1st chapter of BRM in ppt formate

1. The Role of Business
Research
The Role of Business
Research
Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University

2. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Decision MakingDecision Making
IntuitionIntuition
ExperienceExperience
ResearchResearch
AuthorityAuthority
Four Sources of InformationFour Sources of Information

3. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
What managers do?What managers do?
• Make several decisions
• Solve problems
ØWhat would help you to make right
decisions?
ØWill it be your experience on the
job?
ØOr hunch?
ØOr you just hope for good luck?

4. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Business Research DefinedBusiness Research Defined
• A process of determining, acquiring, analyzing, synthesizing, and
disseminating relevant business data, information, and
insights to decision makers in ways that mobilize the
organization to take appropriate business actions that, in
turn, maximize business performance
• 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)
• It is a process of finding solutions to a problem after a thorough
study and analysis to the situational factors

5. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Examples of Business ProblemsExamples of Business Problems
• 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

6. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Examples of Business ProblemsExamples of Business Problems
Subjective information is one person's opinion. In a newspaper, the
editorial section is the place for subjectivity. It can be based on
fact, but it is one person's interpretation of that fact. In this way,
subjective information is also analytical.
Objective information reviews many points of view. It is intended
to be unbiased. News reporters are supposed to be objective and
report the facts of an event. Encyclopedias and other reference
materials provide objective information.

7. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Examples of Business ProblemsExamples of Business Problems
Subjective or Objective
• 99% of U.S households have at least one TV set……………….
• It is clear that even though many people are poor, television
is more important than anything else……………..

8. Rahim Bux Soomro
Assistant Professor
When is Business Research Used?When is Business Research Used?
• 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

9. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Typical Users of Business Research MethodsTypical Users of Business Research Methods
• Businesses and Corporations
• Public-Sector Agencies
• Consulting Firms
• Research Institutes
• Non-Governmental Organizations
• Non-Profit Organizations
• Independent Researchers and Consultants

10. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Common Business Research Methods & TechniquesCommon Business Research Methods & Techniques
• Surveys
• Interviews
• Observation
• Experiments
• Archival and Historical Data
• Qualitative Analysis
• Quantitative Analysis

11. Rahim Bux Soomro
Fields Where Business Research is Often Used – (2)Fields Where Business Research is Often Used – (2)
General Business Conditions and
Corporate Research
Short- & Long-Range Forecasting.
Business and Industry Trends
Global Environments
Inflation and Pricing
Plant and Warehouse Location
Acquisitions
Management and Organizational
Behavior Research
Total Quality Management
Morale and Job Satisfaction
Leadership Style
Employee Productivity
Organizational Effectiveness
Structural Issues
Absenteeism and turnover
Organizational Climate
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

12. Rahim Bux Soomro
Fields Where Business Research is Often Used – (1)Fields Where Business Research is Often Used – (1)
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

13. Rahim Bux Soomro
Selected Examples of Real-Life Situations in Which
Business Research Methods are Used
Selected Examples of Real-Life Situations in Which
Business Research Methods are Used
• 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

14. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Business ResearchBusiness 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.
• Research should be an aid to managerial decision rather
than substitute.

15. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Business ResearchBusiness Research
Main motivation is to expand man’s knowledge or
understanding about a phenomenon, not to create or invent
something or to solve a practical problem
· There are usually no commercial applications in mind
· Examples:
· How was the earth created?
· Why some roses are red and some are pink?
•How did the universe begin?
•What are protons, neutrons, and electrons composed of?
Basic research

16. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Business ResearchBusiness Research
Applied Research• Main motivation is to solve a practical problem, develop a new
product or process, or improve an existing product or
process, and not just to acquire knowledge for knowledge’s
sake.
• There are usually a commercial applications in mind
• Examples:
• How can we develop more energy efficient dyeing processes?
• How can we avoid catalytic damage of cotton fabric during
bleaching?
• Treat or cure a specific disease
• Improve the energy efficiency of homes, offices, or modes of
transportation
•

17. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Science and the Scientific MethodScience and the Scientific Method
• 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 analysis and interpretation of empirical evidence (facts
from observation or experimentation) to confirm or disprove
prior conceptions.

18. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Science and the Scientific MethodScience and the Scientific Method
Basic ResearchBasic Research
Applied ResearchApplied Research
Scie
ntifi
c
Me
tho
ds
Scie
ntifi
c
Me
tho
ds
Information or Ideas for
alternatives courses of
action
Information or Ideas for
alternatives courses of
action
General LawsGeneral Laws

19. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Value of Business Research for Managers – (1)The Value of Business Research for Managers – (1)
• 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:
v Identification of problems and/or opportunities useful for
strategy planning, analysis of internal and external
organizational environment.

20. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Value of Business Research for Managers – (2)The Value of Business Research for Managers – (2)
v 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
v Selection and Implementation of Courses of Action
After alternative courses of action have been determined,
selection of the best possible course.
An important consideration is the quality of
forecasting which is an essential tool of research

21. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Value of Business Research for Managers – (3)The Value of Business Research for Managers – (3)
v 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

22. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Value of Business Research for Managers – (3)The Value of Business Research for Managers – (3)
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)
Performance-Monitoring Research
• Research that regularly provides feedback for evaluation and
control of business activity

23. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Value of Business Research for Managers – (3)The Value of Business Research for Managers – (3)
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.
2. What are the trends in retail and wholesale sector?
Can research suggest new ways to improve efficiency in
purchase transactions?
3.

24. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
When Should Business Research be Undertaken?When Should Business Research be Undertaken?

25. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Value and Costs of Undertaking Business ResearchValue and Costs of Undertaking Business Research
VALUE
• Decreased
Uncertainty
• Higher Likelihood of
Correct
Decisions
• Better Business
performance
• Higher Profits
• Better Reputation
cost
• Research Costs
• Delay in Making Business
Decisions
• Disclosure of Information
to Rivals
• Possibility of Error
cost
• Research Costs
• Delay in Making Business
Decisions
• Disclosure of Information
to Rivals
• Possibility of Error

26. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
Cross-functional TeamsCross-functional Teams
Cross-functional teams are composed of
individuals from various organizational
departments such as engineering,
production, finance, and marketing who share
a common purpose.

27. Rahim Bux Soomro
Assistant Professor
Department of Business Administration, Shah Abdul Latif University
The Internet Is Transforming SocietyThe Internet Is Transforming Society
• Time 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.
• Seeking facts and figures about an issue
• Surveys on Web sites
•