Research Proposal For Cash Flow Forecasting

Research Background

Discuss about the Research Proposal for Cash Flow Forecasting.

This research is analyzing the current cash flow forecasting method in the organization. It is considered as one of the major decision for all the type of businesses. In this research study, the researcher provides a background of the research as well as the scope, objectives and research design.

The method of cash flow forecasting is essential in the businesses of the country like Australia. In order to analyze the research in the better way, the researcher has considered the Australian company that is Australia and New Zealand Banking group. In this research study, it has been analyzed that the company has the difficulty in cash flow forecasting (Onetti, et al., 2012). So, different methods of cash flow are being analyzed in the report. Cash flow method plays an important role in the business in order to grow as well sustain in the market.

In this research study, the main aim of the research is to identify the different methods of cash flow that are used in the current business of Australia. For achieving the aim the various research objectives are to be accomplished that are given below:

• To identify the benefits of using cash flow methods in the business.
• To analyze the impact of cash flow methods on the performance of the company in the context of Australia.
• To suggest the various ways in order to adopt different methods of cash flow in the company.

For the research study, it is essential for the researcher to ensure about the research for focusing on the aims and objective that are analyzed above, so it is mandatory to analyze the limit scope of the research in some areas. Whilst, the research background information, literature review are discussed by the researcher in this research study. The researcher also describes the theoretical issues that will reflect on the current cash flow methods used by Australia and New Zealand Company. In this research study, the research questions will also be included that would help to focus on the main objective of the research (Zikmund, et al., 2013). But, the exact use of cash flow methods is not established in the business so, the current cash flow methods will also be identified by the researcher in this research study. 

For this research study, the researcher will conduct the literature review on the current cash flow methods used in the company of Australia. The basic concepts of the cash flow are being analyzed in the Literature review.  In the literature review, it has been analyzed that in the cash flow the cash payment does not matter with the accrual concept. In the literature review, the problem is being identified by the researcher such as lack of using the cash flow methods has created a decrease in the profit of the company (Achtenhagen, et al., 2013). The opportunity is also being identified by the researcher like adopting of cash flow method will help in forecasting the liquidity position of the company that is its outflow and inflow in advance.

Project Objective

The research gap refers to identify the problem and fulfill the gap that is being identified in the research by the researcher. From the discussion, of the Literature review various gaps are being identified in the research by the researcher like adopting of cash flow method is sensitive if there is a lack of visibility by the company there will be difficulty in predicting sale (Ford, et al., 2013). In this research study, it has also identified that the cash flow method is not suitable for the short-term business.

Hypothesis

In this research study, the researcher has to take into consideration the hypothesis statement that is given below:

Hypothesis 1: Current methods of cash flow forecasting are beneficial for the business.

Hypothesis 2: Current methods of cash flow forecasting are not beneficial for the business.

In this research study, for investigating the research problems there are following questions that are being designed by the researcher that is given below:

1. What are the different cash flow methods that can be adopted by the business?
2. What is cash flow forecasting and how it is useful in the business?
3. What is the impact of cash flow method on the business?

The research design is helpful for providing the accurate information for collecting the data as well as identification of the valuable finding in the context of the research topic. The research design consists of qualitative and quantitative research design. The qualitative research design is concerned with the human behavior understanding from the perspective of the informant’s. On the other hand, quantitative research design is concerned with the discovering facts in the context of the social phenomenon (Creswell, 2013). In this research design, the data is collected through the measuring things. In this research study, the researcher will adopt the quantitative research design as it would help the researcher to collect the information as well as the amount of data from different sources in order to analyze the different methods of forecasting in cash flow. For collecting the data questionnaire and interview process will be adopted by the researcher.

Data collection method is the process to collect the data for identifying the problem to the solution.  It consists of two types of methods that are primary and secondary data.  Primary data is the data, which is collected by the researcher with the help of survey, observations as well as through the experiments. On the other hand, secondary data can be called as the second-hand data that is collected by the different sources such as journals, books, articles, as well as the internet (Englander, 2012). For this research study, both the types of data method is being used by the researcher because these both type of data collection method will be helpful for identifying the gaps as well as methods of cash flow in the business.

Research Scope

 For collecting the primary data, it is essential to collect the appropriate information by the researcher as well as collecting the data from the right population as well as by the enhancement of the liability of the research. It is of two types of methods like probability sampling method and non-probability sampling method. In this research, probability sampling will be adopted by the researcher in order to reduce the bias from the research while, collecting the data. The online survey, as well as interview, will be conducted by the researcher and for this, the sample size of 100 employees will be considered in the Australian company. In order to obtain the effective results in the research study by the researcher. Moreover, the researcher will adopt various data analysis method in this research study such as statistical analysis, conversational analysis, and thematic analysis (Little, and Rubin, 2014). For this research study, the researcher will use MS-excel method as it would be easy to evaluate the calculation in the excel sheet.

In the research study, it is important for the researcher to ensure about the validity as well as reliability that are obtained in the research. In order to ensure for the good responses the researcher has conducted the reliability test for analyzing the response of the participants. The different approaches can be adopted by the researcher like questionnaire and survey.

In this research study, the researcher has adopted the quantitative tools such as questionnaire, and interview. The researcher collects the information with the help of a questionnaire. Moreover, the researcher also adopts the validity and reliability instruments (Bao, et al., 2012). For the quantitative method, the researcher has considered 100 sample size for evaluating cash flow methods that are to be adopted in the business.

In the research study, the different issues will be faced by the researcher in collecting the data such time limitation. Hence, it would also affect the reliability of research as well as its consistency. At the same time, the information of the participants will be kept confidentially that will be used in the academic purpose (Hair, 2015). The researcher would be helpful in eliminating the issue, which is being carried out in the research.

In the above chart, it can be seen that conducting of survey activity took the maximum time that is 3 weeks as compared to the other activities. It can also be seen that identification of survey findings also took 2 weeks of time. So, overall the research took 10 weeks of time in order to complete the research by the researcher.

Conclusion

From the above discussion, it can be concluded that the different cash flow methods are important in the business. From the literature review, the researcher has analyzed the use of cash flow in the businesses. It has also been analyzed that the cash flow forecasting method plays an important role in the business to sustain in the market.

References

Achtenhagen, L., Melin, L. and Naldi, L. (2013) Dynamics of business models–strategizing, critical capabilities and activities for sustained value creation. Long range planning, 46(6), pp.427-442.

Bao, D., Chan, K.C. and Zhang, W. (2012) Asymmetric cash flow sensitivity of cash holdings. Journal of Corporate Finance, 18(4), pp.690-700.

Creswell, J.W. (2013) Research design: Qualitative, quantitative, and mixed methods approaches. USA: Sage publications.

Englander, M. (2012) The interview: Data collection in descriptive phenomenological human scientific research. Journal of Phenomenological Psychology, 43(1), pp.13-35.

Ford, J.D., Bolton, K.C., Shirley, J., Pearce, T., Tremblay, M. and Westlake, M. (2012) Research on the human dimensions of climate change in Nunavut, Nunavik, and Nunatsiavut: a literature review and gap analysis. Arctic, pp.289-304.

Hair, J.F. (2015) Essentials of business research methods. USA: ME Sharpe.

Little, R.J. and Rubin, D.B. (2014) Statistical analysis with missing data. USA: John Wiley & Sons.

Onetti, A., Zucchella, A., Jones, M.V. and McDougall-Covin, P.P. (2012) Internationalization, innovation and entrepreneurship: business models for new technology-based firms. Journal of Management & Governance, 16(3), pp.337-368.

Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M. (2013) Business research methods. USA: Cengage Learning.

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