Download - Role of busi research (brm)
BusinessResearch Methods
William G. Zikmund
Chapter 1: The Role of Business Research
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Comprehensive introduction to Research Methodology (Business Research Methods)
Knowledge acquisition and application of subject matter to real-life situations
Course literature (see the „must read“ section)
Use of multimedia visual aids (MS PowerPoint slides)
Reference to case studies when desirable
Encouragement of questions, comments and constructive criticism from course participants
Analytical and critical thinking, inquisitiveness as well as common sense from course participants also expected
How This Course Will Be Conducted
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listen attentively be considerate and amenable be inquisitive, analytical and
critical in your approach to learning research methodology
mention if you do not understand something and seek clarification
read the prescribed course literature. It is the basic requirement for comprehending research methodology and succeeding in this course
start reading from the beginning of the course and not towards the end!
• be late to class. • distract the attention of other
course participants• use mobile phones or send
SMS messages in the class• feel afraid to bring up any
relevant point for discussion• hesitate to visit me at my
office, individually or as a group, if you have a course-related problem and seek counseling in this regard
The DO‘s and DONT‘s Catalogue for Course Participants
Fundamental Course Objectives
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To acquaint course participants with all salient aspects of research methodology in accordance with the current body of scientific literature on this challenging, interesting and indepensible area of management science
To show that the subject of research methodology has matured into a substantive body of knowledge, an indepth understanding of which is crucial for ensuring the success of commercial or non-commercial organizations
To show and encourage the course participants that the theoretical knowledge acquired in this course can - with the appropriate context-related modifications - be applied to numerous real-life situations in business, public-sector and non-profit enterprises
To stimulate interest in the business research field as a prospective career field
Demands on Course Participants
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Acquisition and careful application of knowledge Analytical and critical thinking, innovation, inquisitiveness Holistic perspective
Quizzes & (proof that the course participant is familar with the essentialsSessionals of research methodology)
Project Work (each course participant is expected to show that he or she is able to apply the research skills learned in this
course)
Examination (case study in which each course participant is expected to demonstrate his or her indepth understanding of
research methodology and apply the knowledge acquired in the course to a real-life situation)
The essence of knowledge is having it to apply it - Confucius
Important Information for Course Participants – (1)
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You MUST read the course literature from the beginning of the semester. Relying on the PowerPoint slides is NOT sufficient! The purpose of these slides is to provide you with a broad and general introduction to research methodology. Kindly note that the slides are intended as a supplement to, and NOT as a substitute for the prescribed course literature
The prescribed course literature will be used as a reference for the quizzes, sessionals and final examination. Failure to read and understand the course literature could mean that a course participant will fail the course! An automatic passing grade in this course is NOT guaranteed, rather, a course participant‘s marks will reflect his or her effort and performance in the subject
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The project work to be undertaken in this course will be chosen by the course instructor and must be undertaken by the course participant according to the project guidelines which will be distributed in paper form seperately. It is essential that primary data is collected, analysed, evaluated and recorded by the course participant in his or her project report. Plagiarism will NOT be tolerated! If caught, zero marks will be given
The course lectures, discussions etc. will be conducted exclusively in english! The use of Urdu language in this course is strongly discouraged
Specific questions on the subject of research methodology may be asked from candidates in the Viva oral examination at the end of their MBA programme. Failure to answer these questions will definitely result in a deduction of examination marks
Important Information for Course Participants – (2)
Course Highlights
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Introduction to research methodology
Research Terminology and the Scientific Method
Designing and implementing a research project
Ethics in Research
Types of Research
Measurements in Research
• Primary and Secondary Data
• Analyzing primary and secondary data (quantitative techniques)
• Communicating Research Results
• Undertaking Research Project by the course participants
Use of Multimedia Visual Aids in this Course
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All MS PowerPoint course presentation slides,
the course outline, quizzes, the two sessionals
and final examination (after completion☺)
supporting eDocument files and the course
participants’ project reports will be uploaded
to the yahoo webgroup CIIT – Research
Methodology, from where they will be
accessible via Internet to all course
participants and any other scholars or persons
in Pakistan or overseas who are interested in
this CIIT – Research Methodology course
What is Business Research?
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Business Research may be defined as the “systematic and objective process of gathering, recording and analyzing data for aid in making business decisions” (Zikmund, Business Research Methods, 2002, p. 6)
Systematicness and Objectivity are its distinguishing features of Business Research, which is important tool for managers and decision-makers in corporate and non-corporate organizations
When is Business Research Used?
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Typically, business research methods are used in situations of uncertainty, that is, when decision-makers face two or more courses of action and seek to select the best possible alternative under the circumstances. Business Research is hence aimed at improving the quality of decision-making which, in turn, benefits the organization and helps ensure its continuity and efficiency
Business ResearchResearch information is neither intuitive
nor haphazardly gathered. Literally, research (re-search) -“search
again” Business research must be objectiveDetached and impersonal rather than
biasedIt facilitates the managerial decision
process for all aspects of a business.
Information
Reduces
Uncertainty
I don’t knowif we
shouldoffer on-sitechild care?
Typical Users of Business Research Methods
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Businesses and Corporations
Public-Sector Agencies
Consulting Firms
Research Institutes
Non-Governmental Organizations
Non-Profit Organizations
Independent Researchers and
Consultants
“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that
ain’t so.”
Artemus Ward
Common Business Research Methods & Techniques
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SurveysInterviewsObservationExperimentsArchival and Historical DataQualitative AnalysisQuantitative Analysis
Fields Where Business Research is Often Used – (1)
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General Business Conditions andCorporate Research
Short- & Long-Range Forecasting, Business and Industry Trends Global Environments Inflation and Pricing Plant and Warehouse Location Acquisitions
Financial and Accounting Research
Forecasts of financial interest rate trends,
Stock,bond and commodity value predictions
capital formation alternatives mergers and acquisitions risk-return trade-offs portfolio analysis impact of taxes research on financial institutions expected rate of return capital asset pricing models credit risk cost analysis
Management and OrganizationalBehaviour Research
• Total Quality Management• Morale and Job Satisfaction• Leadership Style• Employee Productivity• Organizational Effectiveness• Structural ssues• Absenteeism and turnover• Organizational Climate
Fields Where Business Research is Often Used – (2)
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Sales and Marketing Research
Market Potentials Market Share Market segmentation Market characteristics Sales Analysis Establishment of sales quotas Distribution channels New product concepts Test markets Advertising research Buyer behaviour Customer satisfaction Website visitation rates
Information Systems Research
Knowledge and information needs assessment
Computer information system use and evaluation
Technical suppot satisfaction Database analysis Data mining Enterprise resource planning
systems Customer relationship management
systems
Corporate Responsibility Research
Ecological Impact Legal Constraints on advertising
and promotion Sex, age and racial discrimination /
worker equity Social values and ethics
Selected Examples of Real-Life Situations in Which Business Research Methods are Used
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A firm wants to produce and market a new product but first wants to ascertain if there is a potential consumer demand for this product in markets x,y and z
a multinational firm wants to establish a production facility in another country after determining its technical and economic feasibility
A government agency wants to ascertain the satisfaction level of its employees, the causes for any possible discontent, and propose a scheme for enhancing this level
A financial institution wants to invest in commodities and commissions a study to determine the past trends and forecast future returns in a portfolio of commodities
The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to redefine his organization’s priorities
Basic research
Applied research
Business Research Types
Basic ResearchAttempts to expand the limits of
knowledge.Not directly involved in the solution to a
pragmatic problem.
Basic Research ExampleIs executive success correlated with high
need for achievement?Are members of highly cohesive work
groups more satisfied than members of less cohesive work groups?
Do consumers experience cognitive dissonance in low-involvement situations?
"The secret of success is to know something nobody else knows. "
Aristotle Onassis
Applied ResearchConducted when a decision must be made
about a specific real-life problem
Applied Research ExamplesShould McDonalds add Italian pasta
dinners to its menu?Business research told McDonald’s it
should not?Should Procter & Gamble add a high-
priced home teeth bleaching kit to its product line?
Research showed Crest Whitestrips would sell well at a retail price of $44
Basic and Applied Research
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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 focusses 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?
Science and the Scientific Method
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Science has been defined as “the methodological and systematic approach to acquisition of new knowledge” (Geoffrey Marcyzk, David DeMatteo, David Festinger, Essentials of Research Design and Methodology,
John Wiley & Sons, 2005, p. 4)
The scientific method, which has evolved since the 13th century, concerns the set of tools, techniques and procedures used by basic and applied researchers to analyze and understand phenomena and prove or disprove prior conceptions
The Essence of the Scientific Method
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Characteristics of the Scientific Method
ObjectivitySystematic Analysis
Logical Interpretation of Results
Elements of the Scientific Method
Empirical ApproachObservations
QuestionsHypothesesExperiments
AnalysisConclusionReplication
Basic Research
Applied Research
Sci
en
tifi
cM
eth
od
Information or Ideas for alternative
Courses of action
General Laws
Scientific MethodThe analysis and interpretation of
empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.
The Decision-making Process Associated with the Development and Implementation of a Strategy
Identifying problems and opportunitiesDiagnosis and assessmentSelecting and implementing a course of
actionEvaluating the course of action
Evaluation ResearchEvaluation research is the formal,
objective measurement and appraisal of the extent to which a given activity, project, or program has achieved its objectives.
Performance-monitoring ResearchResearch that regularly provides feedback
for evaluation and controlIndicates things are or are not going as
plannedResearch may be required to explain why
something “went wrong”
Total Quality Management (TQM)A business philosophy that embodies the
belief that the management process must focus on integrating customer-driven quality throughout the organization.
TQMStresses continuous improvement of
product quality and service.Managers improve durability and enhance
features as the product ages. Managers strive to improve delivery and
other services to keep their companies competitive
The Value of Business Research for Managers – (1)
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Reduction of uncertainty and improvement in the quality of decision-making with several consequent advantages (e.g. strategic, operational) and benefits for organizations
Business Research Methods can be employed in each of the following four stages:
(1) Identification of problems and/or opportunitiesUseful for strategy planning, analysis of internal and external organizational environment
The Value of Business Research for Managers – (2)
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(2) Diagnosing and Assessment of problems and/or opportunities
Its purpose is to gain insight into the underlying reasons and causes for the situation. If there is a problem, it asks what happened and why? If there is an opportunity, it seeks to explore, clarify and refine the nature of the opportunity and, in the case of multiple opportunities, seeks to set priorities
(3) Selection and Implementation of Courses of Action
After alternative courses of action have been determined, selection of the best possible course.
The Value of Business Research for Managers – (3)
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An important consideration is the quality of forecasting which is an essential tool of research
(4) Evaluating the Course of Action
Business Research Methods are used after a course of action has been implemented in order to determine whether activities have been properly implemented and have accomplished what they intended to do
The Value of Business Research for Managers – (4)
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Evaluation Research – It is the formal objective measurement and evaluation of the extent which an activity, project or programme has achieved its goal, and the factors which influence performance (e.g. audits). It is also the formal objective measurement and evaluation of the extent to which on-going activities, projects or programmes are meeting their goals (performance-monitoring research)
Examples of performance-monitoring research:
(1) Are railway passengers satisfied with the level of service the railway company is providing? If not, then research may need to be undertaken to ascertain the reasons for customer dissatisfaction and propose corrective measures
The Value of Business Research for Managers – (5)
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(2) What are the trends in retail and wholesale sector? Can research suggest new ways to improve efficiency in purchase transactions?
Is sufficienttime
available before
a managerial decision
must be made?
Is the information
already on hand
inadequate for making
the decision?
Is the decision
of considerable
strategicor tactical
importance?
Does the Value of the
research informationexceed the
cost of conducting
research?
ConductBusinessResearch
Do Not Conduct Business Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Yes YesYesYes
No
When to Conduct Business Research
No No No
Value versus CostsPotential Value of a Business Research
Effort Should Exceed Its Estimated Costs
Value•Decreased certainty•Increased likelihood of a correct decision•Improved business performance and resulting higher profits•Higher Profits •Better Reputation
CostsCOST•Research expenditures
•Delay of business decision •Possible disclosure of information to rivals
•Possible erroneous research results
Value Should Exceed Estimated Costs
Major Topics for Research in Business
General Business Conditions and Corporate Research
Financial and Accounting ResearchManagement and Organizational
Behavior ResearchSales and Marketing ResearchInformation Systems ResearchCorporate Responsibility Research
Cross-functional TeamsCross-functional teams are composed of
individuals from various organizational departments such as engineering, production, finance, and marketing who share a common purpose.
The Building Blocks of Research
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Measurements of phenomena (e.g. sales statistics of a department store)
Determination of relationship amongst data with a view to facilitating understanding of the
phenomena, their relationships and decision-making(e.g. past and predicted future sales trends)
Blend of information, experience and in-sights That provides a framework that can be
thoughtfully evaluated when assessing new information or evaluating relevant situations
KNOWLEDGE
INFORMATION
DATA
Demands on Data & Information
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Relevance to the problem or situation at hand
Must be available in a timely manner to the right person (manager
or decision-maker)
Completeness
Accuracy
Accessibility
Affordability
Integrateability into a broader global information or decision-
support system
Business Research in the International Context
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Business Research is being increasingly applied in an international context in the wake of globalization and the consequent freedom of movement of the resources of labour, capital and information of businesses and corporations:
Overseas market potential & Market knowledge is essential
Joint ventures and relocating production lines overseas
Framework considerations for investment and trade (e.g. culture, legal environment, security, physical infrastructure, availability and quality of human resources, logistics, political stability, trade and investment incentives)
A.C. Nielsen - more that 67% international business
Global Business ResearchGeneral information about country -
economic conditions and political climateCultural and consumer factorsMarket and competitive conditions -
demand estimation
The Internet Is Transforming SocietyTime is collapsing. Distance is no longer an obstacle. Crossing oceans is only a mouse click
away. People are connected 24 hours a day,
seven days a week. "Instantaneous" has a new meaning.
Internet ResearchSeeking facts and figures about an issue Surveys on Web sites
Global Information Support Systems
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A Global Information System may be defined as “ an organized collection of computer hardware, communication equipment, software, data, and personnel designed to capture, store, update, manipulate, analyze, and immediately display information about worldwide business activities”
A Global Information System is a tool for providing past, current and projected information on internal operations and external activity. It organizes and integrates data from production, operations, marketing, finance, accounting and other business functions
(Zikmund, p. 22)
Decision-Support System
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A computer-based system that helps decision makers confront problems through direct interaction with databases and analytical software programs
The purpose of a decision support system is to store data and transform them into organized information that is easily accessible to decision-makers
Decision-Support Systems are integrated in Global Information Systems. They are aimed usually for assisting managers and decision-makers in specific organizational business units (e.g. divisions, departments and functional areas) by providing organized and adaptable information
Databases & Software
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Databases are collections of raw data which have been arranged in a logical manner and which can be stored and processed electronically
Software are programmes that allow complex operations to be undertaken on data and which give information for managers and decision-makers
Data Warehousing & Data Mining
Data and Information Sources for Business Researchers – (1)
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Internal Records
Example: Data about costs, shipments, inventory, sales, and other aspects of regular operations which are collected from various functional areas of an organization
Proprietary Business Research
Example: New data and information from projects which are undertaken ad hoc to study specific company problems
Business intelligence Systems
Example: Information about nonrecurring developments in the external business environment stemming from a network of sources and regular procedures
Data and Information Sources for Business Researchers – (2)
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On-Line Databases
Examples: PROQUEST, INFOTRAC, DIALOG, LEXIS-NEXIS, Dow Jones News Retrieval Services, CompuStat
Internet
Examples: World Wide Web search engines (Google, Yahoo, Altavista, Lycos, Excite etc.)
All Other Sources
Examples: Research Institutions, Libraries, Books, Journals, Periodicals,
Newspapers, Chambers of Commerce and Industry
Business Research in the 21st CenturyIncreased globalizationGrowth of the Internet and other
information technologies
Data and Information Sources for Business Researchers (Pakistan)
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Federal and provincial ministries of commerce, industries and production
Federal, provincial and city Chambers of Commerce and Industry State Bank of Pakistan, Pakistan Banking Council, local and foreign
banking institutions Stock Exchanges National Investment Board Export Promotion Bureau Manufacturers, Traders and Exporters Associations Research Institutes (e.g. Pakistan Institute of Development
Economics) Newspapers and Magazines (e.g. Business Recorder, Pakistan and
Gulf Economist) Business and Trade Directories Internet (e.g.: www.forexpk.com)
Business Recorder(www.brecorder.com)
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