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Chapter 1
Research in
Business
McGraw-Hill/ © 2006 The McGraw-Hill Companies, Inc., All Rights
Irwin Reserved.
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Why
Research?
Solve Problems
Clear Understanding
Prove/Disprove Claims/Assumptions
Reduce Uncertainty
Reduce Risk in Managerial Decision Making
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What is it?
Business research is a systematic
inquiry that provides information to
guide managerial decisions
What is Research?
More specifically, it is a process…
•Making sense of data, looking for
patterns, relationship etc.
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Business Intelligence
System (BIS)
A business intelligence system (BIS) is designed to provide the
manager with ongoing information about events and trends in the
technological, economic, political and legal, demographic, cultural,
social, and, most critically, competitive arenas. Such information is
compiled from a variety of sources.
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Business Intelligence
System
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Strategy & Tactics
Strategy is defined as the general approach an organization
will follow to achieve its goals.
Tactics is specific, timed activities that execute a strategy.
Research: Business research also contributes significantly
to the design tactics and strategy. Business research can
be used to help a manager decide which of several tactics is
likely to successfully execute the desired strategy.
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Hierarchy of Information-
Based Decision Makers
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Hierarchy of Information-
Based Decision Makers
Making capital budgeting decisions based on in-
depth market research and comprehensive and
often innovative approaches
(e.g. multiple budgeting techniques,
sensitivity analysis, simulations).
e.g. exploring new product or
new market in abroad
Making capital budgeting decisions based on
some sort of market study and using capital
budgeting techniques.
e.g. Introducing differentiated product line
Making capital budgeting
decisions based on historical
data, intuition, referral group’s
comments etc.
e.g. Expansion of product line
Research Process
Writers usually treat the research study as a sequential process
involving several clearly defined steps. Exhibit 1-4 models
(next slide) the sequence of the research process. No one
claims that research requires completion of each step before
going to the next. Recycling, circumventing, and skipping
occur. Some steps are begun out of sequence, some are
carried out simultaneously, and some may be omitted.
Despite these variations, the idea of a sequence is useful for
developing a project and for keeping the project orderly as it
unfolds.
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Research Process
Figure 1-4
Literature Review
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Research Types
Ethics in Research
Researchers often work independently and have significant
freedom in designing and executing projects. A research
design that includes safeguards against causing mental or
physical harm to participants and makes data integrity a
first priority should be highly valued. Ethical issues in
research reflect important moral concerns about the
practice of responsible behavior in society.
Sponsor-Researcher Relationship is very crucial
Good Research
Good Research
Good Research