Doing research in business management is vital as it helps a business plan for the future, based on what may have

happened in the past. If carried out successfully it can help a company make informed plans on how to become more viable in its sector. If something has been unsuccessful, for instance, having carried out effective research may help a business avoid future failure. Carrying out research may also help a company decide whether now is the right time to expand into another city or whether it should apply for a new loan. It also helps a business determine whether a procedure should be changed or if more needs to be done to meet the needs of the customer base. Research in business management may come in different forms, depending on what a company is hoping to achieve. For example, if you are hoping to launch a new product on the market, do some market research to see if it would be a good idea. Certainly, seeing what works and what doesn t will help a business owner have the knowledge to make informed decisions in specific areas of business. !ome business experts agree that looking to the future of business is very much about looking at the past. "he two are interlinked and by carrying out research you are more likely to see a positive outcome in your chosen ob#ective. In business, making ill informed decisions may be very precarious as there may be too much money at risk or a company s reputation may be put at stake. Research into business management can either be carried out by an individual by looking at historical research reports or it could even be outsourced. Regardless of how it is carried out, the benefits for the future of your business will be very clear to see.

1. What is the significance of research in social and business sciences?

Significance of Research in Social and Business Sciences According to a famous Hudson Maxim, All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry, and inquiry leads to invention. t brings out the significance of research, increased amounts of !hich ma"es progress possible. #esearch encourages scientific and inductive thin"ing, besides promoting the development of logical habits of thin"ing and organi$ation. %he role of research in applied economics in the context of an economy or business is greatly increasing in modern times. %he increasingly complex nature of government and business has raised the use of research in solving operational problems. #esearch assumes significant role in formulation of economic policy, for both the government and business. t provides the basis for almost all government policies of an economic system. &overnment budget formulation, for example, depends particularly on the analysis of needs and desires of the people, and the availability of revenues, !hich requires research. #esearch helps to formulate alternative policies, in addition to examining the consequences of these alternatives. %hus, research also facilitates the decision ma"ing of policy' ma"ers, although in itself it is not a part of research. n the process, research also helps in the proper allocation of a country(s scare resources. #esearch is also necessary for collecting information on the social and economic structure of an economy to understand the process of change occurring in the country. )ollection of statistical information though not a routine tas", involves various research problems. %herefore, large staff of research technicians or experts is engaged by the government these days to underta"e this !or". %hus, research as a tool of government economic policy formulation involves three distinct stages of operation !hich are as follo!s*

+ nvestigation of economic structure through continual compilation of facts + Diagnoses of events that are ta"ing place and the analysis of the forces underlying them, and + %he prognosis, i.e., the prediction of future developments #esearch also assumes a significant role in solving various operational and planning problems associated !ith business and industry. n several !ays, operations research, mar"et research, and motivational research are vital and their results assist in ta"ing business decisions. Mar"et research is refers to the investigation of the structure and development of a mar"et for the formulation of efficient policies relating to purchases, production and sales. -perational research relates to the application of logical, mathematical, and analytical techniques to find solution to business problems such as cost minimi$ation or profit maximi$ation, or the optimi$ation problems. Motivational research helps to determine !hy people behave in the manner they do !ith respect to mar"et characteristics. $ore specifically, it is concerned with the analy%ing the motivations underlying consumer behaviour. &ll these researches are very useful for business and industry, which are responsible for business decision making. #esearch is equally important to social scientist for analy$ing social relationships and see"ing explanations to various social problems. t gives intellectual satisfaction of "no!ing things for the sa"e of "no!ledge. t also possesses practical utility for the social scientist to gain "no!ledge so as to be able to do something better or in a more efficient manner. %his, research in social sciences is concerned !ith both "no!ledge for its o!n sa"e, and "no!ledge for !hat it can contribute to solve practical problems.

The Significance of Research in Business Decision Making

'y !uchi $oorty, e(ow Contributor

"he !ignificance of Research in 'usiness Decision $aking Research is essential in all businesses, whether small or big. 'ased on research, management can make intelligent and informed decisions. Companies need to research which products to make, how to make them, the )uantities thereof, how to market them, entice customers, motivate employees and run more effective systems. In the research mechanism, the analyst collects data, organi%es and tabulates it, then presents it to top management in the form of text and charts.

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'usiness Research Decision $aking 'usiness $anagement * Decision $aking

1. Function
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Research is necessary for managerial decision making. &ll strategic business areas are scrutini%ed and evaluated+ then tactics for more efficient operations are developed. ,very business often has several means of performing a task. "hrough research, the organi%ation is able to choose the most efficient, productive and profitable one. Research could be applied to marketing, production, finance, I" and (R. "hrough research, the organi%ation is able to gauge initially whether getting into a new line of trade would be a profitable venture. -n.going research is essential to

improve and improvise the product as per customer specifications. "he company must also research ways and means to keep its employees happy and motivated.

Features
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"he research mechanism enables the organi%ation to better understand and comprehend the market, its customers and competitors. "he organi%ation knows exactly what their customers need and desire, and takes the appropriate steps to deliver that to them. &lso, the company can classify customers on the basis of demographics, such as gender, age, income and level of education. -nce the company determine its customers/ primary demographic group, it takes steps to service them better. "hrough research, competitors/ moves and strategies are highlighted, and the company can then be proactive to preempt them. !ponsored 0inks

1uick'ooks -nline "rack, -rganise * $anage &ccounts. &ccess &nywhere, "ry it for Free2 1uick'ooks-nline.in3Free."rial

Types
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"here are two types of research. "he first type, primary research, is when the individuals who are the company/s present or potential customers are asked to define their specifications on the kind of product they desire. "he interviewer usually has a pre.set format or )uestionnaire when he goes to respondents to ask for feedback. "his type of research is primarily conducted to gauge the customers/ perceptions on a specific product. !econdary research uses an analyst to compile previously published data. "his study is useful in understanding the broad market and industry situation.

Benefits
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"here are many benefits of conducting research. "he company can understand what its customers actually want and can deliver that product to them. 4hen the company is planning to diversify its product range, it will know at the very outset, through the research mechanism, whether or not there is a demand for such a product. 4hen the company knows about what feature in the product attracts customers and what repels them, the company is able to take the appropriate steps. "he company then accentuates its strengths more aggressively while allaying its weaknesses.

Considerations
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Companies must apportion a chunk of their yearly budgets for research and development purposes. &lso, many companies entrust the work of carrying out research to market research companies. "hese companies may not be fully aware of the work ethos and ethics prevailing in the organi%ation+ hence there is always the possibility that they may not research that pertinent aspect of the company desired. "herefore, the research company must be made fully aware of the parameters of the research.

How to Conduct Business Research

'y 5am 6aulin, e(ow Contributor

Researcher at work &t some point in your educational pursuits, #ob search or work you may need to conduct business research. &ny entrepreneur or marketing professional may need to research their company/s industry and competitors. 'usiness research may be used to help create a competitive analysis for a start.up company or as part of a business plan for a small. business loan application. 'usiness research may also be used to evaluate the stability and growth of an industry or a company, information that applies to your career planning, investment choices or is used for market analysis.

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(ow to ,valuate 'usiness Research 4hat Is the 'usiness Research $ethod7

Things You'll Need

&ccess to library

Instructions
8.
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8 Research the scope of the business/ sector by using standard definitions and classifications as organi%ed by the 9.!. Census 'ureau/s :orth

&merican Industry Classification !ystem ;:&IC!<. "he :&IC!, formerly !IC ;!tandard Industrial Classification< system, assigns a code to businesses based on farming, mining, construction, wholesale, retail, health, service industry and other business types.
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= Conduct primary research by creating surveys for existing and potential customers, focus groups. &naly%e the company/s sales records.

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> Read trade #ournals and industry maga%ines relating to the primary business function. 'usiness #ournals are available at the library, in digital versions online, or receive free copies of trade maga%ines by re)uesting subscriptions ;see Resources<.

? Conduct local business research by contacting the Chamber of Commerce and re)uesting access to a directory. Interview local and competing businesses by calling or visiting the companies.

@ Aisit the local !mall 'usiness &dministration -ffice, which offers free resources and experienced business professionals who can aid you in your business research. Bou may need to make an appointment.

C 9se financial information available on investing websites to research public companies. Revenue, number of subsidiaries and employees, dividend information and lists of competitors are available for free.

Tips & Warnings

"he reference librarian at the library can help locate business directories for you, particularly if the library has a separate business reference librarian. "he type of industry the company is in will determine which print and online resources you should use for the research. $anufacturing companies may be researched in "homas Register. 0arge 9.!. companies can be found in the $illion Dollar Directory or (oovers. ;!ee Resources<

problem-solving and decision-making

simple processes for problem sol!ing and decision ma"ing

5roblem solving and decision.making are important skills for business and life. 5roblem. solving often involves decision.making, and decision.making is especially important for management and leadership. "here are processes and techni)ues to improve decision. making and the )uality of decisions. Decision.making is more natural to certain personalities, so these people should focus more on improving the )uality of their decisions. 5eople that are less natural decision.makers are often able to make )uality assessments, but then need to be more decisive in acting upon the assessments made. 5roblem.solving and decision.making are closely linked, and each re)uires creativity in identifying and developing options, for which the brainstorming techni)ue is particularly useful. !ee also the free !4-" analysis template and examples, and 5,!" analysis template, which help decision.making and problem.solving. !4-" analysis helps assess the strength of a company, a business proposition or idea+ 5,!" analysis helps to assess the potential and suitability of a market. 6ood decision.making re)uires a mixture of skillsD creative development and identification of options, clarity of #udgement, firmness of decision, and effective implementation. For group problem.solving and decision. making, or when a consensus is re)uired, workshops help, within which you can incorporate these tools and process as appropriate. (ere are some useful methods for effective decision.making and problem.solvingD First a simple step.by.step process for effective decision.making and problem.solving. !ee also the decision.making facilitative )uestions template. &nd definitely see the ethical decision.making )uick guide.

decision-making process
8. Define and clarify the issue . does it warrant action7 If so, now7 Is the matter urgent, important or both. !ee the 5areto 5rinciple. =. 6ather all the facts and understand their causes. >. "hink about or brainstorm possible options and solutions. ;!ee brainstorming process< ?. Consider and compare the pros and cons of each option . consult if necessary . it probably will be. @. !elect the best option . avoid vagueness or /foot in both camps/ compromise. C. ,xplain your decision to those involved and affected, and follow up to ensure proper and effective implementation.

Decision.making maxims will help to reinforce the above decision.making process whether related to problem.solving or not, for exampleD E4e know what happens to people who stay in the middle of the road. "hey get run down.E ;&neurin 'evan< EIn any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.E ;attributed to "heodore Roosevelt . more maxims on the )uotes page< FFDI . Fust Frigging Do it ;polite version<. "he decision.maker/s motto. "here are usually several right answers when you are faced with a complex decision. 4hen you/ve found the best solution you can find, get on with it, make it work, and it most probably will. ;$ore useful rules, acronyms and training ideas on the acronyms page<

pros and cons decision-making method

&nother simple process for decision.making is the pros and cons list. 5ro means /for/, and con means /against/. In other words, advantages and disadvantages. "his method also applies to all sorts of problem.solving where issues and implications need to be understood and a decision has to be made. !ome decisions are a simple matter of whether to make a change or not, such as moving, taking a new #ob, or buying something, selling something, replacing something, etc. -ther decisions involve number of options, and are concerned more with how to do something, involving a number of choices. 9se the brainstorming process to identify and develop options for decision.making and problem.solving. 8. First you will need a separate sheet for each identified option. =. -n each sheet write clearly the option concerned, and then beneath it the headings /pros/ and /cons/ ;or /advantages/ and disadvantages/, or simply /for/ and /against/<. $any decisions simply involve the choice of whether to go ahead or not, to change or not+ in these cases you need only one sheet. >. "hen write down as many effects and implications of the particular option that you ;and others if appropriate< can think of, placing each in the relevant column. ?. If helpful /weight/ each factor, by giving it a score out of three or five points ;e.g., @ being extremely significant, and 8 being of minor significance<. @. 4hen you have listed all the points you can think of for the option concerned compare the number or total score of the items3effects3factors between the two columns.

C. "his will provide a reflection and indication as to the overall attractiveness and benefit of the option concerned. If you have scored each item you will actually be able to arrive at a total score, being the difference between the pros and cons column totals. "he bigger the difference between the total pros and total cons then the more attractive the option is. G. If you have a number of options and have complete a pros and cons sheet for each option, compare the attractiveness . points difference between pros and cons . for each option. "he biggest positive difference between pros and cons is the most attractive option. #. N.$. %f &ou don't li"e the ans'er that the decision ma"ing sheet(s) reflect bac" to &ou* it means &ou ha!en't included all the cons especiall& the emotional ones* or &ou ha!en't scored the factors consistentl&* so re !isit the sheet(s) concerned. Bou will find that writing things down in this way will help you to see things more clearly, become more ob#ective and detached, which will help you to make clearer decisions.

pros and cons weighted decision-making template - e ample

"his example weighs the pros and cons of buying a new car to replace an old car. "he weighted pros and cons are purely examples . they are not in any way suggestions of how you should make such a decision. -ur decision.making criteria depend on our own personal situations and preferences. &nd your criteria and weighting will change according to time, situation, and probably your mood too. 9se whatever scoring method you want to. "he example shows low scores but you can score each item up to 8H, or =H or 8HH . whatever makes sense to you personally. -r you can use an /&3'3C/ or three.star scoring method, whatever works for you. +hould % replace m& old car 'ith a ne' one? pros (for ad!antages) scorecons (against disad!antages) score better comfort , cost outlay will mean making sacrifices lower fuel costs , higher insurance , lower servicing costs . time and hassle to choose and buy it / better for family use , disposal or sale of old car / big decisions like this scare and upset better reliability . me it/ll be a load off my mind / total 0 pros /1 total - cons 10

In the above example, on the basis of the pros and cons and the weighting applied, there seems to be a a clear overall ;and )uantifiable< advantage in the decision to go ahead and buy a new car. :otice that with this decision.making method it/s even possible to include /intangible/ emotional issues in the pros and cons comparison, for example /it/ll be a load off my mind/, and /decisions scare and upset me/. & decision.making pros and cons list like this helps remove the emotion which blocks clear thinking and decision.making. It enables ob#ectivity and measurement, rather than reacting from instinct, or avoiding the issue altogether. -b#ective measurement helps in making a confident decision. "he total weighted scores are the main deciding factor rather than the total number of pros and cons, although there is not a scientific /right/ or /wrong/ way to consider the total number of pros and cons compared with the total weighted scores. If the weighted scores are indicating a decision which makes you feel uncomfortable, then check your weightings, and also check that you/ve not missed out any factors on either side of the table. If the decision makes you feel uncomfortable and this is not reflected in the table, then add it as a factor and give it a score. !eeking feedback or input from a trusted neutral friend can be helpful in confirming your factors and their scores.

!lank pros and cons decision-making template

Bou should be able to cut and paste this template into a text editor or spreadsheet. &dd more rows as re)uired. 2uestion3decision3option4 pros (for ad!antages) scorecons (against disad!antages) score

totals

totals

:oteD "he above methods are similar to . but not the same as . /Force Field &nalysis/, an analytical theory developed by psychologist Iurt 0ewin ;8JKH.8K?G<, originally to assess factors influencing group behaviour. "he 0ewin model is typically shown as a simplified diagram, with hori%ontal arrows alongside each factor pointing to the space between the columns. ,xplained above is an different and logically developed weighted decision. making method, not 0ewin/s Force Field &nalysis.

comple pro!lems and decisions

For more complex decisions and problems involving more than two possible options you can use several pros and cons tables in con#unction, to compare the overall weight of each option. In such cases the wording of the options is important, for example, if considering the best path for one/s own career and work development the options might beD

be employed, working for a big company be self.employed, working as a consultant or freelancer from home start a business, with premises and staff

& situation like this can be approached by completing three separate pros and cons tables and then comparing the net effects ;difference between weighted pros and cons< of each one. 4hile this won/t necessarily evaluate and compare all possible inter.related aspects of the whole situation, it will help to give great clarity and detached ob#ectivity ;detached as in unemotional<, which can be very difficult to find when confronted with a complicated and big challenge offering several options. &lso consider that some decisions and challenges are difficult because you don/t have the necessary knowledge or experience, in which case you need first to decide if the decision or challenge is actually appropriate and necessary for you at this stage. !ome decisions have to be made whether you are ready or not. -thers might not be as pressing as you imagine. Do not be forced into a change.based decision if having considered the implications carefully you decide that it/s not the best thing to do. "he decision to do nothing different, in the right way for the right reasons, is often a perfectly good option. 4hatever you do . try to be as ob#ective as you can be.

4ell prepared decisions are easier to make and to implement, and generally produce the best results.

T pes of Decision Making Supported b Business !ntelligence

"here are three main classifications or types of decision making supported by business intelligence. "hey can be characterised by their fre)uency and impact on the organisation. Click here for a definition of decision making "he impact can be )uantified in terms of risk of failure or mishap and by the level of financial success achieved. It can take many years for the conse)uences of a decision to appear. "he time for the effect of a decision to be seen is a useful and important way of classifying the potential impact of decisions. "he diagram shown on the data warehouse basics page also reflects the classification stated here. "here are three types

!trategic "actical Routine or -perational

,ach of these types of decision can also be defined by the type of data needed to support them. "hese decisions should be classed as data driven decision making. "he following chart depicts the fre)uency of decision and types of decision making against its potential impact on the organisation

+trategic 5ecisions are usually infre)uent e.g. annually but can have a huge impact on the organisation. For example !elect a $arket &c)uire a Company Recruit additional staff "he data used to drive these types of decision is usually found external to the organisation. e.g. market research reports, press releases Tactical 5ecisions are more fre)uent e.g. weekly, monthly. ,xamples would beD Change product pricing Reschedule work Reorganise a department "he impact of these types of decision is of a medium nature in terms of risk to the organisation and impact on profitability. "he data used to drive this type of decision is usually found in summaries of routine transactions e.g. sales orders from the next level or classification. Operational or Routine 5ecisions are usually very fre)uent e.g. hourly, daily but can have a lesser impact on the organisation. For example

(ow to answer a sales en)uiry &pprove a )uotation

&pprove an Invoice

"he data used to drive this decision type is usually prescribed or defined in the procedures and rules of the organisation. Find out more about decision makingD

Iey Decision $aking "ips Decision $aking $odels Intuitive Decision $aking Rational Decision $aking & 'etter Decision $aking $odel Iey Factors in a Decision $aking 5rocess 9se a 5ICI chart to !implify Decisions

"hat !s The Role #f Business Research !n Toda $s Business %nvironment&

Carrying out business research, also known as market research, is an essential part of establishing a business environment and making sure that it is successful. 'usiness research is what helps to link the consumer, customer and public to the marketer. "his research can help define target markets and focus on the opportunities that may arise as well as prepare for any problems that could occur. 6ood business and market research can hold the key to having an advantage over competitors. "he key factors involved in good business research are+ market information, market segmentation and market trends.

$arket Information

'y carrying out business research into market information, it is possible to gain an insight into the prices of different commodities across the world. It is also possible to learn the supply and demand in different countries. "his market information can be collected from a variety of sources.

$arket !egmentation

'y dividing the market into subgroups with similar motivations, it is possible to conduct research into how each of these subgroups contribute towards supply and demand. "his information can then be used to create a business strategy that considers the different subgroups.

$arket "rends

In order to keep up.to.date with competitors business research must study the ups and downs of trends that occur over a certain period of time. "he study of these trends can be used to try and predict what will be in high demand next. For new businesses, this type of research is a lot more difficult.

"hese three factors of market and business research come together to play an extremely important role within today/s business environment. 4ithin business it is essential to be up.to.date and to try and gain some insight over the competitors. 'usiness research allows companies to be prepared for a number of circumstances within the business environment