Business Decision Making

Business Decision Making HND in Business Management Edexcel E-Soft – Batch 30 Sheran Dunlas

Registration No: 1343

Edexcel No: EKO3924

HND in BM | BDM Page i

Please complete all areas of this form, sign, and attach to each submitted assignment. Submit each assignment

according to the instructions provided in your Course Outline.

A. STUDENT/S TO COMPLETE

Course Name : HND in Business Management

Student Number:

Student Full Name:

Lecturer Name:

Edexcel Registration No

Assignment No./Name: Business Decision Making

Date Due: 12th

July 2014

Date Submitted:

Student Signature:

Date:

Declaration

I declare that this assessment item is my own work, except where acknowledged, and has not been

submitted for academic credit elsewhere, and acknowledge that the assessor of this item may, for the

purpose of assessing this item:

Reproduce this assessment item and provide a copy to another member of the University and/or;

Communicate a copy of this assessment item to a plagiarism checking service (which may then retain a

copy of the assessment item on its database for the purpose of future plagiarism checking).

I certify that I have read and understood the Institute Rules in respect of Student Academic Misconduct.

B. MARKER TO COMPLETE

Comment :

Grade

Date Marker’s Signature

Edexcel HND in Business Management

HND in BM | BDM Page ii

Higher National Diploma in Business

Assignment Front Cover Sheet

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If you are caught plagiarising you could have your grade reduced to A REFERRAL or at worst you

could be excluded from the course.

Unit Title:

Business Decision Making

Tutor’s Name:

Assignment Title & Number:

D/601/0578 Unit 06

Learning Outcomes Covered:

Outcome1: Be able to use a variety of

sources for the collection of data, both

primary and secondary

Outcome2: Understand a range of

techniques to analyse data effectively

for business

purposes

Outcome3: Be able to produce

information in appropriate formats for

decision making in an organisational

context

Outcome4: Be able to use software

generated information to make decisions

in an

organisation

Assessment

Criteria Covered:

See the following

“Notes to Students”

the assessment

criteria covered in

this assignment.

Submission Date: 12th

July 2014

HND in BM | BDM Page iii

Scenario

“Access” is one of the major research organizations all around the world. Their main and foremost

business operation is to carry out researches for other businesses.

“Unico” is very prominent super market chain where they have major super markets in capitals of major

countries. Their main intention now a days is to touch in the emerging markets like India and China.

While trying to capture India, they plan to capture the Sri Lankan market as well.

If we brief about “Unico”, it has been established by Mr. Howard in 1969 in United Kingdom as a very

small grocery shop and then he had expanded it as a large super market chain. More than 400 super

markets are there and more than 200,000 workers are with them.

The Management of “Unico” has decided that they want to get a clear idea about Sri Lankan consumers

and the market as the initial stage. They have hired “Access” as their research organization.

The Management prefers that the data is represented in tabular or graphical format so that understanding

of facts would be faster and easier. It is required that using the gathered and summarized data, a forecast

of revenue and expenditure, customer base (Buyers and Sellers), competitive pressure and

sustainability for next 2years is generated to aid the decision making process.

“Access” has a greater deal of convincing “Unico” to come to Sri Lanka. Also “Access” has to remember

there are major super markets like “Keels” and “Cargills” are there in Sri Lanka. Imagine you are a

research executive in “Access” and you are required to carry out a survey. It is essential to fulfill

following tasks within 4 weeks.

Task 1

1.1 Taking the above scenario in to consideration, create an effective plan as to collect primary and

secondary data (LO 1.1)

1.2 Prepare a detailed description of the survey methodology and sampling frame to be used when

conducting the survey and justify the reasons for choosing selected survey methodology and sampling

frame (LO 1.2)

1.3 In order to get a clear picture about the prevailing market conditions, you have to create a

questionnaire that needs to be answered by the customers. (LO 1.3)

Learners are encouraged to concentrate on M 2.3 in order to achieve distinction and merit

grade descriptors when addressing the above tasks.

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Task 2

2.1 Using representative values, you are required to present a summary of gathered data through the

questionnaire mentioned on Task 1.3. (LO 2.1)

2.2 Perform an analysis on the summarized data and draw valid conclusions which would help “Unico” to

make decision on whether to commence operations in Sri Lanka (LO 2.2)

2.3 In order to interpret the results of the above, analyze the data using different measures of dispersion.

(LO2.3)

2.4 Explain how calculations of measures like quartiles, percentiles and the correlation coefficient are

used to draw useful conclusions in this scenario (LO 2.4)

Learners are encouraged to concentrate on M 1.3 and D1.1 in order to achieve distinction

and merit grade descriptors when addressing the above tasks.

Task 3

3.1 Using spreadsheets, present the summarized data using different types of graphs available. Based on

the data presented on the graphs, what are the conclusions you can draw from the information

derived. (LO 3.1)

3.2 It is required to forecast the sales for next 2 years. Use trend lines in spreadsheet graphs to provide

necessary information facilitating decision making for management of “Unico”. (LO 3.2)

3.3 Assuming that you are a representative of Access Lt., prepare a business presentation using suitable

software and techniques to provide information to the top management of Unico effectively (LO

3.3)

3.4 Prepare formal business report relevant to the presentation you have made in task 3.3 (LO 3.4)

Learners are encouraged to concentrate on M 3.3 and D3.1 in order to achieve distinction

and merit grade descriptors when addressing the above tasks.

Task 4

4.1 Conduct a detailed study on the management information systems that can be used in the super market

chains, which would assist Sri Lankan operation of Unico. (LO 4.1)

4.2 Prepare a project plan for establishment of “Unico” in Sri Lanka with inclusive of relevant critical

path analysis (LO 4.2)

4.3 Identify the investment opportunity the organization has to take in order to achieve its perceived

objectives, and forecast the annual cash inflow of the organization for next 2 years (LO 4.3)

Learners are encouraged to concentrate on D2.2 in order to achieve distinction and merit

grade descriptors when addressing the above tasks.

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PASS CRITERIA

Outcome(s)/criteria Possible evidence Achieved Feedback

LO 1 Be able to use a variety of sources for the collection of data, both primary and secondary

P1.1 Create a plan for the collection of

primary and secondary data for a given

business problem

Create a plan for

collect primary and

secondary data

P1.2 present the survey methodology and

sampling frame used

Prepare detailed

description of the

survey methodology

and sampling frame

and justify why you

have chosen them

P1.3 design a questionnaire for a given

business problem

To understand the

market condition

design a

questionnaire for

customers

LO 2 Understand a range of techniques to analyse data effectively for business purposes

P2.1. create information for decision making

by summarising data using representative

values

Present a summary

of gathered data

P2.2. analyse the results to draw valid

conclusions in a

business context

Perform an analysis

of gathered data and

draw conclusions

P2.3 analyze data using measures of

dispersion to inform a given business

scenario

Analyze the data

using different

measures of

dispersion

P2.4. explain how quartiles, percentiles and

the correlation coefficient are used to draw

useful conclusions in a business context

Explain how

calculations of

measures like

quartiles, percentiles

and the correlation

coefficient are used

to draw useful

conclusions in this

scenario

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LO 3 Be able to produce information in appropriate formats for decision making in an

organizational context

P3.1 produce graphs using spreadsheets and

draw valid conclusions based on the

information derived

Using spreadsheets,

present the

summarized data

using different types

of graphs available.

Draw conclusions

based on the

information

P3.2 create trend lines in spreadsheet graphs

to assist in forecasting for specified business

information

To forecast 2years

sales, use trend lines

in spreadsheet

graphs to provide

necessary

information

facilitating decision

making for

management of

“Unico”.

P3.3. prepare a business presentation using

suitable software and techniques to

disseminate information effectively

prepare a business

presentation using

suitable software

and techniques to

provide information

to the top

management of

“Unico”

P3.4 produce a formal business report Prepare formal

business report

relevant to the

presentation you

have made in task

3.3

LO 4 Be able to use software generated information to make decisions in an organization

P4.1 use appropriate information processing

tools

Conduct a detailed

study on the

management

information systems

that can be used in

the super market

chains, which would

assist Sri Lankan

operation of

“Unico”

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P4.2 prepare a project plan for an activity

and determine the critical path

Prepare a project

plan for

establishment of

“Unico” in Sri

Lanka inclusive of a

critical path analysis

P4.3 use financial tools for decision making

Identify the

investment

opportunity the

organization has to

take in order to

achieve its

perceived

objectives, and

forecast the annual

cash inflow of the

organization for

next 2 years

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MERIT CRITERIA

Grade Description (Merit) Possible evidence Achieved Feedback

M1. Identify and apply

strategies to find appropriate

solutions.

M1.3- an effective approach to study

and research has been

applied

M2. Select/design and apply

appropriate

methods/techniques.

M2.3- a range of sources of

information has been used

M3. Present and

communicate appropriate

findings.

M3.1- the appropriate structure and

approach has been used

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DISTINCTION CRITERIA

Grade Description

(Distinction)

Possible evidence Achieved Feedback

D1. Use critical

applications to evaluate

own work and justify

valid conclusions.

D1.1- conclusions have been arrived at

through synthesis of ideas and have

been justified

D2. Take responsibility

for managing and

organizing activities.

D2.2- substantial activities, projects or

investigations have been planned,

managed and organized

D3. Demonstrate

convergent/lateral/creative

thinking.

D3.3-convergent and lateral thinking have

been applied

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Acknowledgement

First of all, I would like to thank Almighty God for guiding me through this semester,

giving me the strength and blessing to overcome my difficulties.

I wish to express my sincere thanks our BDM lecturer for clearing and helping my

question regarding the assignment. I am indebted to you, for without you I would never have

accomplished the task I was given to complete.

I place on record, my sincere gratitude to the E-Soft institute for giving me such a

wonderful opportunity to utilize my skills and talents. I not only learned many things through

this assignment but now I have a proper intellect about the life outside the books. I was able to

learn and study about the practical world as well.

I take this opportunity to thank all the faculty members and staffs of this organization for

all their help and encouragement.

Last but not least, I would like to thank my friends and family for their support and help.

No matter when or what I wanted, they were there to help me out without saying a no for an

answer. I wouldn’t be here writing this acknowledgement if it wasn’t for their belief in me and

my works.

This is the first step of the journey I am taking for a successful life. Thank you for all your

support and I humbly ask you to keep on believing and encouraging me for, I am no-one without

any of you.

THANK YOU.

HND in BM | BDM Page xi

Contents Introduction .................................................................................................................................................. 1

Task 1 ............................................................................................................................................................ 2

1.1 Primary & Secondary Data Collection ................................................................................................. 2

1.2 Survey Methodology ........................................................................................................................... 4

1.3 Questionnaire to Customers ............................................................................................................... 5

Task 2 ............................................................................................................................................................ 7

2.1 Summary of gathered data through the questionnaire mentioned on Task 1.3. ............................... 7

2.2 Analysis on the summarized data and draw valid conclusions which would help “Unico” to make

decision on whether to commence operations in Sri Lanka ..................................................................... 9

2.3 Measures of Dispersion .................................................................................................................... 10


used to draw useful conclusions in this scenario.................................................................................... 13

Task 3 .......................................................................................................................................................... 15

3.1 Using spreadsheets, present the summarized data using different types of graphs available. Based

on the data presented on the graphs, what are the conclusions you can draw from the information

derived. ................................................................................................................................................... 15

3.2 Sales Forecast for Unico .................................................................................................................... 19

3.3 Business Presentation ....................................................................................................................... 23

3.4 Business report relevant to the presentation you have made in task 3.3 ........................................ 25

Task 4 .......................................................................................................................................................... 26

4.1 Management information systems that can be used in the supermarket chains, which would assist

Sri Lankan operation of Unico. ................................................................................................................ 26


path analysis ........................................................................................................................................... 28


objectives ................................................................................................................................................ 30

References .................................................................................................................................................. 32

HND in BM | BDM Page 1

Introduction

The assignment is based on the subject as business decision making. “Unico” is very prominent super

market chain where they have major super markets in capitals of major countries. Their main intention

is emerging markets like India and China. While trying to capture India, they plan to capture the Sri

Lankan market as well. Due to the scenario the assignment will present the business decision making

concept with the analytical view.


Task 1

1.1 Primary & Secondary Data Collection

The case study is based on that Unico super market chain which has located in UK. When beginning

stage of the company, Unico was the small grocery shop in 1969. After that their well development

research of the market they establishes as a greater super market chain industry in worldwide. Presently

the industry has 400 super markets and 200,000 workers in world –wide.

According the above scenario, “Access” is the major research industry. So, they have to collect the

primary and secondary data for the effective plan of the business when launch the Unico business in Sri

Lanka.

The table presents that primary and secondary date collection which give effective plan of the business.

Primary sources Secondary Sources

Primary sources are unique materials on which

research is based. They are direct testimony or

direct evidence regarding a topic under

consideration.

Secondary sources offer interpretation or

analysis based on primary sources.

It is largely adopted in qualitative research to

study natural behavior - occurrence, frequency,

duration, & latency of behavior

Data are more reliable & free from respondent

bias Useful to study

The approach has not been widely used in

relation to qualitative data; because Secondary

analysis involves the uses of existing data,

collected for the purposes of a previous study,

in order to pursue a research attention which is

distinct from that of the original work

Primary data offers tailored information but

tends to be expensive to conduct and takes a

long time to process.

Secondary data is usually inexpensive to obtain

and can be analyzed in less time.

Primary resources are:

Interview

Observation

Action research

Case studies

Questionnaires

Ethnographic research

Longitudinal studies

Experimental results

Autobiographies

personal narratives

Secondary resources example:

Books

Journal articles

Biography

Research analysis

Dissertations

Works of criticism and interpretation

Newspaper articles

Web information

Historical data and information


As mentioned the above concept, when launch the Unico business in Sri Lanka, primary and secondary

data which are giving the suggestion to launch the business in the positive way, so according the primary

and secondary data collection, the retail industry requirement can be assessed, therefore this is the

important evidence for the business operation launch in the market as well.


1.2 Survey Methodology

Methodology defines methods elaborate in the ways of actions of the proposed research. In the

methodology section the author aims to precise the methods which have been carried out in the

research. The author will precise the factors such as research strategy, research design, sampling

method.

Research can be defined as an organized, systematic, data based, critical, objective, scientific inquiry or

investigation into a specific problem.

Methodology have been demarcated by many authors in different ways, there is no any specific

definition for research methodology, same scenario for the definition of research. Author would like to

deliberates the definition research before go into details. Macleod Clark and Hockey (1989 cited in

Nolan & Behi, 1995, p.111) define research as “An effort to increase the sum of what is known, usually

mentioned to as a "body of knowledge" by the finding of new facts or relationships through a process of

systematic scientific enquiry, the research process”. Whereas Bettis & Gregson, (2001 cited in Russ,

2004, p.1) outlines that “traditionally, research has been conceptualized as the systematic, objective,

valid, reliable collection and analysis of empirical data to resolve a problem (applied research) or as a

means to build theory and add to the existing knowledge base (basic research)”. These two definitions

are pointing the same view about research.

The reason of selecting the survey, the collected data identify and analyze the Critical Success Factors

for new business to launch in the market. In order to that, researcher have collected the data through

Primary source as well as secondary sources those are follows,

01. The primary data were collected through;

Questionnaire

And discussions with customers

02. The secondary data were collected from;

Published literature relevant to this study

Other publication in relation to this study.

Electronic Data’s (E-journals, websites, etc.)

In this study we learn the relationship between the two variables. Therefore survey method of research

will help us to find out the relationship between the selected two variables by using the questionnaires

as primary data collection tool. This is the reason for select the methodology in the specific business,

because according the methodology the business can launch in the market place.


1.3 Questionnaire to Customers

Gender: Male [ ] Female [ ]

Age Limit: 21 and Under [ ]

22 to 34 [ ]

35 to 44 [ ]

45 and Over [ ]

Marital Status: Married [ ] Single [ ]

Please rate the following as per the details

1 – Strongly Disagree

2 – Disagree

3 – Neutral

4 – Agree

5 – Strongly Agree

1 2 3 4 5

Stores are conveniently located.

Store hours are convenient for my shopping needs.

Store atmosphere and decor are appealing.

A good selection of products was present.

Merchandise sold is of the highest quality.

The merchandise sold is a good value for the money.

Merchandise displays are attractive.

1. Do you prefer shopping at a large supermarket than ordinary grocery shop? (a) Yes (b) No


2. How many times in a month do you shop at a supermarket? (a) 1-2 (c) 6-10

(b) 3-5 (d) 10+

3. Are you satisfied with the variety of products offered by them?

(a) Yes (b) No

4. Do you think there should be more supermarkets in our country? (a) Yes (b) No

5. The price range of products at supermarkets is--- (a) Very high (b) Slightly high (c) Reasonable

(d) Affordable (e) Low

6. Do you think that the supermarket culture will become more popular in our country? (a) Yes (b) No

7. Do you think that the supermarkets lack publicity in our country?

(a) Yes (b) No

8. What kind of product you specially buy from any supermarket? (a) Food stuff (b) Medicine (c) Cosmetics (d) Stationery (e) Others - Specify: _____________________________

9. Do you think that the supermarkets should offer home delivery service? (a) Yes (b) No

Thank You for your participation. These details will be confidential and strictly used for academic

purpose only.


Task 2

2.1 Summary of gathered data through the questionnaire mentioned on Task 1.3.

Questionnaire - The below results are received from 20 shoppers at different supermarkets

Gender

Male 7

Female 13

Age Range

21 and Under 4

22 to 34 years 12

35 to 44 years 3

45 and Over 1

Marital Status

Married 15

Single 5

Strongly Disagree

Disagree Neutral Agree Strongly

Agree

Stores are conveniently located. 0 2 4 9 5

Store hours are convenient for my shopping needs.

2 2 8 5 3

Store atmosphere and decor are appealing. 0 2 12 4 2

A good selection of products was present. 1 0 6 13 0

Merchandise sold is of the highest quality. 0 3 13 2 2

The merchandise sold is a good value for the money.

0 0 3 15 2

Merchandise displays are attractive. 0 1 6 10 3


No Yes

Do you prefer to shop at a large supermarket 3 17

Satisfied with the offered products 5 15

Should there be more supermarkets 0 20

Do you think supermarket culture will be popular 0 20

Do supermarkets lack publicity 8 12

Do want home delivery service from supermarket 2 18

Very High

High Reasonable Affordable low

Price range offered at the supermarket 0 2 10 5 3

Food Medicine Cosmetic Stationery Other

Product do you often buy at a supermarket 19 0 0 0 1

1-2 times

3-5 times

6-10 times

10+ times

How many times do you shop per month at a super market

10 7 2 1


2.2 Analysis on the summarized data and draw valid conclusions which would help “Unico” to make

decision on whether to commence operations in Sri Lanka

Analyzing survey data is a significant and exciting step in the survey process. It is the time that may

expose significant facts about the customers, uncover trends that might not otherwise have known

existed, or provide certain facts to support the plans. By doing in-depth data comparisons, it can create

to classify relationships between various data that will help to understand more about respondents, and

guide towards better decisions.

After analyzing the survey data, it is time to create a report for the valid conclusion. The difficulty and

detail essential to support the conclusions, along with the proposed audience, will command the format

of the report.

Data gathering is based on the customer satisfaction and the expectation. Therefore survey data was

related to the customer satisfaction as well. According the customer satisfaction and the view of the

customer specifically Sri Lanka, Unico can decide to launch their operation in Sri Lanka.

According the data gathering information, in Sri Lanka there are many food city like Cargills, Keells,

Laughs, Arpico are providing products to the Sri Lankan customers. But the main issue is in rural area is

not having the outlets of their stores. Therefore this is the better chance to operate Unico operation in

Sri Lanka. In this valid conclusion was identified through the customer based survey questionnaire.


2.3 Measures of Dispersion

While knowing the mean value for a set of data may give us some information about the set itself, many

variable sets can have the same mean value. To regulate how the sets are different, need more

information. Another way of observing single variable data is to look at how the data is spread out, or

dispersed about the mean.

The Following are commonly used measures of dispersion:

1. Range

2. Variance

3. Standard Deviation

4. Interquartile Range

5. Mean Deviation

6. Coefficient of Variation

Range:

The simplest methods for measuring dispersion are range. Range is the difference

among the largest value and the smallest value in the data set. While being simple to

compute, the variety is often unreliable as a measure of dispersion since it is based on

only two extreme values in the set.

Range = Largest Value – Smallest Value

Variance:

This gives a measure of how the data distributes itself about the mean or expected

value. Unlike range that only look at the extremes, the variance looks at all the data

points and then determines their distribution. In many cases of statistics and

experimentation, it is the variance that gives invaluable information about the data

distribution.

Population variance

Sample variance


Standard Deviation:

Standard deviation (SD) is the most commonly used measure of dispersion. It is a

measure of spread of data about the mean. SD is the square root of sum of squared

deviation from the mean divided by the number of observations. This is considered as

the best measure of dispersion

Population SD

Sample SD

Interquartile Range:

The interquartile range is a measure of where the “middle fifty” is in a data set. It’s

where the bulk of the values lie, and that’s why it’s preferred over many other measures

of spread (i.e. the average or median) when reporting things like school performance on

SAT scores.

Mean Deviation:

It is the average of the absolute deviation taken from a central value (generally mean or

median). Mean deviation is considered to be a better measure than range and quartile

deviation.

Coefficient of Variation:

The coefficient of variation represents the ratio of the standard deviation to the mean,

and it is a useful statistic for comparing the degree of variation from one data series to

another, even if the means are drastically different from each other.


In order to measure the dispersion of the summarized data, which were collected from the

questionnaire; I have used three measures of dispersion which are as follows:

Range Variance Standard Deviation

Stores are conveniently located. 9.00 11.50 3.39

Store hours are convenient for my shopping needs. 6.00 6.50 2.55

Store atmosphere and decor are appealing. 12.00 22.00 4.69

A good selection of products was present. 13.00 31.50 5.61

Merchandise sold is of the highest quality. 13.00 26.50 5.15

The merchandise sold is a good value for the money. 15.00 39.50 6.28

Merchandise displays are attractive. 10.00 16.50 4.06

Range Variance Standard Deviation

Do you prefer to shop at a large supermarket 14.00 98.00 9.90

Satisfied with the offered products 10.00 50.00 7.07

Should there be more supermarkets 20.00 200.00 14.14

Do you think supermarket culture will be popular 20.00 200.00 14.14

Do supermarkets lack publicity 4.00 8.00 2.83

Do want home delivery service from supermarket 16.00 128.00 11.31

Range Variance

Standard Deviation

Price range offered at the supermarket 10.00 14.50 3.81

Range Variance

Standard Deviation

Product do you often buy at a supermarket 19.00 70.50 8.40

Range Variance

Standard Deviation

How many times do you shop per month at a super market 9.00 18.00 4.24



used to draw useful conclusions in this scenario

The correlation coefficient, r, and the coefficient of determination, r 2, will look on the screen that

displays the regression equation information. The quantity r, called the linear correlation coefficient,

measures the strength and the way of a linear relationship between two variables. The linear correlation

coefficient is sometimes referred to as the Pearson product moment correlation coefficient in honor of

its developer Karl Pearson. The mathematical formula for computing r is:

Where n is the number of pairs of data. The value of r is such that -1 < r < +1. The + and – signs are used

for positive linear correlations and negative linear correlations, respectively.

Positive correlation:

If x and y have a strong positive linear correlation, r is close to +1. An r value of exactly +1 indicates a

perfect positive fit. Positive values indicate a relationship between x and y variables such that as values

for x increase, values for y also increase.

Negative correlation:

If x and y have a strong negative linear correlation, r is close to -1. An r value of exactly -1 indicates a

perfect negative fit. Negative values indicate a relationship between x and y such that as values for x

increase, values for y decrease.

No correlation:

If there is no linear correlation or a weak linear correlation, r is close to 0. A value near zero means that

there is a random, nonlinear relationship between the two variables. Note that r is a dimensionless

quantity; that is, it does not depend on the units employed.

A perfect correlation

Of ± 1 occurs only when the data points all lie exactly on a straight line. If r = +1, the slope of this line

is positive. If r = -1, the slope of this line is negative.

A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is

generally described as weak. So, in the decision making according the survey it will be measured.


The coefficient of determination is such that 0 < r 2 < 1, and denotes the strength of the linear

association between x and y. The coefficient of determination signifies the percent of the data that is

the closest to the line of best fit. For example, if r = 0.922, then r 2 = 0.850, which means that 85% of

the total variation in y can be explained by the linear relationship between x and y (as described by the

regression equation). The other 15% of the total variation in y remains unexplained.

The coefficient of determination is a measure of how well the regression line represents the data. If the

regression line passes exactly through every point on the scatter plot, it would be able to explain all of

the variation. The further the line is away from the points, the less it is able to explain (Gupta, 2007).


Task 3

3.1 Using spreadsheets, present the summarized data using different types of graphs available. Based

on the data presented on the graphs, what are the conclusions you can draw from the information

derived.

Male 35%

Female 65%

Gender

20%

60%

15%

5%

Age Limit of The Customers

21 and Under

22 to 34 years

35 to 44 years

45 and Over

75%

25%

Marital Status

Married Single

More women are into shopping at

supermarket than men

Most young adults nowadays prefer

to shop at supermarkets and well as

teens also prefer supermarkets

People who are married do more

shopping than those who are single


0

2

4

6

8

10

12

14

16

Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

0

5

10

15

20

25

No

Yes


0

2

4

6

8

10

12

Price range offered at the supermarket

Price range offered at thesupermarket

0

2

4

6

8

10

12

14

16

18

20

Product do you often buyat a supermarket

0

2

4

6

8

10

12

01-02 times 03-05 times 06-10 times 10+ times

How many times do you shop per month at a super market

How many times do youshop per month at asuper market


Unico is involving to supply consumer goods to the people. Therefore they have to be ready for product

recalls. In this situation Unico has to certify that product safety is highlighted in all phases of the

production process and they must have a comprehensive recall plan for inevitable product recalls. In

other side, manufacturers must ensure that their products obey with national product safety measures

and recall process standards.

Typically, such guidelines are presented merely as checklists of actions to be performed. The survey was

conducted among 20 participants. The required data was mostly collected from the survey research. The

survey was conducted basically to the students, workers, professional and the consumers. Equal number

of men and women responded to this questionnaire. The main demographic for this research targeted

was the middle age group. Mainly the consumers are aware to buy the product quality and easy access

outlet.

For analyzing the customer preference there were important differences among the requirements of the

households to the middle age customers. Youngers and the school going students, they are not much

aware to go to buy the outlet to buy the products in the market.

According the summarized graphical data shows that the percentage of the customer preferences of the

specific business. Due to this response Unico operation can decide and launch their business operation

in Sri Lanka. In generally the graphical data exhibits the overall valid conclusion for the research.

Through the measurement of Likert scale, the presented data responses were measured. For example

30 % responses satisfied with the retail industry operation in Sri Lanka and 60 % responses were not

satisfied with the retail industry operation in Sri Lanka. So, due to this data presentation Unico assume

the opportunity to launch the business operation in Sri Lanka.


3.2 Sales Forecast for Unico

Below are the sales details over the past six years, of the two leading supermarkets; Cargills Food City

and Keells Super.

Cargills Food City

Year Sales (Rs. million)

2013 44,258

2012 39,205

2011 29,669

2010 17,328

2009 15,883

2008 12,053

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2007 2008 2009 2010 2011 2012 2013 2014

Sale

s in

Mill

ion

Years

Cargills Food City

Linear (Sales (million))


Keells Super

Year Sales (million)

2013 14,994

2012 13,944

2011 10,637

2010 10,280

2009 9,030

2008 7,771

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2007 2008 2009 2010 2011 2012 2013 2014

Sale

s in

Mill

ion

Years

Keells Super

Linear (Sales (million))


Using the sales data of keells Super and Cargills Food city, I have generated the following sales forecast

for Unico for the next two years

(please note that these are assumed details)

Sales Forecast

Year Quarters Sales (Rs. Million)

2015

Q1 1,250

Q2 2,786

Q3 3,372

Q4 4,952

2016

Q1 3,700

Q2 3,277

Q3 4,341

Q4 5,182

0

1,000

2,000

3,000

4,000

5,000

6,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

Sale

s in

Mill

ion

(R

s.)

Time

Unico Sales Forecast for 02 years

Linear (Series1)


This report comprises a wealth of information on the financial trends over the past two years. Therefore

following decision have to take by Unico

See the market leaders- According the spread sheet graph, the market leaders have identified,

so market leader position has to analyze with the Unico and have to compete with their

products in the same market in the same industry

Identify companies heading for failure- If there are weak point has to identify with the Unico

Seek out the most attractive acquisition- In generally market attractiveness get through the cost

leadership and the product differentiation. Therefore Unico has to plan out their product with

low cost and the best quality to the customers

Analyze industry trends- According the political, legal, social and environmental trend have to

analyze

Identify their business strength of their business- Unico has strength of business, because of the

strength they have more than 400 super market and the 200,000 workers, based on the

strength they have to identify their unique of their business

Identify their weaknesses of their business- Unico has to identify their weaknesses of the

industry.

Analyze the market opportunity for their business operation- When launch the business

operation in Sri Lanka, Unico has to analyze the market opportunity for their operation.

Identify competitors- In the market there are many competitors, therefore Unico has to analyze

the competitors of the market, (Porter, 1990).


3.3 Business Presentation


3.4 Business report relevant to the presentation you have made in task 3.3

The growing utilization of retail industry products are combined with increased consumer awareness.

Intend to create enough profit to make a significant return for their investors and to finance continued

growth and continued development in quality products. They will also maintain a friendly, fair, and

creative work environment, which respects diversity, new ideas and hard work.

Business format has to base on the following information

Market –

The new business operation of Unico, has to determine whether a market exists to

purchase product, and, if so, the best way to sell it. One important issue to be decided is

the location of the business. In addition, if market is specialized or has particular needs,

market research will help to understand what buyer wants and how to communicate

that business can meet that need.

Financial –

The financial requirements of businesses vary greatly. Trade associations are often a

good source of information about the capital needs of a particular business. If the

business is going to be run as a franchise operation, the franchiser will probably have a

great deal of useful information about the financial resources the franchisee will need.

Finally, banks and private business consultants can help with financial planning.

Human Resources –

The Unico has to take the decision of the human resources requirement of their

operation, due to the business operation they have to allocate the human resources for

each department (Porter, 1990).


Task 4

4.1 Management information systems that can be used in the supermarket chains, which would assist

Sri Lankan operation of Unico.

The information system typically states to a computer-based system, one that is intended to support the

operations, management, and decision functions of an organization. Information systems in

organizations thus deliver information support for decision makers. Information systems cover

transaction processing systems, management information systems, decision support systems, and

strategic information systems.

Information contains of data that have been processed and are meaningful to a user. A system is a set of

components that operate together to achieve a common purpose. Thus a management information

system collects, transmits, processes, and stores data on an organization's resources, program, and

accomplishments. The system makes probable the exchange of these data into management

information for use by decision makers within the organization. A management information system,

therefore, creates information that supports the management functions of an organization (Davis &

Olson, 1985; Lucas, 1990; McLeod, 1995).

An information system (IS) is an arrangement of people, data, processes, and information technology

that interact to collect, process, store, and provide as output the information needed to support Sri

Lankan operation of Unico.


There are following types of information systems which support to the operation of Unico

Systems Operation

A transaction processing system (TPS) It is an information system that captures and

processes data about business transactions.

A management information system (MIS)

It is an information system that provides for

management-oriented reporting based on

transaction processing and operations of the

organization.

A decision support system (DSS)

It is an information system that either helps to

identify decision making opportunities or provides

information to help make decisions.

An expert system

It is an information system that captures the

expertise of workers and then simulates that

expertise to the benefit of non-experts

A communications and collaboration system

It is an information system that enables more

effective communications between workers,

partners, customers, and suppliers to enhance

their ability to collaborate

An office automation system

It is an information system that supports the wide

range of business office activities that provide for

improved work flow between workers.



path analysis

The project plan is the notable important thing. Proper planning of the project will lead to attaining the

project goals and objective is an effective and efficient manner. It will save cost and time. The setting up

of the project usually consists of several phases. In developing from initial planning to completion stage

the project passes through successive and distinct stage of the final product.

As mentioned the above figure illustrates that project plan of the business. First when launch the Unico

business operation in Sri Lanka, they have to analyze with the business scope and the purpose which are

first step to the project plan of the Unico business.

After the well-defined scope and purpose, Unico has to identify with the target audience. It is the

important factor of the project plan; it means they have to target the customer segment. After the

customer segment, Unico has to analyze with the financial and risk analysis of the business operation. In

generally always risk in every business, therefore risk has to analyze with the business internal and the

external factors as well.

In the next step they have to plan out the time line of the project. It means their plan should be a long

term plan. So they have to draft the proper plan with the time frame, in this situation lead the success of

the business.

According the specific time frame and other consideration the project implementation will be

implemented in the effective way.


0

4

3

8

5

10

5

15

19

16

21 22 23 A

B

C

D

F

E

G H

I

K L M

Critical Path Analysis for Unico

Activity Description Predecessor Time

(Week)

A Industry Research (Internal and External Analysis) - 4

B Finding geographical location for the company - 3

C Setting up vision, mission, goals and objectives A 1

D Positioning strategy B 2

E Branding strategy C 3

F Pricing strategy D 2

G Designing the layout of the branch E & F 2

H Obtaining plants, necessary machines and systems G 5

I Recruitment & Selection of staffs H 4

J Staffing plan H 1

K Financial plan I & J 2

L Implementing K 1

M Quality control and supervision L 1



objectives

A cash flow statement is one of the most important financial statements for a project or business. The

statement can be as simple as a one page analysis or may involve several schedules that feed

information into a central statement. Cash flow is the in and out of cash flows in the project and will

influence on liquidity of the project. A cash flow statement is a listing of the flows of cash into and out of

the business or project. Deposits are the cash inflow and withdrawals (checks) are the cash outflows.

Net Present Value (NPV)

Net Present Value (NPV) is a measure of discounted cash inflow to present cash outflow to determine

whether a prospective investment will be profitable or not. This can be calculated as follows

When cash inflows are even: When cash inflows are uneven:

NPV = R ×1 − (1 + i)-n−Initial Investment

i

NPV

=

R1

+

R2

+

R3 +

...

− Initial

Investment (1 +

i)1

(1 +

i)2

(1 +

i)3

R -is the net cash inflow expected to be received

each period;

i- is the required rate of return per period;

n- Are the number of periods during which the

project is expected to operate and generate cash

inflows.

i -is the target rate of return per period;

R1 -is the net cash inflow during the first period;

R2 -is the net cash inflow during the second

period;

R3- is the net cash inflow during the third period,

and so on ...

NPV supports to analysis the recovery period of investment.

The internal rate of return (IRR) or economic rate of return (ERR) is a rate of return used in capital

budgeting to measure and compare the profitability of investments. It is also called the discounted cash

flow rate of return (DCFROR). In the context of savings and loans the IRR is also called the effective

interest rate. The term internal refers to the fact that its calculation does not incorporate environmental

factors (e.g., the interest rate or inflation).


The internal rate of return on an investment or project is the "annualized effective compounded return

rate" or "rate of return" that makes the net present value (NPV as NET*1/ (1+IRR) ^year) of all cash

flows (both positive and negative) from a particular investment equal to zero. It can also be defined as

the discount rate at which the present value of all future cash flow is equal to the initial investment or in

other words the rate at which an investment breaks even.

In more specific terms, the IRR of an investment is the discount rate at which the net present value of

costs (negative cash flows) of the investment equals the net present value of the benefits (positive cash

flows) of the investment.

IRR calculations are commonly used to evaluate the desirability of investments or projects. The higher a

project's IRR, the more desirable it is to undertake the project. Assuming all projects require the same

amount of up-front investment, the project with the highest IRR would be considered the best and

undertaken first.

Break Event Point (BEP)

Break-even (or break even) is the point of balance between making either a profit or a loss. The term

originates in finance, but the concept has been applied widely since. Following figure shows the graphics

of Break Event Point (BEP)

Break Event Point (BEP) = FC/P-VC

FC =Fixed Cost

P= Price

VC= Variable cost

Payback period

Payback period in capital budgeting refers to the period of time required for the return on an

investment to "repay" the sum of the original investment in the project (Pogue, 2004).


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Business Decision Making

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