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 PART 1

CHAPTER 1

Introduction to Business
Research

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 LEARNING OUTCOMES

After studying this chapter, you should be able to:

 Know the importance and scope of business
research
 Describe what research is and how it is defined
 Differentiate between applied and basic research
 Know the importance of research to a manager
 Know when business research is needed
 Describe the ethical issues involved in business
research

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 1.0 Introduction

 To be a responsible individual, he/she has to

understand the environment and the nature of the
phenomena it presents.
 This can be understood as finding a solution to it.
 In this case, there must be something missing or
there is a gap between what we understand/know
and what it should be.

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 Process

 In order to achieve this, we go through several

processes from collecting information to selecting
alternatives.

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 1.1 Importance of Business
Research

Research is important to any business organization:

To stay competitive in the market
To accurately identify or understand its customers
To scrutinize its rivals in the industry
To analyze and emulate key strategies
To keep abreast on all aspects of the business

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 1.2 Scope of Business Research

Business research covers a wide range of phenomena.

Problems may occur in any areas of business
No clear demarcation on the classification of
problems on the basis of areas
Integration of problems related to two and more areas
External environment facing the business

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 1.3 What is Research?

 Intellectual application of the investigation of a

matter
 Used for discovering, interpreting and developing
methods and systems for the advancement of
human knowledge.

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 1.4 Defining Business Research

An organized, systematic, data-based,

critical and objective, scientific enquiry or
investigation into a specific problem,
undertaken with the purpose of finding answers
and solutions to it.

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 Comprises four stages

 First stage: Problem identification

 Second stage: Gather the relevant information

 Third stage: Critically analyze the information

 Fourth stage: Provide solution to the existing

problem

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 1.5 Types of Business Research:
Applied and Basic Research
1. Basic research (also called fundamental or pure
research)
 Primary objective of the advancement of
knowledge and theoretical understanding
 Not undertaken to solve any specific problem
 Is often the foundation for further applied research

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 1.5 Types of Business Research:
Applied and Basic Research
2. Applied research
 Use knowledge (research findings) for practical
concerns
 Solve a current problem faced by the organization
in the work setting
 Application of known theories to the actual
operational field

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 1.6 Managerial Value of Business
Research

 To make right decisions in timely manner

 Well informed and up-to-date in their own area
of specialization
 Recent developments in particular industries
 Understand, predict and control the environment
of the organization

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 1.7 When is Business Research
Needed?

The manager’s decision as to whether or not research

should be conducted for a problem encountered in the
organization depends on various factors:
1. Time constraints
2. Availability of data
3. Nature of decision
4. Benefit versus costs

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 1.8 Ethical Consideration in
Research

The goal of ethics in research is to ensure that no

one is harmed or suffers adverse consequences
while following any stage of research.

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 1.8.1 Ethical Consideration and
the Sponsor

 Honestly assess their capabilities

 Research must be conducted in a professional
manner with a systematic, organized, and scientific
approach
 Research project/results will remain confidential
 Submit the research report to the sponsoring
company at the agreed time

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 1.8.2 Ethics and Target
Respondents

 Target respondents who provide information

 Information collected should not be misused for
any other purpose
 Participation is voluntary
 Confidentiality of the replies
 Not to embarrass respondents/informants

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 1.8.3 Researcher and Team
Members

 Design a project that is safe for everyone involved

 Impartial and unbiased to accurately record all
necessary data

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