Source : http://universalteacher.com/1/significance-of-research-in-business/
The following aspects highlight the business research significance:
New Knowledge: The fascination and desire for new knowledge, new facts for business cycles, environment analysis and technological upgradation are the primary reasons of research.
Solution of Operational and Planning Problems of Business: Operational research, marketing research and motivational research are deemed essential and their outcomes help in many different ways, in taking business decisions.
Market research is the study of the structure and development of a market with the intention of forming effective policies for purchasing, production, and sales.
Operational research means the use of mathematical, logical and analytical methods to the solution of business difficulties of cost minimization or of profit maximization or what can be referred to as optimisation problems.
Motivational research is worried about market characteristics and figuring out why individuals behave as they do. Put simply, it is focused on the determination of motives underlying the consumer behavior.
Research pertaining to demand and market factors has good utility in operating a business. Provided information about future demand, it is easy for an organization or for an industry to alter its supply plan within the boundaries of its estimated capacity. Market analysis has grown to be an intrinsic tool of business policy nowadays.
Business projecting which eventually provides an estimated profit and loss account relies primarily on sales estimates which in turn is determined by business research. Once sales forecasting is completed, efficient production and investment programmes could be put in place around which are arranged the buying and financial plans. Thus research replaces intuitive business decisions by more logical and scientific decisions.
Research assists the company to find the right supplier at the right price and at the right time. An appropriate supplier choice makes it possible for the company to obtain or acquire top quality raw materials which result into production of good quality items which are consumed by the end user. Additionally trustworthy and efficient suppliers help a company to perform effectively as supplies will be available on time.
Research aids the business enterprise to enhance the productivity, reduce the cost, save time and maintain expertise of their core competencies through research discovery of latest technology which contributes to development of innovation management system for future growth.