Business Decision Making Report: UK Discount Supermarket Launch

This report provides an executive summary and detailed analysis of business decision-making for Full-Discount Limited, focusing on launching a discount supermarket chain in the UK. The report encompasses market research, including both primary and secondary data collection methods. Primary data was gathered through questionnaires to assess customer preferences and demographics, while secondary data involved analyzing market shares and financial information. The analysis includes data interpretation through charts and graphs, covering various aspects like customer gender, age groups, preferred shopping locations, and factors influencing purchasing decisions. Key findings reveal insights into customer behavior, financial capabilities, and potential challenges for the new venture. The report concludes with recommendations to assist management in making informed decisions for establishing a successful discount supermarket in the UK market, including identifying the most profitable locations, and understanding customer preferences. The report also includes a discussion of survey methodology and sampling methods used in the research.

Business Decision Making

EXECUTIVE SUMMARY
Business decision-making is an important concept which is required full considerations
of whole aspects so that any difficulty wouldn't be faced in future. This report is related with a
market research which is conducted by research team of full Discount Limited so that they can
establish their own discount supermarket successfully in UK. For conducting research in
appropriate manner, Investigators have collected both kind of data like primary or secondary so
that products can be delivered in market as per the demand of customers. Findings and
recommendation are also covered in present report so that management can take better decisions
for establishing new venture in UK market.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
Main Body.......................................................................................................................................4
Primary Data Collection - ...............................................................................................................4
Data Interpretation and Analysis ....................................................................................................7
Secondary Data .............................................................................................................................19
..........................................................................................................................................................3
Key findings.....................................................................................................................................3
Conclusion and Recommendation..................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Decision-making in business can be defined as a technique of selecting a suitable option
from several alternative availabilities. In addition, it is a process of making best or appropriate
decisions through evaluating available informations. These are formed by the top management so
as to gaining profitable outcomes in future. In order to making correct decisions it is very
important that research should be performed properly along with related aspects. Present report is
based on Full-Discount limited which is a newly setup company and wants to launch its discount
supermarket chain in UK so as to compete their rivals like B&M and Home bargains. This
assignment will covers primary data collection along with analysis that includes various kind of
questions which are based on preferences and demographics of customers. In addition, secondary
data will be also collected that is based on Market shares and earnings before tax and interests.
Main Body
Planning for data collection is very important in order to establish the business. It also
facilitates the management of organisation in identifying the demand, preferences and factors
that provides contribution in smooth functioning of business. Therefore, it can be said that
Market research is an important function that must be done in first hand manner so that by
satisfying the needs of customers in effective manner managers of firm can gain good return in
future. In order to collect data for launching discount supermarket chain in UK market research
will be conduct that comprises of both primary or secondary data (Visinescu, 2017).
Primary Data Collection -
This kind of data collection is first hand data which is gathered by investigator for the
very first time. As it is relevant with the topic then there is a less chance of manipulation of data.
For collecting such kind of data surveyor can use different kind of sources like questionnaire,
surveys, Panel Interviews etc. In present research, data would be gathered from customers like
men or women in order to know their preferences or identifying the factor which attracts
customers towards discount supermarkets. For this, researcher have decided to frame a
questionnaire so that valid results would be given at the end of research. With the help of this
data Management of Full-Discount Limited will be able in forming strategies which will be
helpful in improving their existing performance.

Secondary Data collection - In it, informations are gathered from external sources like
books, journals, websites, catalogues so that all objectives of research would be accomplish in
given time- frame. This kind of data collection is cheaper than the other data collection methods
and also assists the investigators in understanding and providing reliable results in a very less
time period. Sources which are used in this project for establishing new Discount supermarket
are avail from internet sources along with 3 years data on market shares and EBIT.
Survey Methodology is an essential method which is used by researchers for collecting
better informations for establishing discount supermarket in UK. It also support the researcher to
take views from large population by implementing data collection techniques. For e.g. through
questionnaire, researchers can collect data for the full discount limited who wants to launch its
own discount supermarket chain. In order to successfully conducting the research, researcher has
selected questionnaire method so that better results would be provided at the end of research.
Sampling methods – These methods are used for selecting a sample from a general
population. There are mainly two kinds of data sampling methods like Probability or non-
Probability in which convenience sampling method which is a part of non-probability is used in
this research because it is cost and time saving for the researcher and assist the researcher in
getting reliable response from the selected respondents in a short time period. In present
scenario, Managers of firm wants to identify preferences and taste of customers about the
discount supermarket (Peng, 2016). For this, researcher has targetted the respondents for
research are employees, stakeholders or customers and sample size is decided for the study is 50.
Questionnaire – It is a set of written questions which is given by researcher to its
selected respondents for collecting reliable informations from them.
Questionnaire
Name _______________
Q.1 What is your Gender ?
 Male
 Female
Q.2 In which age group you belongs ?

 20-30 years old
 30-40 years old
 40-70 years old
Q. 3 Which place you prefer most to buy products ?
 Supermarkets
 Discounted supermarkets
 Local shops
Q.4 How do you think physical presence of a supermarket should be ?
 Excellent
 Good
 Average
Q 5: Which factor attracts most to the buyers for buying products and services ?
 Quality of goods
 Price
 Looking of product
Q. 6. Is Full-Discount Limited financially capable for launching new supermarket in UK ?
 Agree
 Strongly Agree
 Disagree
 Strongly Disagree
Q. 7. Does pricing of product affect the buying behaviour of customers?
 Yes
 No
Q. 8: What kind of products do you buy most from the supermarket ?

 Grocery items
 Clothes
 others.....
Q. 9: How much distance you willing to cover to reach your favorite supermarket ?
 No more than 10 minutes
 Up to 25 minutes
 Up to 60 minutes
Q. 10. Is it beneficial for company to offer loyalty cards to their customers ?
 Yes
 No
Q. 11 What challenges faced by Full-Discount Limited while launching its new venture in
UK ?
 Lack of financial resources
 High rivalry competition
 Lack of support from employees
Q. 12 Which city of UK become more profitable for company to launch its new venture ?
 Central London
 Bristol
 Manchester
 Others
Data Interpretation and Analysis
Q.1 What is your Gender ? Frequency
 Male 35
 Female 15

35
15
Male
Female
Interpretation – It has been identified from the above bar chart that most of the taken
respondents are male. In reference with questionnaire 35 out of 50 respondents are male and
remaining are female. Mean of the above graph is 25, median is 15 whereas, S.D is higher than
expectations.
Q.2 In which age group you belongs ? Frequency
 20-30 years old 16
 30-40 years old 14
 40-70 years old 20

20-30 years old
30-40 years old
40-70 years old
0 2 4 6 8 10 12 14 16 18 20
Frequency
16
14
20
Interpretation- From the above graph it has been clearly identified that 16 respondents
are belongs from 20-30 years old. Other 14 are included in 30-40 age group and remaining
respondents are comes in the age of 40-70. Mean for the given chart is 16.67, Median is 20
whereas Standard deviation can't be calculated because of unfavourable figures.
Q. 3 Which place you prefer most to buy products ? Frequency
 Supermarkets 18
 Discounted supermarkets 12
 Local shops 20

Supermarkets Discounted supermarkets Local shops
0
2
4
6
8
10
12
14
16
18
20
Frequency
18
12
20
Interpretation – It has been clearly identified from the above chart that most of
respondents are prefers local shops such as 18 out of 50 gave their views on supermarket and
other 12 says that discounted supermarkets are most preferred place for buying products. Apart
from that, remaining 20 said that they purchase products from local shops. Mean for this graph is
16.67, S.D is higher than 1 whereas, median is 20.

Q.4 How do you think physical presence of a supermarket should be ? Frequency
 Excellent 19
 Good 12
 Average 9
19
12
9
Excellent
Good
Average
Interpretation – From the above chart, It has been clearly analysed that physical
presence of a supermarket should be attractive in nature so that large number of customers get
attracted towards the shop. In reference with this, 19 respondents gave their views that physical
presence of supermarket should be excellent whereas other 12 gave their views on good and
remaining says that physical presence of shop must be average. Mean is 13.33, median is 9
whereas, S.D can't be calculated due to unfavourable variables.
Q 5: Which factor attracts most to the buyers for buying products and
services ?
Frequency
 Quality of goods 18

 Price 13
 Looking of product 19
Quality of goods Price Looking of product
0
2
4
6
8
10
12
14
16
18
20
Frequency
18
13
19
Interpretation – It has been clearly observed from the above chart that there are various
factors which attracts the customers towards buying products or services. 18 out of 50 says that
quality of products should be unique whereas, 13 says that price is most essential thing and
remaining 19 gave their views on looking of product is most attracted element for buying
products. Mean of the above chart is 16.67, S.D is .71 whereas, Median is 19.
Q. 6. Is Full-Discount Limited financially capable for launching new
supermarket in UK ?
Frequency
 Agree 10
 Strongly Agree 14
 Disagree 16
 Strongly Disagree 10

Agree Strongly Agree Disagree Strongly Disagree
0
2
4
6
8
10
12
14
16
Frequency
10
14
16
10
Interpretation- It has been observed from the above chart that company is financially
able in launching new supermarket in UK. With the context of this, 10 out of 50 respondents
says that they are agree with question and other 14 says that they are strongly agree. Whereas, in
remaining 26 16 are disagree and 10 are completely disagree with question. For this chart mean
is 12.5, S.D is 0 and median is 10.
Q. 7. Does pricing of product affect the buying behaviour of customers? Frequency
 Yes 35
 No 15

Yes No
0
5
10
15
20
25
30
35
Frequency
35
15
Interpretation- It has been analysed from the above chart that pricing of product mostly
influences the buying behaviour of customers. In it, 35 out of 50 gave their views in the favour of
question whereas, remaining 15 gave their negative response on the question. Mean is 25 of
given chart, Median is 15 whereas, standard deviation can't be calculated because data is
unfavourable.
Q. 8: What kind of products do you buy most from the supermarket ? Frequency
 Grocery items 20
 Clothes 10
 others..... 20

Grocery items Clothes others.....
0
2
4
6
8
10
12
14
16
18
20
Frequency
20
10
20
Interpretation – It has been identified from the above graph that each customer have
different choice. Such as 20 out of 50 respondents suggests that they prefers to buy grocery
items, other 10 gave their views on clothes whereas, remaining 20 said that they can buy
anything as per their choice. Mean of the above given chart is 16.67, standard deviation is 0.
whereas, median is 20.
Q. 9: How much distance you willing to cover to reach your favorite
supermarket ?
Frequency
 No more than 10 minutes 20
 Up to 25 minutes 10
 Up to 60 minutes 20

20
10
20
No more than 10 minutes
Up to 25 minutes
Up to 60 minutes
Interpretation- It has been analysed from the above chart that customers mostly
respondents have strong willing to cover to reach their favourite supermarket. In reference with
this, 20 out of 50 gave their views that they wish to spend nearby 10 minutes for reaching your
favourite supermarket. Whereas, other 10 gave their views on up to 25 minutes and remaining 20
provided their views on up to 60 minutes. Mean of above chart is 16.67, S.D is 0 whereas,
Median is 20.
Q. 10. Is it beneficial for company to offer loyalty cards to their
customers ?
Frequency
 Yes 30
 No 20

Yes No
0
5
10
15
20
25
30
Frequency
30
20
Interpretation- From the above mentioned graph, it has been identified that company
have to offer loyalty cards to their customers because it is beneficial for making good customer
base in market. In reference with this, 30 respondents gave their views in the favour of question.
Apart from that, remaining 20 provide adverse suggestions on the question. Mean of this chart is
25, median is 20 whereas S.D is not possible because variables are not in favourable nature.
Q. 11 What challenges faced by Full-Discount Limited while launching
its new venture in UK ?
Frequency
 Lack of financial resources 20
 High rivalry competition 10
 Lack of support from employees 20

Lack of financial resources
High rivalry competition
Lack of support from employees
0
2
4
6
8
10
12
14
16
18
20
Frequency
20
10
20
Interpretation – It has been observed from the above given chart that 20 respondents
gave their views on unavailability of financial resources is the major challenge which can be
faced by Full-Discount limited while launching its new venture in UK. Other 10 gave their views
on high rivalry competition and remaining 20 have provided their views on unsupportive nature
of employees. Mean for the above chart is 16.67, S.D is 0 and median is 20.
Q. 12 Which city of UK become more profitable for company to launch
its new venture ?
Frequency
 Central London 12
 Bristol 15
 Manchester 12
 Other location 11

12
15
12
11
Central London
Bristol
Manchester
Other location
Interpretation – It has been identified from the above mentioned graph that most
profitable city for launching supermarket in UK. 12 out of 50 respondents gave their views on
central London, 15 says Bristol, other 12 gave their views on Manchester. Apart from that,
remaining 11 says that company should launch its new ventures in other locations than the above
three locations. Mean for this chart is 12.5, Standard Deviation is .71 and Median is 11.5
Secondary Data
This kind of data is not fresh in nature whereas, it is collected through various sources
like websites, journals, Books etc. As Management of Free discount limited have decided to
launch new supermarket in UK then it is very essential for them to collect secondary data so as to
identifying market share of rivals and taste of customers. Through collecting such type of data
managers will be able in forming effective strategies that will be beneficial for them in gaining
better outcomes in a short time period. The income statement of two rivals i.e. Tesco and
sainsburry's is given below which clearly indicates that an organisation engaged in retailing
sector are successfully generated huge profits on continuous basis. Here are the brief
Interpretation of secondary data is given as below:

Income statement of Tesco Plc.
Fiscal Year Ends 2016 2017 2018
Turnover 53,933.00 55917 57,491.00
EBITDA 2011 1958 3,016.00
EBIT 677 654.00 1,721.00
Operating Profit 1008 1168 1,564.00
Pre-tax Profit 202.00 145 1,298.00
Profit After Tax 256 58 992
Profit For Financial
Year
138.00 -40.00 1,206.00
Retained Profit 138 -40.00 1,124.00
Normalized EPS 2.52 1.25 9.32
Income statement of Sainsburry's
Fiscal Year Ends 2016 2017 2018
Turnover 23,506.00 26,224.00 28456
EBITDA 1,252.00 1,245.00 1,249.00
EBIT 668.00 617 518
1

Operating Profit 707.00 642 518
Pre-tax Profit 471.00 503 409
Profit After Tax -40.00 377 309.00
Profit For Financial
Year
459.00 359.00 291.00
Retained Profit 221.00 106.00 56
Normalized EPS 23.32 15.97 12.54
Interpretation – It has been identified from the above income statements that operating
profit of supermarket is very higher. So that, it is very beneficial for Full Discount limited to
enter in this sector because when firm will offers products at low prices in the UK market then
Management of discount Limited have an opportunity to gaining competitive advantage in a less
time period. Supermarket chain is earning profit from last three years then it is profitable for Full
Discount limited to enter in this sector and gain sustainability and growth in less time period.
2

Illustration 1: UK Supermarket Market share
Source- UK Supermarket Market Share
Interpretation – It has been clearly analysed from the above pie-chart that, there are
various players are present in marketplace in which Tesco and ASDA are the most giant player
of UK market and covers around 46% of market share across UK nation.
Key findings
From the above report it has been founded that there are several challenges like
unavailability of financial resources, high competition in market etc. that can affect the market
share of Discount Limited in negative manner. Therefore, management of Discount Limited
should formulate effective strategies like cost leadership, cost differentiation etc. so that adverse
influence of these elements would be overcome in effective manner.
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Conclusion and Recommendation
It has been concluded from the above report that decision making is very important for an
organisation because it influences working behaviour of all the employees and encourage them
to work hard so that expected results would be received in future. It has been recommended to
the managers of organisation to conduct market research on regular basis so that challenges like
unavailability of funds, unsupportive nature of staff members can be identified and make
corrective plans accordingly which can restricts the Discount Limited in launching supermarket
in UK market. For removing these challenges they should take support from their investors and
shareholders so that funds would be managed in proper manner.
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REFERENCES
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Online
UK Grocery Market Share. 2019. [Online]. Available
through:<https://www.economicshelp.org/blog/6288/economics/uk-grocery-market-
share/>.
Income statement of Tesco Plc.. 2019. [Online]. Available
through:<http://tools.morningstar.co.uk/uk/stockreport/default.aspx?
Site=uk&id=0P00007OYV&LanguageId=en-GB&SecurityToken=0P00007OYV>.
Income statement of Sainsburry's. 2019. [Online]. Available
through:<http://tools.morningstar.co.uk/uk/stockreport/default.aspx?
tab=10&vw=fs&SecurityToken=0P000090N6%5D3%5D0%5DE0WWE
%24%24ALL&Id=0P000090N6&ClientFund=0&CurrencyId=BAS>.
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