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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.
I. THE SCOPE OF BUSINESS RESEARCH
Business research fulfills the managers need for knowledge of the organization, the market,
the economy, or other area of uncertainty. It helps the manager predict how individuals,
markets, organizational units, or other entities will respond to his business decisions.
The emphasis of business research is to shift decision-makers from risky intuitive decisions
to decisions based on systematic and objective investigations.
A business researcher conducting research may be referred to as a marketing researcher, an
organizational researcher, a director of financial research, or one of many other titles.
II. BUSINESS RESEARCH DEFINED
Business research is defined as the systematic and objective process of generating
information for aid in business decisions. This research information should be (1) scientific;
not intuitive or haphazardly gathered (2) objective (3) impersonal.
Business research can be used for any aspect of the enterprise. By providing appropriate
information, research should be an aid to managerial judgment although it should not be a
substitute for it. Applying the research is a managerial art in itself. All types of organizations
that engage in some kind of business activity can use business research.
stages.
A.
B.
C.
D.
importance?
D. Benefits vs. costs: Does the value of the research information exceed the cost of
conducting the research?
If the answer to any of these questions is no, then business research should not be
conducted.
VI. MAJOR TOPICS IN BUSINESS RESEARCH
There are many topics that benefit from business research. Some major topics are: general
business, economic, and corporate research; financial and accounting research; management
and organizational research; sales and marketing research; information systems research; and
corporate responsibility research.