July 2009 Transport and Logistics Department 1

Research Methods (Session 1)Business Research Strategies

Dr. Rohafiz binti SabarTransport and Logistics Department

College of BusinessRoom 257 , Main Building of COB

D/l: 04-9283664email: rohafiz@uum.edu.my

Business Research Defined

Business research is the application of the scientific method in searching for the truth about business phenomena.

The process includes:idea and theory developmentproblem definitionsearching for and collecting informationanalyzing datacommunicating the findings and their

implications

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Business Research Defined

This definition suggests that business research information is:not intuitive or randomly gatheredaccurate and objectiverelevant to all aspects of the businesslimited by one’s definition of business

Not-for-profit organizations and governmental agencies can use research in much the same was as managers in for-profit organizations.

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The Scientific research

Scientific MethodThe way researchers go about using knowledge

and evidence to reach objective conclusions about the real world.

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

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Information, Data, and Intelligence

DataFacts or recorded measures of certain phenomena

(things or events).Information

Data formatted (structured) to support decision making or define the relationship between two facts.

Market intelligenceThe subset of data and information that actually has

some explanatory power enabling effective decisions to be made.

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Characteristics of Valuable InformationRelevance

Reflects how pertinent these particular facts are to the situation at hand.

QualityDegree to which data represent the true

situation.Timeliness

Data are current enough to still be relevant.Information Completeness

Having the right amount of information.

Knowledge Management

KnowledgeA blend of previous experience, insight, and

data that forms organizational memory.Knowledge Management

The process of creating an inclusive, comprehensive, easily accessible organizational memory, which is often called the organization’s intellectual capital.

Global Information SystemsAn 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.

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Databases and Data WarehousingDatabase

A collection of raw data arranged logically and organized in a form that can be stored and processed by a computer.

Data warehousingThe process allowing important day-to-day operational

data to be stored and organized for simplified access.Data warehouse

The multitiered computer storehouse of current and historical data.

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Input ManagementInput

All numerical, text, voice, and image data entered into the decision support system.

Major Sources of InputInternal recordsProprietary business researchSalesperson inputBehavioral trackingOutside vendors and external distributors

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Internal RecordsContain data that may become useful

information for managers. Accounting reports of sales and inventory figures Costs, orders, shipments, inventory, sales, and

other aspects of regular operations Customer profiles

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Computerized Data ArchivesData Wholesalers

Companies that put together consortia of data sources into packages that are offered to municipal, corporate, and university libraries for a fee. Wilson Business Center Hoovers PROQUEST INFOTRAC DIALOG (Dialog Information Services, Inc.) LEXIS-NEXIS, Dow Jones News Retrieval Services

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Types of DatabasesTypes of DatabasesStatistical databases

Contain numerical data for analysis and forecasting. Geographic information systems use geographical databases and

powerful software to prepare computer maps of relevant variables.

Scanner data are a common source.Financial databases

Includes competitors and customers’ financial data, such as income statements and balance sheets.

Example: CompuStatVideo databases

Video databases and streaming media are having a major impact.

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What Exactly is the Internet?A worldwide network of computers that

allows users access to information from distant sources.

A domain is typically a company name, institutional name, or organizational name associated with a host computer.Host—where the content for a particular Web

site physically resides and is accessed.

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How is the Internet Useful in Research?Accessing available data

Allows instantaneous and effortless access to a great deal of information.

Collecting dataQuestionnaires can be posted on a Web site,

cutting down on costs and reducing errors.Consumers’ usage leaves a record that can be

traced and observed.

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Navigating the InternetContent providers

Parties that furnish information on the World Wide Web.Uniform Resource Locator (URL)

A Web site address that Web browsers recognize.Search Engines

Computerized directories used to search the WWW. YAHOO (www.yahoo.com) GOOGLE (www.google.com) HOTBOT (www.hotbot.com)

Keyword Search Takes place as the search engine searches through millions of Web

pages for documents containing the keywords.

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IntranetIntranetA company’s private data network that uses

Internet standards and technology.The information—data, graphics, video, and

voice—is available only inside the organization or to those individuals whom the organization deems as appropriate participants.

FirewallSecurity software installed to limit access to only

those persons authorized to enter an Intranet.

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Ethical Issues in Business ResearchBusiness ethics

The application of morals to behavior related to the exchange environment.

Moral standardsPrinciples that reflect beliefs about what is

ethical and what is unethical.Ethical dilemma

A situation in which one chooses from alternative courses of actions, each with different ethical implications.

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Ethical Issues in Business Research

RelativismA term that reflects the degree to which one

rejects moral standards in favor of the acceptability of some action.

This way of thinking rejects absolute principles in favor of situation-based evaluations.

IdealismA term that reflects the degree to which one

bases one’s morality on moral standards. example: the Golden Rule

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Rights and Obligations: Research Participant

Rights:To be informedTo privacyProtected from harm

Obligations:To be truthful

Informed ConsentThe individual

understands what the researcher wants him/her to do and consents to the research study.

ConfidentialityThe information

involved in the research will not be shared with others.

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Rights and Obligations of the ResearcherThe researcher should:

Understand that the purpose of research is research (no sales pitch to research participants)

Maintain objectivity

Not misrepresent research

Be honest in reporting errors

Protect the confidentiality of both subjects and clients

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The Researcher and Conflicts of InterestConflict of interest

Occurs when one researcher works for two competing companies.

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Knowledge about research and managerial decisionThe decision-making process associated with

the development and implementation of a business strategy involves four interrelated stages:

1. Identifying problems and opportunities2. Diagnosing and assessing problems or

opportunities3. Selecting and implementing a course of action4. Evaluating the course of action

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Evaluating the Course of ActionsEvaluation Research

The formal, objective measurement and appraisal of the extent a given activity, project, or program has achieved its objectives.

Performance Monitoring ResearchResearch that regularly, sometimes routinely,

provides feedback for evaluation and control of business activity.

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When is Business Research Needed?

The determination of the need for research centers on:

1. Time constraints2. The availability of data3. The nature of the decision to be made4. Benefits versus costs (the value of the research

information in relation to costs) Will the payoff or rate of return be worth the

investment?

Will the information improve the quality of the managerial decision enough to warrant the expenditure?

Is the expenditure the best use of the available funds?