Business Decision Making

This document provides an overview of the process of business decision making and its importance in the success of a company. It covers topics such as data collection, survey methodology, questionnaire design, data analysis, and more. The document also includes a business presentation and a formal business report for a proposed new product development initiative.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Create a plan for collection of primary and secondary data..................................................3
1.2 Present a Survey methodology and sample frame................................................................3
1.3 Design a Questionnaire.........................................................................................................4
TASK 2............................................................................................................................................6
2.1 Create information for decision making by summarizing the data.......................................6
2.2 Analysis of data to draw the conclusions..............................................................................7
2.3 Analyze the data using measures of dispersion.....................................................................7
2.4 Explain Quartiles, percentiles and correlation coefficient to draw conclusions...................8
TASK 3............................................................................................................................................9
3.1 Produce graph using spreadsheets and draw conclusions.....................................................9
3.2 Create trend lines in spreadsheet graphs to assist in forecasting........................................11
3.3 Prepare business presentation.............................................................................................11
3.4 Produce a formal business report for the proposed new product development initiative.. .11
TASK 4..........................................................................................................................................12
4.1 Use appropriate information processing tools.....................................................................12
4.2 Prepare a project plan for an activity and determine a critical path....................................13
...................................................................................................................................................16
4.3 Use financial tools for decision making. ............................................................................17
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19

INTRODUCTION
The chosen company Alfa tours Limited is a tour operating company operating in UK
for any business to sustain in the market it requires efficient decision making and also highly
impact the success of the business success as well is engaged in the business of operating the
tour and travel activities over the globe. Hence the main aim is choosing a new destination for
the people hence to identify the choices and preference the customers various methods like the
survey and sampling methods are used.
TASK 1
1.1 Create a plan for collection of primary and secondary data.
Alfa Travel being a tour operating company uses both the source of data collection which
are as follows- Primary Sources- For drawing conclusions it is essential to first collect data and that can
be done from the primary sources of data collection. Primary source of data collection
implies the first time data collection and this is usually done by the person himself to find
come tour destination. This can be easily done with the help of questionnaires which help
us to know the destination where customers want to travel (Alexakos, 2016). The various
sources of data collection are interviews, questionnaires, surveys etc. here the data which
is collected is completely raw and is based on the perceptions and feelings of customers.
 Secondary Sources- This type of data is collected by someone else and is used by the
user to keep it as a base like Magazines, Internet, reports, Government reports and
historical data and information. Alfa Travel Limited can use the secondary sources such
as the past track record to analyze the expected customers for the current year like the
age group of people etc.
1.2 Present a Survey methodology and sample frame.
Considering a problem to be the deciding the destination. For solving this problem the
survey methodology and sampling frame are formed by Alfa Travel Limited. Basically the data
which is required is both quantitative and qualitative data. Form the quantitative data one can
know the prices which the customers are willing to pay or the destination and when it comes to
the qualitative data it can be obtained by questionnaires to know the destination preferences of
the customers. Hence for Ala Travel Limited both sources of information is necessary.

 Survey Methodology- The tour operator for deciding the location conducts a survey to
figure out the preferred destination for the customers as the main aim for any tour
operating company is to provide with the variety of options and then conducting a survey
to know the most preferred location by the customers by making them fill the
questionnaires.
 Sampling Frame- As the number of customers is very large hence everyone cannot be
taken into consideration. Hence the best method which can be used is sampling. A sample
is selected which is a representative of the entire population (Bryman, 2015). As Alfa
Travel Limited is a very fast growing company in organizing the holiday tours hence for
them to know the preferences of customers survey method becomes very cumbersome.
Hence sampling method is best suited.
1.3 Design a Questionnaire.
Dear All,
kindly spare two minutes to go thorough the questionnaire and feel free to respond to the
same as this will help us to know your tour preferences and improve our quality of service.
Q.1. Age group
A) 20-30
B) 30-40
C) 40-50
D) Above 50
Q. 2. Are you satisfied with our service?
A) Highly dissatisfied
B) Not Satisfied
C) Satisfied
D) Moderately Satisfied
E) Highly Satisfied
Q. 3. How often you Travel?
A) Every Week
B) Every Month
C) Once in 3 Months
D) Once in 6 Months

E) Once a Year
Q. 4. Your average expenditure on the trip.
A) GBP500 but less than GBP535
B) GBP535 but less than GBP550
C) GBP550 but less than GBP585
D) GBP585 but less than GBP610
E) GBP610 but less than GBP635
Q. 5. For a particular destination the price which one person is ready to pay is-
A) GBP500 but less than GBP525
B) GBP525 but less than GBP550
C) GBP550 but less than GBP575
D) GBP575 but less than GBP600
E) GBP600 but less than GBP625
Q. 6. Rank the following according to the priorities to be included in the tour package.
1 2 3 4 5
 Facilities for accommodation 30 20 30 10 10
 Guide 20 5 20 15 30
 Affordable packages 20 25 15 20 10
 Packages for sports tour 20 10 25 15 20
Q. 7. How do you plan your trip?
A) Yourself
B) Through a Travel Agent

Q. 8. Places You preferences
A) Beach
B) Resort
C) Hill Station
D) Any Other______.
Q. 9. What factors you consider while opting our company.
A) Tour Package
B) Pricing
C) Safety
D) Quality
TASK 2
2.1 Create information for decision making by summarizing the data.
The measures of central tendency which are considered for summarizing the data are as follows- Mean- In simple language, Mean may be defined as the average of the given data divided
by the given number of observations (García-Peñalvo, 2014). Mean is basically used to
know the preference of each observation by the people on an average. It reflects the
performance of a variable which is repeated most of the times. Median- This means identifying the term which lies in the middle for a given range of
values. To know the center term of the data median is the best measure to use from but it
is done by ranking the data in the ascending or descending order and then doing the
calculations. Whereas median defines the preferred option by the people (Power, 2015).

 Mode- The number which is occurs most often or the occurrence of which is very
frequent is the mode of the given set of data. Whereas mode defines the option which is
noted by maximum number of people apart from the mean values.
2.2 Analysis of data to draw the conclusions.
As per the raw data collected of the Alfa Travel Limited, the following analysis can be
done-
Mean value reflects the satisfaction of the customers with the tour package so offered.
Mostly respondents have opted option 4 which says that they hare Moderately satisfied with the
services provided by the tour operator. When it comes to choosing the destination, most people
were found to be paying the average price for the same and not the high price. This is the best
measure as all the elements are included in the calculation and gives the average of the data
which is best suited and is appropriate.
The Median reflects the middle element of the entire set of data. And form the above data
we can infer that the preference for most of the customers is restricted to option 4 which derives
their satisfaction level to a higher degree. The value of median is least affected by the extreme
values as that of the mean is affected. It helps in estimating the profitability of the tour operator.
The Mode value refers to the value which is mostly opted by the maximum number of
respondents and from here we can infer that most of the respondents chose option number five
for most of the questions. Mode is the option which is preferred by the maximum number of the
respondents.
2.3 Analyze the data using measures of dispersion.
Dispersion is measure which enables us to know the extent to which a data is scattered. In
simple words, it means extent to which the values in the distribution differ from the average
values of the distribution.
 Inter Quartile Range- It is a measure of dispersion and is calculated by the difference
between the third and the first Quartile. Here the data is divided into four equal parts
known as quartiles which helps in making the decision simplier.

Illustration 1: Inter Quartile Range
 Standard Deviation- It defines that the extent to which a data is deviated form the mean
value. It is the most common tool which is used by the decision makers to give the
conclusion about the spread of the data range and hence is greatly affected by the mean
values.
Illustration 2: Standard Deviation
2.4 Explain Quartiles, percentiles and correlation coefficient to draw conclusions.
Illustration 3: Quartiles
Illustration 4: Percentiles
Interpretation:

Here the entire data is divided into four equal parts as per the number of observations.
Like the entire 100% is divided into the 4 equal parts here as the values of qualrtiles and the
percentiles are one which means that the quartiles and percentiles are equally divided.
TASK 3
3.1 Produce graph using spreadsheets and draw conclusions.
Theme 1: Age group
 20-30 years 40
 30-40 years 30
 40-50 years 15
 Above 50 years 5
Interpretation:From the above we can conclude the major respondents are from the age group
of 20-30 years who are fond of traveling. Hence the focus of the company should shift to this age
groups as the major portion lies with them and they affects the profitability.
Theme 2: Are you satisfied with our service?
 Highly dissatisfied 35
 Not Satisfied 25
 Satisfied 15
20-30 years
30-40 years
40-50 years
Above 50 years
0
5
10
15
20
25
30
35
40
45 40
30
15
5
Age Group
number of
respondents

 Moderately Satisfied 10
 Highly Satisfied 5
Interpretation: From the above we can conclude that the major people are dissatisfied with the
service provided by the company. The people who are highly satisfies are just 5 people which
means that the quality of service should be improved.
Theme 3: How often you travel?
 Every Week 25
 Every Month 35
 Once in 3 Months 10
 Once in 6 Months 15
 Once a Year 5
Highly dissatisfied
Not Satisfied
Satisfied
Moderately Satisfied
Highly Satisfied
0
5
10
15
20
25
30
35
40 35
25
15
10
5

Interpretation: here we can say that maximum people usually prefer to travel every month.
Hence if better services are provided to them they will continue utilizing the service form the
current operator only. These are created by connecting the actual data points.
3.2 Create trend lines in spreadsheet graphs to assist in forecasting.
In order to know the direction of the data the same can be identified from the trend lines
which shows the direction in which the observations are carried out. Here the main aim is to
predict the variable. Here as the trend line shows that the line is moving downwards and it is
showing a negative trend and the company will be thrive to meet the expectations of the
customers in the coming time and this is the best tool for decision making as the pictorial
representation clearly shows the direction in which the company is moving. In order to increase
the sale some strong strategies need to be formulated. It is a great tool for decision making as
well one can use it for the prediction purpose as well.
Every Week
Every Month
Once in 3 Months
Once in 6 Months
Once a Year
0
5
10
15
20
25
30
35
40
25
35
10
15
5
Travel time
pople
Series2

3.3 Prepare business presentation.
3.4 Produce a formal business report for the proposed new product development initiative.
To,
General Manager
Alfa Tours Limited, Surrey
Introduction
This research is aimed at understanding the needs and preferences of the customer and
then developing the product meeting theirs choice. The number of respondents is limited to 90
and these people are asked to fill the questionnaire so designed and theirs responses are noted
and efforts are made by Alfa Travels Limited to develop the new package according to them.
Discussion
As per the current statistics it shows that the sales figures of the company is pretty good
and the company is capable to design some tours for the customers. For this the preferred
method which is used is the questionnaires and the same has been asked to be filled by the
respondents and accordingly the things which match their needs the entire tours is planned. As
the workforce is efficient the can easily design the travel. From the above we found that the age
group which people 20-30 years of age and the package which they are looking for is the
affordable one. They will not prefer the high expenditure tour. According to the ranks they have
given the first priority of the people is the accommodation facilities should be good.
Conclusion
For the success of the company and also to attract more and more customers better and
attractive locations should be explored.. various offers and discounts can be given so as to
attract the customers and increase the level of satisfaction among them.
TASK 4
4.1 Use appropriate information processing tools.
For processing the information various tools are designed and can be classified as
follows-
1. Management Information System- Management information system can be classified as
a tool for decision making. It is aimed at collecting the basic information that is required

for the managers to take their decision for the organization. The main aim is that it is
aimed at collecting and storing the management related information Hartman, 2014). For
the chosen company Alfa Tours Limited the main information can be extracted fro the
company's official websites and thus the coordination between them can be established.
2. Transaction Processing System- Ala Travel Limited here main aim of transaction
processing systems is managing the transactions and disseminating the information to the
various departments and thus coordination and taking decisions on a mutual basis. In this
the details of the customers can be recorded on the server and the same can be extracted
as and when required.
3. Decision Support System- This system of information processing is used mainly by the
middle and the top level management to take decision and support the same. Decision
Support System can be used by the tour operator for designing the new product with the
help of sound judgment and thus increasing the profitability of the company.
4. Executive Information System- The basic levels of the management and the data can be
analyzed and is mainly used by the senior executives to aid in the decision making
process. It is another form of decision support system and includes various hardware,
software, data, procedures and the people. It is basically undertaken to aid for the
decision making process simpler and faster.
4.2 Prepare a project plan for an activity and determine a critical path.

For calculating the critical path, it comes out be
1+4+5+6+8 = 24 weeks
Weeks= 3+3+3+5+2
= 16 weeks
4.3 Use financial tools for decision making.
The various financial tools are

 Net Present Value (NPV)
Interpretation: As the NPV of all the projects are negative hence no project is profitable. For the
present time if any option is chosen then it will generate negative results only. Hence none of the
option is preferable as it will fetch only negative outcomes.
 Internal Rate of Return (IRR)

Interpretation: Here the Internal rate of return of Cuba is the lowest hence this can be chosen as
compared to other option as with other option s the chances of the negative results are much
higher than that of Cuba.
CONCLUSION
In the concluding section, the main aim is to determine the choices for the destination for
the people. For this various methods are undertaken and decisions are obtained for the same.
Like techniques such as Management information systems, decision support system etc have
been used. Next for interpreting the results, the net present value and internal rate of return
methods are used.

REFERENCES
Books and Journals
Alexakos, C. and et.al., 2016. ERMIS: Extracting Knowledge from Unstructured Big Data for
Supporting Business Decision Making. In IFIP International Conference on Artificial
Intelligence Applications and Innovations (pp. 611-622). Springer International
Publishing.
Bryman, A., 2015. Social research methods. Oxford university press.
García-Peñalvo, F.J. and Conde, M.Á., 2014. Using informal learning for business decision
making and knowledge management. Journal of Business Research. 67(5). pp.686-691.
Hartman, L.P., DesJardins, J.R., MacDonald, C. and Hartman, L.P., 2014. Business ethics:
Decision making for personal integrity and social responsibility. New York: McGraw-
Hill.
Kołacz, A. and Grzegorzewski, P., 2016. Measures of dispersion for multidimensional
data. European Journal of Operational Research. 251(3). pp.930-937.
Power, D.J., Sharda, R. and Burstein, F., 2015. Decision support systems. John Wiley & Sons,
Ltd.
Sutherland, L.A. and Holstead, K.L., 2014. Future-proofing the farm: On-farm wind turbine
development in farm business decision-making. Land Use Policy. 36. pp.102-112.