Business Report: Decision Making Approaches for Tesco's Challenges

This report provides an overview of decision-making approaches within the context of Tesco's business challenges. It explores various methods, including scientific, systematic, evidence-based, and brainstorming techniques. The report identifies problems faced by Tesco, such as market competition and mergers, and then analyzes how different decision-making approaches can be applied to solve these issues. It presents a step-by-step solution, highlighting the advantages and disadvantages of each approach. Furthermore, it discusses the importance of formal and informal approaches in supporting decision-making processes within the organization. The conclusion emphasizes the significance of these approaches in guiding strategic choices and achieving organizational objectives. References to financial management tools and strategies are included, offering a comprehensive analysis of effective decision-making in a business environment.

Table of content
 Introduction
 Approaches of decision making
 Decision making approaches
 Kinds of decision making
 Problems
 S.M.P.
 Advantages
 Disadvantages
 Approaches to support decision making

Introduction
Effective decision making is very important for an organisation as it can
help to attain organisational objectives. It can help the accountants and
managers to evaluate factors that can help to lead a business toward success.

Approaches of decision making
These approaches are implemented by the company to design a conceptual
framework within the workplace. It helps to enhance productivity or the
organisation by maintain all the valuable information effectively. It guides
managers to make strategic decision that are made to deal with different
problems.

Decision making approaches
In an organisation decision making approaches are used to make decisions
regarding to the business. It is very helpful when a company is facing
tough competition and looking for a proper solution for such type of
issue.

Kinds of decision making
Scientific: This method is mainly used to acquire knowledge. It includes
detailed observation in several parts of the area where problems are
analysed. It is required by the companies as it helps to observe the
problems deeply. Tesco needs to review its price constantly

Continue...
Systematic decision making: This is used to determine the viability of a
project, process of different options. It is based on the empirical utilization
of predefined and repeatable steps. In Tesco this technique is used by the
financial consultant in order to determine most suitable project for the
company and to find that which option can help the organization to achieve
higher profits.

Continue...
Evidence based decision making: This approach is based on evidences and
used to make decisions. It also considers the characteristics, situations and
preferences of a project while making a decision or finding a solution for a
problem.

Continue...
Brainstorming: In this type of decision making a group sits together and
provide their opinion on a problem and than reach to a solution. In this
approach group members share creative ideas with other persons.

Problems
- Managers of Tesco are worried about the merger of Sainsbury's and Asda.
- This merger can acquire 30% of the market share.
- Tesco is required to expand its market to target potential customers.
- The segment which is selected for as target can be acquired by Aldi and
Lidl.

S.M.P. :
Scientific
- Tesco should open stores on different locations to attract potential
customers that can help to acquire more market share.
- It is possible if Tesco offers the products on lower prices.
- Increased number of stores can help the organisation to attain success.

Systematic decision making
Comparison of Jack's prices with Aldi and Lidl:
Item Jack's Aldi Lidl
Oats 1.36P 1.25P 1.40P
Brown bread 50P 48P 52P

Evidence based approach
- It has been analysed form past data that offering lower prices is a good
option to attract more customers.
- It is suggested to Tesco that it should conduct a survey for Aldi and Lidl to
examine brand loyalty of customers.