2 Definition of Research “Search for facts – answer to questions and solutions to problems. It is a purposive and organized inquiry”.
3 Definition of Business Research Business research is defined as the systematic and objective process of generating information for solving a problem or finding solution to a complex issue (aid in making business decisions).
4 Business Research Literally, research (re-search) -“search again” Business research must be objectiveDetached and impersonal rather than biasedIt facilitates the managerial decision process for all aspects of a business.
5 Objectives of Business Research To extends knowledgeTo discovered new informationTheory buildingTo verify and test existing facts and theoryTo analysis inter-relationships between variablesAims to find solution to current problems
6 Types of Research Basic Research Generating scientific knowledge for future use (Common use).Applied ResearchUndertaken to solve existing problem.
7 Basic Research Attempts to expand the limits of knowledge. Not directly involved in the solution to a practical problem.
8 Basic Research Example Is executive success correlated with high need for achievement?Coupons versus rebates as demand stimulation tacticsCompensation Systems and Labour ProductivityFactors determining share prices
9 Applied ResearchConducted when a decision must be made about a specific real-life problem
10 Applied Research Examples Should McDonalds add Italian pasta dinners to its menu?Business research told McDonald’s it should not?Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?Research showed Crest White strips would sell well at a retail price of RM44
11 Basic Differences Between Basic and Applied Research “what is the problem” is an important step in resolving that problem.What problems to analysis may be outside the individual researcher domainResearcher role is examine analytically and a course of action recommendedBasic ResearchProblem based on the researcher interest to expand understanding of the subjectSelection of the problem is totally the choice of the researcherSome value judgment may be made,action is not recommended
12 Research and BusinessPrimary objective is to provide information that improves the decision-making process of an organization.These information reduce managerial uncertainty in each stages of development and implementation of a strategy.
13 The Decision-making Process Associated with the Development and Implementation of a Strategy Identifying problems and opportunitiesDiagnosis and assessmentSelecting and implementing a course of actionEvaluating the course of action
14 Identifying ProblemResearch may be used as scanning activity to provide information about what is occurring within the organization or in the business environment.Example: Analysis the Business EnvironmentPrivatization and globalization in the developing countriesFast economic growth in developing countriesIt all leads to demand for Car
15 Diagnosis and Assessment Managers need to gain insight about the underlying factors causing the situation. They should know what happened, why and how.Example: Diagnosis the DemandWhat is the expected growth of demand for carWhat is the purchasing power of the people in the developing countryConsumers taste and preferenceCompetition in the market segment
16 Selection and Implementation Research helps to obtain specific information that will aid in evaluating the alternatives and in selecting the best course of action.Example:Cost effective model to satisfy the consumers in the developing countryPlace of production or exportChoose a place where potential consumers are more.
17 Evaluation ResearchEvaluation research is the formal, objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.Example:Performance analysis
18 Determining When to Conduct Business Research Time constraintsAvailability of dataNature of the decisionBenefits versus costs
19 Determining When to Conduct Business Research TimeConstraintsAvailability ofDataNature of theDecisionBenefits vs. CostsConductingBusinessResearchYesIs sufficient timeavailable beforea managerialdecisionmust be made?Is the infor-mation alreadyon handinadequatefor makingthe decision?YesIs the decisionof considerablestrategicor tacticalimportance?YesDoes the valueof the researchinformationexceed the costof conductingresearch?YesNoNoNoNoDo Not Conduct Business Research
20 Value versus CostsPotential Value of a Business Research Effort Should Exceed Its Estimated Costs
21 Value Should Exceed Estimated Costs Research expendituresDelay of business decision and possible disclosure of information to rivalsPossible erroneous research resultsDecreased uncertaintyIncreased likelihood of a correct decisionImproved business performance and resulting higher profits
22 Why should a Manager Know Research? Facilitate good decision makingBecome discriminating about research findingsIssues of inside versus outside researcherTo share relevant information with researcherUnderstand complex issues, variables, calculate risk, probabilities, etc.
23 Internal Researcher Advantages: Limitations: Better acceptance from the staffKnowledge about the organizationWould be integral part of implementation and evaluation of the research recommendationsLimitations:Less fresh ideasPower PoliticsMay not be valued as experts by staff
24 External Researcher Advantages: Experience from several situations Better technical trainingLimitations:Time to understand the organizational systemCooperation from the staffs is not easyNot available for evaluation after implementationcost