role of busi research (brm)

58
Business Research Methods William G. Zikmund Chapter 1: The Role of Business Research

Upload: university-of-peshawar

Post on 25-Apr-2015

918 views

Category:

Technology


0 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Role of busi research (brm)

BusinessResearch Methods

William G. Zikmund

Chapter 1: The Role of Business Research

Page 2: Role of busi research (brm)

2

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

Page 3: Role of busi research (brm)

3

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

Page 4: Role of busi research (brm)

Fundamental Course Objectives

4

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

Page 5: Role of busi research (brm)

Demands on Course Participants

5

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

Page 6: Role of busi research (brm)

Important Information for Course Participants – (1)

6

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

Page 7: Role of busi research (brm)

7

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)

Page 8: Role of busi research (brm)

Course Highlights

8

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

Page 9: Role of busi research (brm)

Use of Multimedia Visual Aids in this Course

9

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

Page 10: Role of busi research (brm)

What is Business Research?

10

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

Page 11: Role of busi research (brm)

When is Business Research Used?

11

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

Page 12: Role of busi research (brm)

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.

Page 13: Role of busi research (brm)

Information

Reduces

Uncertainty

I don’t knowif we

shouldoffer on-sitechild care?

Page 14: Role of busi research (brm)

Typical Users of Business Research Methods

14

Businesses and Corporations

Public-Sector Agencies

Consulting Firms

Research Institutes

Non-Governmental Organizations

Non-Profit Organizations

Independent Researchers and

Consultants

Page 15: Role of busi research (brm)

“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

Page 16: Role of busi research (brm)

Common Business Research Methods & Techniques

16

SurveysInterviewsObservationExperimentsArchival and Historical DataQualitative AnalysisQuantitative Analysis

Page 17: Role of busi research (brm)

Fields Where Business Research is Often Used – (1)

17

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

Page 18: Role of busi research (brm)

Fields Where Business Research is Often Used – (2)

18

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

Page 19: Role of busi research (brm)

Selected Examples of Real-Life Situations in Which Business Research Methods are Used

19

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

Page 20: Role of busi research (brm)

Basic research

Applied research

Business Research Types

Page 21: Role of busi research (brm)

Basic ResearchAttempts to expand the limits of

knowledge.Not directly involved in the solution to a

pragmatic problem.

Page 22: Role of busi research (brm)

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?

Page 23: Role of busi research (brm)

"The secret of success is to know something nobody else knows. "

Aristotle Onassis

Page 24: Role of busi research (brm)

Applied ResearchConducted when a decision must be made

about a specific real-life problem

Page 25: Role of busi research (brm)

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

Page 26: Role of busi research (brm)

Basic and Applied Research

26

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?

Page 27: Role of busi research (brm)

Science and the Scientific Method

27

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

Page 28: Role of busi research (brm)

The Essence of the Scientific Method

28

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

Page 29: Role of busi research (brm)

Scientific MethodThe analysis and interpretation of

empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.

Page 30: Role of busi research (brm)

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

Page 31: Role of busi research (brm)

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.

Page 32: Role of busi research (brm)

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”

Page 33: Role of busi research (brm)

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.

Page 34: Role of busi research (brm)

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

Page 35: Role of busi research (brm)

The Value of Business Research for Managers – (1)

35

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

Page 36: Role of busi research (brm)

The Value of Business Research for Managers – (2)

36

(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.

Page 37: Role of busi research (brm)

The Value of Business Research for Managers – (3)

37

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

Page 38: Role of busi research (brm)

The Value of Business Research for Managers – (4)

38

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

Page 39: Role of busi research (brm)

The Value of Business Research for Managers – (5)

39

(2) What are the trends in retail and wholesale sector? Can research suggest new ways to improve efficiency in purchase transactions?

Page 40: Role of busi research (brm)

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

Page 41: Role of busi research (brm)

Value versus CostsPotential Value of a Business Research

Effort Should Exceed Its Estimated Costs

Page 42: Role of busi research (brm)

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

Page 43: Role of busi research (brm)

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

Page 44: Role of busi research (brm)

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.

Page 45: Role of busi research (brm)

The Building Blocks of Research

45

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

Page 46: Role of busi research (brm)

Demands on Data & Information

46

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

Page 47: Role of busi research (brm)

Business Research in the International Context

47

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

Page 48: Role of busi research (brm)

Global Business ResearchGeneral information about country -

economic conditions and political climateCultural and consumer factorsMarket and competitive conditions -

demand estimation

Page 49: Role of busi research (brm)

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.

Page 50: Role of busi research (brm)

Internet ResearchSeeking facts and figures about an issue Surveys on Web sites

Page 51: Role of busi research (brm)

Global Information Support Systems

51

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)

Page 52: Role of busi research (brm)

Decision-Support System

52

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

Page 53: Role of busi research (brm)

Databases & Software

53

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

Page 54: Role of busi research (brm)

Data and Information Sources for Business Researchers – (1)

54

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

Page 55: Role of busi research (brm)

Data and Information Sources for Business Researchers – (2)

55

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

Page 56: Role of busi research (brm)

Business Research in the 21st CenturyIncreased globalizationGrowth of the Internet and other

information technologies

Page 57: Role of busi research (brm)

Data and Information Sources for Business Researchers (Pakistan)

57

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)

Page 58: Role of busi research (brm)

Business Recorder(www.brecorder.com)

58