To Acquire or Not to Acquire: That is the Question
Companies are much interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For example, GenCorp Industries manufacturing asphalt plants for road construction acquired Ingersoll-Rand in 1996, and later acquired yet another company engaged in the business of food processing. Such acquisitions are claimed to "work miracles". However, given the volatility of the stock market and the slowing down of business, many companies are not sure whether such acquisitions are becoming too risky. At the same time, they also wonder if they are missing out on a great business opportunity if they fail to engage in this activity. Some research is needed here!
This is a general issue that relates to all or most companies contemplating acquisitions. Of course, the results of the study are likely to be useful to, and applied by all the concerned companies. This could fall into the realm of basic or applied research, depending on who sponsors the study. If one company or a consortium of companies investigates the issue to find an answer for immediate application, then it will be applied research On the other hand, if a Finance professor in a university undertakes the study as a matter of academic interest, it will be basic research. Either an individual such as a professor or a finance expert can do this basic research, or a company or consortium of companies can undertake the applied research.
Effects of Nasal Spray on Flu
A research scientist surveys 1000 employees in different organizational settings to study the efficacy of several types of nasal sprays in controlling the flu virus. He subsequently publishes his findings in a highly respected medical journal. This will be a case of basic research, the purpose of which was to study the efficacy of different nasal sprays and add to the body of existing medical knowledge.
It is Basic research, as, the...