Determinants of Entry into New MarketCase Study
Free essays 0 CommentsDeterminantsof Entry into New MarketCase Study
Determinantsof Entry into New MarketCase Study
Watanyiaregression model
Variables Entered/Removed 

Model 
Variables Entered 
Variables Removed 
Method 
1 
expenses, income 
. 
Enter 
a. Dependent Variable: profits 

b. All requested variables entered. 
Model Summary 

Model 
R 
R Square 
Adjusted R Square(R^{2}) 
Std. Error of the Estimate 
1 
.997 
.994 
.989 
1654776.438 
a. Predictors: (Constant), expenses, income 
ANOVA 

Model 
Sum of Squares 
d.f. 
Mean Square 
F 
Sig. 

1 
Regression 
986143390324907.000 
2 
493071695162453.500 
180.066 
.006^{b} 
Residual 
5476570120182.250 
2 
2738285060091.125 

Total 
991619960445089.200 
4 

a. Dependent Variable: profits 

b. Predictors: (Constant), expenses, income 
Coefficients 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
7863725.553 
21622741.521 
.364 
.751 

Income 
.666 
.045 
.882 
14.849 
.005 

expenses 
.660 
.186 
.211 
3.552 
.071 

a. Dependent Variable: profits 
Lety=profits, x=income and z=expenses, therefore from the table abovey=B+0.882x0.211z, this implies that the level of profits generatedby Watanyia company is determined by 0.882 of the income and 0.211of the expenses. From the table adjusted Rsquared (R^{2})is equal to 0.989 calculated in percentage form as 98.9% this meansthat 98.9% of the determinants of profit (y) are explained inincome(x) and expenses(z) leaving only 1.1%to be explained by otherfactors e.g. location, preference and political factors. Watanyiacompany constantly made negative profits (y) this implies that atany one particular time the level of expense (z) exceeded the levelof income (x) generated by the company. Expenses of Watanyia Companyincreased because over the year’s i.e. 2009, 2010, 2011 the companywas concentrating on making advertisements and selling its name. Thisis reflected on the constant increase in the number of subscribers’from 110,835 in 2009 to 464,964 in 2011 (Speakman& Rysova, 2015). 
This,therefore limits Watanyia company in opening a new firm in Gaza Stripas it would concentrate more on advertising its company thereforemaking negative profits, or losses and this as seen in previousyears, has made a significant impact in loss of shareholders from20092011. Therefore, due to establishment of Jawwal/Paltel Companyin both WestBank and Gaza Strip, Watanyia Company should not open anew branch in Gaza Strip as it relies more on income and expenses tomake profits which has progressively made adverse losses.
Jawwal/PaltelRegression models
Variables Entered/Removed 

Model 
Variables Entered 
Variables Removed 
Method 
1 
expenses, income 
. 
Enter 
a. Dependent Variable: profit 

b. All requested variables entered. 
Model Summary 

Model 
R 
R Square 
Adjusted R Square (R^{2}) 
Std. Error of the Estimate 
1 
.665 
.442 
.116 
4256.519 
a. Predictors: (Constant), expenses, income 
ANOVA 

Model 
Sum of Squares 
d.f. 
Mean Square 
F 
Sig. 

1 
Regression 
28707416.851 
2 
14353708.425 
.792 
.558 
Residual 
36235902.349 
2 
18117951.175 

Total 
64943319.200 
4 

a. Dependent Variable: profit 

b. Predictors: (Constant), expenses, income 
Coefficients 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
T 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
25263.794 
58613.500 
.431 
.708 

Income 
.542 
.435 
2.069 
1.248 
.338 

expenses 
.484 
.428 
1.874 
1.130 
.376 

a. Dependent Variable: profit 
Lety=profits, x=income and z=expenses, therefore from the table abovey=B+2.069x1.8741z, this implies that the level of profits generatedby Jawwal/Paltel company is determined by 2.069 of the income and1.874 of the expenses. From the table adjusted Rsquared (R^{2})is equal to 0.116 calculated in percentage form as 11.6% this meansthat 11.6% of the determinants of profit (y) are explained inincome(x) and expenses(z) leaving only 88.4%to be explained by otherfactors e.g. location, preference and political factors.Jawwal/Paltel company constantly made positive profits (+y) thisimplies that at any one particular time the level of expense (z) wasless than the level of income (x) generated by the company (Dobbin& Baum, 2014).
Fromthe above regression model, Jawwal/Paltel Company does notsignificantly rely on income and expenses to generate profit as theyonly make 11.6% of the dependent variable. Therefore it’s difficultto reduce the dominance of Jawwal/Paltel Company in both WestBankand Gaza Strips as many of the determinants of its profit making arenot captured in the data. Some of these factors include reducedadvertisement, large shareholders and equally less tax paid to thegovernment. Therefore for Watanyia Company to compete Jawwal/PaltelCompany in future it should reduce is induced expenditure termed asexpenses (Dobbin& Baum, 2014).
References
Dobbin,F., & Baum, J. A. (2014). Introduction: Economics meets sociologyin strategic management. Advancesin strategic management, 17.
Speakman,J., & Rysova, A. (2015). TheSmall Entrepreneur in Fragile and ConflictAffected Situations.World Bank Publications.