Effective Decision Making for Business Success

This assignment highlights the significance of making effective decisions in a business setting. It emphasizes the need for organisations to take appropriate judgments, divide activities effectively using Gantt charts or critical path systems, and obtain reviews from people through primary data methods. The assignment also stresses the importance of leadership that gets results, board composition, and corporate social responsibility.

Add more information to 4.2 and do 3.2 please.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for collecting primary and secondary data...............................................................1
1.2 Present the survey methodology and sampling frame used..............................................2
1.3 Design a questionnaire for given business problem.........................................................3
2.1 Creation of information....................................................................................................4
2.2 Analyse the result for drawing valid conclusion..............................................................5
2.3 Analysis of information through measure of dispersion..................................................6
2.4 Quartile and correlation coefficient in better decision making........................................7
TASK 2............................................................................................................................................8
3.1 Produce graphs and spreadsheets for drawing valid conclusion......................................8
3.2 Create trend lines for future estimation............................................................................9
3.3 Presentation for senior management..............................................................................10
3.4 Formal business report for management........................................................................10
TASK 3..........................................................................................................................................11
4.1 Use of appropriate information processing tool.............................................................11
4.2 Prepare a project management plan with critical path system.......................................11
4.3 Use of financial tools for decision making.....................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
An effective decision need to be taken by each organisation as this enables them to gain
opportunities which help them to survive at marketplace for longer period of time. Judgement for
company will be related to their expansion of business or their activities as well (Barlett, 2016).
Present assignment is based on Murano restaurant which is set up in UK and they are going
enlarge their business activities. They have to take decision regarding this so that they will
improve profits and market share effectually. To gather data and information they will acquire
support of primary or secondary source. To conclude result, charts or tables will be formulated
by manager. There are many financial tools or methods which will support company into their
process of decision making.
TASK 1
1.1 Plan for collecting primary and secondary data
It is required for an organisation to utilize significant methods or tools as this will assist
them to comprehend numerous facts. This will aid to gather appropriate data as well as
information; therefore, they will be able to promote business effectually (Beach and Lipshitz,
2017). Henceforth, there are many techniques which will be used by Murano for data collection
and these are stated as beneath:
Primary data: There is requirement for latest information for some project so that it is
must for an enterprise to conduct this sort of research. It is much accurate and in addition recent;
thus, manager of firm will easily acquire judgement effectively. There are several methodologies
which will comprise into this, like questionnaire, survey and so forth.
Secondary data: With assistance of this, company will collect data through many
resources, such as internet, research paper, magazine and many others. Fundamental
disadvantage of using this technique is that, data is old so that it cannot be considered as most
accurate or effective. But, it consumes less time as well as cost (Blondel and Müller-Rommel,
2016).
In this assignment, superior use primary data collection method as it helps to understand
each things in a proper manner. This will aid to take decision more effectively and efficiently.
Primary data will define:
 There is requirement of flexibility of data and information collection procedure.
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 Identify and select sample size so that research will be conduct properly, here sample size
is 80.
 Determine most suitable methodologies to gather data and information, i.e. questionnaire.
 Choose best technique to evaluate result.
1.2 Present the survey methodology and sampling frame used
Survey is refereed to as activity through which researcher gathered data on specific issue
and problem (Drucker, 2017). So, this process is used to ascertain adequate results and take
appropriate selections. In Murano, various methods of survey are used to acknowledge elements
which are advantage for company's functionality; which are stated as beneath:
Questionnaire: This is adequate tool of survey through which each and every person
opinion is taken. For this series of questions are asked, to enquire their thoughts and make
system function appropriately. So, it helps firm to make appropriate and efficient decisions on
basis of feedback of every individual.
Personal interview: It is another technique of survey which defines process that
investigator takes suggestions from people by asking appropriate questions. This provide support
in enhancing and making system function effectively.
Social media: As there is technological advancements, so this tool is important through
which adequate outcomes are get. Through this survey, investigator gets support to get
appropriate suggestions from people (Goleman, 2017).
From above described method, questionnaire and social media is considered as a best tool
to gather response from respondents in an effective way. People are get selected with assistance
of social media followers and send them invitation to fill the form of questionnaire. Instead of,
there is another methodologies which will be used by manager to gather data and information,
i.e. sampling. Hence, there are various types of sampling tools which will be utilized by Murano,
these are stated as below:
 Random sampling
 Quota sampling
 Strata sampling
From above techniques, random sampling methodology is using by association to select
viewpoint of distinctive people. It will be helpful for firm to get an effective decision for
business which is much beneficial for them (Rao and Tilt, 2016).
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1.3 Design a questionnaire for given business problem
This is considered as a most suitable method to gather an appropriate data and
information so that manager will take judgement in an appropriate way. As manager of Murano
is going to open new outlet in UK; therefore, they conduct a survey to gather views or thoughts
of people regarding this (Rothman, 2017). It will help them into procedure of decision making.
Questionnaire
Name:
E- mail:
Age:
Gender:
Q1. According to you, how is quality of items and services of company which is providing
to customers?
a) Good
b) Excellent
c) Bad
Q2. Is organisation being able to accomplish needs and wants of clients effectively?
a) Yes
b) No
Q3. During a month, how many time you visit Murano?
a) Twice
b) One
c) Rarely
Q4. As per you, prices of firm are affordable for each sort of consumers?
a) Yes
b) No
Q5. Is quality of beverages of Hotel is appropriate?
a) Yes
b) No
Q6. Are staff members of an enterprise friendly to every client?
a) Agree
b) Disagree
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Q7. Category of Murano?
a) Five star
b) Three star
c) Average
Q8. Do you ever refer Murano to your friends or family?
a) Yes
b) No
Q9. What type of location will be most appropriate for new outlet of Murano hotel?
a) Near to sea side
b) Rooftop
Q10. Any recommendations or suggestions which you want to provide company.....
2.1 Creation of information
It is like a data creation concept which aid to provide assistance so that entire information
will spread to top authority so that they will take an effective decision for affiliation. Almost 80
respondents are taken to fill questionnaire (Sekaran and Bougie, 2016). Minimum 30
respondents are required to be taken so it takes 80 respondents. Through proper research firm
will be able to attain coveted targets and goals within limited period of time effectually.
Rating R1 R2 R3
1 15 50 15
2 65 15
3 25 30 25
4 70 10
5 45 35
6 55 25
7 15 25 40
8 53 27
9 41 39
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Questions are mentioned above this table. It has been analysed that, quality of products
and services of Murano is much effective which aid to gain attention of numerous people
towards them. But, as per some individual they have to improve quality of items. Additionally,
many persons want that they need to open their new outlet near sea as it is much advantageous
for them in improvisation of revenues and market customer base. Price of food and beverages is
much efficient which aid to capture attention of many individuals towards them.
2.2 Analyse the result for drawing valid conclusion
Data and information is collected by manager of hotel by preparing questionnaire so that
they will easily acquire an effective judgement for business. For above stated aim, superior of
Murano needs to identify measure of central tendency which is calculated as beneath:
Rating R1 R2 R3 Mean Median Mode
1 15 50 15 26.6666666667 15 15
2 65 15 40 40 #VALUE!
3 25 30 25 26.6666666667 25 25
4 70 10 40 40 #VALUE!
5 45 35 40 40 #VALUE!
6 55 25 40 40 #VALUE!
7 15 25 40 26.6666666667 25 #VALUE!
8 53 27 40 40 #VALUE!
9 41 39 40 40 #VALUE!
Mean: This will define an average of the series by which less value will get found out in
an effective and efficient manner (Shapiro and Stefkovich, 2016). This will help an organisation
to take an appropriate judgement which will help them in forthcoming time. Quality of goods
and services are effective which help to gain attention of numerous people towards them; Mean
for this is almost 26. instead of, it has been analysed that firm is able to fulfil needs and wants of
people as per their demands so that they are maintaining their customer base in a significant way.
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Median: It helps to identify present value of the data, this has to proper; therefore,
manager will easily acquire best and effective decision for business and it enables them in
accomplishment of work. There are various people who visit Murano twice in a month which
shows that they are providing positive effect on the minds of people. It has been analysed that,
prices of goods and services of company is affordable for each sort of individual who visit this
place.
Mode: There will be many times when some number will come repetitively and shows
same kind of nature (Measures of Central Tendency, 2013). Most of the number is showing that
quality of products and services of company is much effective which help to gain attention of
numerous persons towards them. Along with, there are many people who visit twice or rarely
Murano hotel. As a result, client base of an enterprise will easily get improved.
2.3 Analysis of information through measure of dispersion
Rating R1 R2 R3 standard
deviation
variance
1 15 50 15 20.2072594216 408.3333333333
2 65 15 35.3553390593 1250
3 25 30 25 2.8867513459 8.3333333333
4 70 10 42.4264068712 1800
5 45 35 7.0710678119 50
6 55 25 21.2132034356 450
7 15 25 40 12.5830573921 158.3333333333
8 53 27 18.3847763109 338
9 41 39 1.4142135624 2
Standard deviation: This describes about difference from mean value of series to its real
frequency; thus, best and effective organisational decision will be taken (Wheelen and et. al.,
2017). It has been analysed that quality of products and services of Murano is much effective
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which help them to capture attention of numerous people towards them. As a result, client base
of organisation will easily get improved.
Variances: Deviations will be arising in each series which has to be understand by
managerial department so that they will easily take an appropriate judgement for company. There
are many clients of company who wants to refer Murano to their friends or families because of
an effective quality of goods and services.
2.4 Quartile and correlation coefficient in better decision making
Rating R1 R2 R3 Correlation
coefficient
1 15 50 15 1 Relationship
between 1 & 3
2 65 15
3 25 30 25
4 70 10
5 45 35
6 55 25 1 Relationship
between 6 & 8
7 15 25 40
8 53 27
9 41 39
Interpretation: There is relation of correlation coefficient is established in rating 1 & 3
and rating 6 & 8. Apart from this there is no relationship has established in the whole table on
the basis of correlation coefficient.
Correlation coefficient: With help of this, manager will easily find out relation amongst
two or more variables so that they will easily take an appropriate judgement for betterment of
enterprise. Quality of food and beverage is much effective which aid to gain attention of many
individuals so that in a month there are many individuals who visit two or more time this place.
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Quartile: This will be classified into many segment; thus, superior will take positive
decision (Zavadskas and et. al., 2016). There is some person who rated them as a five-star hotel
and this enables them to take benefits from their rivals at marketplace.
Percentile: It represents a percentage position in a list of data. It is used in statistics
reflects the value below which a given percentage of observation in a range of observation.
TASK 2
3.1 Produce graphs and spreadsheets for drawing valid conclusion
Theme 1: Quality of goods and services are excellent
Good Excellent Bad
0
10
20
30
40
50
60
15
50
15
Interpretation: Quality of goods and services of hotel is much effective which help to
gain attention of many individuals towards them. Almost 15 respondents think that quality is
good, but 50 persons marked it as an excellent. Remaining people are not happy with their
quality as they had not experienced good.
Theme 2: Organisation is able to fulfil requirement of people
65
15
Yes
No
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Interpretation: Company is providing goods and services to customers according to their
demands so that their requirements are accomplishing within limited period of time. From above
data it has been analysed that almost 65 respondents are favouring this statement but remaining
are entirely against of this.
Theme 2: Prices of goods and services are much affordable
Yes No
0
10
20
30
40
50
60
70
80 70
10
Interpretation: Company is offering reasonable products and services to people so that
they will go to place many times. Almost 70 respondents are in favour of this argument but
remaining individuals are entirely against of this.
Theme 3: Quality of beverages are much appropriate
1 2
0
10
20
30
40
50 45
35
Interpretation: It has been analysed that quality of beverages of Murano hotel is much
appropriate which help to gain attention of many individuals towards them. From above data it
has been examined that almost 45 individuals are favouring this argument but, remaining are not.
3.2 Create trend lines for future estimation
Year Sales Net Profit
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2017 7650 5000
2018 7700 5150
2019 7850 5200
2020 8000 5600
From the above trend line, it has been found that this positive change of generating more
revenue in coming next few years. As the sales are increasing regularly, the total incomes get
beginning to enhance at the same period of time. It means that the Murano restaurant need to go
with this trend line estimation so that future opportunity can be created in maximum manner.
It has been analysed from the above trend line that the restaurant will be growing with
effective rate that represents that enough amount of fund is present with restaurant to start their
new restaurant. From the increasing trend, easily depicts that customers are satisfied with the
services of restaurant and they prefer to spend their time in the restaurant with family. This will
be considered as the beneficial situation for an restaurant to start one more new restaurant and
earn large amount of profits along with capturing huge market share.
3.3 Presentation for senior management
3.4 Formal business report for management
The Management
Murano Restaurant
Date: 26th March, 2018
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Subject: Recommendation for new outlet with appropriate thought
Manager of Murano wants to open an another restaurant in UK so that they will enlarge their
business to gain an effective outcome. It is essential for them to determine those areas where
they need development; therefore, they will cater best goods and services to clients. To
determine appropriate solution or decision, they will conduct survey by formulating proper
questionnaire. It is must for superior of an enterprise to increase quality of items or services so
that they will easily gain attention of numerous individuals towards them. Employer of firm will
provide training sessions to their staff members so that they will maintain their working
performance. Prices of food and beverages are much affordable which help to capture attention
of many persons. They need to determine needs and wants of people so that they will fulfil their
requirements within limited period of time, this will assist them to take benefits from
competitors at marketplace. Above mentioned suggestions need to be implement in company as
it aids them to attain positive results.
Thanks and Regards,
XYZ
TASK 3
4.1 Use of appropriate information processing tool
Information processing devices are defined as tools which help in exchange of data
properly. Through this, senior executive gets assistance to improve system functionality and take
care that activities are conducted effectively. For this, complete data is ascertained and assessed;
thereby execute it in firm (Zeng, Chen and Li, 2016). Murano uses information processing tools
to examine performance of company which is stated below: Management information system: This tool is uses by manager level members of firm to
acknowledge effect of elements of system functionality; thereby communicate data to
senior executive. This benefit them to support superior for better understanding about
various aspects and make system work efficiently. In Murano, manager uses management
information system process to gather adequate data about their business.
 Decision support system: This is another tool which is used by top level members of firm
to take appropriate selection for business. By this, senior executive get adequate
information about opinion of people; thereby design system and make it function
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effectively. In Murano, management uses this tool to acknowledge elements through
which adequate decisions are made for company (Barlett, 2016).
4.2 Prepare a project management plan with critical path system
Whenever an organisation is going to start a new project then, at that time they will have
lots of opportunities which will be access by them. For this, they will utilize many kinds of
techniques or methodologies so that positive results will be attained. In context of Murano, they
are going to enlarge their business and for this, they will open another outlet in UK. Therefore,
they need to make proper plan so entire activities will get managed.
Gantt chart: It will be classified into several number of activities. Each and every
exercise need to schedule properly so that it will get completed within limited time span. As a
result, positive or best result will be achieved by organisation which help them to improve their
brand image in nation (Beach and Lipshitz, 2017).
Critical path system: With assistance of this, superior will easily determine shortest way
for completion of project in a proper manner. It has been analysed that this method is significant
to achieve best and appropriate outcome. Therefore, with help of this system manager identified
short way to accomplish the project.
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Path A: 1+3+5+6+9+10 = 34 days
Path B: 1+4+8+5+6+7+9+10= 50 days
Path C: 2+2+4+3+8+1= 20days
Path D: 2+6+6= 14 days
From the above network diagram, it has been found that the most critical path found is path
B. Because the time period for completing the project is much more as compare to other given
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path. The total return they are getting from entire investment within a financial period of taken
into account.
The basic reason behind the acceptance of path B is that it required 50 days for
completion which is more in comparison to all other parts. According to critical path analysis,
required to complete the longest task first because if this will be delayed then whole project will
be delayed and not possible to complete on time. It is important for successful completion of this
project is to complete the path B first as this will aid in structuring the base strong and
completion of whole project within stipulated period of time.
4.3 Use of financial tools for decision making
Finance is fundamental requirement for each and every kind of organisation; therefore,
they will easily run their business in an effectively (Blondel and Müller-Rommel, 2016). If
association is having proper amount of fund, then they will be able to accomplish entire business
activities within limited period of time. In this assignment, Murano has to use significant
financial techniques; thus, they will easily acquire judgement for firm which is advantageous for
them. Through this, they will take decision regarding opening a new outlet in UK. Henceforth,
there are two main methods which will help them into procedure of decision making:
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total present value of
five years 181435.2
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Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
Internal rate of return 9.94%
Net present value: This will be negative if there is positive investment. As indicated by
this, there is no need for manager to begin new project because if they start it then this will
provide an adverse affect on their business.
Internal rate of return: This is considered as a other technique of IRR, which is almost
9% and less also. Thus, it is required for company to drop their idea otherwise it will net render
them positive result or outcome.
CONCLUSION
From above assignment it has been comprehended that organisation needs to take an
appropriate judgement for their business so that entire activities will get completed within
limited period of time. Correct judgement will help an affiliation into their success and growth.
As a result, they will easily take benefits from their rivals at marketplace. People are get selected
on random basis for the research. In this assignment, superior is selected primary data method to
obtain review or thoughts of people. With assistance of Gantt chart or critical path system
manager will divide activities in an effective way; as a result, targets or objectives will get
accomplished within limited period of time.
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REFERENCES
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Online
Measures of Central Tendency. 2013. [Online]. Available through
:<https://statistics.laerd.com/statistical-guides/measures-central-tendency-mean-mode-
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