QUESTION 1 (35) Read the following case extract and answer ALL questions that follow.

Amazon's newest bricks and mortar store opens in New York Amazon, in its third decade of business, dominates the world of online shopping. But an actual bricks and mortar Amazon store? The answer is yes. As a matter of fact, it has been expanding its physical footprint on university campuses and has experimented with grocery and convenience shops for some years. Amazon has its own delivery service, AmazonFresh, and is experimenting with a click and collect model, offering customers to buy groceries online, then pick them in person. The company begun the brick-and-mortar experiment with bookshops, opening its first bookshop in Seattle in 2015. In May 2017, Amazon opened its seventh US bookshop in New York, drawing a steady stream of selfie-snapping gawkers, tourists and loyal shoppers who revelled in the novelty experience of shopping in person. It plans to have 13 in the US by the end of 2017. As a major sign of a strategic shift and a big bet on physical stores and the business of food, the online retail giant announced Friday (2017/06/16) that it is buying organic grocery chain Whole Foods for $13.7bn (10.7bn) in cash, marking an ambitious push into grocery business for an online retailer. The deal marks its latest and biggest push into traditional retailing yet - a move that gives the company a physical network of stores to distribute fresh food and other goods to millennials and wealthy consumers. The deal values the upscale supermarket at $42 a share, 27% higher than where the stock was trading the day before. Founded in 1978 in Texas, Whole Foods was a pioneer of the move towards natural and organic foods. It has grown to more than 460 stores in the US, Canada and the UK, and employs about 87,000 people globally. Amazon said Whole Foods stores will continue operating under that name as a separate unit of the company. Whole Foods CEO John Mackey is expected to stay on to lead the unit from its headquarters in Austin, Texas. The deal shows Amazons growing interest in moving into the business of operating traditional brick-and-mortar stores, even as many retailers that have been crippled by Amazons growth have announced a series of store closings. The supermarket business, like many other parts of retail, has been hit hard by increased competition from Amazon itself, as well as Walmart. Amazon founder and chief executive Jeff Bezos said: "Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy." "Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades - they're doing an amazing job and we want that to continue." A person familiar with Amazons strategy said the company believed customers wanted a combination of online and real-world buying options. Clive Black, a retail analyst at Shore Capital, said: Amazon is clearly getting into offline as well as online. It is not going to spend nearly $14bn and then close nearly 500 stores. This is going to cause an awful stir in the US and some of those waves will lap into the UK and beyond. Maximise value Whole Foods has been under pressure from investors amid declining same-store sales. Last month, the company named a new chief financial officer and new board members. In April, activist investor Jana Partners called the firm's shares undervalued, noting "chronic underperformance". The price being paid by Amazon marks a 27% premium to the level Whole Foods' shares closed at on Thursday. The takeover deal is expected to be completed in the second half of the year. Whole Foods boss John Mackey said: "This partnership presents an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers." Bricks and mortar retail remains a marginal part of Amazon's business - and that's not likely to change anytime soon, said analyst Tuna Amobi, who follows the company for CFRA Research. But Mr Amobi says even on a small scale, a real store has benefits, including boosting brand awareness and exposing people to Amazon's Prime subscription service. Prime members get the online prices in the store, while non-members must pay the list price for books. "There's an opportunity to get their platform closer to the consumer and interact, engage, at a very minimal investment," he said. Amazon and Whole Foods expect to close the deal during the second half of 2017. "It makes it feel more accessible," said Amanda Martinez, 25, of New York, who arrived before the store opened and walked out later with a JJ Abrams novel. "It's already accessible because it's online but it's nice to go inside and walk around." Accelerate disruption Bricks and mortar retail remains a marginal part of Amazon's business - and that's not likely to change anytime soon, said analyst Tuna Amobi, who follows the company for CFRA Research. But Mr Amobi says even on a small scale, a real store has benefits, including boosting brand awareness and exposing people to Amazon's Prime subscription service. Prime members get the online prices in the store, while non-members must pay the list price for books. "There's an opportunity to get their platform closer to the consumer and interact, engage, at a very minimal investment," he said. For Amazon's smaller rivals, which have stepped up face-to-face events such as author readings to survive, the company's physical expansion also adds to the pressure, he explained. "It's been an ongoing process [of disruption] frankly over the last decade," he said. "This is just going to ... accelerate that." Showroom Jennifer Cast, the vice-president of Amazon Books, said the company's "customer-obsessed" focus is driving the real-world expansion. People have been asking for a place to check out books and test-drive Amazon's tech products, such as the Kindle e-reader, she says. Amazon also has a mountain of data on what people are reading to put to use in stocking the store. At the New York shop, which is tucked away on the third floor of one of Manhattan's most upmarket shopping malls, the company organises books into new kinds of categories, such as page turners - books that Kindle-readers finish in three days or less. She says the goal of the shop, where customers can pay by credit card or on the Amazon App, is to be "a discovery mecca for customers". "People have asked us, 'Is this just a big showroom?'" Ms Cast said. "I just say: 'Look how many books are on the shelves. Does this look like a showroom?' No - this is a store." Ms Cast wouldn't say whether the shops are profitable or how many more stores Amazon might be contemplating. Xiupeng Zhang, 28, of New York is an Amazon Prime member who stopped by to buy a Sheryl Sandberg book. For him, the ability to pick up his purchases straight away without having to wait for them to be delivered, combined with low, online-world prices has long-term appeal: "It's like the future of retail." Adapted from: https://www.bbc.com/news/business-40051886

REQUIRED: You are part of a team of research analysts working for a South African-domiciled investment company, Radasys Capital Management (RCM). The company which has a substantial investment in Amazon.com, Inc. is contemplating increasing its investment in the e-commerce titan. The management of Radasys Capital Management has tasked you with conducting a study involving the use of a cross-sectional survey with the aim of investigating investors conceptions of Amazons strategic shift from online retail into traditional brick-and-mortar stores and investors perceptions of RCMs plans to increase its investment in Amazon.com, Inc. Please outline how you would go about conducting the study with reference to the following:

1.1 State the aim(s) of the study. (2)

1.2 State THREE (3) Research Objectives and THREE (3) Research Questions that this study will attempt to answer. (6)

1.3 Discuss these aspects of your research design: (6) What Research Philosophy will underpin your research, and why? What Research Paradigm and Research Design would you follow?

1.4 Discuss the following aspects of the Methodology that you would follow in the study:

1.4.1 Sampling Methodology: (5)

Reason for sampling.

Identify the target population of the study.

Is your sample probability or non-probability? Why?

State your method of sampling, and why this particular method was chosen and the relative advantage and disadvantage of this method.

1.4.2 Approach to Data Collection (10)

What method(s) would you use to collect your data? Briefly discuss the rationale for your choice of the data collection method(s).

How would you develop a measurement instrument for your study and the protocols required for the collection of the instruments from respondents?

How would you pilot the measurement instrument to establish readiness for administration?

How would you ensure that the measurement instrument is valid and reliable? 1.4.3 Approach to Data Analysis

Briefly discuss all considerations for data analysis; including what the unit of measurement is, and how it will be analysed.

Briefly discuss what methods of analysis would be used (Note that you are required to highlight, where necessary, the method(s) of analysis you would use for each of your research questions in 1.2).