FACULTY OF MANAGEMENT SCIENCES

DEPARTMENT OF MANAGEMENT AND INFORMATION TECHNOLOGY

NAME: ABDULMALIK SHUKRANU YUSUF

REG NUMBER: 17/49968D/5

OPTION: INFORMATION TECHNOLOGY MANAGEMENT

COURSE : BMT513 RESEARCH METHODOLOGY

TITLE: ASSIGNMENT

Assignment Question: Discuss the statement in light of the prospects and problems of business research
in Nigeria.
 INTRODUCTION

Business research is a systematic process where by a company obtains data and analyzes it in order to
better manage the company.

In similar terms, business research involves a company obtaining data on factors that affect the
company in order to plan and make better decisions.

What kinds of data do companies obtains?

The data a company obtains ranges across a number of different categories. They include

(1) FINANCIAL DATA

Financial data is any data that has to do with money . These are data that relate to money that
flow in and out of the company, money that the company loses/gains, money that the company
might lose or gain that can affect what a company loses/gains etc. Financial data takes
qualitative information such as sales reports, revenue and cost reports to see what areas make
money and what areas cost money.
(2) COMPETTIVE ANALYSIS
Competitive analysis occurs when a company compares its products and services with/to those
of other companies.
This is usually done to improve the product/services, evaluate price, or try to steal a larger
market share. By comparing your company with others, you can know where your company is
lagging behind and the advantage your company has over others. You can see what customers
love about other companies products.
(3) PRODUCT RESEARCH
This kind of research is usually done to improve the company product. Research is done on what
new techniques can be used, what new strategies can be utilized, what can be added to the
product, what can be removed from the product. It seeks to improve the product to meet the
needs of consumers. It also involves research into distribution channels.
(4) INDUSTRY DATA
This, just like a competitive analysis involves comparing the company with other entities, except
that in this case, it looks at the industry as a whole and not just one particular company. It helps
the company understand how it is faring in the industry.
(5) CONSUMER/CUSTOMER FEEDBACK
This is very important because it involves understanding what the users of the company’s
products say about the product as it deals with quality, ease of use, availability, etc. It can be
done using questionnaires, surveys, focus groups and case studies.
BUSINESS RESEARCH METHOD

A business research method refers to a set of research techniques that companies use or employ in
order to determine if a specific business venture or endeavor is worth their time and effort. It helps
companies decides on the viability of business, assess business success and look into the future of the
business. A variety of business research method were used
 - CASE STUDY: This is a business research method in which a business familiarizes itself with the
way consumers react to a product or service. It usually requires a lot of time.
- FOCUS GROUPS: This involves the gathering of a small set or group of people and analyzing
information obtained from them regarding their experiences with the product or services. High
level of skill is required to properly handle this kind of method because people in the group
might just be saying what they know the company wants to hear, so as not to discredit the
company in their face.
- SURVEYS/INTERVIEWS: Surveys give companies a large amount of information while interviews
are much more directed towards specifics. Questionnaires can also be used to easily gather
information from a target population.

ADVANTAGES OF BUSINESS RESEARCH IN NIGERIA

Business research has several advantages. Some of them are:

(1) IDENTIFICATION OF PROBLEMS

Business helps a company to identify problems. The very first step in any research process is the
identification of problem.
When this problem has been identified, query into it usually reveals even more problems. This
way, a company can identify its problems easily.
(2) FINANCIAL PLANNING
Business research is an executive tool that is used to improve financial outcomes, for example,
market pricing. With business research, companies can determine the most reasonable prices to
set.
Research may show that based on current costs and market price, profits will be unattainable,
and resources should be placed other areas.
(3) PREDICTIONS
Business research helps a company makes predictions about the future of the company in
various respects. Trends are analyzed and evaluated. Predictions help to prepare better.
(4) CUSTOMER NEEDS
Business research helps companies identify the needs of customers, and how to make their
products even better suited for their target market. Quality issues are identified and thrashed
out.
(5) BETTER TECHNIQUES
Business research enables the company discovers new technology and technique in making its
products and rendering its services, there by making its products cheaper with lower per unit
cost, while equally possessing more quality.
(6) UNDERSTANDING THE MARKET
Business research helps companies understand the entire market and how their business fits in.
it helps it discover and benchmarks.
(7) TREND MATCHING
Many a times, the market is already embracing a trend. Business research can help a company
to be active in that trend and increase sales.
 CHALLENGES/PROBLEMS OF BUSINESS RESEARCH

The challenges faced by companies who go into business research are:

(1) IN ADEQUATE DATA

The inadequacy of data makes it very difficult to make comparisons with other companies and
the industry as a whole. Due to the inadequacy of data, companies do not have clear image of
the real state of things.
(2) MANIPULATED DATA
Many companies and institutions manipulate their figures and presumed qualitative
characteristics, which makes it difficult to trust results obtained from business research.
(3) DATA MANAGEMENT
This involves how businesses gather, handle and integrate the vast amount of data from both
primary and alternative research resources to make sense of all the data points.
Mismanagement of data can cause serious problems. The “work with what we have mentality”
can be troubling when data is mismanaged.
(4) METHODOLOGY
According to experts, about 56% of respondents mention methodology as one of the biggest
challenges they face. Selecting the right methodology to suit the type of business, the kind of
data, the type of respondents etc, is difficult work. There are too many competing techniques
and most researchers for companies do not receive enough training to become proficient at any
of these. These techniques often yield different results even for same data set.
(5) LOW RESPONSE RATE
Low response rate makes it difficult to make conclusions since it can’t be said with even near
certainty that the numbers gotten reflect a good sample for the population.
(6) PRIVACY AND SECURITY ISSUES
Getting data can often prove to be difficult especially when the data includes what some might
consider private, personal or sensitive.
(7) FINANCES
One other problem associated with business research is finances. A proper business research
requires commitment of good money. These days money is something that most companies
don’t want to release easily.
(8) TECHNOLOGY
The technology required to process data, especially large data, faster cost a lot and most
companies still stick to the conventional means. The technology available is not really able to
meet up with the rapidly increasing needs of the equally rapidly rising.
(9) LACK OF WELL QUALIFIED PERSONNEL
This explains itself. The lack of qualified personnel to do a good business research job makes
things more difficult to determine. Even results are not very reliable.
(10) ECONOMY
These days, the word on the lips of every one is ‘economy’. In these trying times, people have
changed their spending habits. Thus, trends are constantly changing. The known ways for
 determining results are becoming in applicable because people are drifting from what they are
normally suppose to be doing. For example in the past, a cheaper price could mean lower
quality, hence it could reduce sales if the target market is not correctly investigated. These days,
people buy the cheaper things simply because they are cheaper.

REFERENCE

Balunya.W. (2010). What are small scale enterprises? Entrepreneurship and small business enterprise:
Makere University Business School at http://evancarmicheal.com/Afrca-Account/1639/40-what are
small enterprises-entrepreneuship-and-small-business-enterprise-growth-1

Banmach, C.M. (2006), Basic Small Business Management: Obafemi Awolowo University Press Ltd.