Comparative Analysis of Supermarkets in UK

This assignment provides a comparative analysis of three supermarkets in the UK: B&M, TESCO, and Morrisons. The analysis is based on primary data collected through a questionnaire survey and secondary data from financial reports. The report compares the companies' financial performance, including earnings before interest and taxes (EBIT), return on capital, and profit margins. Additionally, it examines customer preferences and choices regarding supermarkets in the UK.

BUSINESS
DECISION MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Primary data collection and analysis............................................................................................1
TASK 2..........................................................................................................................................15
Secondary data collection..........................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

EXECUTIVE SUMMARY
Primary data source is a data collection at the initial level. five types of methods for the
collection of primary data. primary data is collected by the company Full-Discount ltd,
secondary data is collected through the third party, current ratio is referred to as liquidity ratio
quick ratio is also a liquidity ratio ,

INTRODUCTION
Business decision making is process of decision making in business which determines the
factors effecting the company in many ways. The decision making process helps in evaluation of
various problems in the business. It determines the policies and procedures to be followed in the
companies. The policies are made in order to achieve the goals and aims of then company.
The report will study the primary and secondary collection of data of the companies
B&M, Home Bargains and Morrisons. The collection of the primary data will include techniques
and methods. The primary data will include the questionnaire method of data collection from the
various person.
Furthermore report will state the collection of secondary data thorough the internet
searches and libraries. The data collection both primary and secondary is done to increase the
efficiency of the company by eliminating the problems of the company occurring in the normal
functioning of organization.
TASK 1
Primary data collection and analysis
Primary data collection- Primary data source is a data collection at the initial level of the
survey by the researcher. The primary data is the first hand data or the raw data which is being
further processed to evaluate the performance of the companies. The collection of the data is
from the different sources and different levels (Demil and et.al., 2015). The data collection is
done through the number of techniques. This data collection provides the true picture of the
analysis and the company at which the research is done. Primary data can be collected through
the random sampling, conducting surveys, interviews, experiments and observations of the
current prevailing conditions. Although the collection of the data is effective but it is costly and
time consuming as it requires more human resources to collect the data from the general public
(Devine and et.al., 2018). There are five types of methods for the collection of primary data
which contains-
 Delphi technique
 Interview method
 Questionnaire Method
 Projective Techniques (Ross,2016)
 Focus Group Interviews
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In the report the primary data is collected by the company Full-Discount ltd to do the
market research. The primary objective of this collection of data and research is to evaluate the
companies prevailing policies. The gathering of data is on the basis of product variety, spending
on the products and services, also the customers preference of the products and services, and the
purchasing powers of customers (Primary data source, 2017).
The data collected will interpret the interest of customers on various discounting policies.
The data collection method used in the survey is the questionnaire method. This method involves
the question asking process from the people to collect the relevant information. There are set of
10 questions answered by 20 respondents.
Questionnaire
1. What is age of customer group?
a) Below 18
b) 19-29
c) 30-49
d) Above 50
2. Gender details of customers?
a) Male
b) Female
3. What qualification does the customer posses?
a) Secondary
b) Senior Secondary
c) Graduate
d) Post Graduate and above
4. What is customers average spending on products?
a) less than $ 5000
b) $ 5001- $ 10000
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c) $ 10001- $ 20000
d) $ 20001 and above
5. The type of market preferred for shopping ?
a) Local market
b) Super market
c) Online shopping
d) Shopping Malls
6. What is the preferable price for the products?
a) Lowest priced products
b) Moderate price products
c) High price products
7. Preferable shopping from the supermarket?
a) B&M
b) Home Bargains
c) Morrisons
d) None
8. The supermarket will provide best discount policies according to the customer?
a) B&M
b) Home Bargains
c) Morrisons
9. In which supermarket there is availability of wide range of the branded products ?
a) B&M
b) Home Bargains
c) Morrisons
10. The supermarket who provides best ambiance ans space in the shopping store?
a) B&M
b) Home Bargains
c) Morrisons
3

Frequencies
Statistics
1. What
is age
of
custom
er
group?
2.
Gender
details
of
custom
ers?
3. What
qualific
ation
does
the
custom
er
posses
?
4. What
is
custom
ers
average
spendin
g on
product
s?
5. The
type of
market
preferre
d for
shoppin
g ?
6. What
is the
prefera
ble
price for
the
product
s?
7.
Prefera
ble
shoppin
g from
the
superm
arket?
8. The
superm
arket
will
provide
best
discoun
t
policies
accordi
ng to
the
custom
er?
9. In
which
superm
arket
there is
availabil
ity of
wide
range
of the
brande
d
product
s ?
10. The
superm
arket
who
provide
s best
ambian
ce ans
space in
the
shoppin
g store?
N
Vali
d 20 20 20 20 20 20 20 20 20 20
Miss
ing 0 0 0 0 0 0 0 0 0 0
Mean 2.70 1.60 3.05 2.85 2.30 1.75 2.30 2.10 1.90 2.20
Median 3.00 2.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00
Mode 3 2 4 4 2 1 2 2 2 2a
Std. Deviation 1.031 .503 1.050 1.089 1.031 .786 .923 .788 .788 .768
Variance 1.063 .253 1.103 1.187 1.063 .618 .853 .621 .621 .589
Range 3 1 3 3 3 2 3 2 2 2
a. Multiple modes exist. The smallest value is shown
Frequency Table
1. What is age of customer group?
Frequency Percent Valid Percent Cumulative Percent
Valid 1 3 15.0 15.0 15.0
2 5 25.0 25.0 40.0
3 7 35.0 35.0 75.0
4

4 5 25.0 25.0 100.0
Total 20 100.0 100.0
Interpretation- The above graph states that 3 respondents out of 20 respondents are below 18
years of age. And also 5 respondents are in the age group of 19 to 29, 7 respondents are in the
age group of 30 to 49 and there are 5 respondents which are above the age of 50 years.
2. Gender details of customers?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 8 40.0 40.0 40.0
2 12 60.0 60.0 100.0
Total 20 100.0 100.0
5

Interpretation- From the above graph it is been concluded that there are 8 males and 12 females
in the respondent of questionnaire.
3. What qualification does the customer posses?
Frequency Percent Valid Percent Cumulative
Percent
Valid
1 2 10.0 10.0 10.0
2 4 20.0 20.0 30.0
3 5 25.0 25.0 55.0
4 9 45.0 45.0 100.0
Total 20 100.0 100.0
6

Interpretation -The above graph states that the qualification of the answer-er for the questions.
It states that there are 2 answer-er who are secondary passes, 4 answer-es who are senior
secondary qualified, 5 persons who are graduate and 9 answer-er who are post graduate and
above.
4. What is customers average spending on products?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 3 15.0 15.0 15.0
2 4 20.0 20.0 35.0
3 6 30.0 30.0 65.0
4 7 35.0 35.0 100.0
Total 20 100.0 100.0
7

Interpretation- The above graph states the average spending of the customers on the product and
services. It states that 3 out of 20 respondents spends less than $ 5000, 4 respondents spends
$5000 to $ 10000, 6 respondents spends $ 10001 to $ 20000 and $ 20001 and above are spend
by 7 respondents.
5. The type of market preferred for shopping ?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 5 25.0 25.0 25.0
2 7 35.0 35.0 60.0
3 5 25.0 25.0 85.0
4 3 15.0 15.0 100.0
Total 20 100.0 100.0
8

Interpretation- The above graph states the preference of the customers for the shopping market.
The graph stated that there are 5 persons who prefer shopping from local market, 7 persons who
prefer shopping from super market, 5 customers like to shop from online shopping apps and 3
customers who shop from the shopping malls.
6. What is the preferable price for the products?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 9 45.0 45.0 45.0
2 7 35.0 35.0 80.0
3 4 20.0 20.0 100.0
Total 20 100.0 100.0
9

Interpretation- From the above graph it is stated that how the customers prefer there product
choices that is high price, low price or moderate price of products. The graph implies that 9
customers prefers low prices product, 7 customers prefers moderate price of products and on the
other hand 4 customers prefer the high price and branded products.
7. Preferable shopping from the supermarket?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 4 20.0 20.0 20.0
2 8 40.0 40.0 60.0
3 6 30.0 30.0 90.0
4 2 10.0 10.0 100.0
Total 20 100.0 100.0
10

Interpretation- The graph studies the number of customers who prefers supermarket for their
shopping. The options are given to the respondents which are B&M, Home Bargains, Morrisons
and none. 4 respondents answers B&M, 8 respondents prefers Home Bargains , 6 respondents
prefered Morrisons and 2 of the respondents selected none.
8. The supermarket will provide best discount policies according to the customer?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 5 25.0 25.0 25.0
2 8 40.0 40.0 65.0
3 7 35.0 35.0 100.0
Total 20 100.0 100.0
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Interpretation- The graph interpreted that there are 5 respondents who suggested that b&m have
good discounting policies, 8 suggested home bargains and 7 suggested Morrison.
9. In which supermarket there is availability of wide range of the branded
products ?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 7 35.0 35.0 35.0
2 8 40.0 40.0 75.0
3 5 25.0 25.0 100.0
Total 20 100.0 100.0
12

Interpretation- the graph stated that out of 20 respondents 7 suggested that there is wide range of
branded products available in B&M, 8 suggested Home Bargains whereas 5 respondents
suggested Morrison,
10. The supermarket who provides best ambiance ans space in the shopping store?
Frequency Percent Valid Percent Cumulative Percent
Valid
1 4 20.0 20.0 20.0
2 8 40.0 40.0 60.0
3 8 40.0 40.0 100.0
Total 20 100.0 100.0
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Interpretation- From the above graph it is stated that the out of 20 respondents,4 answered that
B&M provides best spacing and ambiance in there stores,8 answered that Home Bargains
provides good space and ambiance, while 8 suggested that Morrison provides better services
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TASK 2
Secondary data collection
The secondary data collection is the process which is carried on after the primary data
collection. The secondary data is collected through the third party which is totally different from
the data collected in the primary data collection (Teece and Leih, 2016). The secondary data
provides the large and lengthy quantitative data and also the higher quality databases. The
common sources of collection of primary data includes censuses, information provided by
government departments, internet searches, libraries, also reports and records provided by
authorized organizations. The data collection in the secondary method is less time consuming
and effective as they are derived from the trusted and reliable sources. The secondary data
provides the basic research design to the researcher.
In the report the secondary collection of the data of companies Home Bargains, B&M
and Morrisons is collected from the internet search engines to determine effective growth and
development of companies in last three years (Morrison Supermarkets PLC,2019).
Formula
Current Ratio
The current ratio is referred to as liquidity ratio which determines the liquidity position of
the companies. The current ratio measures the company's ability of paying short-term obligations
related to the companies within the accounting year. The formula for current assets is:
Current Ratio= Current Assets/ Current liabilities
Quick Ratio
The quick ratio is also a liquidity ratio and it also determines position of the company in
meeting its short term liabilities through the liquid assets. The company's liquidity position is
determined by the near cash available which are assets which can be converted to cash quickly.
The formula for Quick assets is;
Quick Ratio= Quick Assets/ Current liabilities
Return on Capital Employed
Return on capital employed is financial ratio that measures profitability of a company. It
also measures the efficiency with which the company uses its capital. The return on capital
employed is used by investors in screening for suitable investment process. This is an important
profitability ratio which helps in the determination of earnings of the company.
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Return on Capital Employed = EBIT/ Capital Employed
Net Profit Margin Ratio
Net profit margins is equal to net income or profit which is generated as a percentage of
revenue. It is the ratio of net profits to revenues of a company or any business segments. Net
profit is the bottom line for a company. Net profit is also called as net margins of the company. It
defines the net profits earned by the company by effective utilization of the resources available
and capital acquired by the company in its normal functioning. The formula for Net Profit
Margin Ratio is:
Net Profit Margin Ratio = (Net Income/Net Sales)*100
Data of Financial
Year 2016
B&M TESCO Morrison
Current Ratio 2.33 0.81 0.48
Quick Ratio 0.48 68 0.24
Earning Before
Interest & Taxes
226 677 139
Earning per share 4.68 12.07 9
Return on Capital
Employed
11.71 6.72 5.18
Profit Margin Ratio 6.12 0.47 1.38
Above data states that there is maximum profit margin ratio of B&M in the year 2016
which determines that there more profitability in B&M than the other two companies.
Data for Financial
Year 2017
B&M TESCO Morrison
Current Ratio 2.21 0.78 0.41
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Quick Ratio 0.57 0.66 0.19
Earning Before
Interest & Taxes
286 645 270
Earning per share 3.61 13.09 13.77
Return on Capital
Employed
12.07 2.42 6.47
Profit Margin Ratio 5.88 0.1 1.87
The above table states that TESCO have a high EBIT than the other companies in the
year 2017.
Data of Financial
Year 2018
B&M TESCO Morrison
Current Ratio 1.57 0.71 0.41
Quick Ratio 0.22 0.59 0.18
Earning Before
Interest & Taxes
321 1721 255
Earning per share 4.89 14.77 13
Return on Capital
Employed
14.01 6.72 6.13
Profit Margin Ratio 6.41 1.01 1.8
From the above table it is concluded that there is high earning per share of the company
TESCO which shows that the shares of TESCO have more earning on each share as regards the
other two companies.
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CONCLUSION
The report concludes that the primary data is collected by the researcher in order to
collect the basic information from the customers and the general public. The collection of the
primary data is through asking questions, interviews, survey and sampling from a group of
persons. It is concluded that primary collection of data is easy and cost effective.
The report contains the collection of primary data for the companies B&M,Home
Bargains and Morrisons by the questionnaire method of data collection. The questionnaire
contained 10 questions regarding age, gender, preference of customers and also the choices of
the customers regarding the supermarkets in UK.
The report also concludes that secondary data collection is the data collection from the
information provided by government and public authorities which serves as a base for primary
research. The report stated a comparative analysis of the data of companies B&M, TESCO and
Morrisons.
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REFERENCES
Books and Journals
Demil, B. and et.al., 2015. Introduction to the SEJ special issue on business models: business
models within the domain of strategic entrepreneurship. Strategic Entrepreneurship
Journal.9(1). pp.1-11.
Devine, P. J. and et.al., 2018. An introduction to industrial economics. Routledge.
Ross, D. F., 2016. Introduction to e-supply chain management: engaging technology to build
market-winning business partnerships. CRC Press.
Teece, D. and Leih, S., 2016. Uncertainty, innovation, and dynamic capabilities: An
introduction. California Management Review.58(4).pp.5-12.
Online
Primary data source. 2017. [online]. Available through.
<http://methods.sagepub.com/reference/encyc-of-research-design/n333.xml>
Morrison Supermarkets PLC.2019. [online]. Available
through.<http://financials.morningstar.com/ratios/r.html?
t=MRW&region=gbr&culture=en-US>
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