How is mathematics necessary towards the decision making process? Case Study of Tesco
Nowadays, every individuals or businesses organizations uses case study to find a solution of a particular problem. Thus, case study is a widely used tool or method which generate answers to the questions such as ‘why’, ‘what’ and ‘how.’ Therefore, a well written case study should have enough information in it that the readers can understand about what the case is and what are the problems.
Now, I am going to choose Tesco, a largest and biggest retail provider in the United Kingdom which started its business since 1919 A.D. It has been providing varieties of goods and services to its customers with reasonable price, quality, products, taste, preferences and aspirations. Besides, it provides stylish and fashionable products, home products and outstanding quality foods to its customers.
Besides gaining popularity in the UK market, lets discuss how the Tesco has used math in the decision making process. Before that let us discuss how case study is used at TESCO.a
Motivation Theory in practice at TESCO:
The largest British Retailer, Tesco has used Motivation Theory to understand the operation or performance of the company. As we know that the term motivation is defined as the deriving factors that help to derive the person or individuals towards the certain goals and objectives. It helps individuals to initiate and achieve something. Tesco has identified the following motivational forces using the case study. They are explaining below in details.
Motivated people achieve more:
It is said that the motivated people achieve more which is correct. It is because when people are motivated towards something or predetermined goals and objectives, that means they are directed towards those goals. Employee turnover rate and absenteeism is minimum, they are focused to their particular work, and are committed and dedicated towards the work. As a result, they can achieve overall satisfaction of the organization.
Financial factor as a motivating factor:
Tesco has found that financial factors are one of the most inspiring and motivating factor. Every employees or individuals expect better pay, benefits, bonus, or salary in returns. It is assumed that when people are paid better they can perform and contribute their best. Therefore, financial or monetary factors plays important role to motivate the individuals towards the work and career.
Non-financial factors as a motivating factor:
Non-financial factor is other important motivating factors which help determine the behaviour and performance of the employees. Sense of achievement, responsibility and empowerment, opportunity for advancement, enjoyment, prestige, goodwill, respect, etc. are the non-motivational forces that derives the individuals towards the predefined goals and objectives of the company.
Tesco approach to motivation:
Using the case study method, the TESCO has found some approach to motivation which has been discussed below.
In today’s competitive business world, employees and customers are the real assets of any business organization. Without customers and employees, business is not going to exist in the modern world. Employees share their knowledge, skills, know-how, experiences, efficiency and effort for the overall satisfaction and growth of the company. They provide realistic and challenging goals and creates interesting work culture and work environment.
Supports work/life balance:
Employee should be given all the opportunities, authorities and responsibilities. They have to be paid minimum wage or competitive salaries. They should be given flexible work hour and working conditions. If they are provided with such facilities then obviously they can contribute more.
Offers lifestyle rewards:
It is assumed that if the employees are provided with discount on something like gym membership, health benefit, staff discount, etc. then they are more motivated towards their work. They are more dedicated and committed if they are provided with more benefits, incentives or motivating factors.
Data presentation techniques:
Tesco has used observation method in data presentation techniques to provide in-depth information about the company’s performance. Company is aware about their customer service and employee relationship. Employees are provided with each and every possible benefit, incentives, training and development so that they can contribute effectively and smoothly for the overall benefit of the organization as a whole.
Now let us discuss that how the math is necessary to make best decision at any business organization like TESCO. Decision making process is a very critical and important step which shapes our future. Mathematical decision helps to rationalize the sifting of information and the balancing of alternatives inherent in any decision. Mathematical calculation and assumptions are accurate which serves to evaluate and improve the quality of information under any circumstances. They help to present and clarify various options, and control the smaller decisions necessary to reach larger goals. Record keeping, choosing new business scheme and strategies, evaluate the financial performance and the position of the company requires accurate mathematical decision.
Business statistics are used in making good and sound decisions for a company or business. These decisions are made even if there is uncertainty in what may happen financially. Anything that has to do with auditing, financial analysis or marketing research will be included in the statistics. The statistics contain data that is published for business members to look at and analyze.
From a company and business standpoint, management should be able to get a feel of how business statistics work. This can help them advance and gain more knowledge. They will also be able to make better business decisions after looking at and analyzing the data they find. Learning the business statistics of the company can help managers make important decisions impacting the future of the company.
Business statistics are presented by different people who like to study facts and financial information. In order to understand what is being conveyed, managers should ask questions. They need to know what the data represents and why was it generated. Not only that, managers need to know where the data comes from and who covered the cost of the research to get the data.
It’s good to know the answers to these questions because managers never know when they may be called upon to explain the data and figures to others. If they know what it’s about, they will have an easier time explaining it.
It also helps if managers are familiar with the basic language that is used in business statistics:
• Mean – In business statistics, this is referring to a set of numbers with average values. Basically it is a value that is between two other values, such as an average.
• Mode – This is the number that is seen or shown the most within a group of other numbers.
• Median – The middle number within a set of numbers. It is looked at as if there were congruent sets of numbers before and after it.
With business statistics, it’s important to be able to understand how the numbers work in order to make good business decisions for the company.