What is business research?

What is business research?

n  A systematic inquiry that provides information to guide managerial decisions.

n  It is a process of planning, acquiring analyzing and disseminating relevant data, information and insights to decision makers in a way that mobilize the organization to take appropriate actions that, in turn, maximize business performance.

Information and Business Research

n  Relationship between information, information sources, decision support systems and business intelligence is critical for understanding how information drives business research and decision making.

q  Goals

n  Any local firm can have different goals, each likely related to sales, market share, ROI, profitability, employee productivity, etc whether its is codified in a written plan or detailed only in an entrepreneurs mind.  Managers need information to plan out the goals, and decide on goals, strategies and tactics.  The information can be drawn from decision support system, combined with business intelligence.

q  Decision Support

n  Exchange of any kind with a customer is a big source of information and data.  If organized properly, it becomes a decision support system.  The use of Intranet, Extranet etc to access proprietary relational databases containing managerial decision relation information have gained much importance.  Nowadays DSS (decision support system) are so developed that real time information procession and decision making is possible.

q  Business intelligence

n  It is a system 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.

q  Strategy

n  Strategy is the general approach that an organisation will follow to achieve its goals. It can be proactive or reactive and greatly depends on the information that is gathered from the exchanges or feedback/research.

q  Tactics

n  Specific timed activities that execute a strategy.  It helps a manager decide which of several tactics is likely to successfully execute the desired strategy.

Ø The purpose of business research

n  To identify and define opportunities and problems

n  To define, monitor and refine strategies

n  To define, monitor and refine tactics

n  To improve our understanding of the various fields of management.

Hierarchy of Information-Based Decision Makers

Criteria for good Research

n  Purpose clearly defined

n  Research process detailed

n  Research design thoroughly planned

n  High ethical standards applied

n  Limitations frankly revealed

n  Analysis adequate for decision makers needs

n  Findings presented unambiguously

n  Conclusions justified

n  Researcher’s experienced reflected

Preparing a Research Plan, Qualitative and Quantitative Research Design

Research Design/Research Plan

n  Successful completion of a research required a detailed plan of action.

n  Research design is a plan of action for the proposed research.  It is used to structure the research and shows all the parts involved in the research project.

n  Research design is a blue print of the study.

n  “a research design is a logical and systematic planning and it helps directing a piece of research.”

Essentials of a Research design

n  An activity and time based plan

n  A plan always based on research question

n  A guide for selecting sources and types of information

n  A framework for specifying the relationships among the study’s variables

n  A procedural outline for every research activity.

Questions involved in making a Research Plan

n  What is the study about?

n  Why is the study being made?

n  What types of data are needed?

n  Where can the needed data be found?

n  What are the sources of data?

n  What periods of time will the study include?

n  How many cases will be covered?

n  What basis of selection will be used?

n  What techniques of gathering data will be followed?

n  How will the data be processed?

n  What methods of analysis will be adopted?

n  To what type of audience is its reporting meant?

n  What kind of report will be prepared?

Elements of a Research Design

n  Title of the study

–        Specific to the area of study

–        Should indicate the topic of study

–        As brief as possible

n  Introduction

–        A brief explanation about the problem should be given

n  Statement of the problem

–        Use of clear, simple and concise statement is preferable

n  Review of previous studies

–        Literature review and mention the important studies.

–        Enables a researcher to know the different areas covered by various studies, to concentrate on the areas where little research has been carried out, to look into various merits and shortcomings of certain studies already completed and verify the present findings with that of previous ones.

n  Scope of study

–        Gives an idea about the extent of the study

–        Depends on factors like time, money, availability of sample, co-operation of respondents and alike

n  Objectives of study

–        Objectives mentioned should be well within the scope of study

n  Hypothesis to be tested

–        Should be stated in clear, concise and understandable language

n  Operational definition of concepts

–        All concepts to be explained and all ambiguous terms must be clarified

n  Geographical area to be covered

–        Area covered must be mentioned

n  Reference period

–        Period of study to be mentioned

n  Methodology

–        Kind of information needed, sources of data and means of collecting the information and the whole process is called methodology

n  Sampling

–        Taking a portion of population, making observation on this group and generalizing the findings to be applied to the large population

–        Also involves type of sample, size of sample and mechanism of collecting the sample

n  Tools of collecting the data

–        Method of data collection, tools used,  unit of each enquiry etc, use of questionnaire, schedule, interview etc to be clarified

n  Plan of analysis

–        Analysis of data into meaningful results by statistical analysis

–        The researcher must describe how he plans to organize the data, statistical treatment, the appropriateness of the techniques etc

n  Research report

–        Consists of three parts

n  Part 1 – preliminary pages which contain title page, approval sheet, preface, table of contents list of tables, list of figures etc

n  Part 2 – body of the report which covers the content chapters

n  Part 3 – supplementary pages which include bibliography, appendix and index

n  Time schedule

–        A time table for

n  Preparing the theoretical background

n  Data collection and preparing the devices for data collection

n  Processing the data

n  Writing the report

n  Submitting the thesis

n  Financial Budget

–        Cost estimates of the project including cost of stationery, printing, sample selection, fieldwork, mailing, processing, tabulating, preparing of report and overheads etc.

TECHNIQUES

n  Secondary Data Analysis

–        Studies made by others for their own purposes represent secondary data.

–        Helps to identify methodologies that proved successful and unsuccessful.

–        Problems can be known beforehand and solutions can be thought of.

–        Kind of a feed forward

–        Helps to avoid duplication

–        Sources

n  Own archives

n  Published documents prepared by authors outside the sponsor organization

n  Special catalogs, subject guides and electronic indexes

n  Experience survey

–        Involves seeking the ideas of respondents about important issues or aspects of the subject.

–        Questions must be around

n  What is being done?

n  What has been tried in the past without success? With success?

n  How have things changed?

n  What are the change producing elements of the situation?

n  Who is involved in decisions and what role does each person play?

n  What problem areas and barriers can be seen?

n  What are the costs of the processes under study?

n  Who can we count on to assist and/or participate in the research?

n  What are the priority areas?

–        This may help in developing a new hypothesis, discarding of an old one or information about the practicality of doing the study

–        Some people who provide insightful information

n  New comers to the scene

n  Marginal or peripheral individuals – first line supervisors come in between management and workers

n  Individuals in transition - recently promoted employees

n  Deviants and isolates – people who have a different position from the majority

n  Pure cases – extreme examples of conditions under study eg. Most unproductive departments

n  Those who fit well and those who do not

n  Those who represent different positions in the system.

n  Focus groups

–        A group of people (6 to 10) led by a trained moderator who meet up for 90 mins to 2 hrs.

–        The facilitator uses group’s dynamics principles to focus or guide the group in an exchange of ideas, feelings, and experiences on a specific topic.

–        The basic output is a list of ideas and behavioral observations which are used for quantitative testing.

–        Most common application of focus groups is consumer arena.

n  Two stage design

–        Dividing the exploration into

n  Defining the research question

n  Developing the research design

–        Generally used when much about the problem is not known but should be know before effort and resources are combined

–        It is particularly useful when research budget is inflexible. 

–        A limited exploration for a specific, modest cost carries little risk for both sponsor and researcher and often uncovers information that reduces the total research cost.

TYPES OF RESEARCH

n  Basic research or fundamental research

–         carried out increase understanding of fundamental principles

–        Aims at acquiring knowledge for knowledge sake and not to create or invent something.

–        This research has no direct or immediate commercial benefits

n  Eg: How did the universe begin?

n  Applied research      

–        Designed to solve practical problems of the modern world rather than to acquire knowledge

n  eg?: improve agricultural production

n  Ex-posto-facto research

–        Means “after the fact”. This is conducted after the happening of an event or a situation. 

n  Eg: company conducts research to know why its newly launched product failed in the market.

n  Social research

–        It is the scientific study of society

–        Examines a society’s attitude, assumptions, beliefs, trends, stratifications and rules.

–        Popular topics of social research include poverty, racism, class issues, voting behavior, gender constructs etc.

n  Field Studies

–        It is a term used by naturalists for the scientific study of free-living wild animals in which the subjects are observed in their natural habitat, without changing, harming or materially altering the setting or behavior of the animals under study.

–        Field studies can be employed to learn about customers goal and needs.

n  Case Study research

–        A detailed intensive study of a unit, such a corporation or a corporate division that stresses factors contributing to its success or failure

–        Refers to the collection and presentation of detailed information about a particular object or a phenomena drawing conclusions about only that phenomenon and only in a specific context

n  Casual research

–        Deals with the cause-effect relationship.

–        Here the emphasis is on the specific hypothesis about the effects of changes of one variable on another variable..

–        Involved experimentation where an independent variable is changed or manipulated to see how it affects a dependent variable, controlling the effects of extraneous variables

n  Descriptive Research

–        Describes data and characteristics about the population or phenomenon

–        Also known as statistical research

–        Answers the questions who, what, where, when

n  Action research

–        Inquiry or research in the context of focused efforts to improve the quality on an organization and its performance.

–        Can be done by individuals or by teams or colleagues

–        Team approach is called collaborative inquiry.

–        Can be a continuous process

–        Basically used to concern with evaluation of alternatives to solve problem or improve solution to an existing problem..

n  Exploratory research

–        Conducted into an issue or problem where there are few or no earlier studies to refer to.

–        Focus is on gaining insights and familiarity for later investigation

–        Helps determine the best research design, data collection method and selection of subjects

–        Helps in formulating research problem more precisely

n  Market research

–        It is he search for and analysis of information relevant to the identification and solution of any problem in the field of marketing

–        Generally includes gathering and evaluation of data regarding consumers preferences for products and services.