Impact of Research on Business Decisions
Impact of Research on Business Decisions
Introduction
Research is essential to collect facts and statistics about a company's customers,
employees and competitors. On the basis of these numbers, companies are able to
make better managerial decisions. The collected statistics are organized into
reports and the management team uses them to take action. A good research
mechanism is essential, irrespective of the size of the company and its client base.
Research is imperative for staying competitive in the market.
Marketing research helps to reduce such risks & uncertainties & increase the
probability that the decisions which management has to take will help attain the
organization marketing objectives.
Marketing managers make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and
implementing marketing programs, marketing performance, and control. These
decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications
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developed and put into effect. Last, the outcome of the decision and the decision
process itself are evaluated
Significance
A business is able to make knowledgeable decisions because of research. In the
research process, the company is able to obtain information about key business
areas, analyze it, develop a strategy and distribute business information. Reports,
provided to the top management, often include information on consumer and
employee preferences and all the available routes for sales, marketing, finance and
production. Management uses this information to decide the best strategy.
Research is a prerequisite at all stages and phases of business operations. Initial
research is required to gauge whether getting into the given type of business would
be profitable and whether there is demand for the proposed product.
Function
By conducting business research, the organization ascertains what its customers
want and then takes steps to prepare a product meeting those desires. Research also
helps determine whether a product is accepted in the market. Research aids
expansion into new markets.
Methods of Data Collection
There are two ways organizations typically collect data.
One is primary data collection from your immediate consumers, who provide
feedback on your products. You can also invite customers to offer opinions on
future products. To gain this information, an interviewer asks the customer to
provide views on how the company can modify the existing product to satisfy his
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needs better. The interviewer uses surveys and questionnaires to collect and record
data. This method is helpful for gaining insight about a company's particular
merchandise.
The second method is secondary data collection, which uses data that has already
been printed over the Internet and in magazines and journals. This is
predominantly useful in gauging the broad market scenarios.
Consideration a Consultant
Conducting research involves cost and time. The organization must weigh the pros
and cons before hiring consultants to conduct research. Consultants must be made
fully aware of what the organization is looking for from the research.
Advantages
The primary benefit to business research is that the organization is able to learn
more about consumer choices and preferences. Research provides information on
the product features that lure customers and flaws in the product or marketing that
contribute to slow sales. Research helps the organization fix problems and cash in
on the strengths. Research also contributes to a company's ability to clearly
identify the customer demographics and target demographic, including age, gender,
and monthly income of the household and educational levels. Research mitigates
business risks and can help increase demand and sales.
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Importance of Research
Businesses conduct research for many reasons, such as gathering crucial
information about consumers and business customers. The key function of
management is take decisions and without help of the research and analysis of
present situation and future forecasting, decisions may not be effective. So research
helps to take right decisions. Based on research, management can make intelligent
and well informed decisions
Businesses use research to ascertain the success of their advertising. For instance, a
dairy manufacturer may want to find out what percentage of the people saw its
latest TV commercial. The dairy manufacturer may find that more individuals
become aware of its advertising the longer the TV ad runs. The company may
decide to run its TV ads at different times if few people have seen the ads. A
business can make well-informed decisions due to research. In the research
process, the business will be able to acquire details about key business areas,
analyze it, create a strategy and distribute business information. Reports, presented
to the top management, often contain details on consumer and employee
preferences and all the available channels for sales, marketing, finance and
production. Management makes use of these details to determine the best strategy.
Research is a necessity at all stages and phases of business operations. Initial
research is needed to evaluate whether getting into the given kind of business
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would be profitable and whether there exists demand for the proposed product.
Regarding the staff, a correctly carried out research can uncover important details
on their satisfaction quotient, the difficulties experienced by them and how the
problems related to relationships at the workplace could be handled. An analysis
into the results would allow the management to bring about changes for the all
round effective functioning of the organization and its employees. The workers can
be trained and coached in line with the needs. This would help personal as well as
professional development improving overall organizational performance.
Research is important for managerial decision making. All strategic business areas
are analyzed and evaluated; then techniques for more efficient procedures are
created. All businesses usually have many ways of doing an activity. Through
proper research, the organization will be able to pick the most effective, productive
and profitable one. Research could possibly be applied to marketing, production,
finance, IT and Human resources. Research can answer questions for various
problems, from getting a grip on industry trends, identifying new products to
produce and deliver to the market, or deciding on which site to locate an outlet, to
better understanding what it needs to fulfill customer demands. Research can also
help evaluate if a product is accepted in the market. Research aids expansion into
new markets.
Research helps in testing the potential success of new products. Businesses have to
understand what kinds of products consumers would like before they market them.
For instance, a restaurant may in the beginning, interview focus groups to test
types of burgers. The focus groups will probably include small teams of
consumers. The goal of the focus group may be to figure out which burger
customers prefer. Ultimately, the company may test the burgers through surveys
with larger groups of people. The above points state the importance of research in
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business decision making. Research is necessary to gather facts and statistics with
regards to a companys customers, employees and competitors. Based on these
numbers, businesses are able to make better managerial decisions.
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decisions, especially if the stakeholders vary in their attitudes to R&D and its
potential use in decision-making. In both healthcare and VET, decision-making can
be mediated through complex structures and arrangements; for example, in TAFE
institutes or teaching hospitals. Often decision-making is contested; for example,
between different levels of decision-makers, between public and private providers
and between professional and managerial perspectives. There is additional
complexity when the distribution of power between key stakeholders changes; as it
did following the election of the Howard Government in March 1996. In such a
complex and dynamic environment there can be many openings for R&D to
influence decision-making. Of course, the role of R&D may be overshadowed by
other factors. Thirdly, there are the assumptive worlds of key individuals and
organizations involved in the decision-making process. The studies considered in
Sections 3 and 4 suggest that there are significant differences in the assumptive
worlds of key stakeholders in healthcare and VET. And in both sectors public
service downsizing has reduced the role of research branches, distancing policy-
makers further from R&D, managers and practitioners. There was evidence of
differences in the assumptive worlds of key decision-makers, too, at the different
levels of decision-making. In practice, and perhaps particularly among
practitioners and managers, formal R&D-based evidence is often supplemented by
local experience and knowledge. Three other points are briefly noted. First, at the
level of healthcare and VET providers there has been a considerable increase over
recent years in competitive pressures accompanying regulatory reform. The case
studies of individual providers, while reflecting specific factors in particular
contexts, underlined the importance of a decision making environment predisposed
to give audience to R&D findings, the contributions of key individuals rather than
formal structures, and the cumulative contributions to organizational effectiveness
and practitioner competence from successfully applying R&D to decision-making.
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nature of R&D means that, while an individual study can have an impact on
decision-making; this tends to be the exception not the rule. Trace-back studies
suggest greater research impact, particularly from basic R&D, than forward-
looking studies. Viewing research as a process of debate (Klein 1990) or
conceptualizing a knowledge reservoir (Buxton and Hanney 1997) highlights the
value of an ongoing research capacity from which decision-makers can draw.
Educational research and R&D on the healthcare system employ a wide range of
approaches. Since different research questions benefit from different techniques
and methodologies, it is important to match the approach to the problem. When a
particular disciplinary approach is adopted, this influences the problems identified,
the questions posed, the techniques adopted to investigate them, the way in which
results are reported and the audiences with whom researchers interact. To the
extent that the issues concerning decision-makers warrant attention from more than
one disciplinary perspective, researchers require not only competence in their
discipline, but other skills and personal characteristics to enable them to
collaborate effectively. R&D is carried out in various locations. Indeed, it can be
argued that anyone with relevant skills can carry out R&D and they can do it
anywhere. However, there are advantages in carrying out particular types of R&D
in the different locations. Each location tends to specialize in particular types of
research; produce different combinations of research outputs; and attract particular
types of researcher. The great majority of R&D by practitioners appears to
represent the actions of individuals seeking to improve the operation of an activity
with which they are involved; these studies are often relatively brief in duration
and produce either no report or one which has only limited circulation. There is a
balance to be struck, from the overall societal viewpoint, among the different types
of research and, by implication, among the different locations.
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Types of Research
Businesses of all types and sizes undertake extensive research methods to improve
and grow. The long term success of a start up, medium sized business and even
established business depends on efficient and cost effective research undertaken.
Businesses may choose to adopt either one or all of the below discussed research
methods to achieve their business goals:
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1. Case Studies
Though case study method of business research is time consuming, it helps in the
collection of in depth information about customers likes, dislikes and preferences
thus throwing light on strength and weakness of a specific product or service.
2. Conducting Surveys
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3. Interviews
The main advantage of this research methodology is the chance to ask follow up
questions which throws light about the consumer response with respect to a
specific product or service. The only drawback is that a careless interviewer can
partially influence the response provided by interviewee. Also this method of
business research tends to be time consuming.
4. Focus Groups
The focus groups aim to provide a larger sample as compared to interviews and
case studies. The only drawback from undertaking this type of research is that there
are chances of the facilitator in asking irrelevant questions which might divert the
research in a particular direction thus defeating the ultimate purpose of the analysis
undertaken.
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As business research methods acts as a guiding light. Managers should learn to use
it with caution by becoming aware about its impending shortcomings. Research
Services is a leading name in the business research industry having catered to some
of the worlds leading Fortune 500 companies. Be it competitive intelligence or
opinion studies, Research Services has extensive experience in delivering world-
class business research services.
Why do research?
Because without it we are all just guessing! Think of the time and money you
waste going down the wrong routes. Much better to be forewarned and forearmed.
Research is helpful at every point in the planning process, from market and
competitor analysis to identify the size of your market, the trends in your industry,
who the main competitors are and what their proposition is, to analyzing buyer
behavior and learning what customers need to be able to buy from you.
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Take the time to understand your proposition and what your customers think of
you, make sure its differentiated and then work out your strategy and how youre
going to turn it into action.
Across all sectors, the leading brands locally are benefiting from research check
out our clients list to see who. Research can be used for anything from providing
content for PR purposes to ultimately, helping you to sleep better at night, because
information empowers you to make informed decisions; saving you valuable time
and reducing risk.
Research is not restricted only to medical and science fields but is an important
aspect of any organization big or small. A company consists of people and it is
this team that steers the course of the business. Businesses succeed or fail based on
the decisions taken by these people in the organization. At the same time, most
managers also need access to facts and figures about the organizations
performance, markets, financial aspects to continually enhance the business and
the quality of their products. Many organizations in industries like pharmaceuticals
have a full fledged research and development division with quality control to
ensure quality of product and invention of new products.
But what happens in SMEs and other service sectors like NGOs and business
consultancy? In such a scenario, research is an all time must for continuous
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All the above mentioned research areas would involve the people directly as they
are the ones who initiate all processes. Research in each of these areas can bring
about meaningful and relevant implementation of policies and procedures for
positive change within the organization.
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With regard to the staff, a properly conducted research can reveal crucial
information on their satisfaction quotient, the difficulties encountered by them and
how the issues pertaining to relationships at the workplace can be tackled. An
analysis of the results would enable the management to bring about changes for the
overall effective functioning of the organization and its employees. The employees
can be mentored and trained based on the needs. This would facilitate personal as
well as professional development enhancing overall organizational performance.
The facts and figures of operations through proper accounting and financial
systems would help in taking decisions on the feasibility and growth of the
organization.
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Inputs of Research
Operations research applies sophisticated statistical analysis and mathematical
modeling to solve an array of business and organizational problems, as well as
improve decision-making. As the business environment grows more complex,
companies and government agencies rely on analysis to inform decisions that were
once based largely on management intuition. Originally developed by the U.S.
Department of Defense during World War II, operations research has helped many
large companies and government agencies make better decisions, boost
performance and reduce risk.
Simplifying Complexity
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Modern challenges associated with a global economy and the growth of technology
has increased the complexity of the business environment. Modern corporations
often strive to serve a global, rather than a regional or national, customer base and
face worldwide competition. By relying on sophisticated mathematical models and
advanced software tools, operations research can assess all available options facing
a firm, project possible outcomes and analyze risks associated with particular
decisions. The result is more complete information on which management can
make decisions and set policy, according to the Institute for Operations Research
and the Management Sciences, INFORMS for short, a national organization of
operations research professionals.
Maximizing Data
Companies collect large amounts of data but may feel overwhelmed by the volume
and lack the time or expertise to fully analyze these data, transforming them into
useful information on which to base decisions. Operations research uses advanced
mathematical and statistical techniques, such as linear programming and regression
analysis, to help organizations make the most of their data, according to
INFORMS' Science of Better website. Through detailed analysis of the data,
operations research analysts can help uncover options that lead to higher profits,
more-efficient operations and less risk.
Adding Value
In its executive guide to operations research, "Seat-of-the-Pants-Less," INFORMS
reports that operations research has added value to organizations in the public and
private sector alike. For example, INFORMS reported that UPS used operations
research to redesign its overnight delivery network in such a way that saved more
than $80 million between 2000 and 2002. Meanwhile, New Haven, Connecticut,
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used operations research to determine the extent to which the city's needle
exchange program reduced HIV infection rates.
Considerations
INFORMS outlines five signs for organizations that could benefit from operations
research. These indicators are facing complex decisions, having problems with
processes, having trouble with risk, not making the most of available data and
needing to overcome stiff competition. Operations research analysts can help
organizations overcome these challenges.
In fact much of the information was interesting rather than important. Important
information is that information which directly assists in making decisions and the
ICO had not told the research company the purpose of the research. The initial
reason for the study had been a suspicion, on the part of the ICO, that an increasing
percentage of young people were consuming beverages other than coffee,
particularly soft drinks, and simply never developed the coffee drinking habit. Had
this been explained to the research company then it is likely that their proposals
would have been radically different. To begin with, the sample would have been
composed of 15-24 year old non-coffee drinkers rather than a random sample of all
15-24 year olds. Second, the focus would have been non-coffee drinking habits
rather than coffee drinking habits.
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