Decision Making 25 Mark Essay- Practise To what extent should the decision to expand Organic Bites Ltd be based on scientific data
rather than intuition? (25 marks)
Case Study:
Organic Bites Ltd
Organic Bites Ltd produce a range of sandwiches, cakes and coffees using high quality
organic ingredients. The business has developed a loyal group of customers who are
prepared to pay premium prices.
Organic Bites is run by Sandra and James. Sandra is the creative force behind the brand. She
has an intuitive understand of her customers and regularly comes up with new products and
ides that are popular with customers. James is an accountant by training and takes care of
the organisation's finances and administration.
Sandra and James are considering whether or not to expand Organic Bites. Sandra has found
a new location in Dubai that she believes the customers will love. Meanwhile, James is
Interested in moving to a new city and has found vacant premises in Abu Dhabi, about
150km from Dubai. Neither of them had visited Abu Dhabi before, so James spent the
afternoon collecting market research there. He used his financial records and market
research about each location to estimate that the Abu Dhabi location would break-even
sooner than the Dubai one.
The cost of the location in Dubai is 100,000 compared to only C75,000 in Abu Dhabi, but
Sandra pointed out that they know the Dubai market better and it would be easier to run
the two businesses if they are located near each other. James has almost finished his
decision tree created using his market research and financial records