Discussion

DIFFERENTIATING BETWEEN APPLIED AND

BASIC RESEARCH
 EXAMPLE 1
To acquire or not to acquire: that is the question

Companies are very interested in acquiring other firms,

even when the latter operate in totally unrelated realms of
business. For example, Coca-cola has announced that it
wants to buy China Huiyuan Juice Group in an effort to
expand its activities in one of the worlds fastest-growing
beverage markets. Such acquisitions are claimed to work
miracles. However, given the vitality of the stock market
and the slowing down of business, many companies are
not sure whether such acquisitions involve too much risk.
At the same time, they also wonder if they are missing out
on a great business opportunity if they fail to take such
risk, Some research is needed here!.
 EXAMPLE 2

Reasons for absenteeism

A university professor wanted to analyze in depth

the reasons for absenteeism of employees in
organizations. Fortunately, a company within 20
miles of the campus employed her as a consultant
to study that very issue.
 EXAMPLE 3

Effects of service recovery on customer

satisfaction

A research scientist wants to investigate the

question: What is the most effective way for an
organization to recover from a service failure? Her
objective is to provide guidelines for establishing
the proper fit between service failure and service
recovery that will generalize across a variety of
service industries.
 EXAMPLE 4
As part of an urban renewal project, a local municipal planning
group (funded by an economic development authority) decides
to fund a team of university researchers to assist in the
development of a strategic growth plan for a city. The municipal
planning group requests that the team consider factors such as
renewable energy, ecological protection, and economic and
industrial growth and deliver a study that the planning group
can use for long-term strategic planning for the city. The
municipality places no publication restriction on the project and
asserts no claims to intellectual property. The final deliverable
for the project is a comprehensive study and recommendations
for a strategic growth plan. The funding milestones are based on
specific project deliverables (interim project briefings, delivery
of final report, etc.). The effort is funded with a fixed price
contract from the economic development authority and is not
considered a grant.
 EXAMPLE 5
As part of an urban renewal project, a local municipal planning
group (funded by an economic development authority) decides
to fund a team of university researchers to assist in the
development of a strategic growth plan for a city. The municipal
planning group requests that the team consider factors such as
renewable energy, ecological protection, and economic and
industrial growth and deliver a study that the planning group
can use for long-term strategic planning for the city. The
municipality places no publication restriction on the project and
asserts no claims to intellectual property. The final deliverable
for the project is a comprehensive study and recommendations
for a strategic growth plan. The funding milestones are based on
specific project deliverables (interim project briefings, delivery
of final report, etc.). The effort is funded with a fixed price
contract from the economic development authority and is not
considered a grant.