Business Decision Making Process Analysis

The provided document is an analysis of the business decision-making process. It discusses how companies use various methods to analyze new trends in markets, tastes, and preferences of customers. The document also mentions that in the UK, discounted products are more preferred than branded ones. Therefore, a company setting up a new business in this area should establish it by providing as much discount as possible with good quality products to capture the entire market easily. This analysis is based on data from primary sources and studies such as those published in journals like The Journal of Socio-Economics and International Journal of Project Management. The document concludes that business decision-making processes are used by companies to analyze new trends in markets, tastes, and preferences of customers.

Business Decision
Making

EXECUTIVE SUMMARY
This report concise about the business decision-making process which help managers to
take effective decision for the company. This report contains the research methodology which is
used by researchers to carry out the research to find out the customer preference about the
discounted product and and other UK big supermarkets. It also shows the detailed analysis of
market share and operating profit of UK big supermarkets.

Table of Contents
EXECUTIVE SUMMARY..............................................................................................................2
INTRODUCTION...........................................................................................................................1
DATA COLLECTION.....................................................................................................................1
Primary Data...........................................................................................................................1
Secondary Data.......................................................................................................................2
Survey Methodology and Sampling Methods........................................................................2
Questionnaire..........................................................................................................................4
Responses...............................................................................................................................5
DATA ANALYSIS...........................................................................................................................6
Primary data............................................................................................................................6
Secondary Data.....................................................................................................................11
RECOMMENDATION..................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business decision making is a process which is used by companies to make a
effective decision before starting a new business or entering in a new market (Akpalu,
Alnaa and Aglobitse, 2012). Companies conduct different types of research to find out a
new trends and chances of their survival in a tough market competition. It is beneficial
for companies to conduct research before entering in a new product or starting up a
new business this help them to save its resources. With the help of these research
companies check their survival and idea of starting a new product line or new market,
these research gives a company feedback that whether they should carry out their new
project or not. The following report consists of various research methodology, types of
data collection techniques and types of data required by Full discount Ltd to open a new
store in UK market and to compete with previous established players of that particular
market i.e., B&M and Home Bargains. This report contains primary data collected from
different consumers who are availing the services of these two companies in UK market
and secondary data is obtained from various other sources, it also includes analysis of
both data secondary as well as primary.
DATA COLLECTION
Data used in a research are classified into mainly two parts i.e., Primary Data
and Secondary Data (Smyth and Lecoeuvre, 2015). These data help companies to
analyse it and prepare for the future plans of company, and also to identify problems
prevailing in society and market.
Primary Data
Primary data are the data which is collected directly by the researcher from
population or sample of study. These are directly collected from sources like individuals,
group of individuals etc. these are first hand data which is collected by a researcher
itself and is not altered. There are various techniques for collection of these data such
as Questionnaire, personal interviews, focus groups, survey etc (Bogner, 2014). data
collected from these various sources are analysed by researcher to draw a conclusion
and find out a solution of that particular problem. In the above given case scenario the
problem identified is that a company want to start a new discounted superstore in UK
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market and is planing to offer lowest price for any product by launching a discounted
super market chain. The problem identified above is survival of company in this market
condition where two existing market players have captured whole market. Through
primary data collection company wants to know the requirements of customers and
there preference for discounted product or branded product.
Secondary Data
Secondary data is considered as a second hand data, which is already being
used by some other researchers (García-Peñalvo and Conde, 2014). These secondary
data can be collected through various sources such as new paper articles, observation,
different web sites and etc. these data are later on analysed by researcher to draw a
conclusion and provide with a solution to overcome the problem which previous
researchers failed to provide. While working with a secondary data researcher try to
provide a solution for problems which previous researchers failed to give. In the above
case company want secondary data to analyse market growth, stability and
performance of existing players which are B&M and Home Bargains. With the help of
data collected from these sources and identifying the market growth and stability of
these companies Full discount Ltd want to make plans to stabilise itself and capture
their market share.
Survey Methodology and Sampling Methods
Survey: Survey is called as a research method which is used by a researcher to
collect data from a predefined sources, these source may include a group of respondent
who want to share their own insights on a topic of interest (Hair Jr and et.al., 2015). For
collection survey various methods are used by researcher as discussed below:
 Questionnaire: It is defined as a research instrument which contains a
predefined set of questions related to a problem identified by a researcher with
an aim to collect information from different respondent. Questions in any
questionnaire can be open ended, close ended or mix of both.
 Interview: It a conversion between two parties interviewer and interviewee,
where a question is asked by an interviewer and interviewee gives a response
according to his knowledge in that particular area (Provost and Fawcett, 2013). It
refers to a one to one conversation between these two parties. Interview can be
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of many types such as online interview, telephonic interview, structured interview
and many others.
Above mentioned are two types of survey methods commonly used by researchers to
collect data in the above given scenario questionnaire methods is used for survey in
order to collect data regarding consumers preference towards discounted products or
branded products.
Sampling: Sampling is a process of choosing respondents from a total
population. It can be done through various methods depending upon the type of
research analysis which is being performed (Rutherford and et.al., 2012). The sample
which is taken should give a proper representation of the complete population.
Following are some methods of sampling:
 Simple Random Sampling: In this method of sampling a respondent is selected
on a random basis, probability of getting selected is same for every respondent
present in a population. In simple random sampling process chances of getting
bias error is increased and it is subtracted from total sample.
 Systematic Sampling: In this method of choosing sample a systematic sample
frame is designed and a respondent is selected on a regular interval basis. This
interval is used to ensure that an adequate sample is selected. This method is
more convenient than simple random sample.
 Quota Sampling: In this type of methods sample is selected on basis of a
criteria level set by a researcher (Quanyu, Tong and Leonard, 2013). This type of
method is used by a market researcher. Main advantage with this type of
sampling method is that, respondents who are selected is directly relative to
problem for which a researcher is trying to find a solution.
 Snowball Sampling: This type of sampling method is used when a research is
being conducted in social science while investigating a group population which is
hard to reach (Sutherland and et.al., 2012). In this a respondent is asked to
nominate a further respondent in order to investigate about the problem and so
on forming a snowball.
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In the above given case for a purpose of research and to identify a trend in a market full
discount Ltd is using a simple random sampling method as company just want to know
a preference of customers liking or disliking for a product.
Questionnaire
QUESTIONNAIRE
Name:
Age:
Gender:
Contact no.
Q1) Are you satisfied from products and services of B&M ?
a) Yes
b) No
Q2) What are the different factors which attract you the most?
a) Cost
b) Location
c) Quality
d) Discounts
Q3) According to you, does Home Bargains able to provide the satisfactory
products and services?
a) Yes
b) No
Q4) What do you prefer the most ?
a) Discounted product
b) Big supermarkets
Q5) Does discounted products attract you the most?
a) Yes
b) No
Q6) On the basis of your point of view, can Tesco gain the competitive
advantages by beginning its new discount chain?
a) Yes
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b) No
Q7) Why do you prefer the discounted products?
a) Product variety
b) Home delivery
c) Ambience
d) Space
Q8) What are the different ways through which B&M can compete with Tesco?
a) Offers
b) high quality product
c) Online service
Q9) According to your opinion, how companies can determine your needs?
a) Feedback forms
b) Interviewing customers
c) Conducting follow me research
Q10) Recommend some ways through which Full-Discount Ltd. can sustain in
competitive market for long time period.
Responses
Q1) Are you satisfied from products and services of
B&M ?
Frequency
Yes 8
No 2
Q2) What are the different factors which attract you the
most?
Frequency
Cost 3
Location 1
Quality 2
Discounts 4
Q3) According to you, does Home Bargains able to Frequency
5

provide the satisfactory products and services?
a) Yes 7
b) No 3
Q4) What do you prefer the most ? Frequency
a) Discounted product 8
b) Big supermarkets 2
Q5) Does discounted products attract you the most? Frequency
a) Yes 6
b) No 4
Q6) On the basis of your point of view, can Tesco gain the
competitive advantages by beginning its new discount
chain?
Frequency
a) Yes 5
b) No 5
Q7) Why do you prefer the discounted products? Frequency
a) Product variety 5
b) Home delivery 2
c) Ambience 1
d) Space 2
Q8) What are the different ways through which B&M can
compete with Tesco?
Frequency
a) Offers 2
b) high quality product 5
c) Online service 3
Q9) According to your opinion, how companies can Frequency
6

determine your needs?
a) Feedback forms 7
b) Interviewing customers 2
c) Conducting follow me research 1
DATA ANALYSIS
Primary data
THEME 1: Satisfied from products and services of B&M
Q1) Are you satisfied from products and services of B&M ? Frequency
Yes 80.00%
No 20.00%
mean 5
median 5
mode 0
Yes No
0
0.2
0.4
0.6
0.8
1
Frequency
THEME 2: Different factors which attract you the most
Q2) What are the different factors which attract you the
most? Frequency
Cost 30.00%
Location 10.00%
Quality 20.00%
Discounts 40.00%
mean 2.5
median 2.5
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mode 3
Cost Location Quality Discounts
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
Frequency
THEME 3: Does Home Bargains able to provide the satisfactory products and
services?
Q3) According to you, does Home Bargains able to provide
the satisfactory products and services? Frequency
a) Yes 70.00%
b) No 30.00%
mean 5
median 5
mode 1
8

a) Yes b) No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
Frequency
THEME 4: Preference of customers
Q4) What do you prefer the most ? Frequency
a) Discounted product 80.00%
b) Big supermarkets 20.00%
mean 5
median 5
mode 0
a) Discounted product b) Big supermarkets
0
2
4
6
8
10
THEME 5:Does discounted products attract you the most?
Q5) Does discounted products attract you
the most? Frequency
a) Yes 60.00%
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b) No 40.00%
mean 5
median 5
mode 2
a) Yes b) No
0
2
4
6
8
Frequency
THEME 6: Can Tesco gain the competitive advantages by beginning its new
discount chain?
Q6) On the basis of your point of view, can
Tesco gain the competitive advantages by
beginning its new discount chain? Frequency
a) Yes 50.00%
b) No 50.00%
mean 5
median 5
mode 0
a) Yes b) No
0
2
4
6
Frequency
THEME 7: Preference for the discounted products?
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Q7) Why do you prefer the discounted
products? Frequency
a) Product variety 50.00%
b) Home delivery 20.00%
c) Ambiance 10.00%
d) Space 20.00%
mean 2.5
median 2
mode 1
a) Product variety
b) Home delivery
c) Ambiance
d) Space
0
2
4
6
Frequency
THEME 8: Different ways through which B&M can compete with Tesco?
Q8) What are the different ways through
which B&M can compete with Tesco? Frequency
a) Offers 20.00%
b) high quality product 50.00%
c) Online service 30.00%
mean 3.3333333333
median 3
mode 2
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a) Offers
b) high quality product
c) Online service
0
1
2
3
4
5
6
Frequency
THEME 9: How companies can determine needs?
Q9) According to your opinion, how
companies can determine your needs? Frequency
a) Feedback forms 70.00%
b) Interviewing customers 20.00%
c) Conducting follow me research 10.00%
mean 3.3333333333
median 2
mode 0
a) Feedback forms
b) Interviewing customers
c) Conducting follow me research
0
2
4
6
8
Frequency
Secondary Data
Market Share
Discounted Store 2016 2017 2018
B&M 19.06% 16.28% 19.76%
Amount in 2035 2431 3030
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08/07/1905
0
0.05
0.1
0.15
0.2
0.25
19.06% 16.28%
19.76%
Market Growth
B&M
Interpretation: The above graph shows market growth of B&M, total revenue
generated in year 2016 was 2035 which shows a growth of approx 19% followed by
year 2017 it recorded it total revenue at 2431 in this year growth of company came
down to approx 16% but later in the year 2018 it recorded it revenue at 3030 with a total
growth rate of 19.76%. From the above given information it can be established that
B&M are doing very good in the market as compared to big supermarkets company
showed a steady increasing growing at an average of 18% annually, this states that
discounted stores can do better than big supermarkets.
Big Supermarket 2016 2017 2018
Tesco -14.52% 2.60% 2.73%
Morrison 1.6% 1.4% 2.3%
Sainsbury -0.6% 2% 0.4%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
Tesco
Morrison
Sainsbury
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Interpretation: The above graph shows market growth and total revue generated by
Tesco Ltd, in year 2016 the annual revenue generated by the company is recorded at
54433 with a negative growth of -14.52% this stated that company's revenue is
declined in year 2016 by approx 14% followed by next year 2017 it earned total revenue
of 55917 with 2.60% growth and later in the year 2018 revenue generated by company
is recorded at 57491 with an annual growth of 2.73%. from the above given graphs and
tables it is established that the company's growth is slow with an average rate of approx
2%. The above graph shows the market growth of Morrison in the year 2016 was
reported at 1.6% in the year 2017 the it showed an decline to 1.4% whereas in the year
2018 the market growth fell by 0.9% but still recorded a growth of 2.4%. Sainsbury
showed market growth at -0.6% in the year 2016 but quickly recovered it growth in the
year 2017 reported at 2% but in the year 2018 it again fell down to 0.4% which states
the health of Sainsbury at a declining stage.
Operating Profit
Discounted Store 2016 2017 2018
B&M 8.89% 8.41% 7.91%
Amount in 181 205 240
08/07/1905
0.07
0.08
0.08
0.09
0.09 8.89%
8.41%
7.91%
Operating Profit
B&M
Linear (B&M)
Interpretation: The above graph shows a decrease in the percentage of operating
profit but still there is a increase in their profit. It states that B&M is earning more profit
but at a declining rate. Total operating profit recorded in the year 2016 was 181 with the
percentage increase of 8.89% followed by year 2017 it recorded total operating profit
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before interest and tax is stated at 205 with a reduced percentage of 8.41% later in the
year 2018 company earned a total operating profit of 240 with a percentage of 7.91%.
From the above graphs it is clearly stated that company is earning huge profit but with a
reducing average rate of approx 7.5%
Big Supermarket 2016 2017 2018
Tesco 1.80% 2.09% 2.72%
Morrison 1.35% 2.67% 2.54%
Sainsbury 3.01% 2.45% 1.82%
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
3-D Column 1
Tesco
Morrison
Sainsbury
Interpretation: The above graph shows operating profit and percentage increase in
Tesco Ltd, from the above graph it can be stated that total operating profit earned by
company in year 2016 is marked at with 1.8% increase later followed by year 2017 with
a percentage increase of 2.09% it recorded it operating profit at , in the year 2018 the
operating profit of company was stated at with 2.72% increase. From this data provided
above it can be established that company is growing but with a slow average rate of
return of approx 2%. The above graph showed operating profit earned by Morrison in
the year 2016 was reported at 1.35% and in the year 2017 it raised to 2.67% whereas in
the year 2018 it fell down to 2.54% which states the significant growth in the operating
profit of the company. The above graph also states the operating profit which was
earned by Sainsbury in the year 2016 was reported at 3.01% in the year 2017 it fell
down to 2.45% it continued to go down in the year 2018 it went down to 1.82% which
shows that the operating profit of the Sainsbury is declining.
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RECOMMENDATION
From the above analysis it is recommended that company should go for its
project of establishing a new business to provide products at lower price. From the
research and data collected from primary sources it is analysed that maximum number
of customer prefer discounted product rather than branded product. If company wants to
establish its store than it is recommended that it should provide as much discount as
possible with a good quality product which will help them to capture entire market easily
form the analysis of market growth and operating profit it is established that market
growth for discounted product is increasing with a high rate of return.
CONCLUSION
From the above report it is concluded that business decision making process is
used by companies to analyse new trends in market, taste and preference of different
customers. To analyse these trends companies conduct surveys. It also includes
various methods of conducting surveys and types of data required. The above reports
also concludes that in UK discounted product is more preferred than branded product
and company setting up new business is this area should establish it.
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