Relationship Between Research and Business Decisions

Businesses of all sizes engage in extensive research to help improve and expand. For small businesses and start-ups, effective, cost-efficient research can be an important step toward long-term success. Developing an understanding of the relationship between research and business decisions helps ensure your business is getting the most out of its research efforts.

Basics of Business Research in Decision-Making

Research is an important part of a business’ decision-making process, especially when it comes to major structural changes or new product lines. This is because it’s often less difficult for a business to replicate past successes than it is to develop an entirely untested approach. Even highly innovative companies rely on extensive information about consumer needs, market trends and management practices when developing a business strategy. In some cases, an effective business manager must also be able to recognize some of the weaknesses of research and rely on her own experience or intuition to guide decisions.

Market and Consumer Research

One of the most valuable kinds of research in business decisions is market research. This is information a business collects or purchases about its potential consumers and their buying habits, with the goal of better understanding their customers’ needs. This information is then used to make decisions about new product offerings, pricing and advertising to best meet the market’s demands. It also provides information to indicate when a business strategy is underperforming or unlikely to be effective, so that your business can cut costs where necessary.

Competition Research

It’s wise for a business to always keep a careful eye on its competition. Research into the activities and plans of competitors – called competitive intelligence – provides insight about their potential weakness and opportunities for your business’ growth. In addition, competitive intelligence can indicate weaknesses, including places where competitors are particularly effective in meeting consumers’ needs. Armed with this information, managers can make strategic decisions about how to best position their business to secure a solid place in their market.

Shortcomings of Business Research

While research is highly useful to guide business decisions, managers should use it with an awareness of potential weaknesses. Many errors can arise in the research process. For example, if a problem is inaccurately stated in a particular study, the questions researchers ask may not be relevant to the business’ actual challenges. In another situation, the variables business researchers are able to examine may not actually be useful for making conclusions. It’s important to remember that research is often only as good as the data available, and that it must sometimes be used with caution.

Source :

http://smallbusiness.chron.com/relationship-between-research-business-decisions-23241.html

What Are the Functions 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.

Source :

http://smallbusiness.chron.com/functions-business-research-43165.html

Definition of Business Research

Business research involves establishing objectives and gathering relevant information to obtain the answer to a business issue. You can conduct business research to answer a business-related question, such as: What is the target market of my product? Business research can also be used to solve a business-related problem, such as determining how to decrease the amount of excess inventory on hand. Adequate planning and information-gathering are essential to derive results for your business.

Problem Definition

Before the research of business issues/problems commences, it’s important to create a problem definition and decision statement. During problem definition, you engage in defining and developing a decision statement. A decision statement expresses the critical question or questions the research must answer. The problem definition process involves various steps, such as understanding the business issue and its key elements; identifying the problems caused by the issue; writing the decision statement; determining the unit of analysis and research variables; and writing the research questions or hypotheses.

Research Proposal

An effective business research proposal details what, where and how research is gathered. It is a written statement explaining the purpose of the research by outlining the business objectives, along with the methods and procedures that will be used during each phase of the project. It typically includes a research cost analysis and the deadlines of the project’s requirements. Research proposals are subject to revisions and must be approved by management before research commences.

Primary Business Information

During business research, primary business information can be gathered. Such information, which can be exploratory or specific, is gathered by you or someone you know. Exploratory information defines a specific problem and is obtained through open-ended question-and-answer sessions conducted with small groups. When exploratory information identifies a problem, possible solutions are obtained from specific data. Specific information gathering is costly and time-consuming, has a precise scope, and requires a formal and structured approach to interviews. An example of primary research is the submission of direct mail questionnaires or online surveys; these usually include an added incentive, such as a discount on the individual's next purchase.

Secondary Business Information

Secondary business information is obtained from third-parties, such as government agencies, media sources and trade associations. This type of information is easier to obtain, requires less effort and can be cost-effective, as long as the source of the information is reliable. For example, statistics from government agencies, such as the U.S. Census Bureau and the Small Business Administration, provide a wealth of information you can use to obtain answers to your business research questions.

Source :

http://smallbusiness.chron.com/definition-business-research-42009.html

The Nature & Importance of Business Research

Research on aspects related your business, such as your target customer, marketplace trends, production processes, and financial practices, can help you predict trends, project sales, spot opportunities, and avoid potential problems. Understanding the nature of different types of business research will help you use data to maximize your sales and profits.

Reasons for Business Research

Business research can help you determine what potential customers want, which can guide you toward development of better products and services. It can keep you abreast of what your competition is doing and help you spot marketplace and industry trends. Research lets you analyze how your departments are performing, and then compare their performance against projections to determine if you need to make adjustments.

Types of Business Research

Employ a variety of business research types to maximize the benefit that data can provide your company. Conduct customer surveys and focus groups of potential customers. Join your industry’s trade association to access its research studies. Perform budget variance analyses every quarter to determine if your revenue and expense projections were correct or if you need to adjust your budget. Keep tabs on the competition to determine if they’ve changed their products, where they’re advertising, what they are charging, and where they are selling. Check your website traffic data to determine who’s visiting your site, what pages they’re accessing, and which keywords bring people to your site. Sites such as Quantcast and Alexa can give you valuable data about your competitors’ website traffic.

Methodologies

Depending on your budget, you can conduct research in a variety of ways. Online surveys can provide you with quick, easy-to-understand data. Websites such as SurveyMonkey let you administer short surveys for free, charging a fee for more expansive surveys. Telephone surveys of current customers let you spend more time and solicit open-ended questions. A focus group lets you get a small group of potential or current customers together to discuss their ideas, suggestions and thoughts in ways that produce information you might not have considered. Mail surveys cost more, but let you reach a large number of highly targeted recipients, depending on what mailing list you use. Analyzing your sales by distribution channel, territory, sales rep, price point, margin and volumes helps you determine where you should focus your marketing efforts.

Outsourcing

If you aren’t expert at conducting research or don’t have the staff to perform this type of work, consider hiring a research firm to assist you. They can give you a list of options, allowing you to increase your research effort as your budget allows. Research firms have access to tools such as databases, phone banks, and email programs that you might not be able to afford, helping you gather data you otherwise couldn’t.

Source :

http://smallbusiness.chron.com/nature-importance-business-research-69189.html

BMK 501/03 Marketing Management

“Marketing Management is organised into 5 units addressing topics of marketing management. The course begins with introducing marketing by focusing on the principles of marketing, marketing in developing economy and marketing of services. Unit 2 covers planning and organisation which covers the topics of planning marketing mix, market segmentation, marketing organisation, and marketing research and its applications. Unit 3 covers the topics of consumer behaviour and product management. Discussion on topics like product decisions and strategies, product life cycle and new product development, and branding and packing decisions will be discussed here. Unit 4 focuses on pricing and promotion strategy. Topics like pricing policies and practices, marketing communication, advertising and publicity, and personal selling and sales promotion are included in this unit. The last unit - Unit 5 is about marketing distribution and public policy. Topics like sales forecasting, distribution strategy, managing sales personnel, and marketing and public policy will be discussed in this unit”.

Learning Outcomes
After successfully completing this course, students should be able to:
• develop learners’ abilities to understand the importance of planning marketing mix.
• enhance learners’ understanding of market segmentation.
• familiarize learners with the concept of marketing organisation.
• familiarize learners with marketing research and its applications.
• acquaint learners with the models of consumer behaviour and determinants of consumer
behaviour.
• develop learners’ abilities in product management.
• familiarize learners with pricing and promotion strategy in marketing.
• familiarize learners with distribution and public policy.

Topics
• Introduction to Marketing and Marketing of Services
• Marketing Planning and Organisation
• Understanding Consumer and Product Management
• Pricing and Promotions Decisions
• Marketing Distribution and Public Policy

Main Reference
Marketing Management, Commonwealth of Learning Executive MBA/MPA course material.
*While the University will strive its best to maintain fee levels for as long as it can, it nevertheless reserves
the right to adjust course fees from time to time with the approval of the Ministry of Higher Education.

Other references

Kotler, P. & Keller, K.L. (2012), Marketing Management, 14th edn, Essex: Pearson Prentice Hall.

Marshall, G.W. & Johnston, M.W. (2011), Marketing Management, International edn., New York, McGraw-Hill.

Peter, J.P. & Donnelly, J.H. (2013), Marketing Management; Knowledge and Skills, 11th edn., New York, McGraw-Hill.

BMG 511/03 Managing Human Resources

“This course addresses topics of managing human resources as one of the key elements in the coordination and management of work organisations. The course outlines the various approaches to Human Resource Management and the evolution of the discipline to its present orientation. It covers a holistic content on human resource management practices, which include job analysis, recruitment and placement, training and development, compensation and labour relations and employee security. At the end of the course, some emerging issues in regards to human resource management and various approaches to organisational
development will be discussed”.

Learning Outcomes

After successfully completing this course, students should be able to:
• review and evaluate the main models, frameworks and theories of Human Resource
management (HRM).
• discuss how HRM links with strategies adopted in institutions.
• show what HR planning is and why effective enterprises perform it.
• describe what are the roles of Job Analysis and various ways jobs can be designed.
• explain the process of acquiring human resources which include recruitment, selection and
orientation.
• discuss what HR development means to an organization.
• discuss the concepts of rewarding employees which include performance evaluation,
compensation and job evaluation.
• discuss the key issues in health and safety protection.
• comments about the industrial and labour relations issues.
• debate issues related to International Human Resource Management (IHRM).
• discuss other emerging issues in HRM.

Topics
• Human Resource Management in Perspective
• Meeting Human Resource Requirements
• Developing Effectiveness in Human Resources
• Implementing Compensation and Security
• International HRM and Other Emerging Issues in HRM
*While the University will strive its best to maintain fee levels for as long as it can, it nevertheless reserves
the right to adjust course fees from time to time with the approval of the Ministry of Higher Education.

Main Reference

Managing Human Resources, Commonwealth of Learning Executive MBA/MPA Course Material, 2013 Revision

Other references

Mejia, L.G, Balkin, D. & Cardy, R. (2013). Managing Human Resources, International edition, 7 edn, Prentice Hall Dessler, G. (2011) Human Resource Management, 12th edn. International Edition. Pearson Prentice Hall.

Ivancevich, J.M. (2010), Human Resource Management, 11th edn. McGraw Hill International edition.

BBM521/03 Research Methods

Research Methods is an important course for all of us. Managers in organizations, for example, may want to do research in order to make good decisions. This course explores the meaning of research and explains the steps in the research process. It also discusses various designs of research, such as case studies and quasi-experiments. Once you have decided on the design, you must collect suitable data. You will learn about the various methods to collect data, such as interviews and surveys as well as types of data. Oft times you need to do sampling, that is, you must use a sample, or a small part of the population of your interest in your research. Probability and non-probability sampling will be discussed. Data that you have collected should be analyzed using various statistical methods which will be discussed in this course. Last but not least, the results of your research should be documented in a well-written and effective report. Learning Outcomes

After successfully completing this course, students should be able to:
• comprehend the meaning of research and the need to do research.
• describe and utilize the various types of research designs.
• implement the various techniques of data collection and measurement.
• create a proper sampling.
• analyze the collected data.
• prepare and present a good research report.

Topics
• Introduction to Business Research and Formulation of Research Problem
• Research Design
• Data Collection, Sampling and Data Processing
• Statistical Analysis: Nonparametric Tests and Multivariate Analysis
• Report Writing

Main Reference

Bryman, A. and Emma Bell (2007), Business Research Methods, 2nd Edition., Oxford
University Press: Oxford etc.

Other references

Saunders, Mark, Philip Lewis and Adrian Thornhill (2009), Research Methods for Business Students, 5th Edition., Pearson: Harlow, England.

Leedy, Paul D. and Jeanne E. Ormrod (2010), Practical Research: planning and design, 9th Edition., Pearson: Saddle River, N.J., USA.