Scope of Business Research

The scope of business research is limited

by ones definition of business.
A broader definition of business includes
not-for-profit organization.
The term Business Research is utilized
because all its techniques are applicable to
business settings.
Flying by the seat of the pants decision-
making, without systematic inquiry, is like
betting on a long shot at the racetrack
because the horses name is appealing.
Scope of Business Research
Business research helps decision
makers shift from intuitive
information gathering to systematic
and objective investigation.
While researchers in different
functional areas may investigate
different phenomena, they are
comparable to one another because
they use similar research methods.
 Definition
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)
meanssearch again
Business research must be objective,
meaning that the information found must
be detached and impersonal rather than
biased. (Find facts, not opinions.)
 Definition
Research facilitates the managerial
decision process for all aspects of a
business.
By reducing the uncertainty of
decisions, it reduces the risk of making
wrong decisions.
Research should be an aid to
managerial judgment, not a substitute
for it.
 Artemus Ward
It aint the things we dont know
that gets us in trouble. Its the things
we know that aint so.
 Types of Research
Basic (Pure) Research attempts to
expand the limits of knowledge.
It is not directly involved in the
solution to a pragmatic problem.
The findings generally cannot be
immediately implemented.
Basic research is conducted to verify
the acceptability of a given theory or
to know more about a certain concept.
Examples of Basic Research
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?
 Types of Research
Applied Research is conducted
when a decision must be made about
a specific real-life problem.
Examples of Applied Research
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.
 Scientific Method
The procedures and techniques utilized by
basic and applied researchers do not differ
substantially. Both employ the scientific
method.
The analysis and interpretation of
empirical evidence (facts from observation
or experimentation) to confirm or disprove
prior conceptions.
 Managerial Value of
Business Research
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
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 regularly provides
feedback for evaluation and control. It indicates whether
things are or are not going as planned. Research may be
required to explain why something went wrong
 When is Business Research
Needed?
Time constraints
Availability and accessibility of data
Nature of the decision
Strategic Decision Making
Tactical Decision Making
Operational Decision Making
Benefits versus costs
Benefits > Costs Conduct Research
Costs > Benefits No Research Conducted
 Summary Diagram
Availability of Benefits
Time Constraints Data 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?

No No No No

Do Not Conduct Business Research

 Value VS. Costs
Costs
Value Research
expenditures
Decreased certainty Delay of business
Increased likelihood
decision and
of a correct decision
possible disclosure
Improved business
of information to
performance and
rivals
resulting higher Possible erroneous
profits
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
 Cross-Functional Teams
Cross-functional teams are
composed of individuals from various
organizational departments such as
engineering, production, finance, and
marketing who share a common
purpose.