Business Decision Making Assignment Sample

Introduction OfBusiness Decision Making

Business operates in a competitive environment thus, firms need to take accurate decisions to remain competitive and to sustain themselves in the long run. Decisions need to be taken by gathering the required information, comparing various alternatives, and including accurate research. Similarly, this report shall discuss the business decision-making process of an organization –"Space for rent". The organization acquires buildings at affordable cost and refurbishes them to a professional standard and then rents the space. The organization wants to expand and plans to enter the UK market in the next 1 year. Therefore, this report shall explore the decision of the company. It shall include 7 step decision-making model to help the organization take key decisions. Next, a plan shall be developed to gather secondary data to take complex and informed business decisions. A decision-making framework – “market opportunity navigator” shall be used for accurate decision-making. SWOT and PESTLE analysis shall be done to identify the issues in the market and solutions shall be provided to overcome the issues and to justify the decision. The report findings shall help Space for Rent to operate freely in the new market of the UK.

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Part 1

1.1 Business Decision-making model

Decision-making refers to the process of making choices through gathering information, assessing alternative resolutions, and identifying decisions. Including the 7-step decision-making model shall help Space for Rent to take thoughtful decisions. The steps are as follows:

Source:

• Identify the decision- it includes the realization about taking a decision. It shall help Space for Rent to understand the type and nature of the decision that is related to entering the UK market.
• Collecting relevant information- some relevant information shall be gathered to take the decision. It needs both external and internal work to gather the information ( ). Likewise, Space for Rent shall gather external information related to macro-environmental factors of the UK market such as political conditions, economic conditions, competitor's strengths, and so on, and the internal environment of the company such as their strengths, weakness, and so on for the process of decision making.
• Identifying the alternatives- next organizations shall gather information related to alternative choices. It shall help Space for Rent to gather additional information for identifying the alternatives ( ). Likewise, space for rent for space shall interpret other promising nations such as China, India, the USA, and so on for emerging.
• Weighting the evidence- this step helps to weigh each of the alternatives till the end. Then the alternatives shall be arranged according to their priority and value system and the alternative that has the maximum potential to reach the goal shall be selected. It shall help Space of Rent to understand the value of each alternative.
• Choosing from the alternatives- After weighing all the alternatives, the best option shall be selected. Likewise, decisions related to entering the UK market can be taken based on their stable political conditions, lower commercial tax rates, and so on.
• Take action- actions shall be taken to implement the selected alternatives. Space for rent shall arrange for internal meetings, collaborate with UK agencies, perform marketing and so on to enter the best suitable market.
• Reviewing the decisions along with consequences- it shall be reviewed whether or not the decision alternatives are relevant or are meeting the need of the decision-making. Any issues in the emerging process shall be analyzed such as high competitors force and so on ( ). If the decision is not addressing the need then other alternatives shall be tried on. For example, other information shall be gathered and other alternatives shall be explored.

This model gives a detailed step-by-step process about how to take decisions thus, shall be used by Space for Rent regarding decision-making of entering the UK market.

https://www.umassd.edu/fycm/decision-making/process/

1.2 Data collection

Data shall be gathered from secondary sources only. Data collection from primary sources shall be avoided as it takes more time and budget to gather primary or first-hand data. Secondary data that is data from already published sources shall be gathered. It shall help to collect a wider range of information related to the topic (Ruggiano and Perry, 2019). It also helps to understand the perspective of other researchers or authors on the selected topic. Thus, secondary data shall be gathered through the following process:

• Certain key search terms shall be developed including “space for rent”, “competitiveness of the UK market”, “FDI in the UK”, and so on.
• The search terms shall be used to identify and select articles from the database such as Google Scholar, CINAHL, and so on.
• After gathering related articles and journals, the latest data source shall be selected such as articles published on or after 2019 shall be selected and older articles or journals shall be rejected. Thus, the latest information shall help to analyze the UK market and it shall help Space for Rent to decide regarding their emerging in the new market of the UK.
• The search terms shall also be used to gather information from Google, and Youtube. Secondary data shall also be gathered from newspapers, magazines, and industry reports related to the UK market (Sileyew et al., 2019).

1.3 Decision-making framework

Organizations need to map the target market to emerge there. To take the right decision, the Market Opportunity Navigator framework shall be used. The steps are as follows:

• Identify- one of the challenges for entrepreneurs is to decide which market to enter. The framework reveals that the customers of the market need to be explored to identify the potentiality of the market. Similarly, the UK has a good customer base. Many international students go to the UK to study and many SMEs emerge in the UK. Thus, the company shall get enough customers to rent their space for domestic or commercial purposes (Witell et al., 2020).
• Evaluate- it shall be evaluated whether or not the identified location is really attractive. Space for rent shall understand how value creation can be done. The attractiveness of each opportunity shall be evaluated along with potential challenges so that options can be prioritized and compared. However, the UK has a good customer base (Christophers, 2019). secondary data has helped to understand that one of the challenges that can reduce the attractiveness and value creation in the UK is related to competitive force as the UK already has more than 19% (among the total sector) rental facilities ( ).

https://www.statista.com/statistics/286512/england-number-of-private-rented-households/#:~:text=England%3A%20proportion%20of%20private%20rented%20households%202000%2D2022&text=In%202022%2C%20the%20share%20of,private%20renters%20hit%2019%20percent.

• Prioritize- Next, a smart and strategic focus shall be included. Currently, in the fast-changing business environment, organizations shall remain agile as well as open to adaptation to succeed. Thus, the market shall be defined clearly and the opportunities for future growth shall be identified. Organizations need to focus on their primary target. They shall develop technology, select marketing messages, and others for the new market. It shall help in future adaptability. Thus, Space for Rent needs to include robust marketing and offer quality and affordable service to establish itself in the UK as well as to gain competitive advantages.

Part 2

2.1 PESTLE analysis

The PESTLE analysis shall help to explore the political, technological, economic, social, environmental, and legal factors of the UK thus, it can be understood how the factors shall impact Space for rent in the UK.

• Political factors- the UK is one of the most powerful nations in the world. It is a parliamentary, democratic, and constitutional democracy. The head of the Government is Prime Minister. The UK is politically stable however; Brexit has developed some uncertainties for the nation. However, some believe that Brexit which is the withdrawal of the UK from the European Union has opened various opportunities for the UK (Bloom et al., 2019). It shall help Space for rent with additional opportunities. The UK maintained strong relations with other advance nations such as the United States. UK is a permanent member of the UN and has a great influence on global culture, military, economy, political and scientific affairs.
• Economic factors- UK is the 6^th largest nation in terms of nominal GDP across the globe. The UK is extremely developed and has a prominent role in international trade. However, the recession and pandemic such as Covid19 pandemic has impacted the UK negatively but the Bank of England provides £100 billion and the economy has started to bounce back stronger ( ). The national living wage increases annually and it is important to support people with lower incomes. The corporation tax is comparatively lower and it is only 25% ( ). The UK is also a common destination for FDI. Various organizations and business tycoons have invested in UK organizations and that can help Space for Rent to enhance their operations. The UK also attracts various tourists and international students each year and that can an advantage to offer them space for living for the company.

https://www.howandwhat.net/pestel-analysis-uk/

• Social factors- the UK has a big consume market. Currently, the population is around 68.7 million. The population is diverse and multicultural. Various organizations have developed different products and services for different religions and races and there are many opportunities to explore. The UK is among the top 10 lists in terms of educated people. The population is getting older however; some sector such as healthcare, and real estate has good opportunities. Similarly, space for rent can offer housing facilities to the older generation. The UK also has some leading universities including the university of Oxford, the University of Cambridge, and so on thus, it attracts international students and Space for rent can accommodate them.
• Technological factors- UK is technologically advanced. A business develops new technologies to offer the best customer experience. Advanced technological infrastructure provides wider opportunities for businesses. High-speed internet connectivity has helped businesses and customers with online purchasing. It has also helped the business to identify new customers via digital marketing (Newman et al., 2021). It shall help Space for Rent in operations and marketing. However, the UK is lagging in terms of technology from South Korea, the USA, Japan, India, and so on.
• Environmental factors- The government of the UK, newspapers, charities, local councils, and other agencies have taken part in creating environmental awareness so that the negative impact on the environment can be reduced as the UK is facing challenges related to weather conditions. Organizations operating in the UK need to follow environmental regulations and reduce their carbon footprints, plastic usage, waste, and so on. Space for rent shall also follow environmental protocols to operate in the UK.
• Legal factors- UK has a proud history related to democracy. It has an efficient legal system and a tradition of civil liberties. There is the Employment Act 1996 that secures the right of the employees. The Act confirms minimum wage, sick pay, maternity and paternity leaves, and other legally protected rights for employees. There is Equality Act 2010 that protects individuals against discrimination (Fenwick, 2022). Similarly, organizations such as Space for Rent shall follow the Acts to operate in the UK without any legal complications.

SWOT Analysis

This framework shall help to understand the strengths, weaknesses, opportunities, and strengths of Space for Rent.

• Strength: flexibility and innovation in housing delivery, the company can offer their service at affordable prices as they shall purchase and refurbish the space rather than developing the entire structure.
• Weakness- required government support to get direct control in a new market.
• Opportunity- expansion in new markets and investing in marketing
• Threats- high competition

Thus, it has been understood that Space for rent shall enjoy a stable political environment, and can receive FDI has to pay an affordable tax of 25%. They can also offer service at affordable prices and shall get a good customer base. However, the issue is that the company has to compete with already established organizations and shall face a huge competitive force.

2.2 Creative decision model

The creative decision model can be used by Space for Rent corporation through which it is able to enhance its competitive edge in the marketing environment of the UK. This decisionmodel can also be helpful for the company as it involves practical thinking through which the managers and the employees will be able to handle tough situations like poor altercation of the customers due to high competition on the marketplace of the UK efficiently. The managers in this case will also be able to handle new projects with innovative design through which they will be able to satisfy the client’s needs through which they will be able to gain new audiences in the competitive world and can retain them for longer periods effectively (Atlassian, 2023). The decision-making model can also be useful as it can remote flexibility of the employees which supports their productivity and they are able to understand their roles and responsibilities. This can further contribute to an increase in the profit margin of the company in the new market. Apart from this, the model will also help the managers of Space for Rent to analyse the current needs of the audience who are interested to buy a particular renovated property and will help to segment the customers appropriately through which the sustainability and stability of the company can be increased for the long run(Atlassian, 2023). The company’s managers can follow the steps provided below to enhance their workplace culture and performance through which they can enhance the positioning of the company in the competitive marketing world:

Defining goals to the employees- The managers of Space for Rent shall explain the company’s goals to its employees properly so that the obstacles in the new marketplace such as poor understanding of the needs of the clients can be resolved efficiently. This can also help to maintain proper coordination among the employees which can enhance the productivity as per the changing needs of the customers. This can further help the company to enhance its growth and can also promote high profit margin within the next three years of expansion (Indeed Editorial Team, 2023). The managers in this case shall also ensure timely meetings through which proper interaction can be maintained through which the issues of conflicts or misconduct can be resolved on time.

Providing relevant information- The managers of the company shall also provide relevant information according to the scope and mission through which the employees will be able to boost their dedications and can build a natural project which can satisfy the current needs of the clients base living in the UK. This can further help the company to address the recent marketplace challenges and can also help the managers to generate new solutions which can support the growth of Space for Rent for an extended period. The managers can also take help from the similar projects through which the company will be able to enhance its competitive edge and earn a reputable position in the UK.

Considering communication over time- The managers of Space for Rent shall also focus on maintaining open and timely communications with the different departments of the workplace. This can ensure proper transfer of information through which the employees will be able to stay competent in nature (Indeed Editorial Team, 2023). In association to this, the creative thinking of the employees can also be increased through which the managers can implement the decision of using eco-friendly materials such as woods or reused cements to renovate the buildings or place with a classy design which can further attract the customers from the new marketplace. Brainstorming can be helpful in this case, as the managers will be able to talk personally with the employees and the staff members and can resolve their issues timely.

Creating flexible solutions- As gaining competitive advantage is the main scope for the company, the managers of Space for Rent shall choose a most valid strategy for instance, relying on the differentiation strategy as per the design of the buildings can be useful for the company to enhance the customer or the client base. Apart from this, the new solution can also be helpful for enhancing the vision statement of the company through which it will be able to adapt to the client needs in the new marketplace effectively.

Implementing the decision- This stage is crucial as the manager of Space for Rent has to track the constant progress of the employees and need to focus on enhancing the designs of the projects or the buildings through which they are able to resolve the challenges of high competitiveness in the marketplace of the UK. A draft of the ideas and the innovation strategy can be helpful in this case, as it can ensure proper performance of the employees more easily than the manual tracking (Indeed Editorial Team, 2023).

Conclusion

It can be concluded through the study that Space for Rent has the possibility to grow in the marketplace if the managers of the company are able to resolve the issue of high competition through differentiation or innovation strategy. In this case, it was noted that proper flexibility can be obtained with the help of a creative decision making model which is the main strength of the company as it can satisfy the needs of the employees as well as the customers. The managers shall however keep a track on the changing government policies in the UK otherwise it can affect the overall performance of the company and can even affect its profit margin negatively for the long run. The main factor which can further help the managers of Space for Rent to resolve the issues of competitive edge is the recruitment of a highly experienced and qualified team base through which the company is able to perform according to the changing requirements of the clients. In association to this, the managers shall also focus on training the existing and the new employees so that they are able to develop their skills and perform efficiently in the workplace.

Reference

• Atlassian, 2023. 5 decision-making models to try if you're stuck: The workstream, Atlassian. Available at: https://www.atlassian.com/work-management/team-management-and-leadership/decision-making/models (Accessed: April 27, 2023).
• Bloom, N., Bunn, P., Chen, S., Mizen, P., Smietanka, P. and Thwaites, G., 2019.The impact of Brexit on UK firms(No. w26218). National Bureau of Economic Research.
• Christophers, B., 2019. The rentierization of the United Kingdom economy.Environment and Planning A: Economy and Space, p.0308518X19873007.
• Fenwick, H., 2022. Exploring narratives about'cancel culture'in UK educational/employment settings under the ECHR. Cambridge University Press.
• Indeed Editorial Team, 2023. Decision-making models: A decision-maker's guide to 4 types (Online). Available at: https://www.indeed.com/career-advice/career-development/decision-maker-model (Accessed: April 27, 2023).
• Newman, C., Edwards, D., Martek, I., Lai, J., Thwala, W.D. and Rillie, I., 2021. Industry 4.0 deployment in the construction industry: a bibliometric literature review and UK-based case study.Smart and Sustainable Built Environment,10(4), pp.557-580.
• Ruggiano, N. and Perry, T.E., 2019. Conducting secondary analysis of qualitative data: Should we, can we, and how?.Qualitative Social Work,18(1), pp.81-97.
• Sileyew, K.J., 2019.Research design and methodology(pp. 1-12). Rijeka: IntechOpen.
• Witell, L., Kowalkowski, C., Perks, H., Raddats, C., Schwabe, M., Benedettini, O. and Burton, J., 2020. Characterizing customer experience management in business markets.Journal of Business Research,116, pp.420-430.