Structure

Unit 7 Business Decision Making

Learning Aim, A: LO 1: Examine the business principles and practices that determine business decisions
P1
1.1 Factors that influence the development of a business idea and objective

2.1 External Factors

3.1 PESTLE Analysis
1.2 Internal Factors
1.2.1 SWOT Analysis

4.1 Gap identification (comparison between the two options given in the brief)
P2

5.1 Risk Identification (comparison between the two options given in the brief)

6.1 Proposed alternatives (comparison between the two options given in the brief)
M1
7.1 Factors that need to be consider while formulating business decision
7.1 Human
7.2 Physical
7.3 Financial
D1
8.1 Evaluating the business decision making
8.1 Profit Analysis
8.2 Revenue/ Sales Analysis
8.3 Financial Forecasting Analysis

Learning Aim, B: LO 2: Extraction of data from given scenarios

 P3
9.1 Primary sources of data collection
Your own E-bikes or E-Rikshaw business

10.1 Secondary sources of data collection

Example channel of transportation including In-Drive, Bikeya

P4
11.1 Interpretation of business data:
Use the last profitability analysis and compare it with industry average

11.1 Trend analysis and pros and cons of trend analysis

M2
12.1 Analysis of financial performance of both the option 1 & 2

D2
13.1 Advantages and disadvantage of both the options 1 & 2

Learning Aim C: LO3: Formulation of decisions and solutions to business problem

P5
14.1 Influence of business performance

14.1 Break Even points of both options

14.2 Forecasted/ Projected Financial statement
P6
15.1 Reasons for choosing an Option

15.1 Evaluating business proposal (investment appraisal technique)

15.2 Discounting Methods (NPV, IRR)

15.3 Non-Discounting Methods (ROI, Payback Period)

M3
16.1 Assessment of Business Data to support business decision

Learning Aim, D: LO 4: Presenting business decisions

 17.1 Rationale
18.1 Sensitivity analysis

18.1 Associated Business risks involved with both Options

18.1.1 Legal Risks
18.1.2 Reputation Risks
18.1.3 Financial Risks
18.1.4 Market Risks
18.2 Application of SWOT & STAPLE Analysis for both options
18.3 Possible justification of alternative choice
18.4 Critical path analysis and Gantt Chart for implementation of business
decision
18.5 Contingency Plan

This assignment must be given along with Presentation and Speakers Note