Assignment front Sheet

Qualification
Unit number and title

Business 06. Business Decision Making

Student name Assessor name

WALEED BIN TARIQ

MUHAMMAD SAAD
Date issued Completion date Submitted On

2nd Dec 2015 15th Jan 2016 JANUARY 15, 2016

Assignment Title Analyzing Information for Decision Making

Learning Learning Assessment In this assessment you will Task Evidence

Outcome Outcome Criteria have the opportunity to No. (Page
present evidence that shows no.)
you are able to:
LO1 Be able to use 1.1 create a plan for the collection of 1(a)
a variety of primary and secondary data for a
sources for given business problem
the collection
of data, both 1.2 present the survey methodology 1(b)
primary and and sampling frame used
secondary 1.3 design a questionnaire for a given 1(c)
business problem

LO2 Understand a 2.1 create information for decision 1(d)

range of making by summarizing data using
techniques to representative values
analyze data
effectively for 2.2 Analyze the results to draw valid 1(d)
business conclusions in a business context
purposes
2.3 analyze data using measures of 1(e)
dispersion to inform a given
business scenario
2.4 explain how either quartiles, 1(f)
percentiles or correlation coefficient
are used to draw useful conclusions
in a business context
Be able to 3.1 produce graphs using 2(a)
LO 3 produce spreadsheets and draw valid
information in conclusions based on the
appropriate information derived
formats for 3.2 create trend lines in spreadsheet 2(b)
decision graphs to assist in forecasting for
specified business information

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |1
 making in an 3.3 prepare a business presentation 2(d)
organizational using suitable software
context and techniques to disseminate
information effectively
3.4 produce a formal business report 2(d)

Be able to use 4.1 use appropriate information 2(c)

LO 4 software processing tools
generated
information to 4.2 prepare a project plan for an 2(c)
make activity and determine the
decisions in critical path
an 4.3 Use financial tools for decision 2(c)
organization making.

Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Student signature: Date: JANUARY 15, 2016

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |2
Introduction

Zong China Mobile Pakistan is a pan Pakistani mobile network operator headquartered in Islamabad,
which offers voice and data services ranging from postpaid and prepaid plans, 2G, 3G and 4G services,
mobile banking to fixed telephony. It is the first oversea setup of China Mobile through acquisition of a
license from Millicom to operate a GSM network in Pakistan in 2008. Zong is a 100% subsidiary of China
Mobile.
It is Pakistans second largest GSM mobile service provider and third largest mobile service in terms of
subscriber base of over 25.6 million. It has a market share of 19% among cellular operators in the
country.
https://www.zong.com.pk/

Our Vision
Become an indispensable digital life partner
Our Mission
To lead the future innovatively through:
- Customer Centricity
- Boundary less Team
- Organizational Agility

Task 1

A
Methodology
This research is to address the specific issues such as research design, population, sample,
instrumentation, accumulating of abstracts and abstracts analysis. This research advised the impact of
customer relation management, customer achievement and telecommunication. Mostly the purpose of
this abstraction is to analysis the perceived account superior as an absolute capricious and customer
achievement as abased capricious effect of each other and the mediating role of acquirement intention.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |3
Primary data: Data collected by the investigator himself/ herself for a specific purpose.
Examples: Data collected by a student for his/her thesis or research project.
Methods of Collection of Primary Data: The primary data can be collected by the following methods.
1. interview
2. observation
3. action research
4. case studies
5. life histories
6. questionnaires
I am going to do questionnaires and focus group.

Questionnaire
A written set of questions that are given to people in order to collect facts or opinions about something.

Target population
People of Faisalabad

Element
SEC A, B & C

Sampling unit
My target for sampling unit is in schools, colleges, universities, offices and restaurants.

Sampling frame
Schools
Roots IVY International school system
Beacon house school system
Division public school

Colleges
Punjab collage

Universities
GC
FAST

No of Respondents
30 People

Secondary data: Data collected by someone else for some other purpose.
Examples: Census data being used to analyze the impact of education on career choice and earning.
Secondary sources are data that already exists:
1. Mass media products
2. Diaries
3. Letters
4. Government reports
Name: WALEED BIN TARIQ
Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |4
 5. Websites
6. Historical data and information
I am going to find data from websites, articles and media.

Literature review of interview

Interview: Mr. Salman Wassay, Head of Marketing, Zong.

Mr. Salman Wassay, Head of Marketing, Zong is the master mind behind Zongs advertisements and
media campaigns. It is his vision that Zong made an early impact over the industry and got its attention
from mobile phone users of the country.
Q. How do you see Pakistans ongoing Telecom Growth and would you please mention upcoming
Challenges and their possible remedies for the market?
A. Salman Wassay: The strong innate human need of live communication amongst each other makes
mobile telephony a basic requirement for people across the globe with no real alternative. The telecom
growth is natural and unstoppable.
Pakistan has seen strong growth over the last 14 years. The subscriber number has surpassed 90 million
mark and tele density is over 54%. It was in 2005 that the industry gained real momentum when it
crossed 10 million subscriber mark (12.7 million at the end of 2005). The growth has been upward of
80% per annum since then, totaling to over 90 million subscribers to date. In terms of geographical
coverage more than 300 out of 376 tehsils of Pakistan have mobile network coverage. I believe that this
growth phase will continue until the curve flattens out around 70% tele density in next 3 years.
The challenges for telecom industry are about to change very soon. As we get close to 70% tele density,
the priorities and focus is going to shift on retaining customers. This would mean a sincere effort by all
operators to raise the quality of customer services and network. Understanding the customer from
mobile usage and psychographic view point is going to be crucial as it will help the managers to offer
targeted value added services. Industry will have to look out for alternate revenue streams such as
broadband and auxiliary use of mobile handsets using GSM services. Youth is going to fuel the
operators appetite for more subscribers as about 2 million youngsters are first time mobile users every
year and about 55% of Pakistan population is less than 25 years of age.

Q. How Zong is different? We would like to know not only about its services, but also its team,
strategy and its back end procedures, if possible?
A. Salman Wassay: ZONG is a vibrant, youthful and high energy organization. We believe in providing
real value addition to the people of Pakistan. We believe that communication is a basic need and every
Pakistani has the right to access this technology. Since mobile phone is an integral part of everyones life
today, we firmly believe that we can make this device more useful to everyone by providing relevant
services that would add real value. To make it all happen, our main focus is on understanding the
customer in depth and making the overall user experience rewarding.
The talent that we have attracted at ZONG is exceptional. It takes more than formal education and
relevant experience to deliver 300% growth. The team behind the resounding success of ZONG is
composed of committed, hardworking and fresh minded individuals who gel perfectly to deliver results.
The triple digit subscriber growth and double digit revenue growth is attributable to each and every
team member of ZONG. It makes each one of us proud and motivated to deliver more in 2009.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |5
Q. In your opinion what significant 3G has got, and how Zong sees 3G coming into Pakistan?
A. Salman Wassay: In my opinion, third generation technology offers great deal of connectivity to
people at all time and in all places, they will ever go. But for countries like Pakistan, Bangladesh and
others with similar fundamentals, the question of whether the consumer will pay for such a technology
will be hard one to answer, we need to look at our consumers income levels too before we actually go
live with 3G.

Q. We know that Zong is looking for long term return on its investment, what goals Zong has set in for
its short term and midterm phases?
A. Salman Wassay: As discussed earlier we at ZONG believe that access to mobile technology is the right
of every Pakistani. Our medium term goal is to cover more than 95% of Pakistan with mobile coverage
and our long term goal is to become an integral part of lives of Pakistani people by enabling them to use
mobile technology to help them do be more productive in life. In the long term we see ZONG as the
largest and most value added player in the market with customized solutions for people belonging to
various walks of society. We plan to empower the youth segment by providing relevant services in the
field of education, sports and other hobbies pursued by youth. We have plans to focus on small and
medium businessmen who are going to be the growth engines for a prosperous Pakistan in future.

Q. Deceptive and unethical marketing has come under discussion these days; how do you see margin
for improvements for our advertising campaigners for cellular companies?
A. Salman Wassay: At the time of launch we were very much aware of the general feeling among the
consumers about the issue of ethics in telecom advertising. There were instances when it became
obvious that some of the telecom companies on purpose did not provide accurate information about
their services and packages.
I think all stakeholders are jointly responsible for ensuring ethics in advertising. The stakeholders include
the cellular operators to start with, the advertising agencies that come up with the concept and the
creatives, the PTA and other government agencies who regulate our business and advertising.
http://propakistani.pk/

Please select the following:

1) Strongly disagree 2) Disagree 3) Neutral 4) Agree 5) Strongly agree

1 2 3 4 5

Awareness of company

Do you apperceive Zong is a accessory of ceramics mobile?

Do you get to apperceive about latest packages of Zong?

Zong has the best customer reach.

Customer taste

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |6
 You are loyal user of current cellular service?

You are satisfied with your cellular service provider.

Preferences

You prefer Zong because of its Quality network?

You prefer your service provider for 3G/4G?

Do Zong have good sms/mms packages?

Do Zong have good call rates?

Trends

Now people are shifting to 3G/4G?

Company should more focus on 3G/4G.

Purchasing behavior

Do you prefer free home delivery of sims.

You prefer Zong because easy availability of cards.

Expectations

You prefer company to be a low cost?

Overall satisfaction?

On a Scale of 10, how much do you rate the following:

1 be the least, 10 be the best;

Encircle or Tick.

How much signals usually Zong catch? 1 2 3 4 5 6 7 8 9 10

How satisfied are you with the service? 1 2 3 4 5 6 7 8 9 10
Are you satisfied with the packages offered by Zong? 1 2 3 4 5 6 7 8 9 10
Company provides services within the time when they promises to 1 2 3 4 5 6 7 8 9 10
do so?
Are you satisfied with your service provider? 1 2 3 4 5 6 7 8 9 10
Company services are available all the time? 1 2 3 4 5 6 7 8 9 10
How much employees understand your needs and wants? 1 2 3 4 5 6 7 8 9 10

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |7
 How important is online communication to you? 1 2 3 4 5 6 7 8 9 10
Packages offered by company satisfy my needs and wants? 1 2 3 4 5 6 7 8 9 10
The company provides services as they say? 1 2 3 4 5 6 7 8 9 10

1. Which one of the following service connections has the best coverage?
a) Mobilink
b) Telenor
c) Ufone
d) Zong
e) Warid

2. Your Gender?
a) Male b) Female

3. Which age group you belongs to?

a) 17-25 b) 25-35 c) 35-55 d) >55

4. Your Educational qualification?

a) 10th b) Post Graduation c) Graduation
d) PhD

5. Your monthly income range?

a) >25000 b)>35000 c)>50000 d) >1K

6. Which type of mobile connection do you use?

a) Prepaid b) Post paid

7. Which kind of mobile network do you use?

a) 2G b) 3G c) 4G

8. From how long you are availing the services of your present service provider?
a) <1 year b) 2 years c) 3 years d) >4 years

9. Are you using more than one SIM at a time?

a) Yes, of different providers b) Yes, of same provider c) No

10. Reasons for choosing more than one service provider

a) Tariff
b) Brand Image
c) Network Coverage
d) Advertisements
5) Customer Service

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |8
Mean
The mean is the average you're used to, where you add up all the numbers and then divide by the
number of numbers.
Formula:

Where:
(Sometimes call the X-bar) is the symbol for the mean.
(The Greek letter sigma) is the symbol for summation.
X is the symbol for the scores.
N is the symbol for the number of scores.

Question Answer
Do you get to apperceive about latest packages *4.3
of Zong?
*ON A SCALE OF 5
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. 4.3 mean agree, As you
see people are agree, they are satisfy about Zong advertisement they do as they get to know about their
latest packages.

Median
The median is the middle value in the list of numbers. To find the median, your numbers have to be
listed in numerical order, so you may have to rewrite your list first.
Formula:

Where:
Mdn is the median.
L is the lower limit of the interval containing the median.
N is the total number of scores.
is the sum of the frequencies or number of scores up to the interval containing the median.
fw is the frequency or number of scores within the interval containing the median.
i is the size or range of the interval.

Question Answer
How much signals usually Zong catch? *7
*ON A SCALE OF 10
Analysis: 1 is being lowest and 10 is being highest. They rank Zong as 7 out of 10. Here you can see that
mostly customers are not satisfied with Zong signals so Zong should focus on signals problem so that
they can make it better. In future there will be increase in Zongs customers.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD Page |9
Mode
The mode is the value that occurs most often. If no number is repeated, then there is no mode for the
list.

Question Answer
You are loyal user of current cellular service? *5
*ON A SCALE OF 5
Analysis: 1 being strongly disagree and 5 being strongly agree. As you can see customers of Zong are
getting attract by company. They are strongly agree and are loyal user of Zong. Zong should keep this
thing continue and also should be loyal with their customers.

Standard Deviation
The Standard Deviation is a measure of how spread out numbers are.
Formula:

Where,
s = sample standard deviation
= sum of...
= sample mean
n = number of scores in sample.

https://statistics.laerd.com/statistical-guides/measures-of-spread-standard-deviation.php

Question Answer
The company provides services as they say? 1.51
Analysis: 1 being the lowest and 10 being the highest. Standard deviation Mean is 7.8. People are satisfy
with Zong services but not as should be. Services is the main thing which people observe. services
should be better for customers of Zong.

Variance
The average of the squared differences from the Mean.
Formula:

Where is the mean and N is the number of scores.

http://davidmlane.com/hyperstat/A16252.html

Question Answer
How important is online communication to you? *3.16
*ON A SCALE OF 5
Name: WALEED BIN TARIQ
Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 10
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. Zong should start
working on online communication because mostly people are saying to communicate online. It is easy,
time saving and cost saving.

Lower Quartile
The lower half of a data set is the set of all values that are to the left of the median value when the data
has been put into increasing order.
Formula:
1
Q1 = 4 (n + 1)th value where n is the number of data values in the data set.
Question Answer
How satisfied are you with the service? *7
*ON A SCALE OF 10
Analysis: 1 being the lowest and 10 being the highest. People are satisfy with Zong service but Zong
should focus of services that they provide. It will help Zong to boost up their sales.

Upper Quartile
The upper half of a data set is the set of all values that are to the right of the median value when the
data has been put into increasing order.
Formula:
3
Q2 = 4 (n + 1)th value where n is the number of data values in the data set.
Question Answer
Do Zong have good sms/mms packages? *4
*ON A SCALE OF 5
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. As everyone knows Zong
facilitates their customer with good sms/mms packages. So, they are agree.

Percentile
The nth percentile of an observation variable is the value that cuts off the first n percent of the data
values when it is sorted in ascending order.
Question Answer
Zong has the best customer reach. *3
*ON A SCALE OF 5
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. Every company wants to
get around 4 number out of 5 because it shows company is doing well. Zong got 3 out of 5. Customers
are not satisfy. Zong should work hard on customer reach.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 11
Decile
A method of splitting up a set of ranked data into 10 equally large subsections.
Question Answer
You prefer company to be a low cost? *4
ON A SCALE OF 5
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. Customers are agree to
prefer to be a low cost company. Decile should be in negative numbers then it is good for company. So,
Zong should be a low cost company else people with convert to some other cellular company.

Q. Company services are available all the time?

Sales

11

14

7 8 9

*ON A SCALE OF 10
Analysis: 1 being the lowest and 10 being the highest. Availability, customers only see now a days of
availability of cellular companies. I think Zong is only company which have availability which we can see
by customer opinion. 11 respondents gave 7 numbers, 14 respondents gave 8 numbers and 5 respondents
gave 9 numbers out of 10.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 12
Q. How much employees understand your needs and wants?

Sales

4 6 7 8 9 10

*ON A SCALE OF 10
Analysis: 1 being the lowest and 10 being the highest. Mostly people think that Zong fulfil their needs and
wants. 8 out of 10 which is very good for the company but they should more focus to make it better.

Q. Packages offered by company satisfy my needs and wants?

20
18
16
14
12
10
8
6
4
2
0
5 6 7 8 9 10

*ON A SCALE OF 10
Analysis: 1 being the lowest and 10 being the highest. Here you can see that mostly people are satisfy
with their needs and wants. 9 number is repeated mostly out of 10. Which is very good for the company.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 13
Q. Overall satisfaction?

1/5/1900

1/4/1900

1/3/1900

1/2/1900

0 2 4 6 8 10 12 14

*ON A SCALE OF 5
Analysis: 1 being strongly disagree, 3 being neutral and 5 being strongly agree. Customers are using Zong
because they are satisfy simply. Graph shows ups and downs. 2 number is also given which is disagree and
3 is neutral. 5 number is also given by Zong customers which is strongly agree. Zong should convert their
customers from 2 and 3 to 4 and 5.

Task 2

SMS BY CELLULAR MOBILE OPERATORS

400

350

300

250

200
Series1
150

100

50

0
2010 2011 2012 2013 2014 2015

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 14
C

4.1, 4.2, 4.3)

Processing tools

Project Management
1. Critical Path Analysis
A process by which projects are outlined and sequenced to have the most favorable outcome. Critical
path analysis involves the advanced and careful planning of complicated projects, taking into
consideration the sequence of activities that must occur, and the estimated time necessary to each
step's completion. The critical path can be thought of as the necessary flow that a project must follow to
achieve timely success.
2. Gantt Chart
A Gantt chart, commonly used in project management, is one of the most popular and useful ways of
showing activities (tasks or events) displayed against time. On the left of the chart is a list of the
activities and along the top is a suitable time scale. Each activity is represented by a bar, the position
and length of the bar reflects the start date, duration and end date of the activity. This allows you to see
at a glance:
What the various activities are
When each activity begins and ends
How long each activity is scheduled to last
Where activities overlap with other activities, and by how much
The start and end date of the whole project

Investment Appraisal
Net Present Value
NPV is the acronym for net present value. Net present value is a calculation that compares the amount
invested today to the present value of the future cash receipts from the investment. In other words, the
amount invested is compared to the future cash amounts after they are discounted by a specified rate
of return.

Discount Cash Flow

The discounted cash flow (DCF) analysis represents the net present value (NPV) of projected cash flows
available to all providers of capital, net of the cash needed to be invested for generating the projected
growth. The concept of DCF valuation is based on the principle that the value of a business or asset is
inherently based on its ability to generate cash flows for the providers of capital. To that extent, the DCF
relies more on the fundamental expectations of the business than on public market factors or historical
precedents, and it is a more theoretical approach relying on numerous assumptions. A DCF analysis
yields the overall value of a business (i.e. enterprise value), including both debt and equity.

Stock Management Tools

LIFO and FIFO
FIFO and LIFO are cost layering methods used to value the cost of goods sold and ending inventory. FIFO
is a contraction of the term "first in, first out," and means that the goods first added to inventory are
assumed to be the first goods removed from inventory for sale. LIFO is a contraction of the term "last in,
first out," and means that the goods last added to inventory are assumed to be the first goods removed
from inventory for sale.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 15
Statistics
Mean
The mean is the average you're used to, where you add up all the numbers and then divide by the
number of numbers.
Formula:

Where:
(Sometimes call the X-bar) is the symbol for the mean.
(The Greek letter sigma) is the symbol for summation.
X is the symbol for the scores.
N is the symbol for the number of scores.

Median
The median is the middle value in the list of numbers. To find the median, your numbers have to be
listed in numerical order, so you may have to rewrite your list first.
Formula:

Where:
Mdn is the median.
L is the lower limit of the interval containing the median.
N is the total number of scores.
is the sum of the frequencies or number of scores up to the interval containing the median.
fw is the frequency or number of scores within the interval containing the median.
i is the size or range of the interval.

Mode
The mode is the value that occurs most often. If no number is repeated, then there is no mode for the
list.

Marketing
The SWOT analysis is a valuable step in your situational analysis. Assessing your firms strengths,
weaknesses, market opportunities, and threats through a SWOT analysis is a very simple process that
can offer powerful insight into the potential and critical issues affecting a venture.
Strengths describe the positive attributes, tangible and intangible, internal to your organization.
Note the weaknesses within your business. Weaknesses are factors that are within your control
that detract from your ability to obtain or maintain a competitive edge.
Opportunities assess the external attractive factors that represent the reason for your business
to exist and prosper.
Threats include factors beyond your control that could place your marketing strategy, or the
business itself, at risk.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 16
PEST analysis is an analysis of the political, economic, social and technological factors in the external
environment of an organization, which can affect its activities and performance.

Political
This factor looks at how government regulations and legal issues affect a company's ability to be
profitable and successful. Issues that must be considered include tax guidelines, copyright and property
law enforcement, political stability, trade regulations, social and environmental policy, employment laws
and safety regulations.

Economic
This factor examines the outside economic issues that can play a role in a company's success. Items to
consider include economic growth, exchange, inflation and interest rates, economic stability, anticipated
shifts in commodity and resource costs, unemployment policies, credit availability and unemployment
policies.

Social
This issue analyzes the demographic and cultural aspects of the company's market. These factors help
businesses examine consumer needs and determine what pushes them to make purchases. Among the
items that should be examined are demographics, population growth rates, age distribution, attitudes
toward work, job market trends, religious and ethical beliefs, lifestyle changes, educational and
environmental issues and health consciousness.

Technological
This factor takes into consideration technology issues that affect how an organization delivers its
product or service to the marketplace. Among the specific items that need to be considered are
technological advancements, government spending on technological research, the life cycle of current
technology, the role of the Internet and how any changes to it may play out, and the impact of potential
information technology changes.

http://www.netmba.com/strategy/pest/

Five Forces Analysis assumes that there are five important forces that determine competitive power in a
business situation. These are:
1. Supplier Power: Here you assess how easy it is for suppliers to drive up prices. This is driven by
the number of suppliers of each key input, the uniqueness of their product or service, their
strength and control over you, the cost of switching from one to another, and so on. The fewer
the supplier choices you have, and the more you need suppliers' help, the more powerful your
suppliers are.
2. Buyer Power: Here you ask yourself how easy it is for buyers to drive prices down. Again, this is
driven by the number of buyers, the importance of each individual buyer to your business, the
cost to them of switching from your products and services to those of someone else, and so on.
If you deal with few, powerful buyers, then they are often able to dictate terms to you.
3. Competitive Rivalry: What is important here is the number and capability of your competitors. If
you have many competitors, and they offer equally attractive products and services, then you'll
most likely have little power in the situation, because suppliers and buyers will go elsewhere if

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 17
 they don't get a good deal from you. On the other hand, if no-one else can do what you do, then
you can often have tremendous strength.
4. Threat of Substitution: This is affected by the ability of your customers to find a different way of
doing what you do for example, if you supply a unique software product that automates an
important process, people may substitute by doing the process manually or by outsourcing it. If
substitution is easy and substitution is viable, then this weakens your power.
5. Threat of New Entry: Power is also affected by the ability of people to enter your market. If it
costs little in time or money to enter your market and compete effectively, if there are few
economies of scale in place, or if you have little protection for your key technologies, then new
competitors can quickly enter your market and weaken your position. If you have strong and
durable barriers to entry, then you can preserve a favorable position and take fair advantage of
it.

Organization Behavior
Maslow

Abraham Maslow (1908 1970) along with Frederick Herzberg introduced the Neo-Human Relations
School in the 1950s, which focused on the psychological needs of employees. Maslow put forward a
theory that there are five levels of human needs which employees need to have fulfilled at work.

All of the needs are structured into a hierarchy (see below) and only once a lower level of need has been
fully met, would a worker be motivated by the opportunity of having the next need up in the hierarchy
satisfied. For example a person who is dying of hunger will be motivated to achieve a basic wage in
order to buy food before worrying about having a secure job contract or the respect of others.

A business should therefore offer different incentives to workers in order to help them fulfill each need
in turn and progress up the hierarchy (see below). Managers should also recognize that workers are not
all motivated in the same way and do not all move up the hierarchy at the same pace. They may
therefore have to offer a slightly different set of incentives from worker to worker.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 18
Herzberg

Frederick Herzberg had close links with Maslow and believed in a two-factor theory of motivation. He
argued that there were certain factors that a business could introduce that would directly motivate
employees to work harder. However there were also factors that would de-motivate an employee if not
present but would not in themselves actually motivate employees to work harder.

Motivators are more concerned with the actual job itself. For instance how interesting the work is and
how much opportunity it gives for extra responsibility, recognition and promotion. Hygiene factors are
factors which surround the job rather than the job itself. For example a worker will only turn up to
work if a business has provided a reasonable level of pay and safe working conditions but these factors
will not make him work harder at his job once he is there. Importantly Herzberg viewed pay as a hygiene
factor which is in direct contrast to Taylor who viewed pay, and piece-rate in particular

Herzberg believed that businesses should motivate employees by adopting a democratic approach to
management and by improving the nature and content of the actual job through certain methods. Some
of the methods managers could use to achieve this are:

Job enlargement workers being given a greater variety of tasks to perform (not necessarily more
challenging) which should make the work more interesting.

Job enrichment - involves workers being given a wider range of more complex, interesting and
challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement.

Empowerment means delegating more power to employees to make their own decisions over areas of
their working life.

Economics
Demand and Supply
In the context of supply and demand discussions, demand refers to the quantity of a good that is desired
by buyers. An important distinction to make is the difference between demand and the quantity
demanded. The quantity demanded refers to the specific amount of that product that buyers are willing
to buy at a given price. This relationship between price and the quantity of product demanded at that
price is defined as the demand relationship.
Supply is defined as the total quantity of a product or service that the marketplace can offer. The
quantity supplied is the amount of a product/service that suppliers are willing to supply at a given price.
This relationship between price and the amount of a good/service supplied is known as the supply
relationship.

Cost-Benefit Analysis (CBA) estimates and totals up the equivalent money value of the benefits and
costs to the community of projects to establish whether they are worthwhile. These projects may be
dams and highways or can be training programs and health care systems.
A formal CBA tallies all of the planned project costs, quantifies each of the tangible benefits and
calculates key financial performance metrics such as return on investment (ROI), net present value
(NPV), internal rate of return (IRR) and payback period. The costs associated with taking action are then
subtracted from the benefits that would be gained. As a general rule, the costs should be less than 50
percent of the benefits and the payback period shouldn't exceed 12 months.

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 19
http://www.inc.com/encyclopedia/cost-benefit-analysis.html

Return on Investment - ROI

A performance measure used to evaluate the efficiency of an investment or to compare the
efficiency of a number of different investments. ROI measures the amount of return on an
investment relative to the investments cost. To calculate ROI, the benefit (or return) of an
investment is divided by the cost of the investment, and the result is expressed as a percentage or a
ratio.
The return on investment formula:

In the above formula, "Gain from Investment refers to the proceeds obtained from the sale of the
investment of interest. Because ROI is measured as a percentage, it can be easily compared with
returns from other investments, allowing one to measure a variety of types of investments against
one another.
http://www.entrepreneur.com/encyclopedia/return-on-investment-roi

Internal Rate of Return (IRR)

Internal rate of return (IRR) is the discount rate at which the net present value of an investment
becomes zero. In other words, IRR is the discount rate which equates the present value of the future
cash flows of an investment with the initial investment. It is one of the several measures used for
investment appraisal.

IRR Calculation
The calculation of IRR is a bit complex than other capital budgeting techniques. We know that at IRR,
Net Present Value (NPV) is zero, thus:
NPV = 0; or
PV of future cash flows Initial Investment = 0; or
CF1 CF2 CF3
1+ 2+ + ... Initial Investment = 0
( 1 + r ) ( 1 + r ) ( 1 + r )3
Where,
r is the internal rate of return;
CF1 is the period one net cash inflow;
CF2 is the period two net cash inflow,
CF3 is the period three net cash inflow, and so on.

http://accountingexplained.com/managerial/capital-budgeting/irr

Marketing teaser 1 week

Campaign 1.5 week
Product launch 1 week
Customer availability 2 weeks
Feedback 1 week
Work on feedback 2 weeks

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 20
 References

Accountingexplained.com,. (2016). Internal Rate of Return IRR Calculation | Example | Decision Rule.
Retrieved 13 January 2016, from http://accountingexplained.com/managerial/capital-budgeting/irr

Attaa, A., Yusufzai, A., Yusufzai, A., Sohail, O., Talal, S., & Hassan, A. et al.
(2016). ProPakistani.Propakistani.pk. Retrieved 13 January 2016, from http://propakistani.pk/

Davidmlane.com,. (2016). Standard Deviation. Retrieved 13 January 2016, from

http://davidmlane.com/hyperstat/A16252.html

Inc.com,. (2016). Cost-Benefit Analysis. Retrieved 13 January 2016, from

http://www.inc.com/encyclopedia/cost-benefit-analysis.html

Netmba.com,. (2016). PEST Analysis. Retrieved 14 January 2016, from

http://www.netmba.com/strategy/pest/

Staff, E. (2016). Return on Investment (ROI). Entrepreneur. Retrieved 13 January 2016, from
http://www.entrepreneur.com/encyclopedia/return-on-investment-roi

Statistics.laerd.com,. (2016). Standard Deviation | How and when to use the Sample and Population
Standard Deviation - A measure of spread | Laerd Statistics. Retrieved 13 January 2016, from
https://statistics.laerd.com/statistical-guides/measures-of-spread-standard-deviation.php

Zong.com.pk,. (2016). Zong Pakistan. Retrieved 13 January 2016, from https://www.zong.com.pk/

Name: WALEED BIN TARIQ

Unit No: 06. Business Decision Management
Assessor Name: MUHAMMAD SAAD P a g e | 21