11/5/2020

Introduction
Chapter 1
The research can provide information necessary for
taking decisions related to :
1- Innovation in the form of new products.
2- Improvements in existing goods and services.
The role of Business Research 3- Enhancements in employee relationships.

Definition of Business Research

Business research is the application of the scientific ⚫ The Business Research facilitate the managerial
method in searching for the truth about business decision making process in aspects related to
phenomena. (Finance- marketing- HR).
Business Research Process ⚫ Provide Information and insights that decrease the
risk of making wrong decisions.

Defining Search and Communicating

Business Collecting Analyzing Data Finding and
Problem Information Implications

Applied Vs. Basic Business Research

Types of Research based on it’s purpose

⚫ BusinessResearch helps both Profit oriented
companies, it also assists Not For Profit entities and
Applied Research
Governmental agencies as well • Research conducted to address a specific business decision for a firm

⚫ Example: Food and Drug Administration – it uses Basic Research (Pure Research)
the Business Research to address the way people • Research conducted without specific decision in mind that usually does not address the
needs for specific organization.
view and use various food and drugs. • It attempts to expand the limit of the knowledge in general and aims to solve a particular
pragmatic problem
• It is used to test the validity of general business theory
• Eg: How can managers best encourage workers to dedicate themselves toward
organization’s goals
• Noting that this does not examine the problem from the any organization’s perspective

1
 11/5/2020

The Scientific Method Managerial Value of Business Research

⚫ Thescientific method is the way researchers go Product Oriented

about using knowledge and evidence to reach
• A product-oriented firm prioritizes decision making in a way that emphasizes
objective conclusions about the real world. technical superiority in the product. A product-oriented firm prioritizes decision
making in a way that emphasizes technical superiority in the product.

Marketing Oriented
• which focuses more on how the firm provides value to customers than on the
physical product or production process.

⚫ The decision-making process associated with the

development and implementation of a business
strategy involves four interrelated stages:
⚫ 1. Identifying problems or opportunities

⚫ 2. Diagnosing and assessing problems or

opportunities
⚫ 3. Selecting and implementing a course of action

⚫ 4. Evaluating the course of action

Identifying Problems or Opportunities Diagnosing and Assessing Problems or Opportunities

⚫ Organization must determine where it wants to go ⚫ After Identifying the problem. Managers need to
and how it will get there. Business research can help gain insight about the underlying factors causing the
managers plan strategies by determining the nature situation
of situations or by identifying the existence of ⚫ If an opportunity exists, they may need to explore,
problems or opportunities present in the refine, and quantity the opportunity. If multiple
organization. opportunities exist, research may be conducted to set
priorities

2
 11/5/2020

Selecting and Implementing a Course of Action Evaluating the Course of Action

⚫ business research is often conducted to obtain ⚫ Managers may use evaluation research to provide
specific information that will aid in evaluating the feedback for evaluation and control of strategies and
alternatives and in selecting the best course of tactics.
action. ⚫ Evaluation research is the formal, objective
measurement and appraisal of the extent a given
activity, project, or program has achieved its
objectives
⚫ Performance-monitoring research is a specific type
of evaluation research that regularly, perhaps
routinely, provides feedback for the evaluation and
control of recurring business activity.

When Is Business Research Needed?

⚫ The determination of the need for research centers ⚫ Time Constraints :management believes that a
on decision must be made immediately, allowing no
⚫ (1) time constraints, time for research.
⚫ (2) the availability of data, ⚫ Availability of Data:

⚫ (3) the nature of the decision to be made,

⚫ (4) the value of the research information in relation ⚫ Nature of the Decision: The value of business
to costs. research will depend on the nature of the managerial
decision to be made. the more strategically or
tactically important the decision, the more likely it is
that research will be conducted.

⚫ Benefits versus Costs

conducting research to obtain the benefits requires an expenditure of
money
In any decision-making situation, managers must identify alternative
courses of action and then weigh the value of each alternative against its
cost.
When deciding whether to make a decision without research or to
postpone the decision in order to conduct research, managers should ask
three questions:
1. Will the payoff or rate of return be worth the investment?
2. Will the information gained by business research improve the quality
of the managerial decision enough to warrant the expenditure?
3. Is the proposed research expenditure the best use of the available
funds?

3
 11/5/2020

Business Research in the Twenty-First Century Global Business Research

⚫ Communication Technologies: ⚫ Likeall business activities, business research has

⚫- The way information is exchanged, stored, and become increasingly global as more and more firms
gathered has been revolutionized completely. operate with few, if any, geographic boundaries.
⚫ - Today, the amount of information formally ⚫ Companies that conduct business in foreign

contained in an entire library can rest easily in a countries must understand the nature of those
single personal computer. particular markets and judge whether they require
⚫ - The expressions “time is collapsing” and “distance
customized business strategies.
is disappearing” capture the tremendous revolution
in the speed and reach of our communication
technologies.

⚫ The internationalization of research places greater

demands on business researchers and heightens the
need for research tools that allow us to cross-validate
research:
⚫ To verify that the empirical findings from one
culture also exist and behave similarly in another
culture.