RESEARCH METHOD FOR BUSINESS

Lecture 1

What is Research

General Definition
A

systematic and organized effort to investigate a specific problem that needs a solution.

Research in Business
The

systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions. To solve problematic issues in or interrelated among the areas of accounting, finance, management and marketing

Business Research

Literally, research mean

(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.

Information

Reduces

Uncertainty

Types of Research

There are two different purposes for Research

To solve existing problem

To contribute to the existing knowledge

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.

When intention is to improve understanding about certain problems that occur in an

organization.

Basic Research Example

Is executive success correlated with high need for achievement? Are members of highly interconnected work groups more satisfied than members of less cohesive work groups? Do consumers behave well in open house sale.

Applied Research

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

When intention is to apply results to solve specific 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 Whitestrips would sell well at a retail price of Rs. 120

The Decision-making Process for Strategy Business

Four steps

Identifying problem or opportunity

Diagnosing and assessing problems or

opportunities

Selection and implementing a course of action Evaluating the course of action

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.

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

Conducting Business Research

Time Constraint Availability of Data Nature of Decision Benefit versus Costs

Determining When to Conduct Business Research

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

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

Nature of the Decision

Is the decision Yes of considerable strategic or tactical importance?

Benefits vs. Costs

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

Conducting Business Research

No

No

No

No

Do Not Conduct Business Research

Value V/s Estimated Costs

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

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

V/S

Major Topics for Research in Business

General Business Conditions and Corporate Research

Short Term Forecasting Long Term Forecasting Business and Industry trends Global Environments

Inflation and prices

Plant and warehouse locations Acquisitions

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

Major Topics for Research in Business

Financial and Accounting Research

Forecast of financial interest rate trends Stock, bond, and commodity value predictions Capital formation alternatives Merger and Acquisitions Risk-return trade offs Impact of taxes Portfolio analysis Capital asset pricing model Credit risk

Major Topics for Research in Business

Management and Organizational Behavior Research

Total quality management Moral and job satisfaction Leadership style Employee productivity Organizational effectiveness Structural issues Absenteeism and turnover Structural issues Time and motion

Major Topics for Research in Business

Sales and Marketing Research

Market Potential Market share Market segmentation Market characteristics Sales analysis Distribution channels New product concepts Advertising research Buyer behavior Customer satisfaction

Major Topics for Research in Business

Information Systems Research

Knowledge and information needs assessments MIS and evaluation

Technical support satisfaction

Database analysis Data mining Customer relationship management systems

Major Topics for Research in Business

Corporate Responsibility Research

Ecological Legal

impact

constrains age and worker quality

Gender, Social

values and ethics

Summary

Business Research
Examples

from practical life?

Applied and basic research Use of business research for decision making process Role of business research in TQM Role of Business Researcher for expending business