Chapter 1: The Role of Business Research
Origin of RESEARCH French word recherch (recherch), from recercher to go about seeking or traveling
Definition of RESEARCH
Studious inquiry or examination; esp.: investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical application of such new or revised theories or laws
Research is the systematic approach to obtaining and confirming new and reliable knowledge.
Disciplinary Research is that which is designed to improve a discipline, Subject-Matter Research is a research on a subject of interest to a set of decision makers facing a set of practical problems, and Problem Solving Research is designed to solve a specific problem for a specific decision maker.
Wisdom is not a product of schooling but of the life long attempt to acquire it.
Albert Einstein
Business Research Defined
Business research is defined as the systematic and objective process of generating information for aid in making business decisions.
Business Research
Research information is neither intuitive nor
haphazardly gathered. 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.
I dont know if we should offer on-site child care?
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? Etc.
"The secret of success is to know something nobody else knows. " Aristotle Onassis
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 Should Head & Shoulder go into garments? Please answer it.
Scientific Method
The analysis and interpretation of empirical evidence
(facts from observation or experimentation) to confirm or disprove prior conceptions.
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
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
Total Quality Management (TQM)
A business philosophy that embodies the belief that
the management process must focus on integrating customer-driven quality throughout the organization.
TQM
Stresses continuous improvement of product quality
and service. Managers improve durability and enhance features as the product ages. Managers strive to improve delivery and other services to keep their companies competitive
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 certainty 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
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.
Business Research in the 21st Century
Increased globalization
Growth of the Internet and other information
technologies
Global Research
Business Research is increasingly global
Market knowledge is essential A.C. Nielsen - more that 67% international business
Global Business Research
General information about country - economic
conditions and political climate Cultural and consumer factors Market and competitive conditions - demand estimation
The Internet Is Transforming Society
Time is collapsing.
Distance is no longer an obstacle. Crossing oceans is only a mouse click away.
People are connected 24 hours a day, seven days a
week. "Instantaneous" has a new meaning.
Internet Research
Seeking facts and figures about an issue
Surveys on Web sites