Doing Research in Business Management

8/12/2019 Doing Research in Business Management

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Doing research in business management is vital as it helps a business plan for the future,

based on what may have happened in the past. If carried out successfully it can help a

company make informed plans on how to become more viable in its sector.If something has been unsuccessful, for instance, having carried out effective research

may help a business avoid future failure. Carrying out research may also help a company

decide whether now is the right time to expand into another city or whether it shouldapply for a new loan. It also helps a business determine whether a procedure should be

changed or if more needs to be done to meet the needs of the customer base.

Research in business management may come in different forms, depending on what acompany is hoping to achieve. For example, if you are hoping to launch a new product on

the market, do some market research to see if it would be a good idea. Certainly, seeing

what works and what doesnt will help a business owner have the knowledge to make

informed decisions in specific areas of business.!ome business experts agree that looking to the future of business is very much about

looking at the past. "he two are interlinked and by carrying out research you are more

likely to see a positive outcome in your chosen ob#ective. In business, making ill

informed decisions may be very precarious as there may be too much money at risk or acompanys reputation may be put at stake.

Research into business management can either be carried out by an individual by lookingat historical research reports or it could even be outsourced. Regardless of how it is

carried out, the benefits for the future of your business will be very clear to see.


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1. What is the significance of research in social and business sciences?

Significance of Research in Social and Business Sciences

According to a famous Hudson Maxim, All progress is born of inquiry. Doubt is

often better than overconfidence, for it leads to inquiry, and inquiry leads to

invention. t brings out the significance of research, increased amounts of !hich

ma"es progress possible. #esearch encourages scientific and inductive thin"ing,

besides promoting the development of logical habits of thin"ing and organi$ation.

%he role of research in applied economics in the context of an economy or

business is greatly increasing in modern times. %he increasingly complex nature

of government and business has raised the use of research in solving operational

problems. #esearch assumes significant role in formulation of economic policy,

for both the government and business. t provides the basis for almost all

government policies of an economic system. &overnment budget formulation, for

example, depends particularly on the analysis of needs and desires of the

people, and the availability of revenues, !hich requires research. #esearch helps

to formulate alternative policies, in addition to examining the consequences of

these alternatives. %hus, research also facilitates the decision ma"ing of policy'

ma"ers, although in itself it is not a part of research. n the process, research

also helps in the proper allocation of a country(s scare resources. #esearch is

also necessary for collecting information on the social and economic structure of

an economy to understand the process of change occurring in the country.)ollection of statistical information though not a routine tas", involves various

research problems. %herefore, large staff of research technicians or experts is

engaged by the government these days to underta"e this !or". %hus, research

as a tool of government economic policy formulation involves three distinct

stages of operation !hich are as follo!s*


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+ nvestigation of economic structure through continual compilation of facts

+ Diagnoses of events that are ta"ing place and the analysis of the forces

underlying them and

+ %he prognosis, i.e., the prediction of future developments

#esearch also assumes a significant role in solving various operational and

planning problems associated !ith business and industry. n several !ays,

operations research, mar"et research, and motivational research are vital and

their results assist in ta"ing business decisions. Mar"et research is refers to the

investigation of the structure and development of a mar"et for the formulation of

efficient policies relating to purchases, production and sales. -perational

research relates to the application of logical, mathematical, and analytical

techniques to find solution to business problems such as cost minimi$ation or

profit maximi$ation, or the optimi$ation problems. Motivational research helps to

determine !hy people behave in the manner they do !ith respect to mar"et

characteristics.

$ore specifically, it is concerned with the analy%ing the motivations underlying

consumer behaviour. &ll these researches are very useful for business and industry,

which are responsible for business decision making.

#esearch is equally important to social scientist for analy$ing social relationships

and see"ing explanations to various social problems. t gives intellectualsatisfaction of "no!ing things for the sa"e of "no!ledge. t also possesses

practical utility for the social scientist to gain "no!ledge so as to be able to do

something better or in a more efficient manner. %his, research in social sciences

is concerned !ith both "no!ledge for its o!n sa"e, and "no!ledge for !hat it

can contribute to solve practical problems.


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The Significance of Research in Business DecisionMaking

'y !uchi $oorty, e(ow Contributor

"he !ignificance of

Research in 'usiness Decision $aking

Research is essential in all businesses, whether small or big. 'ased on research,

management can make intelligent and informed decisions. Companies need to research

which products to make, how to make them, the )uantities thereof, how to market them,

entice customers, motivate employees and run more effective systems. In the researchmechanism, the analyst collects data, organi%es and tabulates it, then presents it to top

management in the form of text and charts.

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'usiness Research Decision $aking

'usiness $anagement * Decision $aking

1. Function

o Research is necessary for managerial decision making. &ll strategic

business areas are scrutini%ed and evaluated+ then tactics for more efficient

operations are developed. very business often has several means ofperforming a task. "hrough research, the organi%ation is able to choose the

most efficient, productive and profitable one. Research could be applied to

marketing, production, finance, I" and (R. "hrough research, theorgani%ation is able to gauge initially whether getting into a new line of

trade would be a profitable venture. -ngoing research is essential to
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improve and improvise the product as per customer specifications. "he

company must also research ways and means to keep its employees happy

and motivated.

Features

o "he research mechanism enables the organi%ation to better understand and

comprehend the market, its customers and competitors. "he organi%ation

knows exactly what their customers need and desire, and takes theappropriate steps to deliver that to them. &lso, the company can classify

customers on the basis of demographics, such as gender, age, income and

level of education. -nce the company determine its customers/ primarydemographic group, it takes steps to service them better. "hrough

research, competitors/ moves and strategies are highlighted, and the

company can then be proactive to preempt them.

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Types

o "here are two types of research. "he first type, primary research, is when

the individuals who are the company/s present or potential customers areasked to define their specifications on the kind of product they desire. "heinterviewer usually has a preset format or )uestionnaire when he goes to

respondents to ask for feedback. "his type of research is primarily

conducted to gauge the customers/ perceptions on a specific product.

!econdary research uses an analyst to compile previously published data."his study is useful in understanding the broad market and industry

situation.

Benefits

o "here are many benefits of conducting research. "he company canunderstand what its customers actually want and can deliver that product

to them. 4hen the company is planning to diversify its product range, it

will know at the very outset, through the research mechanism, whether ornot there is a demand for such a product. 4hen the company knows about

what feature in the product attracts customers and what repels them, the

company is able to take the appropriate steps. "he company thenaccentuates its strengths more aggressively while allaying its weaknesses.
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Considerations

o Companies must apportion a chunk of their yearly budgets for research

and development purposes. &lso, many companies entrust the work ofcarrying out research to market research companies. "hese companies may

not be fully aware of the work ethos and ethics prevailing in theorgani%ation+ hence there is always the possibility that they may notresearch that pertinent aspect of the company desired. "herefore, the

research company must be made fully aware of the parameters of the

research.


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How to Conduct Business Research'y 5am 6aulin, e(ow Contributor

Researcher at work

&t some point in your educational pursuits, #ob search or work you may need to conductbusiness research. &ny entrepreneur or marketing professional may need to research their

company/s industry and competitors. 'usiness research may be used to help create a

competitive analysis for a startup company or as part of a business plan for a small

business loan application. 'usiness research may also be used to evaluate the stabilityand growth of an industry or a company, information that applies to your career planning,

investment choices or is used for market analysis.

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(ow to valuate 'usiness Research

4hat Is the 'usiness Research $ethod7

Things You'll Need

&ccess to library

Instructions

8.

o 8

Research the scope of the business/ sector by using standard definitions

and classifications as organi%ed by the 9.!. Census 'ureau/s :orth
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&merican Industry Classification !ystem ;:&IC!


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problem-solving and decision-making

simple processes for problemsol!ing and decisionma"ing

5roblem solving and decisionmaking are important skills for business and life. 5roblemsolving often involves decisionmaking, and decisionmaking is especially important for

management and leadership. "here are processes and techni)ues to improve decision

making and the )uality of decisions. Decisionmaking is more natural to certainpersonalities, so these people should focus more on improving the )uality of their

decisions. 5eople that are less natural decisionmakers are often able to make )uality

assessments, but then need to be more decisive in acting upon the assessments made.

5roblemsolving and decisionmaking are closely linked, and each re)uires creativity inidentifying and developing options, for which thebrainstormingtechni)ue is particularly

useful. !ee also the free !4-" analysis template and examples, and 5!" analysistemplate,which help decisionmaking and problemsolving. !4-" analysis helps assessthe strength of a company, a business proposition or idea+ 5!" analysis helps to assess

the potential and suitability of a market. 6ood decisionmaking re)uires a mixture of

skills creative development and identification of options, clarity of #udgement, firmnessof decision, and effective implementation. For group problemsolving and decision

making, or when a consensus is re)uired, workshopshelp, within which you can

incorporate these tools and process as appropriate. (ere are some useful methods foreffective decisionmaking and problemsolving First a simple stepbystep process for

effective decisionmaking and problemsolving.

!ee also the decisionmaking facilitative )uestions template.

&nd definitely see the ethical decisionmaking)uick guide.

decision-making process

8. Define and clarify the issue does it warrant action7 If so, now7 Is the matter

urgent, important or both. !ee the 5areto 5rinciple.

=. 6ather all the facts and understand their causes.>. "hink about or brainstorm possible options and solutions. ;!eebrainstorming

process

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Doing Research in Business Management