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Business Unit 4

In: Business and Management

Submitted By khalidali18
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Unit 4 D1: Evaluate the appropriateness of business information used to make strategic decisions.

Strategic decisions are major decisions that can affect the direction of the business over future months and years. These decisions can be tactical decisions such as factory layout, factory processes or operational decisions such as increasing staff on projects/lay off.

This is Tesco’s Profit and Loss account. As you can see the profit and turnover has increased from the previous year of 2013. The turnover represents how much of the stock is sold. This information can then be used by the people at the top of the business such as Chief Executive or directors or board directors to make strategic decisions.

Since Tesco has made a profit and their profit has increased from the previous year. This then allows Tesco to have more money to spend. The directors may want the business to expand by creating more stores or improve their current stores with new equipment. They also may use this information to make investments in departments within the business to improve the business overall. Since they have more money to spend they may also want to increase their Tesco product range or diversify in another market or even increase the amount they pay their employees. If they had a loss then Tesco directors may want to close down stores to hopefully break even in the future. They may even make tactical decisions to help save money by buying cheaper equipment or recycling old equipment. The indication of profit is great information to use to make strategic decisions involving money going in and out of the business.

Since their turnover has increased over the year they may want to keep this trend and adjust their aim and goals to continue to increase in turnover in the coming years. This would then change the direction of the business for the next year. They may decide on buying

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