive at a cost-benefit analysis with respect to the
prevalent business practices
- The business ethics and level of corruption
- Political risk also helps determine the credit risk
All above can be impacted by many macro environment parameters
as follows:
- Political Stability to understand the vulnerability to terror
attacks, the possibility of war and conflict with neighbors, local
violence, riots etc. which will make your business environment safe
or unsafe.
- Economic factors which impact the currency fluctuations, annual
growth of GDP and availability of foreign exchange, trade deficits
etc, which directly impact your investments and revenues.
- The patent and IP laws and the protection offered for a patent,
trademarks, and copyrights which might impact your product.
- The monetary policies and rules related to foreign investments,
transfer of profits from the country, use of capital, tax structure
and many other financial regulations which directly impact the
business.