Business Research And Decision Making: An Overview

Business Research and Decision Making

Business research can be defined as a field of practical study that allows an organization obtain data and analyze it for better management. The process of business research is to include idea and problem definition, theory development, analyzing data and communicating findings as well as implications. Business research covers multiple fields such as consumer feedback, financial data, competitive analysis and product research. The task of business research is to generate information so that it can aid business decisions. Business research facilitates managerial decision process for every aspect in a business. It aims to expand the limits of knowledge (Zikmund 2013).

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The aim of marketing research is to supply accurate information that helps reducing uncertainty in decision making. The managers or decision makers may arrive at decisions at multiple events like having insufficient time to conduct research or making assumptions. Relying on seat-of-the-pants decision making or making decisions without conducting research is compared with betting on a long run racetrack as the name of the horse is appealing. There might be successes in the short run, but it may lead to losses in the long run as decision is made without research. The research helps the decision makers’ shift from seeking information to objective investigation as an advantage (Zikmund 2013).

The statement illustrates the role played by marketing research. It is stated that the job of a researcher is to provide information for reducing uncertainty but he may be held responsible for the same. The managers are decisions makers and eventually take the credit for failure or success. The managers may risk a huge amount of money and it might be worth the risk if they conduct research (Zikmund 2013).

Every manager needs accurate, timely and consistent information to arrive at decisions, assess the best opportunities. The managers also play the role of planning and implementing marketing mix, analyzing market segments and controlling market performance. If any wrong information is presented, the strategic plan shall fail regardless of its perfect execution (Zikmund 2013).

The purpose of research is to expand the information base that allows the managers to make decisions while reducing uncertainty. The information gathered by the researcher shall enable the manager to make the right decision. It must be noted that the problems shall not solve by itself. It is also argued that research may not provide every piece of information that shall be the best to make decisions. However, research shall provide a framework based on which decisions can be made (Zikmund 2013).

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Impact of Technology and Internationalization on Business

Impact of Technology and Internationalization on Business

Technology and internationalization are known to affect the business research in multiple manner. Both technology and internationalization have expanded the information base and ease of accessing information. Technology has allowed the ease of searching and extracting information. Research has become increasingly global as the firms are greatly taking advantage of markets. As everyone is connected through technology in the current world, information can be exchanged rapidly. Therefore, it has the ability to collaborate on a global level to bring forth multiple ideas and findings that were difficult to obtain previously (Zikmund 2013).

A theory can have different meanings and interpretations in the business world. A couple of theories can be used. For the state of satiation of staff, sentiment of the management support can be linked with the efforts made by employees to make the organization successful. Another theory is linked with job satisfaction, where the contentment level of the employees can be enhanced. Another theory is linked with the people who might be treated unjustly from the customers. Job satisfaction comprises of feelings and attitudes about one’s job (Zikmund 2013).

Social network can be defined as the social ties or personal relationships that can be established to communicate with each other. My social network involves making connections with family, friends and classmates through Twitter, Facebook, LinkedIn and others. I use social networking to build new relationships and maintain my existing ones. The aspects of my social networks are linked with one another. Social capital refers to the resources that are accrued while maintaining social network. Social networks help in building social capital as bonding is generated by strong ties. Social capital can be accumulated as importance of relationships is increased (Zikmund 2013).

Propositions can be defined as the statements concerned with the relationships amid concepts. Also, it explains the rational connection among various ideas and concepts. Proposition explains that every concept about a thing is associated with other concepts. However, a hypothesis can be defined as a proposition that can be tested empirically. Hypothesis is an empirical statement associated with variables. To build a hypothesis, it is necessary to have a proposition. The researcher shall not be able to test anything without a proposition. A proposition can be defined as a statement that can be judged as true or false (Zikmund 2013).

A concept can be defined as a widespread idea about a class of incidences, characteristics, procedures and others that have a name. Concepts can be articulated in words as they abstract realism. The abstract ideas are simpler for the scientists to express in the real world. Variable can be defined as something that can be taken on different numerical variables.  Variables are dependent or independent in nature (Zikmund 2013).

Theories to Explain Aspects of Business

Deductive reasoning or logic refers to the process where one or more general statements is known to reach to a conclusion. However, inductive reasoning evaluates from general propositions deriving from certain examples. Another difference is that inductive logic has conclusion that can be proven to be valid if the premises are true. However, in case of deductive logic, the conclusion may be incorrect despite the accuracy or strength of the premises (Zikmund 2013).

Necessity of Conducting Research before Decision Making

To open a second jewellery store, a decision needs to be taken. According to the scenario, there is confusion if the new store must be opened in Melbourne or Adelaide. Research must be done before taking a decision as jewellery store requires heavy investment. The store must be opened in a place where there is greater consumer demand for the nature of products sold by the jewellery store. The information such as income, spending capacity and competition must be analysed so that the business decision can be made (Bryman and Bell 2015).

Various issues are relevant to jewellery business. In the given case scenario, four issues may be relevant. Firstly, it may be noted if the jewellery sells products to low, middle or upper income groups. Secondly, one must note the level of competition that exists in both Melbourne and Adelaide. Thirdly, the age group and type of people living in Melbourne and Adelaide must be noted. Lastly, the investment cost and capacity needs to be analysed. Therefore, the above four aspects are relevant to the jewellery business.

Product oriented research is when management is more concerned with product quality. The jewellery store must have high quality products and focus on consistent improvement. Production orientation is a general approach to business that focuses on the manufacturing and production processes. The jewellery store must focus on operational efficient so that the demand rises. Marketing oriented research focuses on delivering products designed according to customer desires, needs, and requirements. In this scenario, the marketing oriented research is relevant (Sekaran and Bougie 2016).

The research constraints to determine if the research is conducted are if the schedule is met. The specific goals of opening the jewellery store must be met. The cost involves financial limitation and must be met while conducting research. If the scope of the research is met and a decision can be made whether to open the jewellery store in Melbourne or Adelaide, the constraints shall be met (Eriksson and Kovalainen 2015).

The scientific method of market research comprises of seven steps. Firstly, the research question that needs to be answered shall be formulated. Both primary and secondary questions shall be formulated. Secondly, literature review must be conducted so that the information gathered by previous researchers and scholars can be reviewed. Thirdly, hypothesis shall be formulated that can be tested empirically. The premises or assumption of the research experiment shall be tested. Fourthly, research shall be conducted to test the hypothesis. Fifthly, primary and secondary data shall be collected that forms a vital part of the research. Sixthly, the results generated from the business research shall be determined if the hypothesis was correct or not. Lastly, the findings of the research paper shall be demonstrated in the form of text, graphs and charts (Eriksson and Kovalainen 2015).

References

Bryman, A. and Bell, E., 2015. Business research methods. USA: Oxford University Press.

Eriksson, P. and Kovalainen, A., 2015. Qualitative methods in business research: A practical guide to social research. Australia: Sage.

Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach. UK: John Wiley & Sons.

Zikmund, W.G., Babin, B.J., Carr, J.C. and Griffin, M., 2013. Business research methods. USA: Cengage Learning.