Business Decision Making Assignment Sample

Introduction To Business Decision-Making Assignment

Decision making is the vital process which helps in effective completion of the goals and objective of the organization. Hence, decision should be taken after evaluating every possible aspect of the business and after identifying all the potential impact of the particular decision. This report is based on the case scenario which presents the importance of business decision making on the working of the organization. This report will include the process of decision making which will help in improving the impact of decision being undertaken. This report will also include detail plan for collecting primary and secondary data which will help in identify the potential impact of particular decision on the working of organization. It will also include appropriate decisions making framework which will help in taking effective and efficient decisions. It will also include various competitors which are impacting the growth of the organization. Strengthens and weakness of the organization will be determined which will help in taking appropriate decision for the development of the organization. This report will also include problem solving techniques which can be beneficial for the growth and development of organization.

Task 1

Choosing an appropriate Business decision model

For taking an effective decision which will help in better growth and development of the organization, 7 step model of decision making will be followed. Under this step, the decision which is needed to be taken is evaluated and various factors impacting the decision are identified. This process includes identifying all the possible solutions for the challenges and selecting the best among all. This will help in effective and efficient decision making which will enhance the productivity and profitability of organization. 7 steps process for improving the quality of decision making are as follows:

• Identify the decision: Every company aims at expansion and growth of the business organization (7 step model of decision making, 2023). Space for rent company aims to enter in UK market within one year which include identify all the potential aspects which are necessary for successful working in UK market. The goal of company is to set up an effective company in UK within a year.
• Gathering relevant information: All the important and accurate information will be collected which help in taking the appropriate decision. This will help in identifying the historical data to support the decision and current trend in market related to business. Under this step, market research will be carried out to identify viability of business in UK. This will include all necessary information related to procurement of funds. All the information will be collected regarding the buildings which are available for sale. This will also include detail information regarding the legal aspects of the building.
• Identifying all potential alternatives: Once identification of potential data is done then all the alternatives which are available in the market will be determined. This in turn helps in taking appropriate decisions (Abubakar et al, 2019). This will include identify various locations for setting up organization which are cost effective.
• Evaluate all evidence: All the potential alternatives will then be evaluated on the basis of the political, social and economical aspects. This will help in identify the long term viability of the particular alternative and its impact on the working of organization.
• Selecting best alternative: In this step, the actual decision has been taken which include choosing the best alternative among all. After identifying all the potential loss and gain associated with particular alternative, most profitable path will be selected.
• Implementation of decision: Under this step the decision which has been taken in the above step will be implemented in the real life. This will include collecting and allocating all the resources which are necessary for the growth of organization (Joseph and Gaba, 2020).
• Review of decision: Under this step, the company will compare actual result with forecasting result. This will help in determine the accuracy and viability of decision being undertaken. Corrective measures will be determined which will help in improving performance and profitability of organization.

1.2 Plan for collecting primary and secondary data:

For identify the demands and need of the organization various primary and secondary sources of data collection will be used. This will help in identifying all the factors which are impacting the setting up of an organization (Bag et al, 2021). The primary data collection method will helpful in determining the need and preferences of customers toward the organization. It will provide company with all the facilities which are preferred by customers and current needs in the market. This will be helpful in taking decision which could fulfil their demand. Survey and focus group methods will be used by company in collecting primary data.

Survey: This is the method in which the preference of the population in UK will be determined by asking them certain questions. Questionnaires will be prepared which will include identifying the purpose for which most people like to rent room. This will also include the maximum amount which they are preference to pay in particular area. Question will ask regarding their preference toward renting or leasing (Taherdoost, 2021). This will help in determining location which company should purchase property and how they should refurbish properties. Questionnaires will be filled through both online and offline modes which further help in covering large amount of population. Thus, by sending questionnaire to 30 potential customers data will be gathered with the motive to analyze the preference of target market. Hence, online survey strategy will be used for collecting data within suitable time period.

Focus group: Under this method group decision will be carrying out with experiences and knowledgeable individual. This will help in assessing current demand in market and long term viability of business plan. It will also lead to better understanding of value, perspective, attitude, belief and ideas different individual.

Secondary sources of data collection will be used to identify the performance of existing company in the industry. It will lead to identify the policies which have been used by the companies and its impact on their financial position. Information will be collected from various journals, government data and articles which will help in taking effective decision (Benzaghta et al, 2021). PESTLE analysis of exiting company will be determined which will help in identify all political, economical and social factors which are impacting the working of organization. This will help in taking appropriate decision to reduce their impact on working of company. Porter's five forces analysis will also be conducted to determine the threat of competitors in industry and determine the structure and strategies of current firms.

1.3 Decision-making framework

This is framework which helps in reduction in the level of risk associate with starting up new business. For taking effective decision, AARRR decision making framework will be used by company. This is the metrics which help in concentrating company's attention toward improving its performance which will help in attracting and retention more customers. AARRR refer to as acquisition, Activation, Retention, referral and revenue (AARRR decision making framework, 2023). Under this metric the firm will be able to identify popularity of company and interest of customer in services being provided by organization. The company will implement the framework in the following manner:

• Acquisition metric: Under this metric, the company is focus towards creating awareness regarding the services provided by the company. Various promotional strategies will be used by the company which will help in creating awareness in the market. SEO, social media marketing, advertising and company's apps and websites are various marketing tools which will be used by the company (Roycroft, 2019). It has been identified that social media marketing is the most profitable and effective marketing tools in UK. Average of 28% sales has been increased in the companies by implementing social media marketing in there promotional tools.
• Activation metrics: Once the customer is made aware of the services being provided, next strep include influencing them to trying out the services. These will include providing them with the mails through which they could be identify additional benefits associated with the company (Brunsson, 2019). This will also include monitoring the time customer is spending on company's sites. This will help in understanding their interest in the organization.
• Retention metrics: Customer retention is important to maintain the stability of the company. Under this step, the entity will monitor the actions of current customer which will help in determining their interest and satisfaction level with organization. This will identify by monitoring the number of time client is returning back to website of company to enhance its knowledge regarding company's offering. Data will recorded to identify the number of clients who are signing to RSS feed which will help them to get keep access to company' websites.
• Referral metrics: Referral from current customer is the most economical way to create awareness regarding the product and enhance sale of company. Under this the company tries to maintain the record regarding number of customer which are referring the firm name to their friend and relatives (Gabriel et al, 2019). This is the most difficult part to monitor as there are various sources by which one could tell other regarding the services of company. But the company will use referral code by which the existing client could earn some sort of benefits which will help in determine the number of code being used. ‘Space for rent' company will conduct various contests which will help in increase the referrals by the customers.
• Revenue metrics: These will help in determining the impact of the above cost in increasing the revenue of firm. This will be carry out by comparing the actual profit with the estimated profit and identify the difference in the amount. By using this metrics, entity will able to identify clients which are generating minimum and breakeven revenue. This metric will help in understanding the usefulness of funds being invested in carrying out above process.

Task 2

2.1 Competitors and SWOT analysis

• Competitor's analysis: There are large numbers of company working in UK which are dealing in acquisition and renting of building. This analysis will help in understanding the current competitor in market which will impact the working of the organization. It will also help in determining the policies being used by competitor and its impact in increasing their profits. The firm will able to understand the USP of each organization and focus on taking decision by which competitive edge could be created in the industry. Some of the key competitors for the company are as follows:
• CBRE UK: Coldwell Banker Richard Ellis deal in acquisition o properties in UK. These aim at renting or resale of the property after refurbishing the land which helps in earning a prominent amount of profits. It is the biggest property deal in UK with market share of 26% in UK which is greater than combination of more than two to three companies in UK. The company is having an annual turnover of £ 3.16 billion from UK (Annual turnover of CBRE, 2022). Reason behind such profits is selection of effective business strategies and strong market presence in UK. The company is able to cover its operating cost which is leading to increase in its profits. In current time, company has incur a huge loss from its subsidiaries which is impacting overall financial position of firm in industry.
• Colliers internationals: It is one of the competitors of the company in UK which deal in renting and selling commercial properties in country (Jafarzadeh, 2022). The company is having strong brand recognition and enjoying market leadership position which helps in enhancing its profitability. Company is having an annual turnover of £ 4.6 million.
• SWOT analysis: This will help in identify all strength which will be useful in taking the advantages of various opportunities available in market. This will also help in determine various weakness and threat which are internal to the working of company. SWOT analysis of company is as follows:
• Strength: the company has gather all the required and accurate information related to the market of UK by conducting market research. This helps in enhance the knowledge regarding the market and help in identifying potential impact of decision on company. The company is already having a specialized knowledge regarding acquiring and renting property which will help in taking effective decision.
• Weakness: The Company is not having sustainable brand recognition in UK which will create challenge at initial stage for increasing sales. Company is not having wide geographical presence which in long term will impact the stability of firm in industry.
• Opportunities: The Company should focus on collaborating with local company in UK. This will help in enhancing market share and accessibility in country. This will help in gaining effective knowledge regarding the country and company can effectively used local expertise which will help in improving profitability. There are various online scopes available in country which aims at providing services through online mode which will leads to attract more customers.
• Threats: There are large numbers of competitors in market which will impact growth of company. There is a constant up gradation of technology in country which requires high investment in latest technologies. This will increase cost for the company and impact profitability of the firm.

2.2 Problem-solving techniques

Each organization faced variety of problem while completing their goals and objectives. There are various problem solving techniques available which will help in proper understanding and evaluating problem. By implementing the techniques company will be able to find appropriate solution for problem. Rational decision making model has been selected for taking decision which will help in solving the entire problem faced by company. This type of model involves analytical steps to identify all the potential alternatives for the problem and ignore emotional factor while taking decision. All potential alternatives which had been identified are evaluated on the basis of available data and facts before selecting one alternative.

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As the company is dealing in acquiring and renting properties there are large number of decisions which are needed to be made by company on regular basis. Rational decision making is the step wise problem solving model which helps in determining the appropriate solution for problem (Kuzior, Kwilinski and Tkachenko, 2019). This involve identify the problem which is actual hampering the working of the organization. Once the problem is determined next steps involves indentifying all the necessary and relevant information which can help in taking appropriate decision. All the decision criteria which have been identified will be given ranked based on their importance in decisions making. Criteria will be arranged in the systematic order and best among all will be selected for solving the problem. Rational decision making has been selected by company because of following reasons:

• This model will enable company to collect relevant and suitable information regarding property before acquiring it. This will help in understanding all legal factors of property and making decision on the transparent basis.
• It will help in reducing risk of company by identify the impact of decision on the working of organization. This will help in improving confidence of the company in taking decision as this model reduce the risk of error, omission and biasness.
• There are large amount of factors interconnected in the firm which are impacting the working of other. This decision making model help in effective forecasting regarding impact of particular decision on all other departments. This model help in development of objective view point which enable company in identifying new opportunities in the market (Phadermrod, Crowder and Wills, 2019).
• Emotional factor is ignored while determining alternatives for solving problem and scientific method has been used. This help in reduction in chances of errors in decision making process.

Conclusion

It has been concluded from report that business decision plays an important role in determining growth and development of the organization. It has been indentify that 7 step decision making process should be followed before taking any decision. This is step wise process which involves determination of problem and identifying all relevant information by conducting market research. Each potential alternative are identified and evaluated which will help in selecting the best option. Survey through questionnaires and focus group is various primary sources of data collections which have been used by companies in identify the preference of customer. PESTLE analysis and porter's five forces analysis has been carried out by company to determine various factors impacting company. AARRR has been selected as the decision making framework which will help in determining the acquisition and retention of customer in the organization.

CBRE and collide international has been identified as competitors to the organizations which will impact working of company in UK. The company is having adequate knowledge regarding UK market which will help in effectual setting up of company. It has been identified that company should collaborate with local company in UK which enhances their knowledge and expert level. There is constant change in technology and number of competitors has been increased in UK which will impact the profitability and stability of organization. It has also identified that rational decision making model is best suitable for the company while solving problem. This model helps in determining all decision criteria on logical basis and ignored emotion while taking decision. This is best model for company as this help in reducing risk of error and omission while taking final decision.

References

Books and Journals

• Abubakar, A.M., Elrehail, H., Alatailat, M.A. and Elçi, A., 2019. Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), pp.104-114.
• Bag, S., Gupta, S., Kumar, A. and Sivarajah, U., 2021. An integrated artificial intelligence framework for knowledge creation and B2B marketing rational decision making for improving firm performance. Industrial marketing management, 92, pp.178-189.
• Benzaghta, M.A., Elwalda, A., Mousa, M.M., Erkan, I. and Rahman, M., 2021. SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), pp.55-73.
• Brunsson, N., 2019. The irrationality of action and action rationality: decisions, ideologies and organizational actions. In Management Control Theory (pp. 395-410). Routledge.
• Gabriel, A.S., Podsakoff, N.P., Beal, D.J., Scott, B.A., Sonnentag, S., Trougakos, J.P. and Butts, M.M., 2019. Experience sampling methods: A discussion of critical trends and considerations for scholarly advancement. Organizational Research Methods, 22(4), pp.969-1006.
• Jafarzadeh, M., 2022. Competitive Analysis of Territorial Restrictions in Vertical Agreements (A Comparative Study of American, European Union, and Iranian Law). Comparative law Research Quarterly, 26(2), pp.1-28.
• Joseph, J. and Gaba, V., 2020. Organizational structure, information processing, and decision-making: A retrospective and road map for research. Academy of Management Annals, 14(1), pp.267-302.
• Kuzior, A., Kwilinski, A. and Tkachenko, V., 2019, June. Research on acquisition on authors sources of Sci-Tech journals based on AARRR Model. In Proceedings of the 2021 1st International Conference on Control and Intelligent Robotics (pp. 193-196).
• Kuzior, A., Kwilinski, A. and Tkachenko, V., 2019. Sustainable development of organizations based on the combinatorial model of artificial intelligence. Entrepreneurship and Sustainability Issues, 7(2), p.1353.
• Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International journal of information management, 44, pp.194-203.
• Roycroft, M., 2019. Why understanding police investigative decision making is important. Decision Making in Police Enquiries and Critical Incidents: What Really Works?, pp.1-13.
• Taherdoost, H., 2021. Data Collection Methods and Tools for Research; A Step-by-Step Guide to Choose Data Collection Technique for Academic and Business Research Projects. International Journal of Academic Research in Management (IJARM), 10(1), pp.10-38.

Online

• 7 step model of decision making. 2023. [Online] available through :< https://www.lucidchart.com/blog/decision-making-process-steps#:~:text=To%20make%20a%20decision%2C%20you,it%20even%20leaves%20the%20station.>
• AARRR decision making framework. 2023. [Online] available through :< https://www.productplan.com/glossary/aarrr-framework/>
• Annual turnover of CBRE. 2022. [Online] available through :< https://www.macrotrends.net/stocks/charts/CBRE/cbre/revenue#:~:text=CBRE%20revenue%20for%20the%20twelve,a%2016.45%25%20increase%20from%202020