Exploring Financial Performance and Decision Making
Added on 2019-12-03
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Business Decision Making 1
TABLE OF CONTENTINTRODUCTION...........................................................................................................................6TASK 1............................................................................................................................................61.1 Research plan for primary and secondary data collection on consumer behaviour andattitudes towards food discount retailing in Greater London......................................................61.2 Survey methodology and sampling frame.............................................................................71.3 Questionnaire for a survey.....................................................................................................7TASK 2..........................................................................................................................................112.1 Summarizing data using representative values (arithmetic mean, median and mode)........112.2 Analyses of the results to draw valid conclusions for Wm Morrison Supermarkets Plc....282.3 Analyses data using measures of dispersion to inform a given business scenario (standarddeviations)..................................................................................................................................292.4 Quartiles, percentiles and the correlation coefficient are used to draw useful conclusions ina business context......................................................................................................................29TASK 3..........................................................................................................................................313.1 Presentation of graphs using spread sheets and conclusions based on the informationderived from the business Scenario...........................................................................................313.2 Create trend lines in spread sheet graphs to assist in forecasting sales revenue WmMorrison, JS Sainsbury’s, Lidl Ltd and Aldi.............................................................................343.3 Business presentation using suitable software and techniques to disseminate informationeffectively..................................................................................................................................353.4 Business report forWm Morrison Plc on the threat of discounted food retailers and itsresponse towards the threats......................................................................................................35TASK 4..........................................................................................................................................36ANSWER FOR NICOLETA SANDU..........................................................................................362
4.1 Appropriate information processing tools for operational, tactical and strategic leveldecisions at Wm Morrison Supermarkets Plc............................................................................364.2 Plan for the activity and determination of the critical path for Wm Morrison plc..............374.3 Application of financial tools (such as NPV, IRR) for making financial decision for WmMorrison....................................................................................................................................39ANSWER FOR MIHAI SANDU..................................................................................................41CONCLUSION..............................................................................................................................41REFERENCES..............................................................................................................................42REFLECTIVE STATEMENT OF NICOLETA SANDU.............................................................44REFLECTIVE STATEMENT OF MIHAI SANDU.....................................................................44 | P a g e
TABLE OF FIGURESFigure 1: Column bar graph...........................................................................................................15Figure 2: Line graph for Sale revenue...........................................................................................15Figure 3: Histogram for sales revenue of Wm Morrison...............................................................16Figure 4: Histogram for sales revenue of J Sainsbury...................................................................16Figure 5: Histogram for sales revenue Lidl Ltd.............................................................................17Figure 6: Histogram for sales revenue of Aldi..............................................................................17Figure 7: Trend line graph.............................................................................................................18Figure 8: Gantt chart for new product development project of Wm Morrison.............................21Figure 9: Network Diagram for new product development project of Wm Morrison..................214
LIST OF TABLESTable 1: Summarize table for collected data.................................................................................10Table 2: Calculation of mean, mode and median..........................................................................11Table 3: Calculation of Quartile and percentile.............................................................................13Table 4: Secondary data collection of sales revenue and profit for determining correlationcoefficient......................................................................................................................................13Table 5: Calculation Correlation Coefficient................................................................................14Table 6: Activity table for new project development project of Wm Morrison............................19Table 7: Calculation of Net Present Value for Project A and B....................................................22Table 8: Calculation for the internal rate of return for project A..................................................23Table 9: Calculation for the internal rate of return for project B...................................................235
INTRODUCTIONBusiness decision making is one of the crucial and important functions for each and everyorganization in which management of the company needs to choose appropriate course of actionamong several alternatives (Jankowicz, 2005). The current research study is based on businessdecision making and regarding this, it has chosen Wm Morrison Supermarkets Plc. This researchreport is based on a case study. Major aim of present study is using different techniques forcollecting and analyzing the useful information for making appropriate business decisions.Therefore, it will comprise different sources of primary and secondary data collection. Alongwith this, it evaluates ranges of techniques to analyze the data effectively for business purpose.Research will also comprise different tools for taking operational management decisions fororganization.Wm Morrison Supermarkets Plc is the fourth largest food retailers in UK. Annualturnover of this organization is 2013 was £18bn and it is operating its business all over the world.It has 500 stores across the UK which includes 12 convenience formats.TASK 11.1 Research plan for primary and secondary data collection on consumer behaviour and attitudes towards food discount retailing in Greater LondonAs per the given case study, vision of Wm Morrison is to make it ‘Different and Betterthat Ever’. Including this, organization is focused on three objectives which include driving thetop line, increasing efficiency and capturing growth. Management of the organization requiresdifferent information for making appropriate decisions to complete the vision. Researcher willuse appropriate tools and techniques for obtaining primary and secondary facts and figures(Banerjee, 2006). Further, author will use a systematic research plan for obtaining supportinginformation for business decision making which is described as under:Research plan for primary data collection:It is one of the important methods for collecting fresh and new information fromrespondents which will help in taking appropriate decisions for organization. Researchdepartment of Wm Morrison will use online survey of customers of the company usingquestionnaire. It will be conducted in Greater London and will be based on customer behaviourand attitudes towards food discount retailing by Wm Morrison (Akpolat and Pitinanondha,6
2009). Online survey is one of the important methods for collecting primary information becauseit helps in saving time and cost of the organization. It will also assist in gathering appropriateinformation because questionnaire will comprise various open and close ended questionsrelevant to the customer’s behaviour and attitude towards discounted and non-discounted foodproducts and services of Wm Morrison.Research plan for secondary data collectionManagement of Wm Morrison will require historical information for forecasting thefuture performance of the company (Fitsimmons, 2009). So, researcher will use different sourcesfor collecting secondary information. These sources include books, journals, articles, researchpapers, annual report of Wm Morrison, etc. Therefore, collection of secondary data will assistmanagement in making financial and operational decisions for organization (Morrison (Wm)Supermarkets PLC –MRW, 2015). 1.2 Survey methodology and sampling frameSurvey Methodology:Researcher will conduct survey of customers of Wm Morrison of Greater London. Thewhole survey will be based on consumer behaviour and attitudes towards the food retaining byWm Morrison. Survey will be carried on adults in Greater London. Regarding this, author willcollect email ids of selected customers and then will conduct online survey. It will help in gettingprimary information for business decision making (Morato, 2013). Sampling frame:For conducting primary investigation, author needs to select appropriate sample fromresearch universe. Random sampling method will be used by researcher. It will be significantbecause it provides equal chance to each and every customer of food retailers to get selected insample. Sample will be selected from the adult population and each customer will be aged 18and over (Greasley, 2007). The sample size will be 50 which will help in representing the wholeresearch universe. 1.3 Questionnaire for a survey1.Demographic information of customers of Wm Morrison:Name: | P a g e
Age: Gender: Occupation: 2.What is your working status?WorkingNonworking3.What is your marital status?MarriedUnmarried4.Do you purchase feed products from discount retailing shops by Wm Morrison?YesNo5.How much distance you need to travel for making purchase from regular food discountretailers?<1 Km1-5 Km5-10 Km>10 Km6.What is the major reason behind the use of products and services of discount foodretailers of Wm Morrison?High price of food products For getting discountFor getting high quantity of products in less moneyFor reducing food expensesFor getting appropriate value of money7.How frequently you use food products from discount food retailers?Daily basisOnce in a weekOnce in a monthOnce in three months8.How much time you take for shopping at discount food retailer by Wm Morrison? | P a g e
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