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Part: 1 - Introduction

Chapter 1
The Role of Business Research
 To define business research.
 To find out the scope of business research.
 To understand between basic and applied
research.
 To clarify the managerial value of business
research.
 To understand when business research is
needed and when it should not be conducted.
 Business research is defined as the systematic
and objective process of generating information
for aid in making business decisions.
 Research information is neither intuitive nor
haphazardly gathered.
 Literally, research (re-search) -“search again”
 Business research must be objective
 Detached and impersonal rather than biased
 It facilitates the managerial decision process for
all aspects of a business.
 Business Research is a process of acquiring
detailed information of all the areas of
business and using such information in
maximizing the sales and profit of the
business. Such a study helps companies
determine which product/ service is most
profitable or in demand.
I don’t know
•Information if we
should
•Reduces uncertainty offer on-site
child care?
It ain’t the things we don’t know
that gets us in trouble. It’s the
things we know that ain’t so.”
-Artemus Ward
 Basic research

 Applied research
 Sometimes it referred as pure research.
 Attempts to expand the limits of knowledge.
 Not directly involved in the solution to a
pragmatic problem. Basic research can be used
to test the validity of a general business
problem.
 Examples: How can managers best encourage
workers to dedicate themselves toward the
organization’s goals?
"The secret of success is to know
something nobody else knows. "
-Aristotle Onassis

Basic research often provides the foundation of


applied research.
 Research undertaken to answer questions
about specific problems or to make decisions
about a particular course of action or policy
decision.
 Conducted when a decision must be made
about a specific real-life problem
 Should McDonalds add Italian pasta dinners
to its menu?
 Business research told McDonald’s it should
not?
 Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?
 Research showed Crest Whitestrips would sell
well at a retail price of $44
 The analysis and
interpretation of empirical
evidence (facts from
observation or
experimentation) to confirm
or disprove prior
conceptions.
 Business Orientation
 Product Oriented
 Production Oriented
 Marketing Oriented
 It involves four interrelated stages:
 Identifying problems and opportunities
 Diagnosis and assessment
 Selecting and implementing a course of
action
 Evaluating the course of action
 Business research may be used as a scanning
activity to provide information about what is
occurring within an organization or in its
environment.
 Once business research indicates a problem
or opportunity, managers may feel that the
alternatives are clear to make a decision
based on experience or intuition for
understanding situation.
 After identifying problem researchers must
clarifies the situation with diagnosis the
problem and report an assessment.
 Quantitative or qualitative investigations
may help managers better understand what
alternative courses of action are practical.
 Business research can be designed to supply
the relevant information necessary to
determine which course of action is best for
the organization.
 Opportunities may be evaluated through the
use of various performance criteria.
 Even the best plan is likely to fail if it is not
properly implemented.
 Evaluation research is the formal, objective
measurement and appraisal of the extent to
which a given activity, project, or program
has achieved its objectives.
 Performance monitoring research that
regularly provides feedback for evaluation
and control
 Indicates things are or are not going as planned
 Research may be required to explain why
something “went wrong”
 A business philosophy that embodies the belief
that the management process must focus on
integrating customer-driven quality throughout
the organization.
 Stresses continuous improvement of product
quality and service.
 Managers improve durability and enhance
features as the product ages.
 Managers strive to improve delivery and other
services to keep their companies competitive
 Time constraints
 Availability of data
 Nature of the decision
 Benefits versus costs
Availability of Data Benefits
Time Constraints Nature of the Decision vs. Costs
Is the infor- Does the value
Is sufficient time Is the decision Conducting
Yes mation already Yes Yes of the research Yes
available before of considerable
a managerial
on hand
strategic
information Business
inadequate exceed the cost
decision
for making
or tactical
of conducting Research
must be made? importance?
the decision? research?

Do Not Conduct Business Research


 Potential Value of a Business Research Effort
Should Exceed Its Estimated Costs
Costs
•Research
Value expenditures
•Delay of business
•Decreased certainty decision and
•Increased likelihood possible disclosure
of a correct decision of information to
•Improved business rivals
performance and •Possible erroneous
resulting higher research results
profits
 General Business Conditions and Corporate
Research
 Financial and Accounting Research
 Management and Organizational Behavior
Research
 Sales and Marketing Research
 Information Systems Research
 Corporate Responsibility Research
 Cross-functional teams are composed of
individuals from various organizational
departments such as engineering,
production, finance, and marketing who
share a common purpose.
 Increased globalization
 Growth of the Internet and other information
technologies
 Business Research is increasingly global
 Market knowledge is essential
 A.C. Nielsen - more that 67% international
business
 General information about country -
economic conditions and political
climate
 Cultural and consumer factors
 Market and competitive conditions -
demand estimation
 Time is collapsing.
 Distance is no longer an obstacle.
 Crossing oceans is only a mouse click away.
 People are connected 24 hours a day, seven
days a week.
 "Instantaneous" has a new meaning.
 Seeking facts and figures about an issue
 Surveys on Web sites