Chapter 1Chapter 1

Research Research

in Businessin Business

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved. 

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Management DilemmaA problem or opportunity that requires a management decision.

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Data Collectors Face Data Collectors Face ResponsibilitiesResponsibilities

“This is a fantastic time to be entering the business world, because business is going to change more in the next 10 years than it has in the last 50.”

Bill Gates, entrepreneur and founder

Microsoft

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Why Study Business Research?Why Study Business Research?

Business research provides information to guide business decisions

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Research Should Help Research Should Help Respond to ChangeRespond to Change

“Enterprises have long recognized the need

to better sense and respond to business change.

What’s different today is that ubiquitous access

to information and real-time communications

have fostered an ‘always on’ business culture

where decision making has become a ‘just-in-time

process.’”

Business Performance Management Forum

When Should Business Research be Undertaken?When Should Business Research be Undertaken?

Is sufficient timeavailable?

Is information inadequate?

High importance of decision?

Research benefits greater than costs?

Yes

Yes

Yes

Undertake Business Research

NO Do notundertake Business Research

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•A process of determining, acquiring,analyzing, synthesizing, and disseminatingrelevant business data, information, andinsights to decision makers in ways thatmobilize the organization to take appropriate business actions that, in turn, maximize business performance

Business ResearchBusiness Research

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Research Should Reduce RiskResearch Should Reduce Risk

The primary purpose of

research is to reduce the level of risk of a marketing

decision

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Critical Scrutiny of Business

Computing Power & Speed

Computing Power & Speed

Battle for Analytical

Talent

Battle for Analytical

Talent

FactorsFactors

Information Overload

Shifting Global

Economics

Shifting Global

Economics

Government Intervention

Government Intervention

Technological Connectivity

Technological Connectivity

New Research

Perspectives

New Research

Perspectives

What’s Changing in Business What’s Changing in Business that Influences Researchthat Influences Research

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Computing Power and SpeedComputing Power and Speed

Real-time Access

Real-time Access

Lower-cost Data

Collection

Powerful Computation

Powerful Computation

Better Visualization

Tools

Better Visualization

Tools

Integration of Data

Integration of Data

FactorsFactors

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Business Planning Drives Business Planning Drives Business ResearchBusiness Research

Organizational Mission

BusinessGoals

BusinessStrategies

BusinessTactics

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Business Decisions and ResearchBusiness Decisions and Research

Häagen-Dazs Tactics– Super premium – Dozens of flavors– Small packages– Signature colors on

packaging– Available in franchise

and grocery stores

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Information SourcesInformation Sources

Decision Support Systems

Numerous elements of data organized for retrieval and use in business decision

making

Stored and retrieved via– Intranets– Extranets

Business Intelligence Systems

Ongoing information collection

Focused on events, trends in micro and

macro-environments

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Sources of Sources of Business IntelligenceBusiness Intelligence

Business Intelligence

Government/Regulatory

Economic

Competitive

Demographic

Technological Cultural/Social

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Hierarchy of Business Decision Hierarchy of Business Decision MakersMakers

Visionaries

Intuitive Decision Makers

Standardized Decision Makers

Visionaries

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Research May Not Be NecessaryResearch May Not Be Necessary

Can It Pass These Tests?• Can information be applied to a critical

decision?• Will the information improve managerial

decision making?• Are sufficient resources available?

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Information Value ChainInformation Value Chain

Characteristics

Data collection/ transmission

Data interpretation

Models

Decisionsupport systems

Data management

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The Research ProcessThe Research Process

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Characteristics of Characteristics of Good ResearchGood Research

Clearly defined purposeClearly defined purpose

Detailed research processDetailed research process

Thoroughly planned designThoroughly planned design

High ethical standardsHigh ethical standards

Limitations addressedLimitations addressed

Adequate analysisAdequate analysis

Unambiguous presentationUnambiguous presentation

Conclusions justifiedConclusions justified

CredentialsCredentials

Basic and Applied ResearchBasic and Applied Research

Basic Research aims to expand the frontiers of science and

knowledge by verifying or disproving the acceptability of a given theory

or attempting to discover more about a certain concept (non-specificity)

Example: How does motivation affect employee performance?

Applied Research focuses on a real-life problem or situation with a

view to helping reach a decision how to deal with it (Specificity)

Example: Should Corporation X adopt a paperless office environment?

Types of Studies Used to do Types of Studies Used to do ResearchResearch

Reporting• provide a summation of data, often recasting data to achieve a

deeper understanding or to generate statistics for comparison.

Descriptive– Discovers answers to questions who, what, when, where, and how.– May involve data collection and distribution techniques

Explanatory– Goes beyond description & attempts to explain the reasons of

phenomenon that descriptive study only observed.– Correlational study

Predictive– Predicts variables for future such as attitudes, time of year, proximity

of air routes.

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Types of StudiesTypes of Studies

Reporting

Explanatory Predictive

Descriptive

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Specialty Business Research FirmsSpecialty Business Research Firms

Methodology

Process

Industry

Participant group

Geographic Region