Business Decision Making: Research Plan, Statistical Analysis, and Graphical Presentation

Business Decision Making

TABLE OF CONTENTS
introduction......................................................................................................................................4
task 1................................................................................................................................................4
1. 1 Research plan for collecting primary and secondary data....................................................4
1. 2 Survey methodology and Sampling frame for research.......................................................4
1.3 Sample of questionnaire........................................................................................................5
Task 2...............................................................................................................................................6
2.1 Calculation of mean mode median........................................................................................6
2. 2 Analysis of the calculation and advise Karen on the most popular price for orders over the
last month.....................................................................................................................................7
2.3 Calculation of Range, standard deviation, quartile, percentile and interquartile range.........7
2.4 Calculation of correlation coefficient....................................................................................8
Task 3...............................................................................................................................................9
3.1 & 4.1 Line/ Bar graphs of showing sales profitability and cost with valid conclusion.........9
3. 2 Trend line graph for sales, costs and profit.........................................................................10
3. 3 Power Point Presentation....................................................................................................12
3.4 Business report.....................................................................................................................15
Task 4.............................................................................................................................................16
4.2 Calculation of the project duration and critical path...........................................................16
Task 5.............................................................................................................................................18
4. 3 Calculation of the Payback, NPV and IRR for Project Super & Project Sonic and
appropriate recommendations for project selection with justification......................................18
Conclusion.....................................................................................................................................21
References......................................................................................................................................22

TABLE OF FIGURES
Figure 1: Line graph showing sales, cost and profitability..............................................................9
Figure 2: Bar graph showing sales, cost and profitability.............................................................10
Figure 3: Trend line graph for sales, cost and profit......................................................................11
Figure 4: Gantt chart for new project of Ace.................................................................................17
Figure 5: Network Diagram for new project of Ace......................................................................18
LIST OF TABLES
Table 1: Calculation of range, quartile and interquartile range.......................................................7
Table 2: Correlation coefficient.......................................................................................................8
Table 3: Calculation of the critical path........................................................................................16
Table 4: Calculation of Payback period.........................................................................................18
Table 5: Calculation of Net Present...............................................................................................19
Table 6: Calculation of Internal Rate of Return............................................................................20

INTRODUCTION
Financial and operational decisions are considered as major important decisions of an
organization. Every business needs to focus on these decisions and should apply appropriate
techniques at the time of decision making process (Hobbs, 2009). The current research study is
based on business decision making and regarding this it will focus on different business scenario
and case studies. This research shed lights on the use of research plan, statistical analysis of data
and graphical presentation in business decisions. Along with this, it includes critical path
method, Gantt chart and PERT for operational decision making. Including this, it will also
describe how an organization can use investment appraisal methods for financial decision
making of an organization.
TASK 1
1. 1 Research plan for collecting primary and secondary data
As per the given business scenario client wants to launch a new brand of trainers in
London. Regarding this, he/she wants to conduct market research for understanding needs and
requirements of customers and market dynamics.
Research plan for primary and secondary data collection:
According to this research plan, consultant will collect relevant facts and figures using
both primary and secondary data collection methods. Primary data helps in collecting
information about the present and fresh situation of market. On the other hand, secondary data
will help in collecting historical facts of this market. Primary data will be collected by survey
methodology and regarding this researcher will develop an appropriate questionnaire (Lind,
Marchal and Wathen, 2005). In contrast, secondary data collection will be done by using various
sources such as websites and annual reports of different companies, journals, books, literatures,
etc. All these data will help in getting suitable information for organization.
1. 2 Survey methodology and Sampling frame for research
Survey methodology:
Author will conduct online survey of customers of trainers because it will help in
reducing time and cost for whole market research. Including this, author will formulate a
questionnaire for this survey which will include various open and close ended questions relevant
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to needs and requirements of customers. Therefore, online survey of customers will help in
collecting and recording appropriate information (Newbold and et. al., 2009).
Sampling Frame:
Author needs to select appropriate sample of customers for collecting primary
information. Regarding this, researcher will use random number sampling method because will
be significant for the current market research because it will reduce sampling error by providing
equal chance to each and every customer to select in a sample. Author will select 20 customers
of trainers which will represent the whole research universe. Therefore, sample size for the
current investigation will be 20 (Kathy and Deborah, 2007).
1.3 Sample of questionnaire
Demographic information of students and college staff of FSB
Name (Optional):
Age:
1. Do you use trainers for your daily life?
 Yes
 No
2. As per your experience, please provide information weather Design of trainers affect your
purchase decisions or not?
 Yes
 No
3. Do you think comfort is most important attribute of trainers as compare to design?
 Yes
 No
4. Are you completely satisfied with your current trainers?
 Yes
 No
5. Do you wants to purchase any new trainers which focuses on designs as well as comfort
also?
 Yes
 No
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6. Please, provide appropriate suggestions for improving designs and features of new trainer
product.
TASK 2
2.1 Calculation of mean mode median
There are different statistical methods and techniques by which organizations can analyze
important data for decision making process (Smith, Bruyns and Evans, 2011). Karen can
calculate mean, mode and median of sales figures for future decision making process.
Monthly
Expenditure /
£
No. of
Customers
(f)
Midpoint
of each
interval
(m)
Midpoint *
frequency
(mf)
Cumulative
frequency m2 m2f
0-10 5 5 25 5 25 125
Oct-20 7 15 105 12 225 1575
20-30 10 25 250 22 625 6250
30-40 12 35 420 34 1225 14700
40-50 14 45 630 48 2025 28350
50-60 15 55 825 63 3025 45375
60-70 14 65 910 77 4225 59150
70-80 13 75 975 90 5625 73125
80-90 6 85 510 96 7225 43350
90-100 4 95 380 100 9025 36100
Total 100 5030 308100
Mean= ∑mf
∑ f
Median=L+ (n/2)−cfb
fm ∗W
Mode=L+ f m−f m−1
( f m−f m−1 ) +(f m−f m +1)∗W
Value of mean, mode and median:
Mean 50.3
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