Secondary business data

The meaning of secondary when describing data refers to the data having
already been generated for another purpose. Subsequently it is possible to
create distinctions between different types of secondary data; internal and
external.

In general, businesses create a lot of data both qualitative and quantitative.

Known as internal secondary data, sources may include, sales data, financial
details, stock requirements, staff surveys, customer engagement, such as
complaints or comments and internal reports.

The other type of secondary data is externally sourced data, which can be
spilt down further into commercial sources and official statistics.

Secondary Business Data Continued

When looking at business data this often is considering data that will be considering the
organisation, competitors and the economy.
Macroeconomics apply to the whole economy and are not exclusive to certain businesses, or
markets, or sectors. When considering these factors, which underpin many business decisions
the following categories that provide data are nearly always derived as a secondary data source:

 Interest rates
 Exchange rates
 Tax
 Market data
 Labour data
 Employment/unemployment/skills data
 Growth data
 Supply and demand data
 Pricing data
 Trade data

 Commercial sources
 Commercial sources of external data that businesses often utilise come
from research organisations. Well known ones include Mintel,
Euromonitor International, Keynote and BMI Research amongst many
others. Research businesses often provide free samples and extracts
that are limited in content (in comparison to the commercial reports
they would undertake for an organsations or a trade body). They may
also provide licences to education establishments, for example, so
students can see elements of reports and key insights. However, often
their work is undertaken on a confidential basis and can be costly
 depending upon the size and nature of the research. These
organisations will also produce generic industry reports that they
believe will be topical that can be purchased by businesses.
 Sourcing information from commercial sources is therefore not straight
forward. Any costs need to be outweighed by the benefits of the data
and insights generated. Furthermore, when a report is not specifically
produced, there is a necessity to consider the data contained within it
regarding why the report was created initially. For example, is the
data limited, skewed, or wholly relevant if collected for another
purpose. Generic reports that are purchased often do not provide the
raw data sample and so the relevance and accuracy of outputs and
interpretations should also be considered when applying the outcomes.

 Official statistics

Official statistics relate to data generated by government and public

agencies. These are often free of charge and the data may be available in a
raw format (so can be subsequently considered by region or demographic for
example). However, it is unlikely that this data will answer a specific
businesses issue. Instead, this data may be utilised effectively to offer
insights, or predict trends.

Question Types

2.1 Annual Report Data

A company's annual report is required to allow stakeholders to keep

themselves informed about the:

 The company activities.

 Progress of ventures/developments/issues/changes
 The strategic direction of the organisation

Financial statements will generally form part of the annual details provided
on a company. In the UK, what needs to be included in a set of financial
statements is governed by:

 Company law requirements (mainly the Companies Act 2006)

 Accounting standards
Any organisation that has a full listing on the London Stock Exchange (LSE)
need to adhere to the additional rules as determined by the Financial
Services Authority (FSA) - the UK Listing Authority (UKLA).

Any business on on the LSE and the Alternative Investment Market (AIM)
must adhere to International Financial Reporting Standards (IFRS).
Businesses that are not listed can opt for IFRS and UK Standards (FRS)
generally known as UK GAAP (ie UK Generally Accepted Accounting
Practice).

This means that when undertaking financial research there are of

standardised sets of accounts (secondary data) that can be used to consider
position, competition and the internal and external environment.

In relation to the data, this will often be seen in the annual report as forming
part of the strategy. Asplen-Taylor (2022), notes how the strategy will
support how objectives are being met. The goals are defined and meeting
these goals will improve competitive advantage. The utilisation of data, such
as business intelligence and consideration for aspects, including governance
and data generation are the foundations for competitive advantage.

6. Protocols For Determining Appropriate Questions

6.1 In an industry context, questions may be set by circumstances.

Providing the content for shareholders and regulatory details is relatively

standardised for each company. However, generating the correct data and
updating information is still required and individual to each organisation.
If an organisation comes under review by, for example, a regulatory or
government body that issues licences, this would determine specific
questions/investigations.

New projects, strategy and investments will generate questions that feed
into business plans to guide direction.

6.2 Purposes of Data Utilisation

Within an industry setting how the data is applied, that is the function that
the data has can be quite different from an academic setting.

Within academic research there would be a questions and establishing of the

paradigm and route forward. However, data can fulfil more specific purposes
in industry.

For example, secondary data may feed into work looking at:

 The position of the business (financial, life cycle, reputation)

 Competitors position and environmental analysis both macro and micro
 Opportunities and development for the business
 Expansion
 Acquisitions

The data, which may be a mix of both secondary as well as primary may be
specific, or part of a strategic review.

Popular models that could be included in utilising data for such purposes
include:

 SWOT
 Porters 5 Forces and Value Chain
 PEST/EL
 BCG Matrix
 McKinsey 7 S Framework
 Business Canvas