Business Decision Making

This project report discusses the importance of business decision making in companies and focuses on the case of Essential limited. It covers both primary and secondary data collection methods, with a questionnaire used to gather customer feedback. The report also analyzes the financial performance of five UK supermarkets, with a focus on Tesco plc. Key findings and recommendations are provided.

BUSINESS DECISION
MAKING

EXECUTIVE SUMMARY
The project report summarizes about both types of research including primary and
secondary. The report is categorized into two tasks in which first task are about primary data
collection. Under which a set of questionnaire is used to find out key information about
customers which states that Essential limited should focus on customer satisfaction. On the other
hand second task is based on secondary research which states about financial performance of five
supermarket of United Kingdom and among them Tesco plc’s financial performance is effective.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Task 1. Primary data collection:..............................................................................................................4
Task 2. Secondary data collection:.......................................................................................................19
KEY FINDINGS.......................................................................................................................................24
CONCLUSION AND RECOMMENDATION:........................................................................................25
REFERENCES..........................................................................................................................................26

INTRODUCTION
In the aspect of companies, term business decision making is too crucial. This is linked
with taking decisions on the basis of proper research and analysis. In the absence of proper
research, this can be difficult for companies to take right decisions (Gong, Simpson and Tan,
2018). The project report is based on a company that is Essential limited. This company is going
to launch own discounted supermarket and for this purpose a proper market research has been
done. The research is done of Lidl Plc and for this purpose its profitability has been compared
with rest of competitors. As well as under primary research questionnaire is prepared in order to
take feedback from customers.
MAIN BODY
Task 1. Primary data collection:
Primary data is data obtained from first hand evidence by a researcher, using techniques such
as surveys, observations, or studies. Bearing in mind the survey mission, it is obtained
exclusively from primary sources (Andjelic and Vesic, 2017). In the context of above Lidl plc,
primary research has been done in such manner that is as follows:
 Designing a questionnaire:
A questionnaire is a study method composed of a set of questions (or other forms of
prompts) to obtain information from the participants (Schwartz, 2016). Herein, below set of
questionnaire has been presented which are asked from customers of Lidl plc:
Section A: Personal details
Q1. Which age group you belong to?
a) 18-26
b) 27-40
c) 41-65
Q2. What is your gender?

a) Male
b) Female
c) Other
Q3. What is your education level?
a) Secondary
b) Diploma
c) University
Q4 What is your monthly income?
a) 700-1000
b) 1500-3000
c) 4000-5000
Q5 What is your monthly sending?
a) 100-150
b) 200-300
c) 400-500
Section B: Attractive Factors
Q6. Is location is a key factor for setting a new supermarket?
a) Strongly agree
b) Agree
c) Disagree
Q7. Does company should keep their prices at an effective level?
a) Strongly agree
b) Agree
c) Disagree
Q8. Does company should provide discounts on regular time interval?

a) Strongly agree
b) Agree
c) Disagree
Q9. Should stores have enough range of product range?
a) Strongly agree
b) Agree
c) Disagree
Q10 Should store convince their customers to purchase products?
a) Strongly agree
b) Agree
c) Disagree
Section C: Customer Preferences
Q11. What type of variety of product you prefer?
a) 1
b) 2
c) 3
Q12 At what scale, a customer prefer online shopping over offline shopping?
a) 1
b) 2
c) 3
Q13 Are you satisfied with customer services of Lidl plc?
a) 1
b) 2
c) 3
Q14 What scale, people prefer a store to be open for 24 hours?

a) 1
b) 2
c) 3
Q15 What scale, people prefer a store to provide home delivery?
a) 1
b) 2
c) 3
Response of customers:
Q1. Which age group you belong to?
a) 18-26 22
b) 27-40 12
c) 41-65 6
Q2. What is your gender?
a) Male 12
b) Female 25
c) Other 3
Q3. What is your education level?
a) Secondary 15
b) Diploma 12
c) University 13
Q4 What is your monthly income?

a) 700-1000 14
b) 1500-3000 16
c) 4000-5000 10
Q5 What is your monthly spending?
a) 100-150 8
b) 200-300 12
c) 400-500 20
Attractive Factors
Q6. Is location is a key factor for setting a new
supermarket?
a) Strongly agree 19
b) Agree 15
c) Disagree 16
Q7. Does company should keep their prices at an
effective level?
a) Strongly agree 20
b) Agree 15
c) Disagree 5
Q8. Does company should provide discounts on
regular time interval?
a) Strongly agree 25
b) Agree 25
c) Disagree 20
Q9. Should stores have enough range of product
range?
a) Strongly agree 16
b) Agree 18

c) Disagree 6
Q10 Should store convince their customers to
purchase products?
a) Strongly agree 14
b) Agree 25
c) Disagree 01
Customer Preferences
Q11. Which type of variety of variety of a product
you prefer?
a) 1 18
b) 2 12
c) 3 10
Q12 At what scale, a customer prefer online
shopping over offline shopping?
a) 1 16
b) 2 12
c) 3 12
Q13 Are you satisfied with customer services of Lidl
plc?
a) 1 20
b) 2 15
c) 3 5
Q14 At what scale, people prefer a store to be open
for 24 hours?
a) 1 12
b) 2 20
c) 3 8
Q15 What scale, people prefer a store to provide
home delivery?

a) 1 20
b) 2 15
c) 3 8
 Collect primary data and presentation in form of pie chart:
Question 1. Which age group you belong to?
22
12
6
a) 18-26
b) 27-40
c) 41-65
Analysis: On the basis this pie chart, this can be stated that there are more number of
customers who are age of 18-26. While 12% of customers are of 27 to 40 age group. This
shows that majority of customers are of 18 to 26 ages. Thus Essential limited company
should focus on teen age group.
Question 2. What is your gender?

12
25
3
a) Male
b) Female
c) Other
Analysis: On the basis this pie chart, this can be stated that there are more number of
customers who are female While 12% of customers are male and rest of them are other. This
shows that majority of customers are female. Thus Essential limited company should focus on
female customers.
Question 3. What is your education level?
15
12
13
a) Secondary
b) Diploma
c) University

Analysis: On the basis this pie chart, this can be stated that there are more number of customers
whose education level is secondary. While 12 customers out of 40 have diploma in different
aspects. So above company should focus on those customers whose education is secondary.
Question 4. What is your monthly income?
14
16
10
a) 700-1000
b) 1500-3000
c) 4000-5000
Analysis- The above chart indicates that in the United Kingdom, there are 16 customers whose
income level is mid. On the other hand, 14 customers’ income is between 700 to 1000 pounds.
As well as 10 customers’ income is between 4000 to 5000 pounds. Hence, Essential limited
company should focus on those customers’ whose income is between 1500 to 3000 pounds.
Question 5. What is your monthly spending?

8
12
20
a) 100-150
b) 200-300
c) 400-500
Analysis: The chart shows that 20 customers out of 40 spend 400-500 pounds on shopping at
supermarket. While only 8 customers spend between 100 to 150 pounds. This shows that above
company should focus on those customers whose income level is higher (Wei and Lu, 2018).
Question 6. Is location is a key factor for setting a new supermarket?
19
15
16
a) Strongly agree
b) Agree
c) Disagree

Analysis: On the basis of above chart, this can be stated that 19 customers are strongly agreed
that location is key factor. While 15 customers are only agree with location factor and 15
customers are disagree. Thus, Essential limited should focus on location factor and open store at
attractive location.
Question 7. Does company should keep their prices at an effective level?
20
15
5
a) Strongly agree
b) Agree
c) Disagree
Analysis: On the basis of above chart, it can be stated that 20 customers consider price factor and
15 factors are only agree. While 5 customers are disagree with this factor. Hence, above
company should consider price factor as main factor.
Question 8. Does company should provide discounts on regular time interval?

25
25
20
a) Strongly agree
b) Agree
c) Disagree
Analysis: On the basis of above chart, it can be stated that 25 customers consider discount factor
and 25 factors are only agree. While 20 customers are disagree with this factor. Hence, above
company should consider discount factor as main factor (Janssen, van der Voort and Wahyudi,
2017).
Question 9. Should stores have enough range of product range?
16
18
6
a) Strongly agree
b) Agree
c) Disagree
Analysis: On the basis of above chart, this can be stated that only 18 customers are agreed with
that stores should have enough range of customers. On the other hand, only 6 customers are not
agreed with this aspect.
Question 10. Should store convince their customers to purchase products?

14
25
1
a) Strongly agree
b) Agree
c) Disagree
Analysis: The above chart states that there are 25 customers who are agreed that companies
should convince their customers. While only one customer who has perception of disagreeing
that companies should not convince. Thus, above company should focus on convince to their
customers.
Question 11. Which type of variety of a product you prefer?
18
12
10
a) 1
b) 2
c) 3
Analysis: On the basis of above chart this can be stated that 18 customers consider 1st quality of
product. While 12 customers consider 2nd class products. This shows that above company should
focus on selling of 1st quality of product.

Question 12. At what scale, a customer prefers online shopping over offline shopping?
16
12
12
a) 1
b) 2
c) 3
Analysis: The above chart states that 16 customers prefer that they focus on online shopping. On
the other hand, 12 customers rarely like online shopping. This indicates that above company
should focus on online shopping.
Question 13. Are you satisfied with customer services of Lidl plc?

20
15
5
a) 1
b) 2
c) 3
Analysis: The above chart shows that there are 20 customers who are satisfied with service of
above store. While 15 customers are only agree with their service. On the other hand 5 customers
are not satisfied.
Question 14. At what scale, people prefer a store to be open for 24 hours?

12
20
8
a) 1
b) 2
c) 3
Analysis: The above chart shows that 20 customers want that company should open their shop at
24 hours. While 8 customers out of 40 customers want that stores should not open their shop at
24 hours. Thus above company should open their stores.
Question 15. What scale, people prefer a store to provide home delivery?
20
15
5
a) 1
b) 2
c) 3

Analysis- On the basis of above chart, this can be stated that 20 customers want that company
should provide home delivery of product. While 15 customers are just agreed with this aspect.
Hence, Essential limited company should focus on home delivery of products.
Task 2. Secondary data collection:
Secondary data are details already obtained from other sites and easily available. These
data are simpler and can be collected more easily than the key data and even when primary data
are unable to be accessed (Qin, Liang and Wei, 2017). In the context of above company
secondary analysis has been done below in such manner:
 Market Share of Lidl Plc and other UK Supermarkets:
Company 2017 2018 2019
Lidl 5.2% 5.5% 5.9%
Tesco 27.8% 27.4% 27%
Sainsbury’s 15.8% 15.5% 15.4%
Morrison’s 10.4% 10.4% 10.1%
Waitrose 5.1% 5% 4.9%
Lidl
Tesco
Sainsbury’s
Morrison’s
Waitrose
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
5.20%
27.80%
15.80%
10.40%
5.10%
5.50%
27.40%
15.50%
10.40%
5.00%
6%
27%
15%
10%
5%
2019
2018
2017

Analysis: On the basis of above chart this can be analyzed that all companies have different
market shares in different years. In comparison manner, Tesco plc has higher market share of
27.80% in year 2017. While Lidl plc‘s market shares were of 5.20% in year 2017. Same as rest
of companies like Waitrose also has lower market shares.
 Revenues of Lidl and other UK Supermarkets:
Company
2017
£’000
2018
£’000
2019
£’000
Lidl 418,630 474,500 553,809
Tesco 55,917,000 57,491,000 63,911,000
Sainsbury’s 26,224,000 28,456,000 29,007,000
Morrison’s 16,317,000 17,262,000 17,735,000
Waitrose 6,121,300 2,226,100 6,296,700
Lidl
Tesco
Sainsbury
Morrisons
Waitrose
0 5000000 10000000 15000000 20000000 25000000
145000
1017000
642000
468000
197100
1,965,000
1,837,000
518,000
458,000
94,100
20763000
2153000
312000
394000
107500
2019
2018
2017

Analysis: Same as the market shares Tesco plc is much better in terms of revenue as compared to
rest of other companies. As well as Lidl plc has less value of revenues in all three years in
comparison to other.
 Operating Profit of Lidl and other UK Supermarkets
Company
2017
£’000
2018
£’000
2019
£’000
Lidl 145 1,965 20,763
Tesco 1,017,000 1,837,000 2,153,000
Sainsbury’s 642,000 518,000 312,000
Morrison’s 468,000 458,000 394,000
Waitrose 197,100 94,100 107,500
Lidl
Tesco
Sainsbury
Morrisons
Waitrose
0 5000000 10000000 15000000 20000000 25000000
145000
1017000
642000
468000
197100
1,965,000
1,837,000
518,000
458,000
94,100
20763000
2153000
312000
394000
107500
2019
2018
2017
Analysis: The above chart indicates values of operating profit of different supermarkets. Lidl
plc’s performance had been poor compared to all others. As well as Tesco plc has higher amount
of operating profit in all three years.

 Gross Profit of Lidl and other UK Supermarkets:
Company
2017
£’000
2018
£’000
2019
£’000
Lidl 126 2,102 19,208
Tesco 2, 902,000 3,350,000 4,144,000
Sainsbury’s 1,634,000 1,882,000 2,007,000
Morrison’s 604,000 633,000 607,000
Waitrose 1,837,600 1,767,600 1,812,100
Lidl
Tesco
Sainsbury’s
Morrison’s
Waitrose
0 1000000 2000000 3000000 4000000 5000000
126
2902000
1634000
604000
1837600
2,102
3,350,000
1,882,000
633,000
1,767,600
19,208
4,144,000
2,007,000
607,000
1,812,100
2019 £’000
2018 £’000
2017 £’000
Analysis: The above bar chart states that Tesco plc has higher amount of gross profit in all three
years while Lidl plc has lower amount of gross profit. As well as Sainsbury is the second
company after Tesco plc who has higher gross profit.
 Gross Profit Margin (ratio) of Lidl and other UK Supermarkets:

Company
2017 (%) 2018 (%) 2019 (%)
Lidl 3 0.44 3.46
Tesco 5.18 5.82 6.48
Sainsbury’s 6.23 6.61 0.69
Morrison’s 3.70 3.66 3.42
Waitrose 30 79.40 28.77
Lidl
Tesco
Sainsbury’s
Morrison’s
Waitrose
0 10 20 30 40 50 60 70 80 90
3
5.18
6.23
3.7
30
0.44
5.82
6.61
3.66
79.4
3.46
6.48
0.690000000000
001
3.42
28.77
2019 %
2018 %
2017 %
Analysis- This graph shows that Waitrose Company has higher value of gross margin as compare
to all other companies. While Lidl plc has lowest value of gross margin. In comparison to all
companies in terms of ratio, Waitrose is better as they are able to generate higher profit from its
sale.
Working Note:
Calculation of gross profit margin:
Lidl plc 2017 2018 2019
Sales 418,630 474,500 553,809

Gross profit 126 2,102 19,208
Calculation 126/418630*100 2,102/474,500*100 19,208/553,809*100
Gross profit margin 3 0.44 3.46
Tesco 2017 2018 2019
Sales 55,917,000 57,491,000 63,911,000
Gross profit 2, 902,000 3,350,000 4,144,000
Calculation 2,
902,000/55,917,000*100
3,350,000/57,491,00
0*100
4,144,000/63,911,000*1
00
Gross profit
margin 5.18 5.82 6.48
Sainsbury’
s
2017 2018 2019
Sales 26,224,000 28,456,000 29,007,000
Gross profit 1,634,000 1,882,000 2,007,000
Calculation 1,634,000/26,224,000*1
00
1,882,000/28,456,000*1
00
2,007,000/ 29,007,000*1
00
Gross profit
margin 6.23 6.61 0.69
Morrison’s 2017 2018 2019
Sales 16,317,000 17,262,000 17,735,000
Gross profit 604,000 633,000 607,000
Calculation
604,000/16,317,000*100 633,000/17,262,000*100 607,000/17,735,000*100
Gross profit 3.70 3.66 3.42

margin
Waitrose 2017 2018 2019
Sales 6,121,300 2,226,100 6,296,700
Gross profit 1,837,600 1,767,600 1,812,100
Calculation 1,837,600/6,121,300*10
0 1,767,600/2,226,100*100 1,812,100/6,296,700*100
Gross profit
margin 30 79.40 28.77
KEY FINDINGS
On the basis of primary data collection: In accordance of 15 questionnaires, this can be stated
that most of the customers are focused on those aspects which are for their suitability. They want
price effective and better products. As well as more number of customers want online services
and home delivery of products.
On the basis of secondary data collection: As per the financial performance of five supermarkets
of United Kingdom, this can be find out that Tesco plc is much better as compared to all other
stores. On the other hand, Lidl plc has lower financial performance.
CONCLUSION AND RECOMMENDATION:
On the basis of above project report this has been concluded that companies should take
decision in accordance of proper analysis of market. The first part of report is based on primary
data research and on the basis of it, this can be articulated that Essential limited should open their
store at a location which is attractive and prices must be effective. While second part concludes

about financial performance of different stores of United Kingdom. That part concludes that
Tesco plc’s performance is better.
On the behalf of above report this can be recommend to Essential limited that they should take
below mentioned steps before opening of a new discount store which are as follows:
 They should open store at prime location in UK so that more number of customers can
reach.
 They should apply effective pricing effective strategies.
 Above company should focus on online availability of their products because its demand
of more number of customers.
 They should select particular target customers so that they can gain higher revenues.
 As well as company should offer home delivery of their products as its demand of most
of customers.

REFERENCES
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sustainable performance metrics and its effect on business decision making: Theory and
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Andjelic, S. and Vesic, T., (2017). The importance of financial analysis for business decision
making. In Book of proceedings from Sixth International Scientific Conference
Employment, Education and Entrepreneurship (pp. 9-25).
Schwartz, M.S., (2016). Ethical decision-making theory: An integrated approach. Journal of
Business Ethics. 139(4). pp.755-776.
Qin, Q., Liang, F., Li, L. and Wei, Y.M., (2017). Selection of energy performance contracting
business models: A behavioral decision-making approach. Renewable and Sustainable
Energy Reviews. 72. pp.422-433.
Janssen, M., van der Voort, H. and Wahyudi, A., (2017). Factors influencing big data decision-
making quality. Journal of Business Research. 70. pp.338-345.
Wei, G. and Lu, M., (2018). Pythagorean fuzzy power aggregation operators in multiple attribute
decision making. International Journal of Intelligent Systems. 33(1). pp.169-186.