Business Decision Making

HND in Business Management

Edexcel
E-Soft Batch 30
Sheran Dunlas

Registration No: 1343

Edexcel No: EKO3924

Edexcel HND in Business Management

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
th

Date Due: 12 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

HND in BM | BDM

Markers Signature

Page i

Higher National Diploma in Business

Assignment Front Cover Sheet

Unit Title:
Business Decision Making
Assignment Title & Number:
D/601/0578 Unit 06
Submission Date: 12th July 2014

Tutors Name:

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.

Check carefully the hand in date and the instructions given with the assignment. Late submissions will not
be accepted.
Ensure that you give yourself enough time to complete the assignment by the due date.
Dont leave things such as printing to the last minute excuses of this nature will not be accepted for
failure to hand in the work on time?
You must take responsibility for managing your own time effectively.
If you are unable to hand in your assignment on time and have valid reasons such as illness, you may
apply (in writing) for an extension. (See your Student Handbook for details.)
Failure to achieve at least a PASS grade will result in a REFERRAL grade being given.
Non-submission of work without valid reasons will lead to an automatic REFERRAL. You will then be
asked to complete an alternative assignment on next semester.
Take great care that if you use other peoples work or ideas in your assignment, you properly reference
them, using the HARVARD referencing system, in you text and any bibliography, otherwise you may be
guilty of plagiarism.
If you are caught plagiarising you could have your grade reduced to A REFERRAL or at worst you
could be excluded from the course.

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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
P1.2 present the survey methodology and
sampling frame used

P1.3 design a questionnaire for a given

business problem

Create a plan for

collect primary and
secondary data

Prepare
detailed
description of the
survey methodology
and sampling frame
and justify why you
have chosen them
To understand the
market condition
design a
questionnaire for
customers

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

Present a summary
of gathered data
P2.1. create information for decision making
by summarising data using representative
values
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
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 forecast 2years
to assist in forecasting for specified business sales, use trend lines
information
in spreadsheet
graphs to provide
necessary
information
facilitating decision
making for
management of
Unico.
P3.3. prepare a business presentation using
prepare a business
suitable software and techniques to
presentation using
disseminate information effectively
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
P3.1 produce graphs using spreadsheets and
draw valid conclusions based on the
information derived

P4.1 use appropriate information processing

tools

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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

P4.3 use financial tools for decision making

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Prepare a project
plan for
establishment of
Unico in Sri
Lanka inclusive of a
critical path analysis
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)
M1. Identify and apply
strategies to find appropriate
solutions.

M2. Select/design and apply

appropriate
methods/techniques.

M3. Present and

communicate appropriate
findings.

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Possible evidence

Achieved

Feedback

M1.3- an effective approach to study

and research has been
applied

M2.3- a range of sources of

information has been used

M3.1- the appropriate structure and

approach has been used

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DISTINCTION CRITERIA

Grade Description
(Distinction)
D1. Use critical
applications to evaluate
own work and justify
valid conclusions.

D2. Take responsibility

for managing and
organizing activities.

Possible evidence

Achieved

Feedback

D1.1- conclusions have been arrived at

through synthesis of ideas and have
been justified

D2.2- substantial activities, projects or

investigations have been planned,
managed and organized

D3. Demonstrate
D3.3-convergent and lateral thinking have
convergent/lateral/creative
been applied
thinking.

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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 wouldnt be here writing this acknowledgement if it wasnt 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.

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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
2.4 Explain how calculations of measures like quartiles, percentiles and the correlation coefficient are
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
4.2 Prepare a project plan for establishment of Unico in Sri Lanka with inclusive of relevant critical
path analysis ........................................................................................................................................... 28
4.3 Identify the investment opportunity the organization has to take in order to achieve its perceived
objectives ................................................................................................................................................ 30
References .................................................................................................................................................. 32

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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.

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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.
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

Secondary sources offer interpretation or

analysis based on primary sources.

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 Secondary data is usually inexpensive to obtain
tends to be expensive to conduct and takes a and can be analyzed in less time.
long time to process.
Primary resources are:
Secondary resources example:
Interview
Books
Observation
Journal articles
Action research
Biography
Case studies
Research analysis
Questionnaires
Dissertations
Ethnographic research
Works of criticism and interpretation
Longitudinal studies
Newspaper articles
Experimental results
Web information
Autobiographies
Historical data and information
personal narratives

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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.

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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 Datas (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.

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1.3 Questionnaire to Customers

Gender: Male [
Age Limit:

Female [

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
2
3
4
5

Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

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

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(b) No

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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

(d) Affordable

(e) Low

(c) Reasonable

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.

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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

Female

13

Age Range
21 and Under

22 to 34 years

12

35 to 44 years

45 and Over

Marital Status
Married

15

Single

Disagree

Neutral

Agree

Strongly
Agree
5

12

A good selection of products was present.

13

Merchandise sold is of the highest quality.

The merchandise sold is a good value for the
money.
Merchandise displays are attractive.

13

15

10

Stores are conveniently located.

Store hours are convenient for my shopping
needs.
Store atmosphere and decor are appealing.

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Strongly
Disagree
0

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No

Yes

Do you prefer to shop at a large supermarket

17

Satisfied with the offered products

15

Should there be more supermarkets

20

Do you think supermarket culture will be popular

20

Do supermarkets lack publicity

12

Do want home delivery service from supermarket

18

Price range offered at the supermarket

Product do you often buy at a supermarket

Very
High

High

10

low

Food

Medicine

Cosmetic

Stationery

Other

19

How many times do you shop per month at a super

market

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Reasonable Affordable

1-2
times

3-5
times

6-10
times

10+
times

10

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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.

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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

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 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. Its
where the bulk of the values lie, and thats why its 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.

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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:

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.

Do you prefer to shop at a large supermarket

Satisfied with the offered products
Should there be more supermarkets
Do you think supermarket culture will be popular
Do supermarkets lack publicity
Do want home delivery service from supermarket

Price range offered at the supermarket

Product do you often buy at a supermarket

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

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Range

Variance

9.00
6.00
12.00
13.00
13.00
15.00
10.00

11.50
6.50
22.00
31.50
26.50
39.50
16.50

Range

Variance

14.00
10.00
20.00
20.00
4.00
16.00

98.00
50.00
200.00
200.00
8.00
128.00

Range

Variance

10.00

14.50

Range

Variance

19.00

70.50

Range

Variance

9.00

18.00

Standard
Deviation
3.39
2.55
4.69
5.61
5.15
6.28
4.06
Standard
Deviation
9.90
7.07
14.14
14.14
2.83
11.31
Standard
Deviation
3.81
Standard
Deviation
8.40
Standard
Deviation
4.24

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

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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).

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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.

Gender
More women are into shopping at
supermarket than men

Male
35%
Female
65%

Age Limit of The Customers

5%
20%

15%

21 and Under
22 to 34 years

Most young adults nowadays prefer

to shop at supermarkets and well as
teens also prefer supermarkets

35 to 44 years
60%

45 and Over

Marital Status
Married

Single

People who are married do more

shopping than those who are single
25%
75%

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16
14
12
10
8
6
4
2
0

Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree

25
20
15
10
5
0

No
Yes

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Price range offered at the

supermarket
12
10
8
6
4
2
0

Price range offered at the

supermarket

20
18
16
14
12
10
8
6
4
2
0

Product do you often buy

at a supermarket

How many times do you shop per

month at a super market
12
10
8
How many times do you
shop per month at a
super market

6
4
2
0
01-02 times 03-05 times 06-10 times 10+ times

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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.

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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
2012
2011
2010
2009
2008

44,258
39,205
29,669
17,328
15,883
12,053

Cargills Food City

50,000
45,000
40,000
Sales in Million

35,000
30,000
25,000
Linear (Sales (million))

20,000
15,000
10,000
5,000
0
2007

2008

2009

2010

2011

2012

2013

2014

Years

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Keells Super
Year

Sales (million)

2013
2012
2011
2010
2009
2008

14,994
13,944
10,637
10,280
9,030
7,771

Keells Super
16,000
14,000

Sales in Million

12,000
10,000
8,000
Linear (Sales (million))

6,000
4,000
2,000
0
2007

2008

2009

2010

2011

2012

2013

2014

Years

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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

2015

2016

Quarters

Sales (Rs. Million)

Q1

1,250

Q2

2,786

Q3

3,372

Q4

4,952

Q1

3,700

Q2

3,277

Q3

4,341

Q4

5,182

Unico Sales Forecast for 02 years

6,000

Sales in Million (Rs.)

5,000
4,000
3,000
Linear (Series1)

2,000
1,000
0
Q1

Q2

Q3

Q4

Q1

2015

Q2

Q3

Q4

2016
Time

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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).

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3.3 Business Presentation

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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).

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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.

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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.

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4.2 Prepare a project plan for establishment of Unico in Sri Lanka with inclusive of relevant critical
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.
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Critical Path Analysis for Unico

Activity

Description

A
B
C
D
E
F
G
H
I
J
K
L
M

Time
(Week)
4
3
1
2
3
2
2
5
4
1
2
1
1

Predecessor

A
B
C
D
E&F
G
H
H
I&J
K
L

Industry Research (Internal and External Analysis)

Finding geographical location for the company
Setting up vision, mission, goals and objectives
Positioning strategy
Branding strategy
Pricing strategy
Designing the layout of the branch
Obtaining plants, necessary machines and systems
Recruitment & Selection of staffs
Staffing plan
Financial plan
Implementing
Quality control and supervision
C
4

19

21

M
22

23

I
G

H
10

15

16

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

R1

R2

R3

NPV = R 1 (1 + i)-nInitial Investment

i

NPV
=

+
(1 + + (1 + + (1 +
...
i)1
i)2
i)3

Initial
Investment

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).

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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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