Applied Research Its Role in the Business Environment
Give me wisdom and knowledge, that I may lead this people, for who is able to govern this great people of yours? 2 Chronicles 1:10
Objectives To understand the importance of business research as a management decision-making tool. To define business research. To understand the difference between basic and applied research. To understand the managerial value of business research and the role it plays in the development and implementation of strategy. To define total quality management and show its relationship to business research. To understand when business research is needed and when it should not be conducted. To identify various topics for business research. To explain that business research is a global activity.
Why Study Research? Research provides you with the knowledge and skills needed for the fast- paced decision- making environment –Data leads to… –Information leads to… –Knowledge Knowledge is power!
Who do you relate to the most 1.Brad Pitt (married to Angelina Jolie #13) 2.Coolio (rapper) 3.Tiger Woods (golf pro) 4.Michael Jordon (Ex-basketball pro) 5.Christopher Reeves (actor, disabilities advocate) 6.George W. Bush (President) 7.Denzel Washington (Academy Award winner) 8.Oprah (talk show host, business woman) 9.Lance Armstrong (7-time Tour de France winner) 10.Tom Cruise (actor) 11.Britney Spears (singer) 12.Rosie ODonnell (actress) 13.Howard Schultz (Chairman of Starbucks) 14.Arnold Schwarzenegger (governor, former actor) 15.Stephen Hawkins (scientist) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Company Example 1980s market was shrinking Confident w/core customer but concerned about future sales Needed to find the universal thread of appeal for its product Wanted to reach other markets Embarked on a series of focus groups Current owners Prospective owners Competitors customers Surveyed 16,000 current owners Did a psychological inventory
Company Example Attributes that attracted people to their product: Independence Freedom Power High degree of brand loyalty Results: Gave company confidence to expand marketing efforts 1996 sales grew to 105,000 from 30,000 in 1985 Still has a waiting list Stock Chart 1987-2002 Who are they?
They are… Hints: Orange Black Leather Rock & Roll
Information Reduces Uncertainty "…The great Information Age is really an explosion of non-information; it is an explosion of data. To deal with the increasing onslaught of data, it is imperative to distinguish between the two; information is that which leads to understanding." Richard Saul Wurman Information Anxiety 2
Female Attractiveness Key to attractive females? Low waist-to- hip ratio Singh, D. (1993), "Adaptive Significance of Female Physical Attractiveness: Role of Waist-to-Hip Ratio,"Journal of Personality and Social Psychology 65: 293-307
Male Attractiveness Key to attractive men? Facial symmetry Body symmetry Body odor Rikowski A., Grammer K. (1999): Human Body Odour, Symmetry and Attractiveness, Proc. of the Royal Society London B, 266, pp. 869-874.
Business Research Types Basic research –Applied research Business Research –Lets take a look at Basic and Applied Research…. Leads to…
Basic Research Basic research: embarks on the unknown, enlarging the realm of the possibleBasic research: embarks on the unknown, enlarging the realm of the possible Attempts to expand the limits of knowledge.Attempts to expand the limits of knowledge. Not directly involved in the solution to a pragmatic problem.Not directly involved in the solution to a pragmatic problem.
Basic Research Expands Knowledge: Example What are the characteristics of successful people? Successful people share many characteristics. They are constantly learning how to do their jobs better and take responsibility for their own training in order to do so. They empower themselves, are self-motivated, and take control of their lives, rather than waiting for someone else to lead them down the path to success.. Source: John Tschohl, The Qualities of Successful People, Managing Service Quality, Volume 9 Number 2 1999 pp. 78-80 What are the characteristics of effective sales people? motivation; customer orientation; team orientation; and sales support orientation. Source: A.T. Barker, Salespeople characteristics, sales managers' activities and territory design as antecedents of sales organization performance, Marketing Intelligence & Planning, 2001
"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: elaboration and application of the known
Why Business Research in the 21st Century? Increased globalization Growth of the Internet and other information technologies Change, change, and more change!
Global Research Business Research is increasingly global Market knowledge is essential A.C. Nielsen - more than 67% of large businesses involved in international business
Global Business Research 80% of all international investments come from developed countries (the triad or golden triangle) North America Europe Asia Pacific Triad or Golden Triangle
The Internet Is Transforming Society Time is collapsing.Time is collapsing. Distance is no longer an obstacle.Distance is no longer an obstacle. Crossing oceans is only a mouse click away.Crossing oceans is only a mouse click away. People are connected 24 hours a day, seven days a week.People are connected 24 hours a day, seven days a week. "Instantaneous" has a new meaning."Instantaneous" has a new meaning.
The Delivery of Information Horse drawn carriage: 1500-1800 –10 mph Steam locomotive: 1850-1930 –65 mph First cars: 1910s –30 mph Jet aircraft: 1960s –700 mph Internet: Now –Instantaneous