Thomas Cook: A Comprehensive Business Decision Making Report Analysis

This report analyzes the business decision-making processes of Thomas Cook, focusing on its profitability challenges and strategies for improvement. It begins with an introduction that outlines the importance of business decision-making and its impact on long-term growth, particularly in areas like project management, statistical tools, and investment appraisal. The report then delves into a case study of Thomas Cook, examining its lower profitability and the need to understand customer preferences. Task 1 explores primary and secondary data collection methods, including surveys, questionnaires, and competitor analysis, to gauge customer attitudes and behaviors. Task 2 presents sales and profit data, using descriptive statistics like mean, mode, standard deviation, quartiles, and percentiles to assess the company's performance. The report also includes a correlation analysis between profit and sales. Task 3 utilizes graphs to visualize sales and profit trends over a five-year period and discusses the implications of these trends. Finally, Task 4 explores project management techniques and investment appraisal tools to identify cost-effective solutions and improve the company's return on investment. The report concludes with recommendations for enhancing profitability and competitiveness.

Business Decision
Making

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
A...................................................................................................................................................3
B...................................................................................................................................................4
C...................................................................................................................................................5
TASK 2............................................................................................................................................6
A...................................................................................................................................................6
B...................................................................................................................................................7
C...................................................................................................................................................8
TASK 3............................................................................................................................................9
A...................................................................................................................................................9
B.................................................................................................................................................14
C.................................................................................................................................................15
D.................................................................................................................................................15
TASK 4 .........................................................................................................................................16
A.................................................................................................................................................16
B.................................................................................................................................................18
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Business decision making plays important role in success of the business under which
corporation focuses upon determining long run growth. It includes different aspects such as
project management, statistical tools and survey as well as investment appraisal techniques for
drawing valid outcome. Present report is based on case scenario of Thomas cook which is
suffering from the issue of lower profitability. Owing to this, focus has been laid on
understanding the preferences of buyers to product appropriate product and services as per their
expectations. Furthermore, information related to sales and profit is assessed and then focusing is
done for future time span. In addition to this, project management techniques are applied along
with investment appraisal tools. It helps management of business to select the best proposal in a
cost effective manner so as to recovers cost of production and increase overall rate of return.
TASK 1
A
According to the given scenario, Thomas cook appointed a consultant to advice the
product development team. It want to launch a new product on the basis of emerging market
trends, customer preferences (Pettigrew, 2014). For this purpose, some primary data and
secondary data is collected on the basis of consumer profile, preferences, attitude, and buying
behavior as well as competitor products.
For gathering a primary data is normally in the form of survey, interview, questionnaire
etc. it can be in the form face to face by phone call, by internet and or through email. There is
also a form a data collection is a market research in this a sample product is placed in store for
determining the demand. These all methods are common and useful for the Thomas cook. For
launching a new product company will use questionnaire method for knowing the customer
preferences. Primary data is collected by observing a customer related to the products.
Questionnaire which was prepared is send to customer through email or by face to face contact
and by social networking websites. Company collect a primary data thorough its customer in this
question are asked related to buying behavior, competitor products and their attitudes. In a
sequestration to question are asked their consumer profile is also required so that it can be stated
that form which type of consumer question were asked.

There are many disadvantage and advantage of questionnaire that is it is a cheaper
activity if questionnaire is end form email or by cost to the customer (Hartman, DesJardins. and
MacDonald, 2014). On the other hand, it is disadvantage of the questionnaire that Thomas cook
not get respond form its competitor. Questionnaire should be face to face or a phone call it will
be best for the company. Further secondary data is collected through it is very cost effectiveness
and it can be collected form the books and journals. Form the previous research report, internet
and statistical records help in gathering a secondary data for launching a new product. Further
company can also scan the competitor product and price so that they get idea which type of
product are most liked by the people. Secondary data is time consuming process because it need
to collect an information form the internet and books and journals (Gabriele. and Chiaravalloti,
2013). However, the researcher of secondary data gives a knowledge and good guide lines to the
company for making a new product. Research which is carried out should be quantitative and
qualitative it can be decided through a secondary research. It have a biggest advantage that is
company can get the knowledge of the other tour operator so that strategy of launching a new
product become successful.
B
Survey methodology and sampling frame
 Survey methodology: - In this report, Thomas Cook will collect data regards study of
sampling of particular unit through population by survey methodology. This technique is
helpful method for increase in the quantity of accurate response. This technique involves
steps to ask questions step by step and collect inquiries and data, this methodology uses
by questionnaires who survey about travel business entity and collects data from and
information (Barlett, ed., 2016). Questionnaires will determine demographic variables
like ethical, socio economic status and attitude, perception towards goods and services of
the travel agency. He can also compare customer satisfaction towards other travel
business with Thomas Cook agency.
To determine feedback of goods and services provided by travel business considers
helpful tool to find out solution of the problems if any problem or negative feedback comes from
customers and consumers of Thomas Cook. Therefore, the method of survey to find out position

of the product in market and feedback of goods and services in positive and negative way will
helpful tool for travel business (Barake, 2011).
Sampling frame: - As Thomas Cook is global wide spread travel business in United
Kingdom. To determine feedback towards goods and services remains quite difficult with each
and every individual of UK. So, questionnaires will select 50 individuals and take feedback by
questioning. These 50 individuals remains as sample and to make structure on the basis of their
attitude, perception and interest towards goods and services of Thomas Cook. It will be helpful
to make a framework of customers' opinion in both ways positive as well as negative (García-
Peñalvo. and Conde, 2014). Therefore, to prepare sampling frame in proper way will useful for
travel agency to provide extra facilities and solutions to solve out negative feedback. It will also
able to compare Thomas Cook with other travel trades and useful technique to predict its
position in competitive market of UK regarding travel business.
C
Questionnaire to carry out the survey with relevant instruments to reflect the required data.
1. How do you rate the product of Thomas Cook?
Outstanding
 Satisfactory
 Dissatisfactory
 Other
2. Are you satisfied with the quality of products offered by the Thomas Cook?
 Satisfactory
 Unsatisfactory
3. Product of Thomas cook is better than others competitor products available in the market
 Yes
 No
4. Would you recommend the product of Thomas cook to friend, family and in social circle?
 Yes
 No
5. Price charged by the Thomas Cook is affordable by all type of people?

 Yes
 No
6. Price of product is reasonable of Thomas cook as compared to other tour operator products
 Yes
 No
7. Any recommendation for the improvement of the
product_______________________________________________________________________
____________________________
TASK 2
A
Theme 1: Customer rate product offered by Thomas Cook as outstanding
Respondents Responses %
20 Product information 40%
20 Product Packaging 40%
10 Product performance 20%
According to the collected information, it has been found that customers rate product
offered by Thomas Cook as outstanding. On the other hand, 20% respondents stated that product
performance of corporation is satisfactory (Popovič and et.al, 2012). Apart from this, 20%
participants reflects that services offered by mentioned corporation is not satisfactory. However,
60.0% 20.0%
20.0%
Outstanding
Satisfactory
Dissatisfactory

majority of respondents stated that services offered by corporation is good and meeting their
expectations.
Theme 2: Customer think services offered by other competitors is better than Thomas cook
Respondents Responses %
40 Yes 40.0%
10 No 60.0%
According to the collected information, it has been found that 40% respondents stated
that services offered by other competitors is better than Thomas cook. However, remaining 60%
participants do not agree upon the same. It showing that buyers would prefer services offered by
other corporation in order to get higher level of satisfaction (Mean, Median, Mode, and Range.
2013).
B
According to the given scenario, Thomas cook is suffering from issue of lower
profitability due to disinterest of consumers. In this regard, profitability and sales figure of firm
are taken for five year through which performance can be assessed (Craft, 2013). By using the
same data, information related to mean, mode and standard deviation etc are collected. It aids to
draw valid outcome because researcher come to know about general tend prevailing in the
company.
Table 1: Sales and profit of Thomas cook
Years Sales Profit
1 9809 -521
2 9491 -586
3 9315 -199
40.0%
60.0%
Yes
No

4 8588 -118
5 7834 23
Table 2: Descriptive of sales and profit
Sales Descriptive Profit Descriptive
Mean 9007.4 Mean -280.2
Standard Error 355.2332 Standard Error 117.5438
Median 9315 Median -199
Mode #N/A Mode #N/A
Standard Deviation 794.3257 Standard Deviation 262.8359
Sample Variance 630953.3 Sample Variance 69082.7
Kurtosis -0.45408 Kurtosis -2.42269
Skewness -0.85806 Skewness -0.2268
Range 1975 Range 609
Minimum 7834 Minimum -586
Maximum 9809 Maximum 23
Sum 45037 Sum -1401
Count 5 Count 5
The aforementioned table reflects that mean of sales is 9007.5 and for profit it is -280.
However, mode is not applied on both data series because no any profit aspect is repeating
among both data series. However, standard deviation for sales is 794.32 but profit varies
according to 262.83 as standard deviation. This is showing that sales turnover and profit ratio can
be varied to this level (Zolfani. and et.al, 2013). Thus, average sales and profit can be varied to
the level of standard deviation. It is seen that total revenue of the business unit is decreasing on
continuous basis. Further, there is a negative profitability for the organization. The expansion
opportunity will help the corporate to increase its earnings. It is through introduction of
innovative services that Thomas cook is able to capture the potential demand into tour market.
C
Quartile and percentile are two important aspect which tend to provide information
related to views and suggestions of buyers. Here, 1st quartile lies under average value of sales and
the second as well as third quartile also come under the same category. Similarly, collected
information is reflecting that outcome drawn are reliable and they will not varies. Furthermore,
25th to 75th percentile also lies under average value of sales. Apart from this, same concept is

applied over profitability (Isik, Jones and Sidorova, 2013). It is showing that company can
implement its potential strategies by referring the collected information.
Table 3: Quartile
1st Quartile 8588 -521
2nd Quartile 8951.5 -158.5
3rd Quartile 8951.5 -47.5
Table 4: Percentile
25th Percentile 8588 -521
50th Percentile 8951.5 -158.5
75th Percentile 8951.5 -47.5
Table 5: Correlation between profit and sales
Years Sales Profit
1 9809 -521
2 9491 -586
3 9315 -199
4 8588 -118
5 7834 23
Correlation
-0.88579
The above mentioned information reflects that past performance of corporation is not up
to the mark and same trend will be followed by business in future also. Owing to this, customers
must be reviewed regarding the service quality of current products for the purpose of
determining higher rate of return. Hence, accordingly new services can be introduced in the
marketplace for increasing sales turnover as well as profitability of the business.
TASK 3
A
The collected information related sales and profit for five year are presented with the help
of different graph. According to the following graph, it has been found that during first year sales
generated by Thomas cook was 9809 whereas loss worth 521 has been found. Furthermore, the
consistent loss is incurred by the business till fourth year. This reflects that business is facing
issue related to maintaining its profitability in the marketplace. Owing to this, company need to
focus upon effective strategies so as to create competitive edge in the marketplace.
Year Sales Profit

1 9809 -521
2 9491 -586
3 9315 -199
4 8588 -118
5 7834 23
The following mentioned line graph is indicating loss of business till forth year which
was converted into profit during five year. At the same time, sales turnover is kept on decreasing.
It shows that less number of buyers are purchasing products and services offered by business. In
addition to this, sales turnover is continuous decreasing because of changing preferences of
buyers. It is showing that during 1st year sales turnover is 9809 and 9491 and during five year
sales turnover was 7834.
1 2 3 4 5
-2000
0
2000
4000
6000
8000
10000
12000
9809 9491 9315
8588
7834
-521 -586 -199 -118 23
Year
Sales
Profit
Illustration 1: Column graph of sales and profit

The above mentioned report reflects that profitability is recovering in the five year.
However, during last four year rate of return was lower where sales turnover was higher in each
initial year. Therefore, ratio of profitability and sales is changing in each year and adverse
relation exist among both elements.
1 2 3 4 5
-2000
0
2000
4000
6000
8000
10000
12000
9809 9491 9315 8588 7834
-521 -586 -199 -118 23
Year
Sales
Profit
Illustration 2: Line graph

According to bar graph, it is showing that current performance of business is good in
term of rate of return. However, during past year profitability of business was very low. On the
contrary, sales turnover of Thomas cook was good in first year but rate of return was very low.
This reflects negative correlation between sales as well as profit.
1
2
3
4
5
-2000 0 2000 4000 6000 8000 10000 12000
9809
9491
9315
8588
7834
-521
-586
-199
-118
23
Year
Sales
Profit
Illustration 3: Bar graph