Business Research

Business research is defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions.

Business Research
Research information is neither intuitive nor haphazardly gathered. Data Collection cannot be initiated abruptly Business research must be objective Detached and impersonal rather than biased It facilitates the managerial decision process for all aspects of a business.

Information Reduces Uncertainty Helps focus decision making

I dont know if we should offer on-site child care?

Intuitive information
Business research

Systematic and objective investigation

 Business research methods enable an organization to obtain information that helps it in decision making. The business research process starts with a Management dilemma. The management dilemma is generally a symptom of the actual problem/ opportunity.. Examples 1. Rising costs. 2. Declining sales. 3. Decline in rankings in a survey 4. A large number of product defects. 5. An increasing number of written and telephonic complaints regarding a service etc.

FUNCTIONS
TO PROVIDE INFORMATIONAL & ANALYTICAL INPUTS FOR EFFECTIVE :
EVALUATION OF PAST BUSINESS RESULTS CONTROL OF PRESENT BUSINESS / MANAGERIAL OPERATIONS PLANNING OF FUTURE BUSINESS / MANAGERIAL ACTIVITIES

USEFUL IN ALL FOUR PHASES OF ADMINISTRATIVE PROCESS

SETTING GOALS & SELECTING STRATEGIES DEVELOPING BUSINESS PLANS PUTTING PLANS INTO ACTIONS EVALUATING THEIR EFFECTIVENESS

OBJECTIVES
DECISION MAKING PROJECT POLICY CONTROLLING ENVIRONMENTAL MARKET PRODUCT DEVELOPMENT CUSTOMER SATISFACTION PROFIT PROMOTIONAL CORPORATE IMAGE OBJECTIVES

FEATURES OF A GOOD RESEARCH

PURPOSE WELL DEFINED & RELEVANT SYSTEMATIC & PLANNED APPROACH OBJECTIVITY & HIGH ETHICAL STANDARD CO-ORDINATION OF DATA COLLECTION & DATA ANALYSIS ACTIVITIES ADEQUATE ANALYSIS FINDINGS PRESENTED & CONCLUSIONS JUSTIFIED CONTROLLING OF RESEARCH

Business Research Types

Basic research
Applied research

Basic Research
Attempts to expand the limits of knowledge. Not directly involved in the solution to a pragmatic problem.

Basic Research Example

Is executive success correlated with high need for achievement? Are members of highly cohesive work groups more satisfied than members of less cohesive work groups? Do consumers experience cognitive dissonance in low-involvement situations?

Applied Research
Conducted when a decision must be made about a specific real-life problem

Applied Research Examples

Should McDonalds add Italian pasta dinners to its menu? Business research told McDonalds 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

Stages In The Research Process

Problem Discovery and Problem Definition Research Design Sampling Data Gathering Data Processing and Analysis Conclusions And Report

Determining When to Conduct Business Research

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 sufficient time available before a managerial decision must be made?
Yes

Determining When to Conduct Business Research

Is the information already on hand inadequate for making the decision?
Yes

Is the decision Yes of considerable strategic or tactical importance?

Does the value of the research Yes information exceed the cost of conducting research?

Conducting Business Research

No

No

No

No

Do Not Conduct Business Research

Value versus Costs

Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

Value Should Exceed Estimated Costs

Costs Value
Decreased uncertainty Increased likelihood of a correct decision Improved business performance and resulting higher profits Research expenditures Delay of business decision and possible disclosure of information to rivals Possible erroneous research results

Major Topics for Research in Business

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 Production