Chapter 1

Nature & Scope of Business Click to edit Master subtitle style Research

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WHAT IS RESEARCH?

Research is the process

of finding solutions to a problem after thorough study and analysis of situational factors.

Uma Sekaran

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Business Research Defined

The systematic & objective

process of gathering, recording, and analyzing data for aid in making business decisions.
William G Zikmund

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Why Study Research?

Research provides you with the

knowledge and skills needed for the fast-paced decision-making environment Data leads to Information leads to Knowledge

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When is Business Research needed? A manager faced with two or more possible

courses of action faces the initial decision of whether or not research should be conducted. The determination of the need for research centers on:

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

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DETERMINING WHEN BUSINESS RESEARCH SHOULD BE CONDUCTED

Time Constraints
Is sufficient time available before a managerial decision must be made?

Availability of Data
Is the information already on hand inadequate for making the decision?

Nature of the Decision

Is the decision of considerable strategic or tactical importance?

Benefits vs Costs
Does the value of research information exceed the cost of conducting research?

No

No

No

No Yes

Business Research should not be conducted

Conduct Business Research

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Characteristics of Research

Controlled Rigorous Systematic Valid & verifiable Empirical Critical

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Implications of Business Research Research information is neither intuitive nor haphazardly gathered. If the information gathered or data collected and analyzed are to be accurate, the business researcher must be objective. The objective of business research is to facilitate the managerial decision- making process for all aspects of a business.

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Some commonly researched areas in business

Employee behaviors such as performances, absenteeism, and turnover Employee attitudes such as job satisfaction, loyalty and organizational commitment. Employee selection, recruitment, training and retention. Validation of performance appraisal systems. HRM choices & organizational strategy Strategy formulation and implementation Organizational outcomes such as increased sales, market share, profits, growth and effectiveness Distribution channels, advertising effectiveness Brand loyalty, PLC & NPD Consumer complaints Location analysis Market testing Portfolio management Risk assessment Auditing practices www.comp any.com 99

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The Applications of Business Research

From the viewpoint of:

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The Service Provider To answer such questions as: How many people are using the product or service? Why do some people sue the service/ product while others do not? How effective is the service/ product? How can the service/ product be improved? Which type of people use or do not use the service/ product? How satisfied or dissatisfied are the consumers of the service/ product? What are the problems with

The Applications of Business Research

From the viewpoint of:

The Administrator, manager or planner To answer such questions as:

What are the needs of the community?

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What types of service/ product are needed by the community? How many service providers are needed? What are the training needs of the staff? How many cases can a worker handle in a day? How can the effectiveness of each worker be evaluated? How can the service/ product be made popular?

The Applications of Business Research

From the viewpoint of:

The Consumer To answer such questions as: Am I, as a consumer, getting value for money? How good are the service providers? What are the long- term effects of the product I am using?

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