Business Decision Making

This report focuses on the business decisions made by the 'Posturparcel' delivery service to enter the UK market. It includes a decision-making model to evaluate key problems, primary and secondary data collection plan, market analysis, and problem-solving techniques. The report also discusses the Porter Five Forces Analysis and Herbert Simon's decision-making model.

Business Decision Making

Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
1.1 Use an appropriate business decision making model and identify a key problem within the
business to emphasize the framework of business decision making and the key characteristics of
decision-making problems.......................................................................................................................3
1.2 Create a plan for the collection of primary and secondary data for the above business issue and
discuss the issues involved in making complex business decisions.........................................................5
1.3 Select and use appropriate methodology (quantitative, qualitative or mixed method) tools and
techniques to analyse the data?..............................................................................................................8
TASK 2..........................................................................................................................................................9
2.1 Analyse the data gathered for the decision-making process.............................................................9
2.2 Use an appropriate business decision making model and evaluate the process.............................10
TASK 3........................................................................................................................................................11
Based on your research, identify a major problem occurred and state how you resolved it by utilising
the problem resolving technique?.........................................................................................................11
REFERENCES..............................................................................................................................................13

INTRODUCTION
A business decision, also known as a decision making, is any conscious choice by a
marketing expert that influences the longer or shorter operations of the organisation. Experts
make economic judgments in relation to a range of conditions, such as deciding which job
applicant to recruit, how to allocate departmental resources, whether to start a fresh product
category, whether to combine locations, and other circumstances that need well-thought-out
activities (Noack, 2019). This report will concentrate on the business decisions made by the
'posturparcel' delivery service. Because the firm decides to enter the UK market, investigations
are necessary the possibilities and threats in the UK market, and also how to attract users and the
amount of UK shipping. In this report consist of decision making model to evaluate key
problems and collect primary and secondary data to start new business in UK market. Along with
analysis market in which consist of SWOT, Porters five forces analysis and decision making
model process to apply right strategy. At the end of the report analysis activities of problem
solving and provide solution with proper recommendations.
TASK 1
1.1 Business decision making model and the key characteristics of decision-making problems
Decision making model: A decision-making model is a method for assisting teams in
taking changes that affect their companies. Each model offers an alternative to aiding you in
understanding and solving a problem. Those give multiple methods of comprehending a problem
and evaluating potential solutions, which is useful for people with different teaching strategies or
time constraints. Decision-making methods can help organizations simplify their judgment
processes and collaborate more effectively. Models outline critical steps for businesses to follow
in order to create systems and improve communication their processes to certain other group
members. When everyone on a team understands the decision-making model in use, they may
more easily contribute to the line of thinking for a rational, good outcome (Coulthard, 2020).
Rational decision model: The rational decision-making paradigm emphasizes the application of
systematic description to arrive at the greatest feasible option. This usually includes comparing
many ways at the same time in attempt to choose the one that produces the best results.
Whenever organizations have conferences and investigation, companies often employ the

rational decision model that helps develop a checklist of workable alternatives and analyses the
advantages and disadvantages each.
Rational decision-making is the procedure by which judgment go thru a series of
processes and procedures in order to select the optimal solutions to problems. These judgments
are made through data analysis and logic, which eliminates emotions and subjective. The
rational-decision-making model does not take into account non-quantifiable considerations such
as ethical problems or the worth of compassion. It disregards personal sentiments, affiliations, or
a feeling of duty. Its rationality produces a predominance of evidence, evidence, and research
over instinct or wishes.
Key problem within business: The parcel sector is thriving, particularly in recent years as a
result of the fast expansion of e-commerce. Online commerce in the United Kingdom has risen at
an exponential rate during the period, and this has been exacerbated by the epidemic. Consumers
are choosing anything online, from groceries to apparel and electronics, and delivery companies
are claiming high amounts of goods shipped. 'Posturparcel' delivery service wants to enter into
UK market to expand their business (Harjanti, Novianto and Sukatmadiredja, 2020). During to
business decision they are facing various problems such as:
 Entry mode: Before enter in UK market 'Posturparcel' has different mode of entry like
FDI, partnership, merger or acquisition and collaboration. It is difficult for company to
which option select to enter in new market that help to get success for longer time period
because every option has own advantage and disadvantage.
 Market research: It is very important to collect all the data, facts, charts about the UK
parcel marker otherwise it impact on the market establishment. If company does not
collect all the market information in proper manner so it will impact on the business
activities. It s a main problem to conduct proper market research and analysis all the facts
and figures before enter in UK market.
 Highly competition: The corona virus pandemic had a favorable influence on the supply
chain industry since it not only increased income and also affected the behavior of many
buyers, who opted to move to shopping online. Therefore, the annoyance created by
production delays or defective products drives buyers to be more careful in selecting
courier firms. Due to high competition in UK market 'Posturparcel' delivery service face

highly competition that impact on their business in negative manner (Abdel-Basset and
et.al, 2019).
In the process of strategic decision making company face various key problems that solve by
the decision making model in effective manner.
1.2 Develop a plan for the collection of primary and secondary data
Posturparcel lacks a competitive advantage when it enters a new marketplace. Gathering
important information and create resources both from primary and secondary data may assist the
firm in understanding the business situation and develop the appropriate strategy that can support
growth and advancement.
Primary data collection:
Q1. As per your views does Posturparcel applies strategies for expansion business in UK
market?
a) Yes
b) No
Q2. What type of decision models are being applied by Posturparcel?
a) Rational decision model
b) Creative decision model
c) Innovative decision model
Q3. According to your perspective, which entry mode good to enter in UK market for
Posturparcel?
a) Partnership
b) Merger and acquisition
c) FDI
Q4. What are the main issues being observed by Posturparcel during execution of business in
UK?
a) Entry mode
b) Market research
c) Highly competition
Q5. What are the methods that could be applied by Posturparcel for minimizing above

identified challenges?
a) Rational decision model
b) Simons decision model
c) Innovation decision model
Q6. What are the advantages that are availed by Posturparcel after apply decision model for
key issues?
a) Provide competition to exist companies
b) Greater revenues
c) Easily to access market activities
Q7. What are the advantages for Parcel company in UK?
a) Large opportunities to generate revenues
b) Less transportation cost
c) Assists in procedure of recruiting skilled staff
Q8. Recommendations
Secondary data collection:
In the United Kingdom, 160 packages were created per second, for a total of 14 million each day.
Parcel volume increased by 33% year on year, hitting 5 billion in 2020, up from 3.8 billion in
2019. Parcels created per individual increased to 74, up from 56 in 2019.

With such 2020 revenue of USD 105 billion, the United Kingdom is the consequently e-
commerce industry, trailing only Europe and the United States. E-commerce is perhaps the most
recent popular retail trend that has entered the UK in the previous few years. Despite the reality
that e-commerce platforms have been in existence for many years, they have only lately acquired
significant attention. In comparison to the entire globe, the rise of internet purchasing in the
United Kingdom has been impressive (Pieterse, Stiggelbout and Montori, 2019).

In 2022, e-commerce revenues in the United Kingdom are predicted to reach USD 150 billion. In
addition, as per business insider, the majority of digital retail customers in the United Kingdom
is predicted to expand to 58.4 million by 2025. The United Kingdom was one of the worlds
largest early investors of online business (e-commerce), with a strong subscriber base, which is
anticipated to reach 84.2 percent by 2025. Many new enterprises have joined the market as a
result of increased internet buying in latest days.
1.3 Select and use appropriate methodology
The quantitative technique is the most common qualitative research in data analysis. It
describes a set of methods, methods, and hypotheses which are used to examine quantitative
patterns in behavioral, sociological, and market economies. Quantitative research gathers a wide
range of quantitative values. After the data was collected, it may be important to organize it
before it can be reviewed. For example, sentences in a questionnaire or a test dataset may need to
be translated to numbers. They can then address their research problems using mathematical
methods (Brkan, 2019).
Descriptive analytics will provide users with an overview of their information, as well as
norms and variance measurements. They may also display their data with graphs, scatter
diagrams, and frequency distributions to look for trends or outliers. In a scenario where the
likelihood of all possibilities is unclear, the quantitative method seeks to make the best decision
possible by employing mathematical and statistical methods. In other words, it aids executives in
solving complicated challenges during judgment.
There are numerous methodologies that a corporation or firm's management might use
when take a choice. The quantitative techniques assist the management in making realistic and
effective judgments. To make a sound judgment, such methods rely on a statistical and
quantitative methodology. The following are the six most significant quantitative judgment
approaches (Coulthard, 2020).
Linear Programming: This approach aids in the optimization of an item with restricted
resources. The primary goal might be either benefit maximization or generally consists
minimization. In layman's terms, it aids in maximizing the utilization of a commodity or a
restriction. Generally, all executives apply the Theory only when there is a high level of

assurance. As a result, when situations are unknown or unexpected, this may not be particularly
valuable to the management.
Likelihood Decision Theory: Probabilistic decision theory is a methodology that would only
forecast the probability of an event. Simply said, it is impossible to foresee the exact
consequence of any plan of action.
TASK 2
2.1 Analyse the data gathered for the decision-making process
The Porter Five Forces Analysis is a strategic management strategy for analysing
businesses and determining the underlying aspects of the economy in a given industry. United
Parcel Service, Inc.'s mangers could use Porter Five Forces to understand how well the five
opposing forces influence the financial performance and develop a strategy for improving
Posturparcel Parcel Service's market edge and lengthy viability in the Parcel Delivery & Freight
Services industry (Brkan, 2019).
Bargaining power of suppliers: The lot of companies in the Parcel Delivery & Freight Services
market gets their building resources from a number of different sources. Suppliers in dominant
positions may limit Posturparcel Parcel Service, Inc.'s ability to gain manufacturing benefits.
Companies in the Parcel Delivery & Freight Services industry use their negotiating power to
benefit from cost advantages in the Services industry, leading to increased prices. The real
influence on inventory negotiation power has an adverse influence on Parcel Delivery & Freight
Services' ultimate income.
Threat of new entrants: New entrants in Parcel Delivery & Freight Services provide creativity
and radical innovations, exerting strain on Posturparcel Parcel Service, Inc. via reduced
marketing strategies, cost reductions, and different value offerings to client. Posturparcel Parcel
Service, Inc. must address every one of these issues and create necessary components in order to
stay viable and effective.
Bargaining power of buyers: Customers may be a difficult sort. Consumers would like the best
things available at the cheapest price. It places a burden on Posturparcel Parcel Service, Inc.'s
income in the big scheme of things. The more the customers' negotiation ability and capability to

seek increased special deals, the smaller and tougher United Parcel Service, Inc.'s customer base
becomes.
Threat of substitute products: If a new service or product meets different customer needs
methods, the industry's revenue suffers. Dropbox and Google Drive, for example, are platforms
that may be used to substitute actual storage CDs. Whether it presents a business strategy that is
obviously distinct from the firm's existing offerings, a substitute goods or services poses a
significant risk (Bader, Al-Nawaiseh and Nawaiseh, 2018).
Existing rivalry: While there is severe rivalry among present industries that depend, expenses
will fall and the company's reputation will improve. Posturparcel Parcel Service, Inc. operates in
the Parcel Travel & Transport Companies industry. This competition has an effect on the
organization's ultimate success.
2.2 Business decision making model
Herbert Simon made significant advances to our knowledge of decision-making. In reality,
he was a forerunner in the field of decision support. Decision-making, as per (Simon 1960) and
his later actions with (Newell 1972), is a procedure with discrete stages. For the first moment, he
proposed the human decision-making model. Its judgment paradigm consists of three phases:
• Information, which is concerned with identifying risks and information collecting on the issue.
• Design is concerned with the production of different solutions to real problems.
• Selection, which is the process of picking the 'best' option among the numerous options based
on some condition.
This is the first step in making a choice. The decision-maker recognizes the issue or potential in
this stage. Discovering whatever that is not in accordance with the plan, norm, or quality is an
issue in the management setting. A HR manager detecting unexpectedly high turnover among
employees for the current month is an instance of a concern. But at the other side, possibility
searching is the discovery of a promising scenario that may lead to greater achievements. An
illustration of entrepreneurial intention is when a marketing director learns that two of his
opponents will cease production (demand being unchanged) in the next three months for just
some cause, implying that he will be able to sell more in the market (Ahmed and Manab, 2016).

Therefore, they observe that the judgment procedure is launched in the event of a fault or for the
goal of opportunities searching, and the very first step is a clear comprehension of the stimuli
that starts this procedure. Thus, when an issue initiates this procedure, the first step is concerned
with gaining a thorough grasp of the dilemma. The intelligence step of the decision-making
process entails:
Problem Solving: The actual or genuine is contrasted to some criteria in order to hunt out the
issue. Variations are assessed and investigated to assess even if there isn't an issue.
Problem conceptual model: There is still the danger of fixing the root issue after the problem has
been recognized. Interface for connecting with a previously difficult problem to solve or an
analogue is very important in design problem.
TASK 3
Identify a major problem and utilising the problem resolving technique?
Define the problem: There are identified main problem is High competition in UK Parcel
market because there is already exist various companies who are providing effective services to
customer. In the United Kingdom, 160 packages were created per second, for a total of 14
million every day. Package market grew by 33% year over year, hitting 5 billion in 2020, up
form 3.8 billion in 2019. Parcels created per individual increased to 74, up from 56 in 2019.
Technological advancements, such as the use of robots for mechanized processing at ports and
warehouses, are assisting the industry in meeting its commitments more quickly. Through
approximately 1.3 billion packages and 13 billion message services, Royal Mail PLC, one of the
top buyers and sellers in the CEP industry in the United Kingdom, has dominates the industry.
Alternative solution: The best alternative solution is Make a press release and applying different
innovative services in less cost to customer that help to customer in regard of their services
(Tseng, Chiu and Liang, 2018).
Evaluate and select the alternatives: Make a press release: Make a news release about your
courier service. This is an excellent time to showcase your product brand, particularly those that
set you apart from other courier businesses. Do you provide any unusual services or prices? If
you've a successful information to tell about how you run your courier service (where you began
the firm, how many deliveries you had in a certain period, a customer's testimonial, etc.), you

will undoubtedly pique the visitors' attention. Users can post it on a website or approach a
printed advertising.
Implementing: Including SEO methods in their marketing communication plan that helps
business rate highly for the web searches of their core demographic. This implies you're one step
on the way to looking for potential clients who are looking for data about their organisation,
industry, item, or specific service. It's really the process of distributing their press statement to
reporters, editors, and reporters. In most cases, there press release will contain information on
ones firm's goods and/or services, initiatives, collaborations, organisation culture, and other
topics. Through syndication, they give multiple newspapers to distribute their press statement,
allowing it to reach more people (Akinbogun, Binuyo and Akinbogun, 2017).
Recommendations: The idea is to provide clients with specific services which are more
unavailable and personalized. This is one method of broadening one's possibilities for market
saturation by developing one's own niche. Looking to compete with the majors is not the best
strategy; instead, the objective has been to stand out and separate the products from the
competitors. Modern elements like customer demand, customised packaging, and the inclusion
of other improvements attract customers. To meet these objectives, cutting-edge courier
company technology will be required. Another way to start a buzzing is to set up systems that
will turn such roadblocks into opportunities.

REFERENCES
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Online
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