Business Decision Making - Tesco
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Added on 2020-01-23
Business Decision Making - Tesco
Added on 2020-01-23
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BUSINESS DECISIONSMAKING
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1 Plan for the collection of primary data.............................................................................11.2 Survey methodology and sampling frame used................................................................21.3 Questionnaire on Sainsbury..............................................................................................3TASK 2............................................................................................................................................42.1 Summarize the data by using representative values and measures of dispersion.............42.2 & 2.3 Analysis of data......................................................................................................62.4 Analysis of quartile, percentile and correlation results....................................................74.1 Appropriate information processing tools........................................................................8TASK 3............................................................................................................................................93.1 Graph of Sainsbury and Tesco sales and operating profit and primary data....................93.2 & 4.1 Trend lines of Sainsbury and Tesco in respect to sales........................................173.3 Covered in PPT...............................................................................................................183.4 Formal business report...................................................................................................18TASK 4..........................................................................................................................................194.2 Critical path method.......................................................................................................194.3 Use of financial tools for decisions making...................................................................20CONCLUSION..............................................................................................................................24REFERENCES..............................................................................................................................26Index of TablesTable 1: Sainsbury’s sale and operating profit................................................................................4Table 2: Statistical measurement of Sainsbury sales and operating profit......................................5Table 3: Tesco sales and operating profit from FY 1997- FY 2012................................................5Table 4: Statistical measurement of Tesco sales and operating profit.............................................6Table 5: Quartile of Sainsbury in sales and operating profit...........................................................7Table 6: Quartile of Tesco in sales and operating profit.................................................................7
Table 7: Correlation of Tesco and Sainsbury between sales and operating profit..........................8Table 8: Calculation of payback period method............................................................................20Table 9: Calculation of ARR method............................................................................................21Table 10: Calculation of NPV.......................................................................................................22Table 11: Calculation of IRR.........................................................................................................23Illustration IndexIllustration 1: Sainsbury sales........................................................................................................13Illustration 2: Sainsbury operating profit.......................................................................................14Illustration 3: Tesco sales chart......................................................................................................15Illustration 4: Tesco operating profit.............................................................................................16Illustration 5: Which factor given below mostly affects your purchase decisions?......................17Illustration 6: Do you think that employees of Sainsbury treat customers in proper manner.......17Illustration 7: Do you think that employees of Sainsbury treat customers in proper manner.......19Illustration 8: Sales trend line of Tesco.........................................................................................20
INTRODUCTIONBusiness decision making is termed as most crucial aspect of business management thatis having direct impact on the performance and growth of company. For taking appropriatebusiness decision such as business expansion, cost control, sales management etc., severalelements are considered by managers of organization in the form of current businessperformance, potential growth within business environment etc. In addition to that success ofmanagement decision is greatly depending on appropriateness of business decisions. In order tosurvive in highly competitive market, an efficient decision making system helps managers inidentification of new sources of funds, expansion of business within new emerging market andreduction in expenses of organization. The present report is going to examine different aspects ofstrategic decisions and tools with reference to management operations of Sainsbury. It is one ofthe leading retail organizations of UK. It reports also determines the use of primary dataassociated with views of consumers in order to evaluate quality of different product and services.This report applies different kinds of statistical tools and concept in evaluation of profitability ofcompany along with current financial position of company. The study also evaluates theapplication of different investment appraisal tools through which business entity is able to takeappropriate investment decisions. TASK 11.1 Plan for the collection of primary data In order to conduct a research, one needs to collect primary and secondary data. Collection ofboth data is necessary for conducting a research. Primary data is a data that is collected for thefirst time by the researcher. Whereas, secondary data is a data that is already collected bysomeone and is available on the various sources of information. Collection of both data isnecessary for the research because by collecting secondary data, researcher comes to know aboutthe past scenario (Nahum-Shani and et.al, 2012). By comparing current condition with the pastscenario, researcher gets an insight about the ways through which he can form questionnaire forthe present research. Following are the techniques of primary research. Questionnaire- In this method, a paper is used through which a set of questions isdistributed among the respondents. These questionnaires may be open or closed ended innature. Open ended questionnaire is a questionnaire in which there is no option. This type1| P a g e
of questionnaire is distributed among the respondents who have good knowledge of thetopic. Whereas, close ended questionnaire is distributed among the respondents who havelimited knowledge of the topic. This tool is effective for the data collection and due tothis reason; it is widely used by the researcher for conducting a research.Group discussion/ Focus group or Interview- In this, a meeting is conducted underwhich experts carry out a discussion on the specific topic and arrive at the specific result.This sort of data collection technique is used when respondents are the intellectualpeople.Secondary data collectionThere are various sources through which secondary data can be collected by theresearcher. This includes newspaper, magazines, books and journals. Apart from this, internetcan also be used for collecting secondary data (O'Leary, 2013). Researcher can collectinformation from these sources of secondary data as per their requirements.1.2 Survey methodology and sampling frame usedSurvey methodologySample methodology refers to the methods that are adopted to collect data from varioussources of information. Under the survey methodology, appropriate sampling method is selectedfor conducting research as per the requirement of sample. Following are the various samplingtechniques that can be used by the researcher. 1.Simple random sampling- Under this sampling method, there is a population and fromthe same, sampling units are taken by the researcher. These sample units are takenrandomly. It means that researcher does not use specific parameter for collecting data.Researcher without considering any factor collects data for research. This samplingmethod is mostly used when respondents with specific income level, religion and otherfactors are not required for the research (Basak, 2012). In other words, it can also be saidthat this method of research is used when any person can be taken as sample in theresearch. Hence, for conducting normal research, this method is widely used by theresearchers. 2.Stratified random sampling- This method of sampling is totally different in comparisonto simple random sampling. Under this method of sampling, entire population is dividedinto several parts by using income level, age factor and religious factors. It depends on2| P a g e
the researcher that on the basis of which factor he divides entire population into variousstrata. This method is suitable when data is needed to be collected from various types ofpeople in order to collect information about the consumer behavior (Marjudi and et.al,2012). Like simple random sampling, this method of sampling is also widely used by theresearcher.1.3 Questionnaire on Sainsbury Name- Age20-30 years30- 40 years40-50 years50-60 yearsGenderMaleFemaleUp to what time period, you are the customer of Sainsbury’s?1-2 years2-5 years6-10 yearsMore than 10 yearsHow was your experience while you make a purchase from Sainsbury’s?ExcellentGoodSomewhatBadVery badWhich factor mostly affects your purchase decision?PriceQualityDo you think that employees of Sainsbury treat customers in a proper manner?Excellent3| P a g e
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