EMOM-102 - BUSINESS RESEARCH METHODS

1.What are the various sources of information in business research?

Sources of Information in Business Research: Managers have access to information other than that
generated by business research. Understanding the relationship between business research and other
information sources-decision support systems and business intelligence, is critical for understanding
how information drives decisions relating to organisational mission, goals, strategies and tactics.
Foundations of Research 1. 23 Fig. 1.2: Sources of Business Intelligence

1) Goals: A local bakery would have different goals than Nabisco, but each likely has goals related to
sales (membership), market share, return on investment, profitability, customer acquisition, customer
satisfaction, customer retention, employee productivity, production efficiency, maximisation of stock
price (or owner's equity) and so on-whether codified in a written plan or detailed only in an
entrepreneur's brain. To assist in making increasingly complex decisions on goals, strategies and tactics,
managers first turn to information drawn from the decision support system, combined with that
generated by business intelligence on competitive and environmental activity.

2) Decision Support: The need to complete one or many exchanges with its prospective customers,
members or constituents drives every organisation. No matter how we define an exchange a purchase, a
vote, attendance at a function, a donation to a cause-each exchange, along with the strategic and
tactical activities designed to complete it, generates numerous elements of data. If organised for
retrieval, collectively these data elements constitute a decision support system (DSS). During the last
two and one-half decades, advances in computer technology made it possible to share this collected
transactional data among an organisation's decision-makers over an intranet or an extranet. Today,
sophisticated managers have developed DSSs, where data can be accessed in real time (as transactions
are completed). Catalog managers (e.g., casual clothing retailer land‟s end) know exactly what tactics
generate a transaction from a particular individual within their prospect and customer databases, as
well as just how profit table each customer is to the company and an estimate of that customer's,
lifetime value to the company. Such managers have a distinct advantage in strategic and tactical
planning over those without real-time access to transactional data.

Goals Decision Support Business Intelligence Strategy Tactics M. B. A. (Sem. – I) Business Research
Methods 1. 24 3) Strategy: Strategy is defined as the general approach an organisation will follow to
achieve its goals. In an earlier example, a restaurant was receiving comments that the friendly
atmosphere was changing. This perception may have been the result of a change in strategy. Perhaps
the restaurant decided to switch from an atmosphere, where patrons were encouraged to linger over
their meal (occupying a table for a long period of time while adding incremental revenues with each
additional course) to a new strategy of turning each table in a shorter time frame by changing food
preparation and the menu. A firm usually implements more than one strategy at a time. With regard to
training, one organisation might train its data warehouse employees with mostly classroom activities,
while another will use on-the-job training. Another strategy might describe how an organisation handles
maintenance on its equipment-rigorous periodic maintenance versus maintenance only when
equipment breaks down. Microsoft recently, completed a major corporate restructuring. It decided to
tie its 600 managers' compensation, not to sales and profits, but to levels of customer satisfaction as
measured by periodic customer satisfaction surveys. The discovery of opportunities and problems that
influence strategic decisions is often the task of the BIS in combination with business research. 4)
Business Intelligence: Because no decision exists in a vacuum, the decision-maker must have a broad
knowledge of the firm's environment. A business intelligence system (BIS) is designed to provide the
manager with ongoing information about events and trends in the technological, economic, political and
legal, demographic, cultural, social and most critically, competitive arenas. Such information is compiled
from a variety of sources, as is noted in exhibit 1-1 .Often, data from a DSS or BIS stimulate the question
should we do business research? In the mind-writer example, this might be data collected about laptop
problems needing repair or for our restaurant whose friendliness quotient is changing, it might be
customer comments collected by the wait staff. 5) Tactics: Business research also contributes
significantly to the design tactics -those specific timed activities that execute a strategy. Business
research also can be used to help a manager decide which of several tactics is likely to successfully
execute the desired strategy. In our earlier example, our restaurant manager might have changed the
menu (marketing tactic) to feature entrées that could be prepared faster (operations tactic) and
delivered to a table more quickly. The manager might also have instituted a new training program (HR
tactic) to implement a new zoned, table-coverage structure (operations tactic), along with a new sales-
incentive program (HR tactic) that discouraged the wait staff from making small talk with patrons and
rewarded teamwork and efficiency. Foundations of Research 1. 25 All of the above examples
demonstrate the purposes of business research: a) To identify and define opportunities and problems.
b) To define, monitor and refine strategies. c) To define, monitor and refine tactics. d) To improve our
understanding of the various fields of management.

Explain the different Steps in Research Process.

different Steps in Research

Process
1.1.8. Steps in Research Process: The process of research involves the following steps: Fig. 1.1: Steps in
Research Process 1) Formulation of Research Problem: The formulation of a general topic into a specific
research problem is the first step in a scientific enquiry. It must be influenced by requirements of the
scientific procedure. The formulation of problem is composed of three aspects: a) The specification of
the unit of analysis for the study. b) The identification of the particular units within the scope of study. c)
The specification of the kind of information sought concerning those units. Understanding the problem
and rephrasing the same into meaningful terms are the two steps involved in formulation of research. 2)
Survey and Review of Literature: This is the second step in research. After formulation of research
problem, it is necessary for researcher to undertake extensive literature survey. What others have said
about this topic, what theories have been addressed to it and what are flaws in the existing research can
be understood through literature review. A systematic review of the related literature can show how
another researcher handled a similar problem. It can suggest a method of dealing with the problem. It
can help the researcher to evaluate his or her own research by comparing it with the efforts made by
the others. Foundations of Research 1. 11 3) Formulation of Hypothesis: The third step is to formulate
one or more hypothesis. The suggested explanation or solution to the problem formulated as a
proposition is called a hypothesis. A good hypothesis must be conceptually clear and it should be related
to a body of theory. It should have variables which could be put to empirical test. Hypothesis is never
formulated in the form of a question. It should be empirically testable. The statement of the hypothesis
should not be contradictory. Statement of hypothesis must be sharp, operative and testable. 4)
Research Design: Planning research design is the fourth step in the process of research. Reliability and
validity of the research requires the detailed strategy of how the research will be conducted. The
designing is concerned with making controlled scientific inquiry. Research design provides the blueprint
for the research. It limits boundaries of research activity. It enables investigation to anticipate potential
problems. Research design offers a guide, that directs the research action which reduces time and cost.
The research design differs according to the research purpose. Researcher has to prepare the practical
research design. 5) Selecting Sample: The fifth step in research is selecting a sample. A sample is any
number of persons, units or objects selected to represent the „universe‟ or „population‟ according to
some rule or plan. The researcher is expected to draw a sample from the „universe‟ in such a manner
that the findings based on it will correspond closely to those that would have been obtained from the
study of universe. The researcher has to select the sample in such a way that the selected sample is
sufficiently representative of the „universe‟. Sample is part of a whole, taken to show what the rest is
like. 6) Data Collection: The sixth step is actual collection of facts and information in accordance with the
research design. Having drawn an adequate sample from the „universe‟, the researcher proceeds to
administer the measuring instruments or tools of data collection on the items in the sample. Researcher
has to ensure that the data are reliable and free from bias. Collection involves the basic definitions for
the concepts to be investigated, specific field procedures and the design of instruments for recording
the actual data. A vast amount of historical as well as current statistics, ranging from various census
publications to special purpose survey of particular industries and products are already available
through government publications. Example: Each and every district of the India has a „District Statistical
Office‟. Every year this office publishes a broad survey report of concerned district. Report is named as,
„Socio-Economic Survey of the District‟. A wide range of statistics is available in this survey report.

Data Analysis: The seventh step in research is the analysis of data. The purpose of the analysis is to
summarise the completed observations in such a manner that they yield answers to the research
questions. Researcher has to classify, tabulate and compare the data to get the results. Data analysis
seeks to determine how the units covered in the research project respond to the items under
investigation. The researcher needs to work out central tendencies, deviations, correlations, etc. to
describe and summarise the data obtained on his/her sample. Data analysis can be classified into
univariate analysis, bivariate analysis and multivariate analysis. Univariate analysis deals with a single
characteristic of interest, bivariate analysis deals with two characteristics of interest and multivariate
analysis deals with more than two characteristics of interest. 8) Hypothesis Testing: Hypothesis testing is
an eighth step in research. The correctness of the hypothesis is assessed by a test of significance. Stating
the hypothesis and selecting the level of significance are the two important steps involved in hypothesis
testing. For testing a hypothesis the concepts in a measurable way. Hypothesis testing will result in
either accepting the hypothesis or in rejecting it. In case a hypothesis fits the findings, theory from which
the hypothesis was deducted would be proved. If the hypothesis is disproved, the blow of disproof will
pass on to theory, which originated the hypothesis. If the researcher had no hypothesis to start with, he
might seek to explain his findings on the basis of some theory. 9) Interpretation of Results:
Interpretation of result is the ninth and important step in research. Research is wasted and useless
unless it influences actions. Not only results must be interpreted into action but the recommendations
must also be communicated to the executive in an understandable manner. The process of
interpretation may quite often trigger new questions, investigating in turn further researches.
Interpretation consists of the conclusions the researcher has reached. Interpretation of data can be
descriptive or analytical or it can be from theoretical standpoint. Negative results are much harder to
interpret than positive results. Researcher must have analytical mind and he must possess techniques of
analysis for interpreting the results. 10) Preparation of Report: Preparation of report is a last step in
research. The research exercise is not complete till such time as the report is published. A research
report clearly states what problem one can choose, what hypothesis one proposed, how one can
extracted the data and the method one can used, how one can measured it, how one can interpreted it
and how your conclusions finally / logically result from all this systematic activity. Foundations of
Research 1. 13 The research report should be written in a clear and unambiguous language, so that the
readers can objectively judge the adequacy and validity of research. Writing of a lucid and
methodological research report is not an easy task. Cover and the title page, introductory pages, text,
reference section are the four important parts of a report. Report is a concrete output of the research.

Sources of Information in Business Research: Managers have access to information other than that
generated by business research. Understanding the relationship between business research and other
information sources-decision support systems and business intelligence, is critical for understanding
how information drives decisions relating to organisational mission, goals, strategies and tactics.
Foundations of Research 1. 23 Fig. 1.2: Sources of Business Intelligence 1) Goals: A local bakery would
have different goals than Nabisco, but each likely has goals related to sales (membership), market share,
return on investment, profitability, customer acquisition, customer satisfaction, customer retention,
employee productivity, production efficiency, maximisation of stock price (or owner's equity) and so on-
whether codified in a written plan or detailed only in an entrepreneur's brain. To assist in making
increasingly complex decisions on goals, strategies and tactics, managers first turn to information drawn
from the decision support system, combined with that generated by business intelligence on
competitive and environmental activity. 2) Decision Support: The need to complete one or many
exchanges with its prospective customers, members or constituents drives every organisation. No
matter how we define an exchange a purchase, a vote, attendance at a function, a donation to a cause-
each exchange, along with the strategic and tactical activities designed to complete it, generates
numerous elements of data. If organised for retrieval, collectively these data elements constitute a
decision support system (DSS). During the last two and one-half decades, advances in computer
technology made it possible to share this collected transactional data among an organisation's decision-
makers over an intranet or an extranet. Today, sophisticated managers have developed DSSs, where
data can be accessed in real time (as transactions are completed). Catalog managers (e.g., casual
clothing retailer land‟s end) know exactly what tactics generate a transaction from a particular
individual within their prospect and customer databases, as well as just how profit table each customer
is to the company and an estimate of that customer's, lifetime value to the company. Such managers
have a distinct advantage in strategic and tactical planning over those without real-time access to
transactional data. Goals Decision Support Business Intelligence Strategy Tactics M. B. A. (Sem. – I)
Business Research Methods 1. 24 3) Strategy: Strategy is defined as the general approach an
organisation will follow to achieve its goals. In an earlier example, a restaurant was receiving comments
that the friendly atmosphere was changing. This perception may have been the result of a change in
strategy. Perhaps the restaurant decided to switch from an atmosphere, where patrons were
encouraged to linger over their meal (occupying a table for a long period of time while adding
incremental revenues with each additional course) to a new strategy of turning each table in a shorter
time frame by changing food preparation and the menu. A firm usually implements more than one
strategy at a time. With regard to training, one organisation might train its data warehouse employees
with mostly classroom activities, while another will use on-the-job training. Another strategy might
describe how an organisation handles maintenance on its equipment-rigorous periodic maintenance
versus maintenance only when equipment breaks down. Microsoft recently, completed a major
corporate restructuring. It decided to tie its 600 managers' compensation, not to sales and profits, but to
levels of customer satisfaction as measured by periodic customer satisfaction surveys. The discovery of
opportunities and problems that influence strategic decisions is often the task of the BIS in combination
with business research. 4) Business Intelligence: Because no decision exists in a vacuum, the decision-
maker must have a broad knowledge of the firm's environment. A business intelligence system (BIS) is
designed to provide the manager with ongoing information about events and trends in the
technological, economic, political and legal, demographic, cultural, social and most critically, competitive
arenas. Such information is compiled from a variety of sources, as is noted in exhibit 1-1 .Often, data
from a DSS or BIS stimulate the question should we do business research? In the mind-writer example,
this might be data collected about laptop problems needing repair or for our restaurant whose
friendliness quotient is changing, it might be customer comments collected by the wait staff. 5) Tactics:
Business research also contributes significantly to the design tactics -those specific timed activities that
execute a strategy. Business research also can be used to help a manager decide which of several tactics
is likely to successfully execute the desired strategy. In our earlier example, our restaurant manager
might have changed the menu (marketing tactic) to feature entrées that could be prepared faster
(operations tactic) and delivered to a table more quickly. The manager might also have instituted a new
training program (HR tactic) to implement a new zoned, table-coverage structure (operations tactic),
along with a new sales-incentive program (HR tactic) that discouraged the wait staff from making small
talk with patrons and rewarded teamwork and efficiency. Foundations of Research 1. 25 All of the above
examples demonstrate the purposes of business research: a) To identify and define opportunities and
problems. b) To define, monitor and refine strategies. c) To define, monitor and refine tactics. d) To
improve our understanding of the various fields of management.