Introduction to Business Decision Making
Business decision making can be stated as foundation for business entity. In this process, managers evaluate several factors such as current productivity, sales of company, efficiency of workers, market share and needs of different kinds of resources in order to achieve organizational goals. To manage business with current market trends, managers develop different kinds of strategic plans that will provide good return to organization in the form of increment sales and profit along with enhancement in satisfaction level of consumers (Woiceshyn, 2011). To achieve business objectives in an efficient manner, top manager makes effort to create a highly productive business decision-making process that can easily manage several practices of firm.
This report presents a research plan for Sainsbury in order to identify satisfaction level of consumers. It determines use of statistical method like dispersion to examine sales figures of Sainsbury and Tesco. Report also considers quarterly and percentile value in assessment of profit of company. This report also uses graphs and chart in order to present data effectively. It also develop a network diagram for BBC new team with the help of critical path method. Report evaluates different kinds of invest appraisal tactics for selection of best investment proposals.
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Creating a plan for the collection of data for research on Sainsbury and present the survey methodology and sampling frame used
For collection of different kinds of data, investigator can adopt different approaches in order to acquire most reliable information for research on satisfaction level of consumers of Sainsbury. Some most common methods of data collection are explained below:
Primary data collection: For collection of primary data about perception of consumers, researcher of Sainsbury develops various questionnaires in order to carry out detail market survey (Sucky, Aksoy and Ozturk, 2012). This process assists manager in assessment of reliable and accurate information about satisfaction level of consumers from different kinds of products and services provided by retail organization.
Secondary data: The investigator also collects information with the help of books, journals, news papers, annual reports of other companies and online websites. Organization considers views and suggestions of top business professional as secondary source of information (Zsambok and Klein, 2014). This report also takes last 25 years sales data of Sainsbury.
Survey Methodology and Sampling Frame used in the research
In order to manage research, survey methodology plays a very crucial role to achieve research goals. Research methodology determines several aspects that give assurance to investigator about sources of research. It also assists managers in handling of various activities performed in research in an efficient manner. In the present research, managers collect primary data with the help of questionnaire by adopting random sampling approach. So, researcher distributes questionnaire to consumers of Sainsbury for assessment of information about satisfaction level of consumers with reference to distinct kinds of product and services provided by the retail business entity (Rumki, 2014). Researcher takes a sample of 30 respondents in order to have reliable results. By adopting this strategy, the management of Sainsbury can get accurate information about expansion project of business entity. By taking view of consumers, manager can develop various kinds of future plan of business entity in the form of new product development.
On the basis of above chart, researcher can examine various elements related to satisfaction level of consumers from various products that are offered by Sainsbury. The above diagram reflects that 75% of consumers are satisfied with quality and features of Sainsbury's products. Around 60% of buyers are satisfied with pricing of goods and services. Around 40% of respondents believe that executives of Sainsbury assist them in selection of good of products. This thing increases the goodwill of firm (Zimmerman and Yahya-Zadeh, 2011). Researcher has also examine the purchase pattern of consumers. On the basis of above diagram, it can be interpreted that 40% of consumers are regularly purchasing different outlets of Sainsbury. This thing provides an opportunity to management in order to enhance the sales of company by offering better products as compared to other firms.
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Secondary data analysis with the help of Descriptive Statistics
In order to evaluate overall financial performance of the organizations, researcher considers several aspects of descriptive statistics such as mean, median, mode and standard deviation (Pettigrew, 2014).
On the basis of above statistical evaluation, it can be stated that mean value of sales of Sainsbury is £14759.812 million and median is £16061 million. Due to not any repetition of sales and profit value in last 25 years, there has not seen any mode value. On the other hand, the mean value of operating profit of Sainsbury is £590.588 million and their median value stands to be £656 million. In the process of evaluation of sales and profit figures of last 25 years, median can be determined as central value of business entity (Russel, 2014). Even median value shows there are values which are 50% higher than the sale and operating profit figures collected for the study. Standard deviation also assist managers in assessment financial position of business entity in order to achieve research objectives. Sales and operating profit figures show standard deviation of sales is £4866.18 million and £230.48 million for operating profit. With the reference to evaluation of dispersion, Sainsbury has managed good financial position along with growth rate. It will help management in various future decisions.
Computation of Quartiles and Percentiles
Quartiles is one of the most important statistics tool which is considered by researcher in order to divide entire set of data into four equal parts. But, percentile value is calculated for identification of number of values which falls below or above on basis of set of percentile value. In this section, investigator considers last 25 years financial data of Sainsbury and Tesco in order to compare performance of business entity. On the basis of above calculation, the value of 2nd quartiles and 50th percentiles related to sales and operating profit of Sainsbury and Tesco, it has been determined that Tesco has achieved higher sales as compared to Sainsbury. Further 2nd quartile and 50th percentile value of sales and operating profit values are respectively £33711.5 for Sales and £1843.5 for Operating profit of the organization.
Correlation coefficient among Tesco and Sainsbury for operating profit and sales
Correlation values determine the relationship between two variables such as profit and sales. The value of correlation is generally showing between -1 to +1. On the basis of above calculation, it can be stated that correlation coefficient between sales and operating profit of Sainsbury performance is 0.316 which is very low. On the other hand, correlation between sales and profit figures of Tesco is 0.996 (Pettigrew, 2014.). This thing reflects that there is a perfect correlation between sales and profit figures of Tesco. If Tesco increases the sales of it then profit of firm is going to be increased. On the basis of above evaluation, it is determined that financial performance of Tesco is better then Sainsbury. So, management of Sainsbury should have to develop various strategies that influences the prefect relationship between sales and profit.
Formal report for business
After conducing market research and measuring the financial performance of business, it has been determined that investigator needs to provide detailed information about several elements that will improve the efficiency of business decisions (Gigerenzer and Gaissmaier, 2011). The primary research determines that consumers are satisfied with various types of products and services that are provided by Sainsbury. On the basis of evaluation of last 25 years sales and profit data, it has been identified that Tesco has built good financial position as compared to Sainsbury. This thing provides strategic advantage to management of Tesco in various management decisions that will increase the sales and profitability of company (Ferrell and Fraedrich, 2014). In order to increase the profitability and sales of company, managers of Sainsbury have to develop various plans and implement distinct procedure that will reduce the operational expenditures and ultimately increases the profit. By increasing demand and sales, business entity can improve the market share.
Part A- Network diagram and critical project evaluation
In order to arrange an event for evening 6 o’clock news, a managers need to evaluate different schedule of activities that will assist them in presentation of news without any delay (Jocumsen, 2004). With the help of efficient schedule of activities, organization can generate best results from the event. In this process, critical path method can manage several activities effectively.
The above study concludes that every organization has to consider several elements in business decision-making process such as profitability, market share, sales of company and satisfaction level of consumers as well as quality of services (Leitz, 2009). This report figures out dispersion which is one of the most effective techniques that assists the researcher in evaluation of mode, median etc. of different figures of company such as profit and sales. Report concludes that management has to examine different aspects like return, profitability etc. in strategic business decision that is related to long term business project.
You may also like to read:
- Aksoy, A. and Ozturk, N., 2012. A decision support system for demand forecasting in the clothing industry. International Journal of Clothing Science and Technology.
- Bednar, P., Welch, C. and Imrie, P., 2014. Supporting business decision-making: one professional at a time.DSS 2.0–Supporting Decision Making with New Technologies.
- Ferrell, O. C. and Fraedrich, J., 2014.Business ethics: Ethical decision making & cases. Cengage learning.
- Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making.Annual review of psychology.
- Jocumsen, G., 2004. How do small business managers make strategic marketing decisions?: A model of process. European Journal of Marketing.
- Kaner, S., 2014.Facilitator's guide to participatory decision-making. John Wiley & Sons.
- Nutt, C. P., 2011. Making decision‐making research matter: some issues and remedies. Management Research Review.
- Pettigrew, A. M., 2014.The politics of organizational decision-making. Routledge.
- Rumki, M., 2014. Business decision making, production technology and process efficiency", International Journal of Emerging Markets.
- Sucky, E., Aksoy, A. and Ozturk, N., 2012. A decision support system for demand forecasting in the clothing industry. International Journal of Clothing Science and Technology.
- Woiceshyn, J., 2011. A model for ethical decision making in business: Reasoning, intuition, and rational moral principles.Journal of business ethics.
- Zimmerman, J. L. and Yahya-Zadeh, M., 2011. Accounting for decision making and control. Issues in Accounting Education.
- Zsambok, C. E. and Klein, G., 2014.Naturalistic decision making. Psychology Press.