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INTRODUCTORY CONCEPTS

Part I. BUSINESS SYSTEMS

Gap between expectation versus reality.

RESEARCH is the repeated search for solutions to problems

and gaps in knowledge, status or performance.

Part II. FACTORS OF PRODUCTION

1. Land

Land has a broad definition as a factor of production and can take on various forms, from
agricultural land to commercial real estate to the resources available from a particular piece of
land. Natural resources, such as oil and gold, can be extracted and refined for human
consumption from the land.

When most people think of land, they automatically assume it means agricultural land.
While that's true, it isn't the only thing that makes up this factor. Land doesn't just refer to
natural resources, but it can also include commercial real estate and renewable resources like
forests. Producers also use natural resources that come from the earth, which also fit into this
category. These resources include:

• Oil and gas

• Coal
• Silver, copper, and other metals
• Other commodities

Land is generally considered one of the most important factors of production. Certain
industries rely on land more than others. For instance, a real estate developer needs it to make
good on its investments. But technology companies and those that rely on automation tend to
rely less on land, making it a less significant factor of production.
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2. Labor

Labor consists of the people who are responsible for the creation of goods and services (from
beginning to end) and the effort they put forth. These individuals include factory workers,
managers, salespeople, and engineers who design the machinery used in production. As such,
it can take on many forms. For instance, the effort of construction workers who work on a
building site and quality control workers who ensure products are ready to go to market make
up this category.

3. Capital

Although most people think capital is cash, the term here actually describes a number of other
assets. Capital goods are also considered capital, which includes manufacturing plants,
machinery, tools, or any equipment used in the production process. Capital may also refer to a
fleet of trucks or forklifts as well as heavy machinery.

4. Entrepreneurship (Management/Leadership Skills)

Entrepreneurship is the fourth factor and includes the visionaries and innovators behind the
entire production process. The entrepreneurs combine all the other factors of production to
conceptualize, create, and produce the product or service. They are the drivers behind any
technical change in the economic system which has been shown to be a major source of
economic growth.

Economists believe that entrepreneurship is one of the most integral parts of the production
process. That's because it uses all three of the other factors in the manufacturing of goods and
services.

The success of entrepreneurs depends entirely on the development of a business plan. This is a
document that business owners use to describe how their company operates, its objectives,
and its short- and long-term goals. Once the business plan is developed, entrepreneurs should
look for resources, hire personnel, and get access to financing.

Part III. OBJECT-ORIENTED RESEARCH

SYSTEMS & OBJECTS

“A system is a cohesive conglomeration of interrelated and interdependent parts which can be

natural or human-made. “

“Every system is bounded by space and time, influenced by its environment, defined by its
structure and purpose, and expressed through its functioning. “

Systems are composed of objects accomplishing certain objectives.

Systems Thinking - Systems thinking is a holistic approach to analysis that focuses on the way
that a system's constituent parts interrelate and how systems work over time and within the
context of larger systems. The systems thinking approach contrasts with traditional analysis,
which studies systems by breaking them down into their separate elements. Systems thinking
can be used in any area of research and has been applied to the study of medical, environmental,
political, economic, human resources, and educational systems, among many others. According
to systems thinking, system behavior results from the effects of reinforcing and balancing
processes.
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Part IV. FRAMEWORK FOR BUSINESS ANALYSIS

A. SWOT ANALYSIS

SWOT analysis is a framework for identifying and analyzing an organization's

strengths, weaknesses, opportunities and threats. These words make up the
SWOT acronym. The primary goal of SWOT analysis is to increase awareness of the
factors that go into making a business decision or establishing a business strategy.

B. PESTLE ANALYSIS

A PESTLE analysis is a strategic business tool that allows organizations to

understand how various elements might impact their businesses now and in the
future. PESTLE stands for the six main external factors that can influence a
business: Political factors, Economic factors, Social factors, Technological factors,
Legal factors, and Environmental factors. Each of these concepts is an external
factor that could represent opportunities and threats to your organization.
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Part V. BUSINESS RESEARCH

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

The scientific method

At the core of science lies a problem-solving

approach called the scientific method.

Gather Data

5. 1 Research Type by Purpose or Aim

Research Type by Purpose / Differences / Definitions

Aim
1. Applied vs. Basic Basic research aims to develop
knowledge theories and predictions,
while applied research aims to develop
techniques, products and procedures.
Basic research or pure research
attempts to expand the limits of
knowledge while applied research
addresses a specific business decision
or action for a specific firm or
organization
2. Exploratory vs. Exploratory research aims to explore
Explanatory the main aspects of an under-
researched problem, while
explanatory research aims to explain
the causes and consequences of a
well-defined problem.

3. Inductive vs. Deductive Inductive research aims to develop a

theory, while deductive research aims
to test a theory.
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Research Type by the Nature of Data

Types of Research Differences / Definitions

1. Primary Data vs. Primary data is collected directly by
Secondary Data the researcher (e.g. through
interviews or experiments), while
secondary data has already been
collected by someone else (e.g. in
government surveys or scientific
publications).
2. Qualitative vs. Qualitative research methods focus
Quantitative on words and meanings, while
quantitative research methods focus
on numbers and statistics.

3. Descriptive vs. Descriptive research gathers data

Experimental without controlling any variables,
while experimental research
manipulates and controls variables to
determine cause and effect.

Research Type by Research Subject Sampling, Timescale and Location

Types of Research Differences / Definitions

1. Probability vs. Non-
probability
2. Cross sectional vs.
Longitudinal
Probability sampling allows you to
generalize your findings to a broader
population, while non-probability
sampling allows you to draw
conclusions only about the specific
subjects of the research.
Cross-sectional studies gather data at
a single point in time, while
longitudinal studies gather data at
several points in time.

3. Field vs. Laboratory Field research takes place in a natural

or real-world setting, while laboratory
research takes place in a controlled
and constructed setting.

4. Fixed vs. Flexible In a fixed research design the

subjects, timescale and location are
set before data collection begins,
while in a flexible design these aspects
may develop through the data
collection process.
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5.2 Common Research Areas

Research areas include but may Description of Research Analysis

not be limited to the following:
1. Market/Marketing A market analysis is a thorough assessment of
a market within a specific industry. With this
analysis, you will study the dynamics of your
market, such as volume and value, potential
customer segments, buying patterns,
competition, and other important factors.
2. Finance Financial analysis is the process of evaluating
businesses, projects, budgets, and other
finance-related transactions to determine their
performance and suitability. Typically, financial
analysis is used to analyze whether an entity is
stable, solvent, liquid, or profitable enough to
warrant a monetary investment.
3. Brand A brand analysis, also known as a brand audit,
identifies how your brand is supporting your
marketing and sales efforts. It assesses who
your customers are, what they’re looking for,
what your competitors are doing, and how your
brand is meeting your customers’ needs. It looks
at current and historic content and results of the
brand (brand inventory) and also at the brand’s
style.
4. Product Product analysis breaks down the product from
end to end analyzing everything from
components, functions, technology, costs and
demands to marketing materials, websites and
sales approach.

5. Market Competition A competitor analysis, also referred to as a

competitive analysis, is the process of
identifying competitors in your industry and
researching their different marketing strategies.
You can use this information as a point of
comparison to identify your company’s
strengths and weaknesses relative to each
competitor.

6. Demand Demand analysis is the process of

understanding the customer demand for a
product or service in a target market.
Companies use demand analysis techniques to
determine if they can successfully enter a
market and generate expected profits to
expand their business operations.

7. Distribution Distribution is the process of delivering the

products and services along with selling them
from a manufacturer to a customer. Distribution
entails making a product available for purchase
by dispersing it through the market. It involves
transportation, packaging, and delivery.
Distribution is fundamental to a company’s
sales.
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5.3 Research Perspectives (Point of View)

Who will be the primary user or beneficiary of the research?

Research Perspectives Description Considerations

1. Business Operation
Perspective
Marketing, finance,
production, human resources Profitability and efficiency
and other areas of business
operations

2. Investor Perspective
Shares of stocks, equities Return on Investment

3. Consumer Perspective
Product and services Affordability and Utility
availability

4. Government Perspective
Government agencies Monitoring, regulatory and
involved in the areas of taxation
business operations

5.4 Philippine Agri-Business Problem Areas