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Unformatted text preview: ndent on successful decision-making in the upstream,
this is only of slight concern. However, the criteria that reflect only upstream performance (PR, TBV and PSR) will be given more attention.
The companies that were interviewed were ranked according to the performance
criteria selected above. (The data gathered to construct this ranking came from a
variety of web sites: Prudential Securities (http://www.prudentialsecurities.com),
world vest base (http://www.wvb.com),
173 wrights investors service (http://www.wsi.com/index.htm), financial times (http://www.ft.com), hoover’s on
line business network (http://www.hoovers.com) and datastream, http://www.datastreaminsite.com.). The results of this ranking are presented in table
7.2. (Companies are listed worst-best performers, top-bottom for each criterion).
Data for some categories and companies is incomplete because the information
proved impossible to locate. The ranking is used in the following sections as an
indication of organisational performance.
TBV MC PR NOE ROE PE PSR C D A C D D I D P D P P N B P A J D E J N G E E A N I O B N N E K N T K B K N A B M I I B S G A L F S I I L T R T J S G S M S N T T J I E S M P T C O O R L B T K L O R K B R O M M O J R R L O R Table 7.2: Ranking of companies by performance criteria
performers, top-bottom for all criteria) (Companies are listed worst-best 7.5 PROPOSING THE HYPOTHESES AND SELECTING THE STATISTICAL TESTS
This section uses the discussion in section 7.2, the company ranking constructed in
section 7.3, and the organisational performance ranking compiled in the preceding
section, to ascertain which statistical tests are the most applicable to use to investigate 174 the relationship between the use of decision analysis and organisational performance.
The appropriate null and alternative hypotheses are proposed for empirical testing.
The choice of statistical test is always complex and governed, primarily, by the type
of data available and the question being asked (Leach, 1979 p21). Researchers must
assess whether their data are ordinal or categorical, independent or related and pertain
to one sample or several samples. By exploring these issues, statisticians such as
Leach (1979 p22) argue, researchers ought to be able to at least reduce their choice of
In the current study, whilst for the ranking of companies by their use of decision
analysis techniques and concepts, categorical and ordinal data are available, when
these data are expressed categorically there are many ties in the data. For some of the
performance measures, it is only possible to access ordinal data.
The data in each ranking are independent. This claim can be substantiated in two
ways. Firstly, in the oil industry, the performance of one company is not significantly
influenced by the success of another. All companies are subject to the fluctuations of
the oil price and to the vagaries of depositional environment. Secondly, in Chapter 6
it was shown that companies do not significantly influence each other to adopt new
techniques or concepts. The investment appraisal approach that is adopt...
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This document was uploaded on 03/30/2014.
- Summer '14
- The Land