Title: Why do research? Does it really help in administrating businesses?
Research is an activity taken up by businesses to seek basic discoveries and to principles or factors hitherto unrecognized or unknown.
Or, in other words Research is the systematic search for new knowledge.
A business research program is a highly effective way for companies to train and educate their managers and other employees in a vast array of different fields ranging from economics, business strategy and ethics,to in fact, anything related to modern business and trade.
Research is used in many facets of business administration ;
New products: Research tests for the potential for success of new products, it helps ascertain the kind of products actually needed by the consumers before they are launched. It reduces risk and ensures that the development of the product is focused towards the demand.
Adequate distribution: Research helps businesses find gaps in their distribution channels, it finds where there is lack of distribution and how much the business is losing because of such lacunae. This helps the business to reach out to a larger consumer group. For instance, a company in the business of making meals ready to eat would go to various retailers to find which brands they sell, this would help them know where there distribution is lacking.
Effectiveness of advertising: Every business invests highly in advertising it’s products, research helps is understanding how effective advertising is in increasing the revenues of the business. It helps understand how much more to invest or where to reduce investment.For example, a toy making firm might want to know when it’s target group is watching television and hence place the advertisements in that particular time slot.
Studying the competition: Companies use research to ascertain the strength and reach of their competitors this is mainly found by using secondary research or already existing data.
Bench marking and progress monitoring: Research on historical data helps in understanding how well a company or even a business has progressed over a period of time. It helps to identify the best procedures and the costs involved in implementing them. This when done for similar companies in the same industry helps incorporate best practices and hence increase operational efficacy.
Inferring consumer feedback: Studying current and past consumer experiences helps the companies gauge how well consumer expectations are being met. It also helps businesses understand what they are doing right and where they have gone wrong.
Research is vital in planning the future of the business based on the information gathered from the past. It helps businesses plan better and become more efficient and effective. Research helps in systematically linking the historical data and using it for future planning of a company. It helps analyse the market trends and helps in effective capitalization of any opportunity that may emerge. Operational research helps in improving productivity, reducing costs and improve efficiency of operations, it identifies the emergence of new technologies and places where they can be incorporated to retain the company’s core competencies.It is through research that companies identify and recruit skilled manpower, this helps in improving the productivity of the organisation
To summarize, all businesses need and do conduct research at different levels and it does contribute in a big way in the growth of the organisation
Research helps to the business to continually revise their design and range the product due to continuous technological changes and changing preference of customers.
It also helps in the recruitment of employees. It’s through research that human resource managers are able to identify and recruit skilled manpower. Proper recruitment of employees with the right skills and attitudes helps the firm to increase its productivity levels. Research for the right employees can be got via the internet, consultancy firms and institutions of higher learning.
Research helps the firm to get the right supplier at the right price and at the right time. A proper supplier selection enables the firm to get or acquire high quality raw materials which result into production of high quality products that are consumed by the end user. Also reliable and efficient suppliers help a firm to perform effectively as supplies will be got in time. For example a diary industry such as GBK dairy products company.
In conclusion, every organization needs to conduct research, and small budgets are no excuse for lack of a research plan. By starting out with some easily accessible resources, you can begin to develop better marketing strategies that can position you for market growth
Posted by Aniruddh Mukerji_13pgp063
Group Members: Chanyo YL, Alok Jyoti Paul, Gurjot Singh, Rohit Garg, Anwesha Dasgupta, Anusha C