Task 1.1.

Appropriate decision-making model and its rationale

1.1.1. Decision Making

A decision-making model is a structure or framework generated to analyze and review

potential solutions to a problem and select the best alternative. Decision making in Business,

according to Ho, Xu and Dey, (2010) is the process of identifying and selecting the best

alternative course of action to achieve the goals of the business.

1.1.2. Decision making in business

Decision making is a nuanced task and involves multiple perspectives, impediments

and factors. Selecting an appropriate and effective decision-making model is vital for a space

for rent company focusing on acquiring, renovating, and renting out office spaces (Shaikh,

Memon and Kim, 2021), in a competitive market like the UK. The selected model should aid

a systematic approach and reduce uncertainty. Moreover, the model should ensure that the

decisions corroborate the goals of the company (De Cantabria, 2022).

1.1.3. MCDA

For the given scenario MCDA can be the best decision-making model, to ensure

appropriate decision making. MCDA known as Multiple Criteria Decision Making or

Multiple Attribute Decision Making is a process that assesses the alternatives by identifying

the evaluation criteria, and identifies the inclinations of stakeholders (Dawson, 2019). The

obtained information is then utilized to build a preference model the aggregates the multiple

criteria evaluations of alternatives. In this way the alternatives are compared comprehensively

(Raos et al., 2022).

1.1.4. Rationale for using MCDA

1.1.4.1. Complexity of Decision Variables: The decisions in real estate market are

multifaceted, the location, cost, market demand, renovation requirements, and

expected revenues are to be considered when making a decision. Since MCDA

involves a structured and critical evaluation of all the decision factors (Youssef et al.,

2022), it can cater to the needs of the company efficiently.

1.1.4.2. Factors that can be both quantitative and qualitative: MCDA enables the

evaluation of both types of criteria. In the instance of "Space for Rent," qualitative

elements like the location's reputation, room for expansion, and amenities can be

assessed in addition to quantitative ones like investment costs, rental income, and

renovation costs (Dawson, 2019).

1.1.4.3. Objective Evaluation: By using a quantitative method, MCDA provides a

transparent evaluation of the alternatives (Ho, Xu and Dey, 2010). This is especially

important in the real estate market, since judgments might be influenced by personal

biases. When it comes to property acquisition and renovation expenditures, which

have a big influence on the venture's total profitability (Lobe, Morgan and Hoffman,

2020).

1.1.4.4. Weighted criteria Using MCDA, weights can be assigned to various criteria

according to their relative relevance. In the instance of "Space for Rent," factors like

market trends, prospective rental income, attractiveness of the location, and the cost

of renovations can all be given the proper weights to represent their importance in the

selection process (Cinelli, Coles and Kirwan, 2014).

1.1.4.5. Trade-Off Analysis There are frequently trade-offs between different criteria

in the real estate market. For example, the acquisition expenses may be higher in a

desirable location. By allowing for a methodical examination of these trade-offs,

 MCDA helps decision-makers choose the best, most optimal and time based decisions

(Ho, Xu and Dey, 2010).

1.1.4.6. Engagement of Stakeholders: The success of "Space for Rent" is dependent

on stakeholder interests and external factors in addition to internal decisions. By

taking into account their viewpoints and preferences during the decision-making

process, MCDA promotes stakeholder involvement (Cinelli, Coles and Kirwan,

2014).

1.1.4.7. Accountability and Transparency: An accountable and transparent decision-

making process is offered by MCDA (Awasthi, Chauhan and Goyal, 2011). The

process of making decisions becomes traceable and increases accountability within

the company when criteria are well defined, weights are assigned, and alternatives are

evaluated according to these criteria (Lobe, Morgan and Hoffman, 2020).

1.1.4.8. Adaptability to fluctuating Market Conditions: The real estate market is

versatile; the conditions of the market may change anytime. By accommodating

additional criteria and modifying weights in response to changing market trends,

MCDA enables flexibility and guarantees that the decision-making model will

continue to be applicable throughout time (Shaikh, Memon and Kim, 2021).

1.2. Data collection Plan

Data and its use are one of the most pressing issues in business and especially startups

(Bavdaž et al., 2020). Data is one of the most valuable resources for a company, given that it

has been strategically collected. Extent literature suggests that despite major improvement in

data analytics and its utilization, a lot of businesses are not able to include appropriate data

and analytics in their decision-making models (Lobe, Morgan and Hoffman, 2020). To make

informed decisions it is a prerequisite that the researcher has a comprehensive plan for

collecting the data.

1.2.1. Primary data collection

Firsthand information that has not been manipulated or published yet is the primary data.

The source and strategies of data collection are based on research problems that needs to

solved (Bavdaž et al., 2020). Therefore, this data is more valid, reliable, objective and

authentic as compared to secondary data. Questionnaires, interviews, case-studies, diaries,

observation, memo motion studies, focus group discussions, survey, experiments are different

sources of primary data (Ramakrishnan, Jones and Sidorova, 2012). For the “rental place

startup” following primary data collection strategies can be used.

1.2.1.1. Interviews: Interviews with potential customers, industry and business

experts can be conducted (Lobe, Morgan and Hoffman, 2020).

1.2.1.2. Survey: Structured questionnaires in the form of survey can help to

understand the preferences of stakeholders involved in the industry (Lobe, Morgan

and Hoffman, 2020).

1.2.1.3. Focus Group interview: Focus group interviews can help to analyze the

viability of the proposed business model. Qualitative data in important because it

provides in depth information about participants’ views. (Reynolds et al., 2005)

Challenges: Primary data can be a daunting task, the researcher can face difficulty in

defining different terms in the data including what to collect, where to collect, potential

participants (Ramakrishnan, Jones and Sidorova, 2012). Personal bias of the researcher, low

response rate, budget constraints, need of trained facilitators, time constraints can be some of

challenges while collecting primary data (Lobe, Morgan and Hoffman, 2020).

1.2.2. Secondary data collection

Secondary data includes the information collected from already published sources,

this data is already collected and analyzed by someone else (Lobe, Morgan and Hoffman,

2020).

Secondary data is an important step in every research since the research has to

systematically analyze what information already exists in literature. A comprehensive

background of the research is required to be established by the researcher. Secondary data

can also be helpful in establishing a baseline for primary data (Ramakrishnan, Jones and

Sidorova, 2012). There are different sources of secondary data including books, e-journals,

institutional records, census, population studies, periodicals, weblogs, personal records,

published printed sources, newspapers, magazines, general websites. Secondary data is

cheaper and easier to collect as compared to primary data. For the “rental place startup”

following secondary data collection strategies can be used (Dawson, 2019).

1.2.2.1. Published Reports: Utilizing industry reports, competitor analysis as well as

market trends can be helpful in understanding the market trends (Lobe, Morgan and

Hoffman, 2020).

1.2.2.2. Institutional databases: Institutional and government databases and

publications can also be explore to obtain information about regulatory requirements

Challenges: Establishing the reliability and objectivity of secondary data can be a challenge

for the researcher. Limited data is most likely to be the biggest challenge in the beginning,

data may not be very useful if the amount is low. A startup that does not have any real-world

experience will be solely dependent on this data. Moreover, If the collected data is not able

to provide fruitful conclusions it will not be useful. Gathering low quality data or incomplete

data may render all the effort unfruitful since it can lead to poor conclusion and major

problems can occur (Lobe, Morgan and Hoffman, 2020)

Overcoming the challenges in data collection and interpretation: Collecting data from

different sources and analyzing and comparing all the sources can provide a comprehensive

comparison of the sources (Reynolds et al., 2005). Further, Taking the full potential to use

data itself may not be valuable, it has to be turned into information to be relevant. In the

beginning, there is the challenge of finding the best ways to use data efficiently in both

business and product development. This is an iterative process that cannot be fully designed

before the product launch (Mertens, 2021).

1.2.3. Challenges in complex decision making

1.2.3.1. Complexity: Many business decisions involve a complex web of

interconnected factors. Cultural, legal, market saturation are interdependent, creating

challenges for the decision maker (Lobe, Morgan and Hoffman, 2020)

1.2.3.2. Fluctuating market dynamic Complex decisions are related to high

incidence of uncertainty, since the market dynamic are changing moment to moment.

Therefore, future market trends, competitors actions and other external variables are

difficult to predict creating an ambiguous situation (Dawson, 2019).

1.2.3.3. Multiple stake holders involvement Multiple stakeholders are involved in

every decision in business and the decision makers has to make a decision which is

suitable and acceptable for all. However, this is not easy to do because every
 stakeholder holds different perspectives and preferences. Balancing these conflicting

perspectives and ensuring that the decision align with goals of all the stakeholders can

be a difficult task for the decision maker (Mertens, 2021).

1.2.3.4. Limited sources Time, financial, technological constraints can impact the

implementation of selected strategies and impact the feasibility of the decisions

(Mertens, 2021).

1.2.3.5. Overemphasis on short term goals Pressure to meet the sort term

requirements can sometimes force the decisions makers to sacrifice the long term

goals, affecting the sustainingly of the business(Lobe, Morgan and Hoffman, 2020).

1.2.3.6. Personal Bias Cognitive bias of the decision maker can lead to misinformed

decision Overconfidence, hindsight bias, anchoring, confirmation biases can lead to

decisions that may not be in the best favor of the company (Dawson, 2019).
1.3. decision-making framework

Market Opportunity Navigation can be an appropriate framework for the Space for Rent.

Market opportunity navigator is a strategic tool that is especially designed for entrepreneurs

and allows businesses to explore and evaluate market opportunities efficiently (Dawson,

2019; Gruber and Tal, 2023). This framework provides a wide-lens perspectives to the

entrepreneurs, allowing them to explore various potential market domains for their innovation

and insight, after which they can zoom in and generate their business models or test their

products. According to Blank (2019, n.p.), he had seen many startups and projects, that

performed a rough “re-start” in new industries. He stated that these startups could have

identified more identified more valuable and promising business contexts to fluish their

business with a little upfront thinking.

1.3.1. A brief overview of Market Opportunity Navigation

The Market Opportunity Navigator helps companies in discovering and identifying best

market opportunities and discovering the most suitable context to launch their businesses.

Following steps depict the main dashboards of this framework.

1.3.1.1. Generating the Market opportunity set: The first step of market

opportunity navigator includes generating an exhaustive list of opportunities that

are available in the market already (Mingey et al., 2022). Since each market

opportunity has a different potential to create value and level of difficulty for the

company to realize that value, not all of them are equally appealing. The list can

be generated while focusing the industrial inspection, infrastructure evaluation and

security assessment of the businesses (Gruber and Tal, 2023)

1.3.1.2. Evaluating the attractiveness of Market Opportunities Since each market

opportunity has a different potential to create value and have varying level of
 challenges for the firm. The compelling reason to buy the product, market volume,

economic viability, implementation obstacles, time to generate revenue and

external risk factors are explored a s part of Market Opportunity Navigator

(Gruber and Tal, 2023)

1.3.1.3. Developing an Agile Focus Strategy The best fit opportunities are selected

on the basis of evaluation strategies as discusses in second step. After that, marker

opportunities are picked and a backup and growth pool is created. The product

relatedness and market relatedness helps to identify the opportunity as backup or

growth. The attractive opportunities that do not share a major risks with primary

market opportunity and allow for a change in a direction are identifies as backup

option. Growth options are those opportunities that allow business to create

additional value. While an agile focus strategy at least one backup and growth

option should be kept open, if any option does not appeal worth pursuing should

be discarded. Rest should be kept in storage (Mingey et al., 2022).

This deliberate prioritization is based on the notion that a company's market

opportunity set contains chances that are "correlated" (i.e., comparable in the

market and product) and that companies can take advantage of several

opportunities over time by diversifying (or pivoting) (Al-Fuqaha et al., 2015).

1.3.2. Rationale for using Market Opportunity Navigator

1.3.2.1. Tailored to startups: The Market Opportunity Navigator offers a structured

approach for validating and expanding business ideas, making it especially

appropriate for young businesses such as "Space for Rent" (Gruber and Tal, 2023).

1.3.2.2. Customer-Centric: This framework places a strong emphasis on

comprehending consumer desires while developing solutions that appeal to the

 market, which is compatible with the company's objective of offering premium

rental spaces as well (Al-Fuqaha et al., 2015).

1.3.2.3. Holistic Approach: It addresses all facets of the entrepreneurial journey, from

problem identification to venture scaling. This comprehensive approach is

advantageous for a start-up looking to break into a new market (Gruber and Tal,

2023).

1.3.2.4. Adaptability: Flexibility and adaptability are made possible by the Market

Opportunity Navigator because it promotes continuous learning and adjustments

in response to market feedback, which is critical for a new entry (Mingey et al.,

2022).
 Task 2

Identifying the competitors

Identifying the primary competitors in the market is essential to making informed

decisions (Pike and Page, 2014). A thorough analysis of businesses of the industry is required

for startups. Real estate businesses, traditional landlords, property management companies,

and well-established co-working spaces are examples of potential competitors (Al-Fuqaha et

al., 2015).

SWOT Analysis: A SWOT analysis provide a comprehensive evaluation of strengths,

weaknesses, opportunities and threats of a potential competitors (Pike and Page, 2014).

Strengths

The following can be the strengths of current setup in comparison to already established

businesses.

1. Strategic Location: Determining the best places to make purchases.

2. Creative Design: Providing contemporary, adaptable office designs.

3. Cost-Effective Renovation: Putting cost-effective remodeling techniques into practice.

4. Technology Integration: Making use of cutting-edge tools to provide better services.

Weaknesses

Following can be the weaknesses of current setup in comparison to already established

businesses.

1. Low Brand Recognition: It could be difficult to break into the market as a novice.

2. Initial Capital Requirements: A significant amount of money is needed to buy and

renovate properties.

3. Operational scalability: Effectively handling scalability and growth

Opportunities:

1. Expanding Demand for Adjustable Work Environments: Taking advantage of the

growing trend of flexible work schedules.

2. Technological Developments: Using technology to improve the client experience.

3. Partnerships with Local Companies: Forming alliances to expand you

Threats

1. Economic Downturn: The demand for office space may be impacted by economic

concerns.

2. Regulatory Difficulties: Comply with building laws and guidelines.

3. Fierce Competition: Take on the market's well-established companies.

2.2. Decision making model

Rational decision-making model can be best fitted for the current scenario. Although

some decision-making models, such as the dependent and intuitive approach to making

decisions or even the avoidant decision-making method (Burton, Stein and Jensen, 2019), are

considered fundamental and primary because they are utilized more frequently on a daily

basis and primarily depend on predisposition or intuition (Bag et al., 2021; Boumans, 2011)),

The rational decision-making model is a more sophisticated model of decision-making.

According to Herrera, Herrera–Viedma and Verdegay (1997) rational decision making is a

deliberate, analytical and logical process of decision making that allows decision maker to

evaluate the long-term consequences of their decision and has an empirically sound basis for

decision making (p.5).

2.2.1 Steps

Making rational decisions could involve a variety of approaches. Despite the

differences in each process's steps, rational decision-making methods share characteristics

that, for the most part, produce feasible responses (Boumans, 2011). The following steps

describe a model of rational decision making: Making rational decisions could involve a

variety of approaches. Despite the differences in each process's steps, rational decision-

making methods share characteristics that, for the most part, produce feasible responses. The

following steps describe a model of rational decision making:

1. Identifying exactly what problem needs to be addressed: In every challenging scenario,

it is important to accurately identify the problem that demands a specific decision-making

procedure to be taken in order to arrive at a solution (Burton, Stein and Jensen, 2019). An

incorrect understanding of the problem could lead the decision-maker to take inadequate or

insufficient action to tackle it (Bag et al., 2021).

2. Determining the context for the solution Generating a picture of the final solution

situation is crucial to the reasonable decision-making process. What characteristics will

indicate that a solution has been identified? Stated alternatively, how will success express

itself? What distinguishing factors will be examined for to identify success (Bag et al.,

2021)?

3. Performing an assessment of gaps: Simply understanding and recognizing the disparity

between the issue and its solution is a gap analysis (Burton, Stein and Jensen, 2019). For

example, what steps will the company need to take to move from the understood problem to

the identified solution? Gap analysis is described as "a technique that businesses use to

determine what steps need to be taken in order to move from its current state to its desired,

future state" in the business the dictionary (Bag et al., 2021).

4. Organizing facts, options, and substitutions: The next phase in this rational decision-

making model is to gather facts and options surrounding the steps that have been identified in

the gap analysis (Bag et al., 2021).

5. Analyzing the possible outcomes: With the facts in hand, the consequences or outcomes of

the various options identified should be analysed to determine the most effective and

functional option (Bag et al., 2021).

6. Making the best decision possible based on the analysis the best possible decision is

selected (Bag et al., 2021)

7. Placing the solution into practice and analyzing the result After the best option has

been selected, the decision has to be implemented accurately as decided for effective and

functional solution (Bag et al., 2021)

2.2.3. Justification
Rational decision making can have following advantages

1. Systematic Approach: When assessing a new business venture's sustainability, a

structured and methodical approach is provided by the rational decision-making

model (Burton, Stein and Jensen, 2019).

2. Objective study: Taking into account both quantitative and qualitative aspects, this

paradigm promotes objective study of the options that are available (Boumans, 2011).

3. Maximizing Outcomes: The Rational Decision-Making Model assists in optimizing

favorable outcomes by weighing the advantages, disadvantages, and possible hazards

of each choice.

4. Information Utilization: The Rational Model is consistent with the need to obtain and

apply pertinent information for decision-making, given the necessity of efficient

market research (Pei, 2013).