Business Decision Making

This presentation explores various aspects of business decision making, focusing on Tesco's pricing strategy, competitive advantage, and customer experiences. It also discusses the potential future value of Lidl and Aldi in comparison to Tesco. The presentation analyzes sales trends and emphasizes the importance of trend analysis and simulation in making accurate business predictions. Additionally, it provides insights into project management techniques like Gantt charts and network diagrams.

BUSINESS DECISION MAKING

Do you agree with the fact the Tesco is making
available products at cheaper price then rival firms
Strongly agree Agree Somewhat agree Disagree Highly disagree
0
5
10
15
20
25
30
35
Column C

Interpretation
It can be seen from the chart that most of the
respondents think that Tesco is making available
products at cheaper price then its rival firms. This is
the reason due to which most of respondents like to
make purchase from Tesco. It can be said that firm is
following correct business strategy in terms of
competitive advantage over competitors.

Tesco current price policy is proving
costly for its business. Do you agree ?
Strongly agree
Agree
Somewhat agree
Disagree
Highly disagree
0 5 10 15 20 25
Column C

Interpretation
From facts it is clear that most of the respondents think
that price policy that is adopted by Tesco is proving
costly for itself. 20 are strongly agree with this fact and
10 are agree and somewhat agree with same statement.
15 are disagree and 5 are highly disagree with same
statement. On this basis it can be said that firm policy
to sale product at low price is not good for its business.

Lidl and Aldi the two German stores are rapidly
increasing there presence in the UK market. Do you
think that one of them may surpass Tesco in terms of
business value in future time period
Yes
No

Interpretation
It is evident from the fact that most of respondents
think that in future German retiel firms which are Lidl
and Aldi will surpass Tesco. Out of 60 respondents 50
are agree with this fact and only 10 are disagree with
same statement. People are giving these answers
because these two firms growth rate is very high
relative to Tesco and they are also selling products at
low price.

How was your experience in Tesco
retail store ?
Good Somewhat good Worst
0
5
10
15
20
25
30
35
Column C

Interpretation
It is clear from chart given above that most of
respondents think that there experience at Tesco was
good. 30 out of 60 respondents think that firm is
treating its customer's in proper manner and making
available right type of product to the people. 20 out of
60 think that service at Tesco is of medium quality and
10 think that service quality of the firm is very poor. It
is concluded that most of respondents are satisfied
from firm service.

Trend line for Tesco
1 2 3 4 5
48000
50000
52000
54000
56000
58000
60000
62000
64000
66000 64539 64826
63557
62284
54433
Column C
Linear (Column C)

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
48000
50000
52000
54000
56000
58000
60000
62000
64000
66000
Column C
Linear (Column C)

Interpretation
Trend line is a method that is used to make prediction n the business. It
can be seen that trend line is moving downward in the diagram. Whether it
is line diagram or scatter chart it can be seen that line is moving downward
. This means that in future time period sales of the firm will decrease
which will be bad for the business. However, managers can not entirely
rely on this method because it makes a reduction on the basis of previous
year figures. It is not necessary that in future years also sales of the firm
will decrease. Hence, mangers of the firm may use simulation method
under which different situations can be projected by the firm managers and
they can test probability of earning specific amount of return in these
situations. This will, help firm in making accurate prediction because
managers can predict likely movement in the market on the basis of there
experience. On this basis they can estimate the return that firm may earn in
its business.

Continue
There are many software's that are available to the business firms for
simulating specific business situation. Firm can use any of these software's
to do simulation. Risk analyzer add-in are also available to business firms
that they can use in Microsoft excel by installing same. Hence, due to
installation of specific add-in many new options comes in excel that can be
used to do a simulation in much better way . It is responsibility of the
managers to make prediction about the future conditions in accurate way.
This is because if they will make wrong prediction then simulation will also
show wrong results and firm will make wrong business decisions on the
basis of results of simulation. Hence, it is very important for managers to
make accurate estimation of past condition's. In this regard group
discussion can be carried out between firm Board of Directors and future
changes that may occur can be identified clearly by the business firm.

GANTT chart

Network diagram

Interpretation
Network diagram is one of the most important method that is
used in the project management. This method is used to
determine the sequence in which activities must be performed
so that cost can be reduced and project can be completed on
time . From diagram it is clear that activities will be performed
in sequence of 1+4+6+8+10 which means it will be completed
in 27 days. If any activity of the project will be completed by
taking more then allocated time then cost of project will
increase and same will not be completed on time. Hence, it is
very important to perform or implement this project in
determined sequence.

REFERENCES
Huber, P.J., 2011. Robust statistics . Springer Berlin Heidelberg.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship:
Impact of business training on microfinance clients and
institutions. Review of Economics and Statistics. 93(2). pp.510-
527.
Saunders, M.N., 2011. Research methods for business students, 5/e.
Pearson Education India.

Thank you