Foundation for Business Decision-Making amid Competition Assignment Sample

Decision-Making Model And Evaluation Of The Key Problem Within The Business

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Introduction Of Business Decision-Making Assignment

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Corporate decision-making model is considered to be as a pivotal notion that needs a complete deliberation. Effectual study is very much significant since a foundation is required to create any sort of decisions. The main purpose behind conducting this study is to take on a business decision making with regards to the company names as Space For Rent.  The company is specializes in accumulating buildings at an affordable cost, renovating those buildings to a satisfactory professional standard along with leasing out a space at a desk in a room. The business will be a new venture which is intending to get entry within the business sector of UK within 1 year.

Task 1 

 1.1 Use of a decision-making model and evaluation of the key problem within the business

A decision-making process or model is referred to as the strategy that has been used to make a particular decision. The primary component to keep in mind whilst drafting a decision-making plan or process is first understanding the problem and its origination, following which the next process is understanding what kind of lubrications can be provided to it to ease out the issue. Third is identifying the components that will help in solving the issue, for example for a firm it might be a team, new software, or an additional wing (Dos Santos et al., 2019). Finally, the last step is solving the issue and fixating on it. The following report will be focussing on the issue of Space-for-rent which is facing a competitive down point while entering the market of the United Kingdom. This report will aim at providing relevant information through mostly secondary data as primary data cannot be gathered in the given time constraint.

Space-for-Rent is a firm that lists places that people or organizations wish to give out on rent. The firm categorizes these spaces into several parts such as office space, warehouse, habitation rent, commercial stores, and so on. The firm is an American-based SME, it was able to attract quite some attention in its home country and now it wishes to invade the market of the United Kingdom. The primary issue that the firm is facing is putting itself at a point of competitive advantage while entering the market. This section will attempt to understand the key issues that are obstructing the firm to achieve a competitive advantage in the market and which decision-making model(s) will be appropriate to solve the researched issues.

Issues with gaining competitive advantage:

  • High competition: the UK market is pretty saturated with property rental businesses both at start-up and big-scale levels. Companies like The Open Rent, HouseShop.com, Venue Scanner, Flat fair, Howsy, Letting a property, Room Club, and so on have been available in the UK market for more than 5 years. These companies have gained the trust of their customers and hence these people prefer to rent out from firms that are known. The aspect of psychology also comes to effect in this category where the customer wishes to buy or in this case rent from dealers that are known to them.
  • Lack of support: the United Kingdom is infamous for not being a very welcoming country for firms belonging to other countries. The country is itself a very hassled place to get settled in for a firm because of several issues. Firstly, the aspect of Brexit is still very dicey within the country and hence it's business and economic laws keep on fluctuating, apart from that construction permits and property registration is a way more complicated process in this country than in other countries, the taxation process too deemed to be completed in comparison to other countries as a whole(Rigo et al., 2020).
  • Lack of financial aid: the UK is again infamous for being a country for severely restricting any financial aid that might come from any public or private institution in the country. Their financial aid is mostly aimed toward indigenous firms or firms that have a local presence but now are wishing to go global with their ideas.

These were the main issues of the UK market that are restricting Space-for-rent from entering the market and overall gaining a competitive advantage, the following section will understand what decision-making models can help the aforesaid firm to overcome these issues. Decision-making is an important portion of project management. According to theorists, a complicated situation should not be relying on one particular form of a decision-making model, rather it should be creating an amalgamation of a range of models and customizing them according to needs to come up with the perfect solution:

  • Bounded rationality decision-making model: this is also known as the 'satisficing' decision-making process. This model aims at deciding on a process that will be 'good enough for the time being instead of rigorously moving towards the best possible solution. For Space-for-rent, the firm needs to enter the market and establish a place first instead of going straight for a competitive advantage. Establishing a place will allow the firm some time to familiarise itself with the market as well as to gain information on strategic development(Lazaroiu et al., 2020).
  • Vroom-Yetton Decision-Making Model: this model believes in flexibility and allows any firm to ask 5 immediate questions to itself. The answer to the issue lies in those 5 immediate answers. This model believes in going with the flow and choosing the best possible option available at the given moment. For example, the five immediate questions for Space-a-rent would be; 1. What are we lacking? 2. Who is the market leader? 3. What do they have that we don't? 4. Is there a gap? 5. What is that gap? The answers to these questions will allow the firm a clearer position of itself in the market from where it can move forward.
  • MCDM (Multiple Criterion Decision Making): the multiple criteria decision-making model bases itself on the idea that there are several criteria for making a decision and not one. Hence, each aspect needs to be kept in mind. In the given case, the several criteria that are obstructing the path of gain for Space-for-rent have been elaborately mentioned in the above section(Gupta 2019).

1.2 Plan of collection of secondary data for the mentioned business issues and discussion of the issues involved in making complex business decisions

Secondary data can be attained through various methods; A market research is mostly conducted to understand the consumer values of a country especially if it is a new and alien country:

  • Social Media Listening: People often tend to search for their desired products on social media, a careful analysis of their digital footprint can allow firms to understand their wants and needs and also identify the gap in the market.
  • Observation: observation is referred to as one of the slowest but most effective forms of market research techniques. Firms in this case observe the behavioral pattern of shoppers while they make their purchases, this helps them understand how can they stimulate their purchasing process(Zak and Hasprova 2020).
  • Competitive analysis: Perhaps one of the most common forms of market research techniques used by firms. In this process, the firm uses the reports and public data of their rival companies and analyzes them to understand the strategic processes of their rivals.

Space-of-rent can use an amalgamation of these three modes of market research to acquire the data necessary. This will provide the firm with a wholesome knowledge of the information from the customer's end as well as the market's end. The following section will look into a few issues that are involved with the formation of complex business decisions:

  • Time Constraint: for the given case time constraint is the primary issue in effective decision-making is a time constraint, this is one of the primary reasons for choosing secondary data for market research.
  • Biases: As mentioned in the previous sections, the UK market is already pretty saturated with rental businesses and the customers are used to dealing with known dealers hence Space-for-rent is very likely to face bias while entering and establishing itself in the market(Bratianu et al., 2020).

1.3 Selection and justification of appropriate decision-making framework

So far, the report has focussed on the issues that the aforementioned firm has been facing while entering a foreign market. The report elaborately described what models can be used to ease the process of the decision-making process of the firm. This section will focus on understanding the decision-making framework that the firm should be used for effective processing in the market as well as organic development (Karl et al., 2020).

The Market opportunity navigator has been deemed to be appropriate for the given situation of the firm. The market opportunity navigator of MON is referred to as a strategic management tool that recognizes the opportunities that are present in the market for the firm to utilize them. this report from its beginning has been focussing on identifying and understanding the gaps in the gaps through market research through social media listening, observation, and analysis of competition. The gaps in the market are opportunities for a firm. As mentioned above that the rental market of the UK is quite saturated, and if Space-for-rent needs to make a mark in the given market it will need to understand the market gap.

MON is strategically divided into three portions that help the firm to establish an effective decision-making process:

  • Conduction of thorough market research through a primary or secondary medium or both will contain both qualitative and quantitative data on the market, customers, and well competition. This needs to be a regular process that needs to take place either quarterly or half-yearly.
  • Evaluation: the data collected needs to be evaluated to look for gaps that will in turn be turned into opportunities.
  • Implication: processing to fill up those gaps and exploit the arisen opportunities.

Task 2

2.1 SWOT analysis and PESTLE analysis

There are many competitors of Space for Rent in the new market for the business in the UK. In order to analyses the different strengths, weaknesses, opportunities and threats for the business, the SWOT analysis will be helpful.

Strengths:

·       Efficiency is one of the significant strengths of Space for Rent as they are able to complete projects on a specific time (Zima, Plebankiewicz, and Wieczorek, 2020).

·       Well-experienced business management helps to work more significantly on different tasks.

·       Each project is designed, architected, and planned differently, but the skill and materials remain the same.

Weaknesses:

·       High level of competition in the market and that is one of the major weaknesses for the business to grow.

·       There are certain poor decisions that affect the activities and it also results in the misuse of resources.

·       Less new projects and the business is only focusing on one type of project.

Opportunities :

·       This will be seen as a chance for house For Rent to separate workers from new customers in order that they can complete tasks with efficiency (Yao and DE Soto, 2022).

·       Technology is impacting virtually every sector. Currently, the web of Things and its good devices area unit welcome in people's homes.

·       Acceptance of modification and therefore the have to be compelled to follow trends is additionally seen as mutually of the best opportunities.

Threats:

·       Economic recession is one of the major threats to Space for Rent as in the event of a recession in the economy and a decrease in investment in the business.

·       It changes the attitude of people and affecting the level of their spending.

 

PESTLE Analysis

There square measure several opportunities for firms within the world construction industry; but, it conjointly face several experiments.

Political Factors - Government disbursement may be a major political issue that impacts the world housing industry. Construction services will be in demand if government expenditures on infrastructure increase (Zhou, and et.al., 2019).

Economic Factors - the development trade is heavily laid low with economic recessions and uncertainties. It’s common for construction employees to lose their jobs and wages throughout economic downturns.

Social Factors - The construction industry pays workers much better than many other industries. Most developing economies, however, tend to do the opposite. To encourage young people to enter the industry, more efforts are needed.

Technological Factors -The modern construction industry relies heavily on automation. Customer demands for productivity and efficiency are increasing as technology advances. Therefore, companies like Space for Rent must develop strategies that increase market share while keeping costs low (Forys, Nogalski, and Ngoc, 2022).

Environmental Factors -When it rains, everything gets wet and dirty, making it difficult for people to do their work. Landslides and flooding are also more likely to occur when it rains, disrupting construction efforts.

Legal Factors - Laws are implemented differently in different countries. Legislation can certainly improve safety measures and industry standards. However, complying with regulations means having to invest time and money, which can limit a company's growth. 

2.2 One problem solving technique for the selected business

In this, the major problem is the competitor for Space for Rent as there are already many other companies ruling the market. It is important to solve the issue using a problem solving technique. For this issue, there is use of Creative Decision making process technique for the business to solve the issue creatively (Han, and Guangrui, 2018).

Problem Recognition : In this report, the major issue of Space for Rent is the huge competition for the new business in the market of UK. The original and unique idea regarding the process of implementing the ideas for improvement. 

Immersion : It is considered the adoption of the creative process which is developed by the management of Space for Rent in order to solve the issue. Further, the opinion of management highly matters and required a thoughtful process to deal with the issues in a better way. It is one of the most important steps for Space for Rent to understand the issues and analyse the best way to solve the issues (Saqib, and et.al., 2019).

Incubation : The decision maker of Space for Rent undergoes a period of incubation after gathering information and insights about the competitors and generating some initial ideas, during which he lets his unconscious mind take over the decision-making process without actively thinking about its solutions. The idea of enhancing the process of promotion of business to a wide range of people (Wong, and et.al., 2018).

Illumination : This part includes the idea regarding the implementation of advertising for increasing awareness about the new business in the mind of customers. The sudden aspect of solutions gives an appropriate level of experience to the business and considers it a significant part for problem-solving technique (Chen, and et.al., 2020).

Incubation : The decision maker of Space for Rent undergoes a period of incubation after gathering information and insights about the competitors and generating some initial ideas, during which he lets his unconscious mind take over the decision-making process without actively thinking about its solutions. The idea of enhancing the process of promotion of business to a wide range of people (Wong, and et.al., 2018).

Verification and Application : The verification part mainly includes the verification of the ideas of promotion and advertisement of the new business helps to analyse the situation. It also includes the process of developing the aspect of promotion and creating a new level of thinking for enhancement in business. Space for Rent needs to share some information about the business with the local people in the UK so that they can get an idea about the new business (Tamm, Hallikainen, and Tim, 2022).

All of the points in the creative decision-making model are considered one of the most important parts for the implementation of services and ideas towards the development of business. It is essential for the business to grow in a positive way and deal with the changes in the new environment the business. The construction business is increasing day by day so it is important to develop ideas in a manner to deal with the changes in business activities (Kaul, 2019). Thus, the management creates a valuable impact on the people as well as the business situation to develop a certain level of understanding of the business.

Conclusion   

So, from the overall discussion it can be concluded that business decision-making model plays a very pivotal role in helping a business to cope up with the challenges. It is a true fact that whenever a company plans to enter a new market they mainly face the problem of competition. In this study it has been mainly identified that ‘Space-for-Rent’ business-main issue is the marketplace contestant. As ‘Space-for-Rent’ is inflowing in the UK marketplace, they have to confront the current market contestants, unidentified market(s) etc. The study has tactfully used the business-decision making model MCDA that will help them in dealing with the current issue of completion. Also the study has tactfully planned out the collection of secondary that will help the Space-for-Rent in doing the proper market research to identify the top competition and that will also help them in identifying what sort of strategies they are using.

Now, in order to deal with the market competition below mentioned is the recommendation for Space-for-Rent:

  1. Perform data analysis prior to launching
  2. Watch out for "no opponents
  3. Understand business competition, both current and projected
  4. Determine how competitors are distinct from the competition
  5. Keep close tabs on the companies rivals, yet avoiding the noise
  6. Choosing and participate in the game "The Idea Exchange".
  7. Establish a connection with its rivals.

References

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Bratianu, C., V?t?m?nescu, E.M., Anagnoste, S. and Dominici, G., 2020. Untangling knowledge fields and knowledge dynamics within the decision-making process. Management Decision.

Chen, L., Wadei, K.A., Bai, S. and Liu, J., 2020. Participative leadership and employee creativity: a sequential mediation model of psychological safety and creative process engagement.  Leadership & Organization Development Journal .

Dos Santos, P.H., Neves, S.M., Sant’Anna, D.O., de Oliveira, C.H. and Carvalho, H.D., 2019. The analytic hierarchy process supporting decision making for sustainable development: An overview of applications. Journal of cleaner production , 212, pp.119-138.

 Gupta, V., 2019. The influencing role of social media in the consumer’s hotel decision-making process. Worldwide Hospitality and Tourism Themes.

Forys, I., Nogalski, B. and Ngoc, N.M., 2022. Strategic analysis for Dat Xanh real estate Corporation using SWOT matrix.

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Kaul, V.K., 2019. Decision-Making Process and Creative Problem-Solving.  Available at SSRN 3422033 .

Karl, M., Muskat, B., and Ritchie, B.W., 2020. Which travel risks are more salient for destination choice? An examination of the tourist's decision-making process. Journal of Destination Marketing & Managemen t, 18, p.100487.

L?z?roiu, G., Neguri??, O., Grecu, I., Grecu, G. and Mitran, P.C., 2020. Consumers’ decision-making process on social commerce platforms: online trust, perceived risk, and purchase intentions. Frontiers in Psychology, 11, p.890.

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Saqib, A., Ullah, M., Hyder, S., Malik, R.K. and Khalil, M.I.K., 2019. Creative decision making in leaders: A case of beer game simulation.  Abasyn Journal of Social Sciences , 12(2), pp.397-387.

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