Module 1: INTRODUCTION TO BUSINESS RESEARCH

Learning Objectives
At the end of this chapter, the reader should be able to:
• define business research
• discuss the importance of business research
• enumerate the major steps in research
• identify the common types of business research

Introduction
Globalization, hastened by technological developments, has dramatically changed the general and
functional business management. Firms are becoming more and more perceptive in their business
approaches as they strive to achieve optimum profit and ensure continued existence in industry. Moreover,
the globalization phenomenon has resulted in increased market competitiveness, adoption of liberalization
as economic policy by many countries, forging strong political alliances to boost trade and investment,
changes in operational firm-level structures, and upheavals in the nature and conditions of work of human
resources.

The significant impact of globalization has prompted business enterprises to engage in research,
particularly in production, finance, marketing, human resource developments, economic and politico-legal
concerns. Business research as corporate strategy aims at maintaining competitive advantage and
attaining organizational objectives most efficiently. Business research has thus gained wider acceptance in
industry.

Definition of Business Research

Research is either basic or applied. Basic research seeks to contribute to knowledge through the
development of a theory or concept, while applied research seeks to provide solutions to problems through
the development and evaluation of processes, policies, and other activities that require specific courses of
action.

Business research is a “systematic process of answering a question or a problem,

involving the methodical formulation of a theoretical framework and methodology; collection,
analysis, and interpretation of pertinent data; and presentation of recommendation from which
courses of action can be taken”

Business research is seen therefore as applied or action-oriented, as a strategic move, research is

undertaken by firms either through in-house research units or through private or public research entities.
Understandably, these business enterprises will activate resources on research support once convinced of
relevant results that can lead to goal-achievement. Rapid changes in the socio-political environment, the
interaction of business people in industry, and the dynamics within the enterprise show that business
research must focus more on research and development, assessment, baseline studies, policy formulation,
and current trend/practices, rather than on research that focuses on electric or model building designs.
However academic institutions, particularly the graduate and post-graduate schools, need to continue basic
research for the development of new frameworks and models to analyze expanding knowledge in business.

Importance of Business Research

 With its resultant new insights of commercial significance, research can be of tremendous value to the
firm itself and to individuals like students and faculty. Figure 1 summarizes the importance of business
research both at the individual and firm levels.

The application and advantages of business research are manifold. Specific applications though depend
on the particular purpose or need of the company or the individual. For example, challenged by competitors,
Microsoft and Toyota are very much into product development or innovation research. IBM, McDonald’s,
and Ford Motors, on the other hand, focus on human resource research. A story of successful Filipino
entrepreneurs in Metro Manila (1998) reveals that the market research is a success factor in the marketing
function of about 18% of small and medium-sized enterprises in the area.

Since the management has begun to realize the significance and potential value of research, business
research will constantly increase and even take on rapid pace in the new millennium due to advances in
computer and information technologies. Institutions of higher learning offering degrees in business-related
fields, both on the undergraduate and graduate levels, such as marketing, accounting, human resource
management, entrepreneurship, banking and finance, are strengthening their programs. They now give
more emphasis on business research to respond to the needs of the industry and to provide inputs for
policy formulation and legislative agenda for the government. Schools are now beginning to require
research in their different courses and to link with firms and other agencies that could serve as sources of
topic, data, and/or funds for the business research.

Major Steps in Research

The steps in conducting business research are:

1. Identification of Research Problem

2. Formulation of Research Problem and Objectives
3. Development of the Theoretical Framework
4. Designing the Research Methodology
5. Collection, Analysis, and Interpretation of Data
6. Presentation of Conclusions and Recommendations
7. Taking Course of Action

Common Types of Business Research

Given the nature of the business industry and the existing state of competition in a globalized
economy, research must take a functional or utilitarian value. Published and unpublished business
research outputs of business firms, private and public research institutions, professional independent
research groups, and of student researchers in the past decades show that researchers can be classified
into (1) feasibility studies, (2) industry studies, (3) corporate strategy, (4) case studies, and (5) basic
research. Table 1 illustrates the comparison among these common types of business research. Some
examples of studies conducted and the outline format for each type of business research are also
presented in Tables 2 and 3.
Table 1 Comparison of the Type of Business Research
Type Purpose Scope Respondent Analysis

FEASIBILITY Determine the viability Usually covers one Selected through Percentage,
STUDY of a product/service/ project/service and sampling. This is Regression,
project which is not yet looks at the marketing, done for the market Ratios,
operational. production, study. T-test,
management, legal, Z-test,
and financial aspects. Chi-square test
 INDUSTRY Analyzes the past and Covers one industry Selected either Frequency,
STUDY present performance and looks at the through total Percentage,
of companies and marketing, production, enumeration or Time-series,
predicts the future of management, and sampling of firms Ratios,
the firms financial aspects. It also within the industry. Regression
looks into legislations
affecting the industry.

CORPORATE Aims to propose Covers one firm and Key informants Content
STRATEGY strategies to improve looks at a combination analysis,
company or all of the functional Percentage,
performance. areas. Frequency

CASE STUDY Describes/Explores Covers a particular Key informants Content

patterns or events in topic of interest of a analysis,
an in-depth manner. person or company. Frequency,
Percentage

OTHER TYPES Objectives can be Depends on the Selected either Parametric,

OF APPLIED descriptive, objective of the study. through total Non-Parametric
RESEARCH correlative, or enumeration or Statistics
comparative, to offer sampling. (Not
solutions or expand Applicable if
knowledge. purpose is for
theory
development.)

Aims to develop a Covers one specific Mathematical

BASIC theory or concept. theory or concept or a modeling,
RESEARCH group of related Econometric
theories and concepts. Techniques

Table 2. Examples of Different Types of Business Research

Examples of Feasibility Studies

1. A Feasibility Study on the Comforter and Pillow in One

2. A Feasibility Study on Beyond Chairs
3. A Feasibility Study on Hampy Dump-It
4. A Feasibility Study on Galactic Dreams Pillow
5. A Feasibility Study on Zip N’ Store (A Toiletry Holder)
6. A Feasibility Study on Boardworks
7. A Feasibility Study on Door Knob Accent
8. A Feasibility Study on the Proposed Product Bone Pillow
9. A Feasibility Study on Pop-Up Pillows
10. A Feasibility Study on Hard-Bound Notebooks

Examples of Industry Studies

1. An In-depth Study on the Animation Industry in the Philippines

2. An In-depth Study on the Film Industry in the Philippines
 3. An In-depth Study on the Printing and Publishing Industry in the Philippines
4. An In-depth Study on the Accounting and Financial Services Industry in the Philippines
5. An In-depth Study on the Management Consulting Service Industry in the Philippines
6. An In-depth Study on the Hotel and Restaurant Industry in the Philippines
7. An In-depth Study on the Health Industry in the Philippines
8. An In-depth Study on the Ceramics Industry in the Philippines
9. The Information Technology Services Industry in the Philippines
10. Philippine Automotive Industry and Economic Growth

Examples of Corporate Strategy Studies

1. Strategic Plan for Duty Free Philippines

2. A Corporate Strategy Paper for National Development Council (NDC), Inc.
3. Strategy Formulation for Laguna Auto-Parts Manufacturing Corporation
4. Development Bank of the Philippines: New Corporate Strategy
5. Corporate Strategies for the Rural Bank of Rosales, Pangasinan, Inc.
6. Corporate Strategy for Pt. Dharma Sadhana – Jakarta, Indonesia
7. Corporate Strategy of Hotel Mirage
8. Metro Bank and Branch Banking: A Paper on Strategies Adopted for Sustained Leadership In the
Philippine Banking
9. A Business Strategy for Furniture International
10. The Development of Strategies for Active Electronics Manufacturing

Examples of Case Studies

1. The Efficacy of Credit Ratings as Bankers’ Assessment of International

Creditworthiness: The Case of LDC Borrowers’ Capacity and Willingness in Debt
Servicing
2. A Case Study of Borrowers of the Professional Moneylenders in Cavite City
3. International Capital Market: A Case of Portfolio Diversification
4. The Business Philosophy, Management Style, and Growth Strategies of Henry Sy, Jr.:
A Case Study
5. The Application of Statistical Quality Control on Production Management: The Case
of a Filipino-Japan Glass Manufacturing Plan
6. A Case of Privatization Strategy
7. Development Assistance of the European Union: A Case Study of the Palawan Integrated
Area Development Project Phase I (1982-1990) in the Republic of the Philippines
8. A Case Study to Determine and Compare the Socialization Practices of the Top
Corporations in the Philippines
9. An Evaluation of the Nominees of the Presidential Commission of the Good
Government: A Case Study of the United Coconut Planters Bank
10. A Comparative Analysis of the Factors Affecting the Income of Rice Farmers of
Selected Farmer Associations: A Case on Bulinan Multi-Purpose Cooperative, Inc. and
All Move Foundation, Inc. in San Miguel, Bulacan

Examples of Other Types of Research Studies

1. An Evaluation of the Readiness of Filipino Professionals to Meet International

Competition
2. The Anti-Sexual Harassment Law in Retrospect: Advancing on Retarding Women’s
Status
3. The Extent of Influence of Differentiation Strategies on the Market Competitiveness of
Selected Major Telecommunications Firms in the Philippines
4. Information and Consultation Practices of Construction Firms on Metro Manila
5. Employee Training Practices of Manufacturing Companies in the Philippines
6. In the Heat of the Night: Combating Child Labor in the Tourism Industry

Examples of Basic Research Studies

1. Factors Influencing the Observance of the Core ILO Labor Standards by Manufacturing
Companies
2. Household Vulnerability to Employment Shocks, 1997-1998
3. Estimation of an Aggregate Demand for Money Function in the European Economic and
Monetary Union (EMU)
4. A Study on the Impact of Security Analysts’ Monitoring and Marketing Functions on the
Market Value of the Firms Included in the Philippine Composite Index (PHISIX)
5. An Analysis of the Collective Bargaining Agreements (CBAs) in the Hotel Industry
6. Succession Experiences in Philippine Family Business
7. The Influence of Group Affiliation and the Underwriting Process on Emerging Market IPOs:
The Case of the Philippines

Table 3. Outline Format of Different Types of Business Research

Feasibility Study Online

1. Summary of the Project

1.1 Name of the Firm
1.2 Location
1.2.1 Head Office
1.2.1 Plant Site
1.3 Brief description of the project
1.4 Project Summary
1.4.1 Market Feasibility
1.4.2 Technical Feasibility
1.4.3 Management Feasibility
1.4.4 Financial Feasibility
1.4.5 Socio-Economic Impact

2. Introduction/Background of the Study

2.1 Brief background of the study
2.2 Objectives of the study
2.3 Operational definition of terms
2.4 Scope and Limitations of the study

3. Market Study
3.1. Objectives of the study
3.2 Methodology
3.3 Demand
3.3.1 Consumption of the past years
3.3.2 Major Consumers of the product/service
3.3.3 Projected demand
3.4 Supply
3.4.1 Supply for the past years (imported and locally produced)
3.4.2 Projected supply
3.5 Demand and supply analysis, demand/supply gap
 3.6 Projected sales/market share
3.7 Marketing strategies/programs
3.7.1 Product
3.7.1.1 Product category/quality and style
3.7.1.2 Brand
3.7.1.3 Packaging
3.7.2 Pricing
3.7.3 Place of distribution
3.7.4 Promotion/advertising

4. Technical Study
4.1 Objectives of the Study
4.2 Product/service
4.2.1 Description of the product/service
4.2.2 Uses of the product/service
4.3 Manufacturing process
4.3.1 Description of the process
4.3.2 Alternative process considered

5. Technical Analysis
5.1 Production description
5.2 Production processes
5.3 Location
5.4 Plant size
5.5 Layout
5.6 Major machinery and equipment
5.7 Raw materials and supplies
5.8 Manpower
5.9 Utilities (e.g., water and power)
5.10 Production capacity

6. Management and Ownership Analysis

6.1 Ownership
6.2 Form of business organization
6.3 Present management and staffing pattern
6.4 Compensation of employees
6.5 Relationship with other companies
6.6 Trade associations

7. Financial Analysis
7.1 Financial standing of players in the industry
7.1.1 Capitalization
7.1.2 Profitability
7.1.3 Liquidity
7.2 Industry growth and prospects
7.3 Source of financing
7.3.1 Sources selected or proposed for both long-term and short-term financing
7.3.2 Alternative source
7.3.3 Amount and terms of financing

8. Conclusion

9. Recommendation
Bibliography
Appendices
 Corporate Strategy Outline

1. Executive Summary
1.1 Objectives
1.2 Brief Methodology
1.3 Major findings
1.4 Recommended strategy and policies

2. Introduction of the Study

2.1 Background of the study
2.1.1 Description of the general context in which the problem is to be viewed
and discussed
2.1.2 Description of the situation in and the process by which the problem
arose and developed
2.1.3 Objectives of the study
2.1.4 Methodology
2.1.4.1 Sources of data
2.1.4.2 Data gathering procedures
2.1.5 Scope and limitations of the study
2.1.6 Definition of terms

3. The Company Profile

3.1 Vision/Mission
3.2 Goals
3.3 Organization structure
3.4 History (Establishment)

4. The Company and its External Environment

4.1 Environmental scanning
4.1.1 Socio-cultural
4.1.2 Technological
4.1.3 Economic
4.1.4 Political
4.2 Industry analysis
4.2.1 Bargaining power of suppliers
4.2.2 Risk of entry by potential competitors
4.2.3 Threat of substitute products
4.2.4 Rival among established firms
4.2.5 Bargaining power of buyers
4.3 Competitive analysis
4.3.1 Grouping of competitors
4.3.2 Strategic mapping

5. The Company and Its Internal Environment

5.1 Analysis of organizational structure
5.2 Analysis of organizational culture
5.3 Functional analysis
5.3.1 Marketing
5.3.2 Production
5.3.3 Finance
5.3.4 Human resource
5.3.5 Management information system/Information technology

6. The SWOT Analysis

 6.1 Strengths
6.2 Weaknesses
6.3 Opportunity
6.4 Threats

7. The Corporate Strategies

7.1 Grand strategies
7.2 Generic strategies
7.3 Functional strategies

8. Recommendation

9. Conclusion

Bibliography

Appendices

Case Study Outline

1. Abstract of the Study

1.1 Objectives
1.2 Methodology
1.3 Major Findings
1.4 Conclusion
1.5 Recommendations

2. Introduction of the Study

2.1 Background of the Study
2.1.1 Description of the general context in which the problem is to be viewed
and discussed.
2.1.2 Description of the situation in and the process by which the problem
arose and developed.
2.1.3 Reasons for choosing the topic
2.2 Review of related literature
2.2.1 Discussion of previous studies, results, and findings related to the problem
chosen.
2.2.2 Brief history (optional)
2.3 Statement of the problem
2.4 Statement of the objectives
2.4.1 General objectives
2.4.2 Specific objectives
2.5 Scope and limitations of the study

3. Theoretical Framework of the Study

3.1 Assumptions
3.2 Operational definitions
3.3 Conceptual framework
3.4 Operational framework

4. Methodology of the Study

4.1 Research design
 4.2 Method of data collection
4.2.1 Research instruments
4.2.2 Data gathering procedure
4.3 Method of data analysis

5. Results and Discussion

(Usually presented per objective or hypotheses made)

6. Conclusion

7. Recommendations

Bibliography

Appendices

Other Types of Applied Research

and Basic Research Outline

1. Abstract of the Study

1.1 Objectives
1.2 Major hypotheses
1.3 Methodology
1.4 Major findings
1.5 Conclusion
1.6 Recommendations

2. Introduction of the Study

2.1 Background of the study
2.1.1 Description of the general content in which the problem is to be viewed
and discussed.
2.1.2 Description of the situation in and the process by which problem arose
and developed.
2.1.3 Reasons for choosing the topic
2.2 Review of related literature
2.2.1 Discussion of previous studies’ results and findings elated to the problem
chosen.
2.3 Statement of the problem
2.4 Statement of the objectives
2.4.1 General objectives
2.4.2 Specific objectives
2.5 Scope and limitations of the study

3. Theoretical Framework of the Study

3.1 Assumptions
3.2 Hypotheses
3.3 Operational definition
3.4 Conceptual framework
3.5 Operational framework

4. Methodology of the Study

(Not applicable if the research is basic or for theory building)
4.1 Research design
4.2 Sampling plan
 4.2.1 Sampling plan
4.2.2 Sample
4.2.2.1 Establishments
4.2.2.2 Respondents
4.3 Method of data collection
4.3.1 Research instruments
4.3.2 Data gathering procedure
4.4 Method of data analysis

5. Results and Discussion

(Usually presented per objective or hypothesis made)
6. Conclusion
7. Recommendations
Bibliography
Appendices

Terms and Concepts for Review

Applied Research Corporate Strategy

Basic Research Feasibility Study
Business Research Industry Study
Case Study Research