Definition of Business Research
Basically, the field of practical study which involves obtaining data and analyzing the same for better and smoother management of a company is known as business research. Managers and executives who take the help of business research methods are capable of understanding the position of their company.
Business research involves objective and systematic inquiry, which offers valuable details related to managerial decisions. There will be multiple steps in the entire process – planning, acquiring of data, analysis of the data, using of relevant data by the decision-makers of the company for enhancing the performance of the company, and so on. By undertaking business research, companies are able to identify the most profitable products.
As it has been mentioned earlier, multiple steps are involved in the conducting of business research. These steps should be performed under proper supervision so as to ensure that the company takes the best decision in the end.
Steps involved in business research
- Product analysis: This is the beginning step of business research. It is necessary for a company to identify a product that caters to the demands of the consumers or even exceeds consumer demands. If this is not done, the product will not be able to survive in the economic market place. This can be done by finding an already existing product, which the company can improve by bringing alterations in the designs and features. Discovering emerging markets with very high demands and low supply is also a part of product analysis.
- Market analysis: Market analysis is done by a company in order to understand the level of profit that it may earn depending on the present scenario. By conducting market research, it is also possible to identify the price points at which a company can sell its products.
- Competitor analysis: This is an integral part of business research. It is necessary to have in-depth knowledge about all the rival companies, their production methodologies, and the level of customer loyalty that they receive. These details help in the creation of competitive advantage while tapping into an entirely new market.
- Financial analysis: By undertaking financial analysis, it is possible to determine the expense involved at each step while producing services and goods. Management will be able to review the top-notch cost application methods. This will further make sure that each and every production expense have been adequately applied over the service rendered or product manufactured.
- Growth analysis: This type of analysis helps in determining the profitability of a business operation. It inv0lves predicting the development, growth as well as the direction of the present industry or market. If it is known that in which direction the market is propelling, a company can identify and ensure business operations efficiently.
1. Human resource development is an integral part of the development process, as it is the human factor that leads towards different types of development processes. The human resource of a firm is the potential source of sustained competitive advantage. Proper management of human resources will lead to enhanced competencies, which in turn lead to increased competitiveness. This helps in boosting overall corporate performance.
There will always be a positive connection between the different measures taken by the company and high-performance work practices. These high-performance work practices involve incentive compensation, comprehensive employee recruitment and selection processes, and extensive employee involvement and training.
In view of all these, a research study had been conducted in which the object of study was the relationship between recognition and reward practices and firm performance. For the successful conduction of the research work, a conventional survey instrument is put to use. These may include selection, recruitment, performance management, compensation, training, employee relations, and so on. Independent collection of organizational performance data is also significant.
2. This is the example of an adventure tourism company. There are multiple similar companies that operate on a few rivers and offer trips to numerous travelers each year.
The managers decided to improve the level of customer satisfaction by offering multi-day river trip facilities. They were relying on the hypothesis that client satisfaction depends upon the quality of amenities and food provision, as well as the historical and natural setting of the trips offered.
Thus, we can see how significant business research is. One cannot leave out any of the steps of business research; otherwise, this will lead to catastrophic results. Following all the steps aptly will lead to successful business development.