Research has become a very popular tool for managers today W

Research has become a very popular tool for managers today.

Why has it become so important?

What can research do and not do for managers?

Is there anything managers should be leery of when using research to make decisions?

Cite an example of how your organization uses research to help make decisions.

MINIMUM 350 WORD COUNT.. 2 In text citations APA

Solution

Research has become an important tool for managers today due to the fact that business environment has become complex and dynamic, disruptive technologies and innovations are taking place and competition has become intense. Given these facts research has become the primary tool for managers in different business scenarios.

Testing of new products – Business research and marketing research helps managers to determine the success probability and the possibility of success of new products being launched by them. Mobile handset companies, automobile manufacturers etc. do a comprehensive business and market research to gauge the needs and requirements of the consumers before launching their new products. When products are launched or are introduced in the market by implementing the key insights gained from the research then the possibility of success increases manifold. (Murali, 2012)¹

Adequacy of distribution – Managers in the operations management department of the supply chain department of an organization use research as a tool to ensure that their products have sufficient distribution. Distribution is determined by a number of factors like margins being paid to distributors, credit policies and terms being offered to distributors, the cost of transportation etc. Research will enable the managers to optimize their business model, distribution model and supply chain model in order to ensure that their different products have adequate distribution.

3. Strategy formulation and implementation – Mangers have to formulate strategy and implement them while chalking out the future course of action for an organization. For formulating and implementation of strategy managers will need access to facts and figures with regards to the performance of their organization, its position in the market, its competitive strengths and weaknesses, etc. It is only by using research as a tool that organizations and its managers will be able to determine whether the company should enter a new market or continue making a product that is a loss leader or use differentiation as the key basis for selling its products or should mass customize its products to reduce costs and hence increase its profits. All these decisions will be impossible to take unless and until it is supported by proper data that has been gathered through business and market research. (Vargo, Baron and Colurcio, 2017)²

References:

1. Murali, R. (2012. November 21). The importance of research in an organization. Retrieved from http://www.thehindu.com/todays-paper/tp-features/tp-opportunities/the-importance-of-research-in-an-organisation/article4117616.ece

2. Vargo, Baron and Colurcio (2017). A systems perspective on markets – Toward a research agenda. Retrieved from https://www.sciencedirect.com/science/article/pii/S014829631730098X