ROLE OF RESARCH IN MAKING DECISION
Project report
Subject: RESARCH METHODOLOGY
By
Ms. Riddhima pramod sawant
M.com ( Banking and Finance) Part-I
Semester III Roll no 90
Submitted to
Prof. DR. S.S SAWANT
Sydenham College Of Commerce and Economics
B-road, Churchgate Mumbai 4000202015-16
Certificate
It is certified that Ms Riddhima pramod sawantM.com (Banking and
finance) Part-II semester III have submitted the project report in
the subject RSEARCH METHODOLOGY entitled ROLE OF RESARCH IN MAKING
DECISION that her work is original and fulfils the partial
requirement of passing the examination in this subject.
Name & signature of the prof. Prof. DR. S.S . Sawant
Dept.
Sydenham College of commerce and economicsB-Road, churchgate,
Mumbai 400020Date:
TABLE OF CONTENT
Serial noIndex
1What is research?
2Characteristics of research
3High quality research
4Steps for making a good research
5Research design
6Types of research design
7Importance of Research in Business Decision Making
8Market and consumer research
Importance of Operations Research in Decision-Making
Simplifying Complexity
Marketing Research and Decision Making
Decision making
The Decision-Making Process
Bibliography
What research is ????The systematic process of collecting and
analysing information in order to increase our understanding of the
phenomenon about which we are concerned or interested
research is based on direct experience / observation by a
passenger.
research is based on valid procedures and principle.research is
a cyclical process, it starts with a problem and end with a
problem.
Research utilise proven analytical procedures in gathering the
data , whether historical , descriptive , experimental or case
study.
characteristics of research originates with a question or
problem. requires clear articulation of a goal. follows a
specification plan or procedure. other divides main problem into
sub problems. guided by specific problem, question or hypothesis.
accepts certain critical assumptions . requires collection and
interpretation of data. cyclical in nature.Good Research Project
Should address an important question , advance knowledge. the scope
and limitations of the work to be clearly defined . the process to
be clearly explained so that it can be reproduced and verifiedby
other researcher. a thoroughly planned design that is as objective
as possible.
High quality research.good research require high ethical
standard be applied.all limitations be documented data be
adequately analysed and explained.All findings be presented
unambiguously and all conclusion be justified by sufficient
evidence.Steps for making a good researchRaising A Question Suggest
Hypothesis Literature ReviewLiterature EvaluationAcquire DataData
AnalysisData InterpretationHypothesis Support.
Research Design
definitionTask of defining the research problem is the
preparation of the research project, popularly known as research
design
Decisions regarding what, where, when, how much , by what means
concerning an inquiry or a research study constitutes a research
design
Meaning A research design is the arrangement of conditions and
analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure.
Research design have following parts:
Sampling design :Which deals with the methods of selecting items
to be observed for the study.Observational design :Which relates
with the condition under which the observation are to be
create.Statistical design :Which concern with the questions of the
how the information and data gathered are to be
analysed?Operational design :Which deals with techniques by which
the procedures satisfied in sampling.Different research design
Incase of exploratory research study In case of descriptive and
diagnostic researchIn case of hypothesis testing research
studies.
In case of exploratory research study :this method is also
termed as formulative research studied.The main purpose is that of
formulate the research problem. Three methods are The survey of
concerning literatureThe experience surveyThe analysis of inside
stimulating.
In case of descriptive and diagnostic researchThe study
determine the frequency which some thing occure.
Qualitative research is research dealing with the phenomena that
are difficult to qualify mathematically, such as a beliefs ,
attributes and symbol.The researcher aim to gather an in depth
understanding of human behaviour and the reasons that govern such
behaviour .The qualitative method investigates the why and how of
decision making not just what, where, when .
Advantages:it enables more complex aspetcs of a person
experience to be studiedfewer resdtriction are placed on the data
to be collected not everything can be qualified easily individuals
can be studied in more depth.Good for exploratory research and
hypothesis generation The participants are able to provide data
their own words and in their own way.
Disadvantage:It is more difficult to determine the validty and
reliability of linguistic data.There is more subjectively involved
in analysing the data Time consuming.
Quantitative research:It refer to the systematic imvestigation
of any phenomena via statistical , mathematical techniques.The
object is to develop and employ mathematical models ,
theories.Generally it include scientific methodsThe generation of
model , theories, and hypothesisThe development of instrument and
methods for measurementExperimental controlModelling and analysing
of dataEvaluation of result.
Advantagesit allows the researcher to measure and analyse the
datathe researcher is more objective about the findings of the
rearech it can use to test hypothesis in experiments.
DisadvantagesThe main disadvantage of this is the context of the
study is ignored.It doesnt study things in a natural setting A
large sample of the population must be studied for more accurate
result.
Importance of Research in Business Decision MakingBusinesses
conduct research for many reasons, such as gathering crucial
information about consumers and business customers.The key function
of management is take decisions and without help of the research
and analysis of present situation and future forecasting ,
decisions may not be effective. So research helps to take right
decisions.Based on research, management can make intelligent and
well informed decisions.Businesses use research to ascertain the
success of their advertising. For instance, a dairy manufacturer
may want to find out what percentage of the people saw its latest
tv commercial. The dairy manufacturer may find that more
individuals become aware of its advertising the longer the tv ad
runs. The company may decide to run its tv ads at different times
if few people have seen the adsA business can make well-informed
decisions due to research. In the research process, the business
will be able to acquire details about key business areas, analyze
it, create a strategy and distribute business information.
Reports, presented to the top management, often contain details
on consumer and employee preferences and all the available channels
for sales, marketing, finance and production. Management makes use
of these details to determine the best strategy.
Research is a necessity at all stages and phases of business
operations.
Initial research is needed to evaluate whether getting into the
given kind of business would be profitable and whether there exists
demand for the proposed product.
Regarding the staff, a correctly carried out research can
uncover important details on their satisfaction quotient, the
difficulties experienced by them and how the problems related to
relationships at the workplace could be handled. An analysis into
the results would allow the management to bring about changes for
the all round effective functioning of the organisation and its
employees.
The workers can be trained and coached in line with the needs.
This would help personal as well as professional development
improving overall organizational performance.
Research is important for managerial decision making. All
strategic business areas are analyzed and evaluated; then
techniques for more efficient procedures are created.
All businesses usually have many ways of doing an activity.
Through proper research, the organization will be able to pick the
most effective, productive and profitable one. Research could
possibly be applied to marketing, production, finance, IT and Human
resources.
Research can answer questions for various problems, from getting
a grip on industry trends, identifying new products to produce and
deliver to the market, or deciding on which site to locate an
outlet, to better understanding what it needs to fulfill customer
demands.
Research can also help evaluate if a product is accepted in the
market. Research aids expansion into new markets.
Research helps in testing the potential success of new products.
Businesses have to understand what kinds of products consumers
would like before they market them.
For instance, a restaurant may in the beginning, interview focus
groups to test types of burgers. The focus groups will probably
include small teams of consumers.
The goal of the focus group may be to figure out which burger
customers prefer. Ultimately, the company may test the burgers
through surveys with larger groups of people. The above points
state the importance of research in business decision making.
Research is necessary to gather facts and statistics with
regards to a companys customers, employees and competitors.
Based on these numbers, businesses are able to make better
managerial decisions.
Businesses of all sizes engage in extensive research to help
improve and expand. For small businesses and start-ups, effective,
cost-efficient research can be an important step toward long-term
success.
Developing an understanding of the relationship between research
and business decisions helps ensure your business is getting the
most out of its research efforts.
Basics of Business Research in Decision-MakingResearch is an
important part of a business decision-making process, especially
when it comes to major structural changes or new product lines.
This is because its often less difficult for a business to
replicate past successes than it is to develop an entirely untested
approach.
Even highly innovative companies rely on extensive information
about consumer needs, market trends and management practices when
developing a business strategy.
In some cases, an effective business manager must also be able
to recognize some of the weaknesses of research and rely on her own
experience or intuition to guide decisions.
Market and consumer research :
One of the most valuable kinds of research in business decisions
is market research. This is information a business collects or
purchases about its potential consumers and their buying habits,
with the goal of better understanding their customers needs. This
information is then used to make decisions about new product
offerings, pricing and advertising to best meet the markets
demands.
It also provides information to indicate when a business
strategy is underperforming or unlikely to be effective, so that
your business can cut costs where necessary.
Competition Research
Its wise for a business to always keep a careful eye on its
competition. Research into the activities and plans of competitors
called competitive intelligence provides insight about their
potential weakness and opportunities for your business growth. In
addition, competitive intelligence can indicate weaknesses,
including places where competitors are particularly effective in
meeting consumers needs.
Armed with this information, managers can make strategic
decisions about how to best position their business to secure a
solid place in their market.Short comings of business resarch:While
research is highly useful to guide business decisions, managers
should use it with an awareness of potential weaknesses. Many
errors can arise in the research process. For example, if a problem
is inaccurately stated in a particular study, the questions
researchers ask may not be relevant to the business actual
challenges.
In another situation, the variables business researchers are
able to examine may not actually be useful for making conclusions.
Its important to remember that research is often only as good as
the data available, and that it must sometimes be used with
caution.
Importance of Operations Research in Decision-Making
Operations research applies sophisticated statistical analysis
and mathematical modeling to solve an array of business and
organizational problems, as well as improve decision-making.
As the business environment grows more complex, companies and
government agencies rely on analysis to inform decisions that were
once based largely on management intuition.
Originally developed by the U.S. Department of Defense during
World War II, operations research has helped many large companies
and government agencies make better decisions, boost performance
and reduce risk.
Simplifying Complexity
Modern challenges associated with a global economy and the
growth of technology have increased the complexity of the business
environment.
Modern corporations often strive to serve a global, rather than
a regional or national, customer base and face worldwide
competition.
By relying on sophisticated mathematical models and advanced
software tools, operations research can assess all available
options facing a firm, project possible outcomes and analyze risks
associated with particular decisions.
The result is more complete information on which management can
make decisions and set policy, according to the Institute for
Operations Research and the Management Sciences, INFORMS for short,
a national organization of operations research professionals.
Maximizing Data
Companies collect large amounts of data but may feel overwhelmed
by the volume and lack the time or expertise to fully analyze these
data, transforming them into useful information on which to base
decisions.
Operations research uses advanced mathematical and statistical
techniques, such as linear programming and regression analysis, to
help organizations make the most of their data, according to
INFORMS Science of Better website.
Through detailed analysis of the data, operations research
analysts can help uncover options that lead to higher profits,
more-efficient operations and less risk.
Adding valueIn its executive guide to operations research,
"Seat-of-the-Pants-Less," INFORMS reports that operations research
has added value to organizations in the public and private sector
alike.
For example, INFORMS reported that UPS used operations research
to redesign its overnight delivery network in such a way that saved
more than $80 million between 2000 and 2002. Meanwhile, New Haven,
Connecticut, used operations research to determine the extent to
which the city's needle exchange program reduced HIV infection
rates.ConsiderationsINFORMS outlines five signs for organizations
that could benefit from operations research. indicators are facing
complex decisions, having problems with processes, having trouble
with risk, not making the most of available data and needing to
overcome stiff competition. Operations research analysts can help
organizations overcome these challenges.
CASE STUDY Improving strategic decision makingA CIMA case
studyRESARCH Financial accountants keep records of business
transactions such as sales invoices. They use these records to
prepare a firm's accounting statements.
Management accountants evaluate and interpret this financial
data to advise the senior managers in the business.
They play important roles in managing business performance and
improving decision making.
DECISION MAKING
CIMA is the leading and largest professional body for management
accountants with over 171,000 members and students operating at the
heart of business in 165 countries. Its members work in financial
and non-financial roles throughout organizations and carry out all
their training and experience requirements in business itself. This
provides them with a unique insight into how their organisations
operate. CIMA's mission is to be the first choice for employers in
the qualification and development of management accountants.Young
people obtain the CIMA qualification and then membership for many
reasons. Some want a career in accountancy but do not just want to
work with numbers. They look for management and leadership roles
where they can contribute to business performance.Others are
already managers in business but want to improve their skills in
financially-based decision making. CIMA people are financially
qualified business leaders and are not limited to working in
accountancy practices and finance departments. They are active
across a range of management roles in retailing, manufacturing,
property, energy and government services.
Marketing Research and Decision Making
Marketing research plays two key roles in the marketing
system.
First, as part of the marketing intelligence feedback process,
marketing research provides decision makers with data on the
effectiveness of the current marketing mix and offers insights into
necessarychanges.
Second, marketing research is the primary tool for exploring new
opportunities inthe marketplace.
Segmentation research and new product research help identify the
most lucrative opportunities for a firm.
Marketing Research Defined
Now that you have an understanding of how marketing research
fits into the overall marketing system, we can proceed with a
formal definition of the term, as stated by the American Marketing
Association:
Marketing research is the function that links the consumer,
customer, and public to themarketer through informationinformation
used to identify and define marketing opportunitiesand problems;
generate, refine, and evaluate marketing actions; monitor
marketing
Importance of Marketing Research to ManagementMarketing research
can be viewed as playing three functional roles: descriptive,
diagnostic, and predictive.
Its descriptive function includes gathering and presenting
statements of fact. What is the historic sales trend in the
industry? What are consumers attitudesand beliefs toward a product?
Opening a pack of bacon is a messy job.
Bacon lovers have to reach into the package, and if they only
pull out a few slices, theres no easy way tostore the
remainder.
Oscar Mayer marketing researchers hear plenty from consumers
about what they disliked about its former bacon packaging.
So marketers figured the best solution would be a packaging
innovation that eliminated the chore of placing the opened pack in
a resealable plastic bag or wrapping it in plastic or foil.
This unwanted task was done so that the last piece of bacon
would be as fresh as the first.
Recently, Oscar Mayer Center Cut Bacon was introduced in a new
Stay-Fresh ReclosableTray. The flip top lid allows easy access to
the bacon inside. The top snaps closed, making it readily
resealable. The flat tray makes for simplified storage in the
refrigerator.5
The second role of research is the diagnostic function, wherein
data and/or actions are explained. For example, what was the impact
on sales when the Oscar Mayer package design was changed? How can
product/service offerings be altered to better serve customersand
potential customers? Since kids eat over 5 billion ounces of
ketchup each year, Heinz decided that the heavy users (kids) should
have a lot to say (via marketing research) about how to make
ketchup fun. Heinz listened and watched children using ketchup,
which resulted in a new bottle design, name selection, and color.
The true ketchup connoisseurs helped create Heinz EZ Squirt green
ketchup! More than 10 millionbottle were sold in the first seven
months! This was followed up a year later withFunky purple
ketchup.
The final role of research is the predictive function. How can
the firm best take advantage of opportunities as they arise in the
ever-changing marketplace? Kraft Foods noticed that consumers were
flocking to low-carb diets.
The company used marketing research to determine if this was a
fad or long-term trend. Determining that low carb was more than a
fad, it entered into an alliance with Arthur Agatston, the creator
of TheSouth Beach Diet.
The result was certain Kraft products being labeled South Beach
Diet Recommended. Further marketing research led to a broad line of
products entitledThe South Beach Diet brand. Products include
cereal, meal replacement and cereal bars, refrigerated sandwich
wraps, frozen entrees, and frozen pizza.
Drive for Quality and Customer Satisfaction
Importance of Keeping Existing Customers
Understanding the Ever-Changing Marketplace
Decision making
Organisational Decision making
the process of responding to a problem by searching for and
selecting a solution or course of action that will create value for
organisational stakeholders.
There are basically two kinds of decision that managers called
upon to make:
Programmed and non-programmed
Types of Problems and Decisions
Structured problems * Involved goals that clear.*Are
familiar(have occurred before)*Are easily and completely defined-
information about the problem is available and complete.
Programmed decision *A repetitive decision the can be handled by
a routine approach.Programmed vs. Non-programmed Decisions
CharacteristicsProgrammed decisionsNon-programmed decisions
Type of problemStructuredUnstructured
Managerial levelLower levelUpper level
FrequencyRepetitiveNew,unusual
InformationReadily availableAmbiguous or incomplete
Time frame for solutionShortRelatively long
Solution relies on Procedures,rules, and policiesJudgment and
creativity
The Decision-Making Process
Identify a problem and decision criteria and allocating weights
to the criteria.
Developing, analyzing, and selecting an alternative that can
resolve the problem.
Implemented and selected alternatives.
Evaluating the decisions effectiveness.
The decision making process-Example
Identification of a problem My sales Reps need new
computers!Identification of Decision CriteriaMemory and Storage,
Display Quality, Better Life,Warranty, Carrying weight
Allocation of weights to criteria
Memory and Storage-10, Display Quality -8, Better Life
-6,Warranty -4, Carrying weight-3
Development of alternativesToshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Analyzing of alternativesToshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Selection of alternativesToshiba, HP, Soni Vaio, Qosmio,
Gateway, Apple iBook, Lenovo, Dell
Implementation of alternativesEvaluation of decision
alternativesToshiba
Bibliography
1. Business case studies.com
2. Economics times newspaper.
3. Resarch paper on health care.
