Eight Types of Business Research

Every business undertakes research so that it can take right decisions at the right time. No matter what kind of business you are in, you are expected to find out something out there that impacts running of your business. Here are eight types of business research you will have to do at some stage in your business career:

1. Exploratory: This type of research arises when you are entering into un-chartered area. A pretty good example is when you are asked to explore the possibility of opening a branch of your company abroad. At present you have no research findings with you. Neither you are familiar with the territory. So you begin to work from general point to a specific focus of your company. You have to marshal facts from many sources, collate these and familiarize with the situation there. Thorny issue must be identified and you need to find out every angle of opening a branch in terms of qualitative and quantitative data. Afterwards, you develop hypotheses that can be tested. Sometimes it so happens that you find opening such a branch is just no-go

2. Descriptive: Most business research harp on describing the facts as it is. A good example is to see how your present business location helps in developing your business. You identify variables and rank these in order of their importance in impacting your business growth. You cannot leave a single stone un-turned. After listing every conceivable variable you file up your report. At the risk of repetition, I must state that these variables are known and exist as it is. What differs is your ranking of the facts and/or level of their impact. Since there is no originality involved we often call this research as “Ex Post Facto”

3. Evaluative: This type of research is also known as “ analytical”, due to the fact that you are expected to do lot more analysis. In evaluative research you have full freedom to bring in variables that was not known previously. A doable example is to analyse the present office lay-out in overall efficiency. You still use existing data, but you can bring a new factor to evaluate it. In addition to factors already in use such as convenience, seamless integration, process flow, traffic flow, lighting & ventilation, natural setting, you can also bring in ergonomics and aesthetics to evaluate the office lay-out. In evaluative research you are expected to air constructive criticism of the subject matter so that the management can make considered judgement or informed decision on the basis of your findings

4. Diagnostic: Though sounds more of clinical nature, diagnostic research is often undertaken in business areas to solve chronic issues that remain unsolved for quite some time. One example is employee absenteeism. In this type of research, you are both an insider and outsider. You have to be passionate in solving the issue and at the same time display a sense of neutrality. This is because you are handling sensitive matter of employees and even more discreet matter such as absenteeism. You approach this assignment with open mind and seek to get in-depth knowledge by identifying symptoms, causes and effect. You will distinguish between chaff and grain, symptoms and causes, under-lying reasons and obvious explanations. Your data gathering must be discreet and borders on confidentiality. In most cases you will select a sample from a large group or work on selected employees of a critical department

5. Investigative: A minuscule version of a diagnostic research, this type narrows down the field of inquiry to a specific factor or phenomenon. An apt example is carelessness of an employee that caused a fire in the factory. You are expected to survey the factory, understand the cause, identify the party involved, and file evidence against such an employee. You will assess the cost of damage, obtain explanation from the party concerned, and ascertain the extent of contributory negligence on the part of management. You will conclude with what action to be taken against the party concerned and what steps to be taken to avoid such accidents in future

6. Normative: This is completely different research from the previous ones. Here you study and analyse issues to set norms, standards or parameters. Often these are expressed in quantitative forms. Where qualitative form is selected norms would tend to be general requirements or maxims. Norms can range from broader aspects such as values and characteristics to narrow aspects of eligibility. Setting accounting and auditing standards in a business is a perfect example of a normative research

7. Predictive: This research type is also known as causal research as it sets out to trace the cause and effect of a phenomenon. In business, predictive research can take the form of “If----When “scenarios. Basically a predictive research indicates the set of results when a particular cause takes place. Predicting such results have nothing to do with soothsaying but anchored on the scientific method of testing a hypothesis. Loosening credit control leading to pile of bad debts is a tested example of predictive research

8. Prescriptive: A prescriptive research is based on designing a specific solution to a known issue. Generally such a known issue emanates from the gap between what is desired and what is currently available. A business researcher embarks on doing this, after examining the relevant data and variables that impact and influence the situation; after critically evaluating the business as a whole; after exhausting all other possibilities of solutions that are found in available literature. Hence, a prescriptive research is the most original in terms of outcome. Designing an organizational system is a fitting example of a prescriptive research.

Muthu Ashraff

Business Adviser

Mobile : +94 777 265677

E-mail : cosmicgems@gmail.com

Web : http://www.cosmicgemslanka.com

Blog : http://cosmicgemslanka.com/blog/