Accounting and Finance for Decision Making

ACCOUNTING AND
FINANCE FOR DECISION
MAKING

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Motivation of proposed investment...................................................................................................3
Investment appraisal technique..........................................................................................................4
Risk and return of investment and potential impact...........................................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8

INTRODUCTION
Investment decision making is about to make decisions in respect to business entity in
such manner that company can attract to more growth opportunities in the respective market.
This report is based on the case study of Sainsbury Company in respect to its investment
decision making. The organisation was established in the year 1869 by the founder John
James Sainsbury. Headquarter of the company is located in London, United Kingdom.
Company is currently dealing in retail sector with support of different products such as
hypermarket, supermarket, super store, and convenience store and fore court shop. This
report will discuss about the business expansion project proposed by the company.
Henceforth, the emphasis of the study is over motivation behind the proposed investment
proposal. Investment appraisal will also conduct to assess the economic feasibility of the
respective project. Furthermore, the aim of the project is to understand different risk, return
and potential impact of this decision over the business of company. Necessary
recommendations will also be a part of this project.
MAIN BODY
Motivation of proposed investment
Sainsbury Company is looking to expand its business operations by entering into the
online food delivery business. This is also a part of the retail sector but personally
demonstrate as the food retailing business. The current situation of the covid pandemic has
motivated the business houses to touch the new business area that can allow the company to
earn heavy return based on the current situation. It has been anticipated that the covid 19
pandemic is still suffering to the business sector irrespective of the people got vaccinated
twice in United kingdom still the predictions are there related to the new and advanced wave
of the virus that could further imposed the lockdown like situations again (Ahmad, Connolly
and Demirag, 2021). The earlier damage has already been occurred over the business
premises of the Sainsbury Company where it has to shut the door off for all its stores due to
the lock down situation.
The motivation behind the idea of online food delivery has come in the mind of the
management of Sainsbury Company because of the current covid 19 situation. The outbreak
has been massive and this is important for the companies like Sainsbury Company who only
operate in United Kingdom and the Ireland so there is a less possible opportunity for the