FREE ESSAY ON BUSINESS RESEARCH

BUSINESS RESEARCH

Introduction and Overview
Businesses in today's economy often face challenges that are not readily apparent until,

more often than not, the costs of those challenges become critical. A businesses ability
to 
identify the fundamentals of these challenges and act accordingly to squelch the damage
that has 
been done while bouncing back is paramount to the businesses success. This paper will
identify 
three key areas in identifying and repairing the critical problems that can occur. More 
importantly, this paper will also identify several fundamentals within the three areas.
The paper 
will examine some sub levels of (1) analysis, (2) cost, and (3) research. Additionally,
this paper 
will discuss the measures that several companies took in these areas to show special
examples of 
these principles in use.
Analysis
Within the scope of needs assessment and analysis there are many building blocks that 
complete the full picture. One such block is comprised of the levels of analysis. And
within the 
levels of analysis there are three main points. These points as reported by Goldstien
(1993); 
McGehee and Thayer (1961); Moore and Dutton (1978); and Sleezer (1991) are (1)
organization, 
(2) job or task, and (3) individual or person (as cited by Holton). The following
paragraphs will 
discuss each of these three points by defining and demonstrating their context within
analysis. 
Organization
Holton (1996) suggests that the three-level approach to needs assessment suggests that 
assessors should start by analyzing the organization to determine what results are not
occurring 
and should be, and what organizational factors are contributing to that condition. This
could 
easily be interpreted as examining the issue on a macro level to determine if the
organization is 
meeting its goals and objectives or not. 
A good example of this level of analysis put to good use is demonstrated by Kmart in the

late 1950's. In a case study by Hartley (1997) Kmart and the two year analysis of their
market 
performed by Harry B. Cunningham (later President of Kmart). In this instance Cunningham

studied the overall market and competitors while analyzing the Krieger (Kmart)
organization. 
This needs assessment eventually led Krieger to change its approach to that of the
discount genre 
and the first Kmart was opened in 1962.
Though the company had experienced a 34 percent decrease in profits between 1958 and 
1962, the new venture called Kmart was an immediate success (Hartley 1997). Kmart would 
grow from 216 stores in 1968 to 1,366 stores in 1978.
Task
Task analysis, as stated by Dessler (1997), is a detailed study of a job to identify the
skills 
required so that an appropriate training program may be instituted. By analyzing the
task, a 
company can determine a variety of methodologies for hiring, training, and forecasted
outcome 
for the task being analyzed. Additionally, effective task analysis enables a company to 
determine what tasks need to be performed, and gives it the ability to gauge whether or
not the 
necessary tasks are indeed being performed. 
A classic example of this is demonstrated by a needs analysis performed for General 
Motors (GM) and the United Auto Workers (UAW) on the task analysis level. According to 
Finison and Szedlak (1997), GM and the UAW formed a needs analysis team to identify and 
correct several challenges in a production facility. The focus in this case was in the
blanker 
area of a metal fabrication plant and served as a pilot to other programs which would
follow. 
After examining the issues through a needs analysis, the team determined that the focus
of the 
needs analysis would be on training (Finison 1997). 
By focusing in this area, new training was provided for the production operators. Finison

and Szidlak (1997) also noted that costs were minimal because the course was already
offered in-
house. The results were improved quality and a 30 percent reduction in scrap rate. The
overall 
value was a savings of over $500,000 in the first year alone among other ancillary
benefits.
Individual
At the individual level of analysis, a firm is essentially taking the other side of the
task 
analysis. By this, as written by Holton (1996), the firm or assessor should study
individuals to 
determine who needs learning to accomplish those jobs tasks. According to Dessler (1997),

verifying that there is a performance deficiency and determining whether that deficiency
should 
be rectified through training or through some other means is the basis of performance
analysis.
Again, a good example of the individual level of analysis is demonstrated in the 
GM/UAW case. In this instance, not only was a training program instituted for the task
level, 
there was a significant amount of energy placed on assessing the needs of the individuals
already 
in place within this area. Finison and Szidlak (1997) demonstrate that GM and the UAW 
immediately involved personnel from the blanker area to determine what skills were needed
to 
effectively promote increased production and decreased waste in this area. As stated
earlier in 
this paper, those objectives were met early on in the overall process.
Cost
Cost Analysis is a type of analysis many businesses use to determine what costs are 
associated in a particular project in conjunction with the benefits that will be derived
from it. As 
put by Marrelli (1996), cost analysis consists of two approaches: cost-benefit analysis
(CBA), for 
evaluating benefits; and cost-effectiveness analysis, for evaluating results. A third
point covered 
will be Return on Investment Analysis (ROI). Additionally, this paper will demonstrate
several 
uses of these fundamental principles of Cost Analysis. 
Cost-Benefit Analysis
What is Cost-Benefit Analysis, or CBA? As stated by Erekson, Shaha and Swenson 
(1996), CBA's purpose is to weigh expected costs in relation to anticipated benefits, 
opportunities, or improvements in effectiveness. Essentially this means that if an
organization 
were to initiate a project, it would first investigate the costs associated with it, then
would 
proceed if the benefits actually outweighed the costs associated with it.
A good example of the use of CBA is demonstrated in a case within the Environmental 
Protection Agency (EPA). This is a case where the EPA uses benefit-cost analysis to aid
in 
setting policy for acts pertaining to environmental protection. According to Farrow and
Toman 
(1999), the EPA has developed a strategic plan as a part of its GPRA (Government
Performance 
and Results Act) program, in which benefit-cost analysis has its own chapter. In this
case, the 
EPA examines a reduction in the risk of premature death as one of the principal benefits
of many 
of their environmental measures (Farrow & Toman 1999).
Cost Effective Analysis
Another part of cost analysis is cost-effective analysis (CEA). CEA, as defined by 
Goldston (1998), provides a means for identifying the most effective use of limited
resources to 
assist decision-makers about whether a specific program or an alternative one is worth
the 
investment of resources when compared to other uses to which the same resources could be

allocated. 
Often the medical and biotech industry utilizes the methods of CEA to determine the 
feasibility of certain programs or prevention methods. The National Center for
Environmental 
Health, Centers for Disease Control and Prevention, utilized a CEA to find the cost
effectiveness 
of general and targeted strategies for residential radon testing and mitigation in the
United States 
(Ford et al 1999). In this case, the study modeled a decision tree of five possible
alternatives. 
After careful analysis, it was concluded that other means should be explored. As stated
by Ford, 
these data suggest possible alternatives to current recommendations. The study concluded
that 
the costs were too great to mount an effective campaign.
Return on Investment (ROI)
The final factor being examined is the Return on Investment (ROI). This is where the 
accountable returns are gauged to determine if the proposed program is worthwhile.
According 
to Due (1996), the ROI method is simple to use, but it does not take into account the
time value 
of money or the risk of not receiving the benefits required from the system. Because of
this, 
many organizations are attempting to utilize new technologies to give businesses the
tools 
necessary to better forecast ROI. 
For instance, according to Blankenhorn (1999), DoubleClick, Inc., a web based 
marketing network has put forth a program that enables a company to forecast its online 
marketing ROI. It is their focus in this area to develop a suite of products that are
driven on the 
premise of ROI. This enables an advertiser to use the Internet medium to build a stronger

advertising base while enhancing their ROI.
Research 
The final category is research; research is paramount to the success of any program, 
campaign or organizational change process. It has even been said that a problem
well-defined 
is a problem half-solved (Erekson et al). Three key elements within research techniques
are (1) 
personal interviews, (2) focus groups, and (3) test marketing. And again, as shown in the
past 
two sections, there will be company examples showing where these practices have been used

effectively in an organizational setting. 
Personal Interviews
Phillip Kotler states that personal interviewing can take two forms, arranged interviews

and intercept interviews. Arranged interviews are just that, interviews that are arranged
with a 
person or groups of people fitting a certain profile. Intercept interviews are generally
interviews 
held at random where people are stopped, perhaps in a mall or workplace and asked
questions. 
Overall, though, the internal workings of the process remain the same.
Interviews are generally conducted with a specific audience, and the questions are 
generally open-ended. However, Newsom, Turk, and Kruckeberg state that this type of
research 
required highly trained interviewers and skilled analysis. By asking open-ended
questions, the 
interviewer has an opportunity to follow up each answer with a more probing question
while not 
contributing bias to the answers. Newsom sites an example of an organization trying to 
determine where employer bias might play in the event of employment discrimination by
asking 
a the following question: If you had two applicants absolutely equal in terms of
educational 
background and experience, and one was a woman or a member of a minority race, or both, 
which would you hire? The answer is then interpreted and depending on the employers 
response, the interviewer is open to several lines of questioning.
Adversely, personal interviews can also lead a company down the wrong path. Kotler 
states that intercept interviews have the drawback of being non-probability samples, and
the 
interviews must be quite short. Such is the case with Coca-Cola in their initial
introduction of 
the New Coke product. Under Project Kansas in 1982, Coke conducted around 2000 interviews

in ten major markets. These interviews were conducted on a one-on-one basis to determine
if 
people would be receptive to a new Coke. The results, according to Hartley, showed a 
willingness to try a new Coke, however other tests disclosed the opposite. Hartley goes
on to 
demonstrate that small consumer panels or focus groups revealed strong favorable and 
unfavorable sentiments. 
Focus Groups
Focus groups are a panel of people selected and interviewed as a group. Each member of 
the group is selected because he or she may be representative of a particular group,
market 
segment, or target. In this way, each individual is likely to have opinions and reactions

representative of the group he or she was selected to represent. According to Newsom, 
generally, a focus group consists of 12 to 15 interviewees representing a specific
public.
Newsom goes on to state that the key to the session's success is the moderator, who must

be a skillful interviewer, adept at keeping the conversation moving and tactful when
acting as 
referee or devil's advocate. These sessions can last for several hours and are generally
video 
taped while being monitored by a live viewer. This enables the live viewer to interject
questions 
via the interviewer by passing a note or conversing during a break. Five steps generally
followed 
in focus groups are: (1) Define the problem to be solved; (2) choose the part of the
problem to 
be looked at by the participants; (3) decide how many focus groups are needed and choose
the 
participants; (4) work out all the details of the session; and (5) prepare all material
that the group 
will need. 
An example of focus groups being used by a company is a case involving FSI. FSI was 
experiencing a large turnover rate in the position of Branch Manager Trainee. According
to 
Schoeppel, that rate ranged from 48% to 63% annually between 1981 and 1990. This was, 
however considered an industry standard, but it did create a strong financial burden and
inhibited 
the growth of FSI. There were several measures taken to build a new program for training,

management, and retention. 
One such element was the use of focus groups comprised of district sales managers to 
analyze the program. Schoeppel shows that these focus groups were held to enlist support
for 
and ideas about the new program, and to identify and discuss in detain the
characteristics they 
thought were needed to be a successful branch manager. The end result was a questionnaire
that 
was given to branch managers to help assess what characteristics were needed for success
in the 
position of Branch Manager Trainee.
Test Marketing
Test marketing is one phase of this process that is closer to the end of the research
cycle. 
This is where an organization launches a program or product into a particular segment, or

geographical region to see how well the program or product is received. According to
Schultz, 
Martin, and Brown, there are three major reasons for test marketing. These reasons are
(1) a trial 
of the campaign, (2) an opportunity to try variations, and (3) a way to reduce financial
risk. 
By using a test market as a preliminary trial to a campaign, a company can attempt to 
gage, according to Kotler, a more reliable forecast of future sales. Also, by using the
test market 
as an opportunity to try variations, an organization can better determine what campaigns
will be 
most effective on a larger scale. Finally, as a means of reducing financial risk, test
marketing 
enables the company to fix challenges that are inherent in a product or discover flaws in
the 
marketing of the product long before they have spent potentially millions of dollars on a
much 
larger segment. 
A case of effective test marketing is demonstrated by the National Cattlemen's Beef 
Association when they introduced lines of branded beef products that were already cooked
or 
seasoned. The objective was to test a new line of beef products to grow a diminishing
market. 
Michael Rose stated that fewer consumers are cooking from scratch, and the heat-and-serve
beef 
products have filled an increasing amount of space in the grocery store. 
The initial test market took place in Portland, Oregon. Portland was selected because it

fit many of the pre-selected criteria for the entry market. (1) Portland had little
prepared beef 
products on the shelves of its many supermarkets (consequently, there is a tremendous
amount of 
space taken on the shelves and refrigerated sections of Portland supermarkets now). (2) 
According to Rose, Portland area's demographics also fit the beef industry's target
market of 
convenience-oriented, focused people who work full-time outside of the home. (3) Many 
grocers emphasized prepared food and quick-serve products.
Conclusion
As demonstrated in this paper, there are many factors to take into consideration when 
identifying and solving problems on a large scale. First there are needs on many levels
which 
must be assessed. This assessment should focus on organizational, task, and individual
levels to 
capture a full understanding of where the challenges lie on a three dimensional scheme.
Second, a cost analysis must be done. This, among other things, focuses on CBA, to gain 
a better understanding on where potential benefits and pitfalls lie. Also, to evaluate
the results of 
a particular program, there is cost effectiveness analysis. The third point within cost
analysis is 
ROI. ROI was demonstrated in the case of DoubleClick, and Erekson et al (1996) suggests
that 
cost analysis has many methods, and that the right method in any given situation might
involve 
drawing from each and every approach.
The third and final consideration addressed was research techniques. These techniques, 
personal interviews, focus groups, and test marketing, demonstrate the needs for an
organization 
to examine their subsequent research techniques and implement programs to gather as much

information as possible before attacking a larger market segment. Kolter states that most

companies know market testing can yield valuable information about buyers, dealers,
marketing 
program effectiveness, market potential, and other matters. The main issues really are,
how 
much market testing and what kind. 
Overall, these points are a general guideline to effectively creating change and foreword
inertia. 
By following these fundamentals and utilizing the principles within, an organization can
create a 
climate conducive not only to change, but to growth as well. Time and again, these
factors have 
been proven to be a formula to success.
Bibliography
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