Definition of Research

Search for facts answer to questions and solutions to problems. It is a purposive and organized inquiry.

Definition of Business Research Business research is defined as the systematic and objective process of generating information for solving a problem or finding solution to a complex issue (aid in making business decisions).
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Business Research
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.

Objectives of Business Research

To extends knowledge To discovered new information Theory building To verify and test existing facts and theory To analysis inter-relationships between variables Aims to find solution to current problems

Types of Research
Basic Research Generating scientific knowledge for future use (Common use). Applied Research Undertaken to solve existing problem.
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Basic Research
Attempts to expand the limits of knowledge. Not directly involved in the solution to a practical problem.

Basic Research Example

Is executive success correlated with high need for achievement? Coupons versus rebates as demand stimulation tactics Compensation Systems and Labour Productivity Factors determining share prices
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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 highpriced home teeth bleaching kit to its product line? Research showed Crest White strips would sell well at a retail price of RM44
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Basic Differences Between Basic and Applied Research

Applied Research
what is the problem is an important step in resolving that problem. What problems to analysis may be outside the individual researcher domain Researcher role is examine analytically and a course of action recommended

Basic Research
Problem based on the researcher interest to expand understanding of the subject Selection of the problem is totally the choice of the researcher Some value judgment may be made,action is not recommended
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Research and Business

Primary objective is to provide information that improves the decision-making process of an organization. These information reduce managerial uncertainty in each stages of development and implementation of a strategy.
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The Decision-making Process Associated with the Development and Implementation of a Strategy
Identifying problems and opportunities Diagnosis and assessment Selecting and implementing a course of action Evaluating the course of action

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Identifying Problem
Research may be used as scanning activity to provide information about what is occurring within the organization or in the business environment. Example: Analysis the Business Environment
Privatization and globalization in the developing countries Fast economic growth in developing countries It all leads to demand for Car
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Diagnosis and Assessment

Managers need to gain insight about the underlying factors causing the situation. They should know what happened, why and how. Example: Diagnosis the Demand
What is the expected growth of demand for car What is the purchasing power of the people in the developing country Consumers taste and preference Competition in the market segment
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Selection and Implementation

Research helps to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action. Example:
Cost effective model to satisfy the consumers in the developing country Place of production or export Choose a place where potential consumers are more.

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Evaluation Research
Evaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives. Example: Performance analysis

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Performance-monitoring Research
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
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Determining When to Conduct Business Research

Time constraints Availability of data Nature of the decision Benefits versus costs

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Determining When to Conduct Business Research

Time Constraints
Yes

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

Nature of the Decision

Yes

Benefits vs. Costs

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

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

Is the decision of considerable strategic or tactical importance?

Conducting Business Research

No

No

No

No

Do Not Conduct Business Research

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Value versus Costs

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

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Value Should Exceed Estimated Costs

Value Decreased
uncertainty Increased likelihood of a correct decision Improved business performance and resulting higher profits

Costs Research
expenditures Delay of business decision and possible disclosure of information to rivals Possible erroneous research results

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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
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Why should a Manager Know Research?

Facilitate good decision making Become discriminating about research findings Issues of inside versus outside researcher To share relevant information with researcher Understand complex issues, variables, calculate risk, probabilities, etc.
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Internal Researcher
Advantages:
Better acceptance from the staff Knowledge about the organization Would be integral part of implementation and evaluation of the research recommendations

Limitations:
Less fresh ideas Power Politics May not be valued as experts by staff
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External Researcher
Advantages:
Experience from several situations Better technical training Limitations: Time to understand the organizational system Cooperation from the staffs is not easy Not available for evaluation after implementation cost
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