Role Of Business Research 3h6o2c

ROLE OF BUSINESS RESEARCH Business research functions as a conduit to new ideas and concepts. Learning through research is not limited to a particular department or project or a particular point in the year. It can be conducted by reading, viewing and listening on a daily basis. Every employee has the potential to be involved in some level of business research, and gathering research should not happen in a vacuum but should be part of the process of managing a business. Management Tool Business research ultimately functions as a management tool that can be used for creating business strategies, managing production and managing growth. As a management tool, it provides a descriptive function (collecting data), a diagnostic function (assessing, evaluating and explaining) and a predictive function (forecasting and choosing a course of action). Managers of all levels use research to shape and direct their employees and their strategies. Source of Information Data collection can occur through internal reporting and financial statements, a proprietary research study or by simply gathering or purchasing statistics and data from reliable sources. For example, business research by The Freedonia Group identifies laminate markets and products, outlines comparative market data for the years 1998, 2003 and 2008 and makes projections for 2013 and 2018. With this information, a laminate manufacturer, home builder or product sales representative can compare business goals and realities against viable market data and put future business strategies in perspective. Redefining Perceptions Business research provides an opportunity for assessment. The laminate manufacturer has the opportunity to take the information provided and assess how and where its business fits in the decorative laminates industry. What the manufacturer may have assumed about the industry and the perceptions it holds about its role within it may change through this business research assessment. The tools for diagnosing the cause of dropping sales figures or a faulty production process grow broader when business research is included.

Risk Management Knowing present conditions can lower risk. Business research can provide parameters in which a business can flourish and manage risk. Researching trends and market conditions can identify the need for increased insurance, alternative shipping and transportation needs or the need to assess and sell assets. Shape Strategies Business research can inform and shape business strategies. Researching trends or tracking industry data can provide or stimulate strategic planning. Knowing what competitors are doing and the direction they are headed can inform present business strategies. Conducting business research in the area of consumer preferences reveals what products need further development and what features may be beneficial to add. I. THE SCOPE OF BUSINESS RESEARCH Business research fulfills the manager’s need for knowledge of the organization, the market, the economy, or other area of uncertainty. It helps the manager predict how individuals, markets, organizational units, or other entities will respond to his business decisions. The emphasis of business research is to shift decision-makers from risky intuitive decisions to decisions based on systematic and objective investigations. A business researcher conducting research may be referred to as a “marketing researcher,” an “organizational researcher,” a “director of financial research,” or one of many other titles. II. BUSINESS RESEARCH DEFINED Business research is defined as the systematic and objective process of generating information for aid in business decisions. This research information should be (1) scientific; not intuitive or haphazardly gathered (2) objective (3) impersonal. Business research can be used for any aspect of the enterprise. By providing appropriate information, research should be an aid to managerial judgment although it should not be a substitute for it. Applying the research is a managerial art in itself. All types of organizations that engage in some kind of business activity can use business research.

III. BASIC RESEARCH AND APPLIED RESEARCH There are two types of business research: A. Basic or pure research attempts to expand the limits of knowledge. B. Applied research is conducted when a decision must be made about a specific reallife problem. Both types of research employ the scientific method, the analysis and interpretation of empirical evidence (facts from observation or experimentation), to confirm or disprove prior conceptions. IV.MANAGERIAL VALUE OF BUSINESS RESEARCH The prime managerial value of business research is that it reduces uncertainty by providing information that facilitates decision making about strategies and the tactics used to achieve an organization’s strategic goals.

The decision-making process involves three interrelated

stages. A.

Identifying the existence of problems and opportunities. Before any strategy can be developed, an organization must determine where it wants to go and how it will get there. Business research can help managers plan strategies by determining the nature of situations by identifying the existence of problems or opportunities present in the organization.

B.

Diagnosis and Assessment . After an organization recognizes a problem or identifies a potential opportunity, an important aspect of business research is often the provision of diagnostic information that clarifies the situation. Managers need to gains insight about the underlying factors causing the situation. If there is a problem they need to specify what happened and why. If an opportunity exists they may need to explore, clarify, and refine the nature of the opportunity.

C.

Selecting and implementing a course of action. Business research is often conducted to obtain specific information to help evaluate the various alternatives, and to select the best course of action based on certain performance criteria.

D.

Evaluation of the course of action. Evaluation research is conducted to inform managers whether planned activities were properly executed and whether they accomplished what they were expected to do. It serves an evaluation and control function.

Evaluation research is a formal, objective appraisal that

provides information about objectives and whether the planned activities accomplished what they were expected to accomplish.

This can be done

through performance-monitoring research, which is a form of research that regularly provides for evaluation and control of business activity. If this research indicates things are not going as planned, further research may be required to explain why something “went wrong.” V. WHEN IS BUSINESS RESEARCH NEEDED? A manager considering whether or not to conduct research must consider four things: A. Time constraints: Is there sufficient time available before a managerial decision must be made? B. Availability of data: Is the information already on hand adequate for making the decision? If not, can appropriate information be made available? C. Nature of the decision:

Is the decision of considerable strategic or tactical

importance? D. Benefits vs. costs: Does the value of the research information exceed the cost of conducting the research? If the answer to any of these questions is “no,” then business research should not be conducted. VI. MAJOR TOPICS IN BUSINESS RESEARCH There are many topics that benefit from business research. Some major topics are: general business, economic, and corporate research; financial and ing research; management and organizational research; sales and marketing research; information systems research; and corporate responsibility research.