Managerial Decision Making

PART I

Formal research and business proposals share several similarities in their model and approach. Both data collecting proposals follow a similar model, but the content within each model and the specific areas within illustrate the very differences that make them unique. Research proposals are abstract driven, meaning the reason for the research is to discover, prove, and or test a hypothesis. It is purely scholastic in nature and may or may not be used for practicality. The motive behind a business proposal is to attempt to solve a current problem within the organization for the purpose of improving profits, saving money or any basis that will help advance the overall welfare of the organization.

Both formal research and business proposals attempt to gather data, but the process steps to gather the data differ. Formal research gathers data mainly via experiments; experiments that are in a controlled environment and can be manipulated to achieve varying results. There is an attempt to prove/disapprove their theory. Additionally, formal research also retrieves data from previous or current scholastic, literature, and peer reviews that are congruent within their current field of study. With business proposals data is gathered from current data sources that have applied previous business proposals and have already been practiced. Real-life situations that have been tested and proven by other organization in the same business market are the appeal for organizations.

Both models define problems in their respective fields, formal research is framed to the area of concern as a potential contribution to academic research. Sekaran and Bougie (2009, p.46) noted four steps in determining if a problem statement is relevant: 1) nothing is known about the topic, 2) much is known about the topic, but the knowledge is scattered and not integrated, 3) much research on the topic is available, but the results are (partly) contradictory, or 4) established relationships do not hold in certain relationships. From a business perspective Sekaran and Bougie (2009, p.45) state two reasons for a relevant problem statement: 1) a problem that currently exists in an organizational setting or 2) an area that a manager believes needs to be improved in the organization. These reasons for formal research and business proposal confirm the very motives behind why scholarly work (discover, prove and or test a hypothesis) and business proposals (attempt to solve a current problem within the organization for the purpose of improving profits, saving money or any basis that will help improve the overall welfare