Business Research Methods Albert Tan

1. BusinessResearch MethodsAlbert Tan The Role of Business Research

2. Business Research Defined Business research is defined as the systematic and objective process of generating information for aid in making business decisions.

3. Business Research • Research information is neither intuitive nor haphazardly gathered. • Literally, research (re-search) -“search again” • Business research must be objective • Detached and impersonal rather than biased • It facilitates the managerial decision process for all aspects of a business.

4. I don’t know if we should offer on-site child care? InformationReducesUncertainty

5. Business Research Types Basic research Applied research

6. Basic Research • Attempts to expand the limits of knowledge. • Not directly involved in the solution to a pragmatic problem.

7. Basic Research Example • Is 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?

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

9. Applied Research • Conducted when a decision must be made about a specific real-life problem

10. Applied Research Examples • Should 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

11. ScientificMethod • The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions.

12. Deductive Reasoning • The logical process of deriving a conclusion from a known premise or something known to be true. • We know that all managers are human beings. • If we also know that John Smith is a manager, • then we can deduce that John Smith is a human being.

13. Inductive Reasoning • The logical process of establishing a general proposition on the basis of observation of particular facts. • All managers that have ever been seen are human beings; • therefore all managers are human beings.

14. The Scientific Method: An Overview Assess relevant existing knowledge Formulate concepts & Propositions Statement of Hypotheses Design research Analyze & evaluate data Provide explanation- state new problem Acquire empirical data

15. The Decision-making Process Associated with the Development and Implementation of a Strategy • Identifying problems and opportunities • Diagnosis and assessment • Selecting and implementing a course of action • Evaluating the course of action

16. Determining When to Conduct Business Research • Time constraints • Availability of data • Nature of the decision • Benefits versus costs

17. Determining When to Conduct Business Research Availability of Data Benefits vs. Costs Conducting Business Research Time Constraints Nature of the Decision Is sufficient time available before a managerial decision must be made? Is the infor- mation already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Yes Yes Yes Yes No No No No Do Not Conduct Business Research

18. Value versus Costs • Potential Value of a Business Research Effort Should Exceed Its Estimated Costs

19. Value Should Exceed Estimated Costs Costs Value • Research expenditures • Delay of business decision and possible disclosure of information to rivals • Possible erroneous research results • Decreased certainty • Increased likelihood of a correct decision • Improved business performance and resulting higher profits

20. Major Topics for Research in Supply Chain Management • Procurement best practices • Production scheduling • S&OP improvement • E-commerce fulfillment • Information Systems in Supply Chain Management • Network optimisation • Forecasting methods • Quality improvement