Business Decision Making and Project Evaluation

The assignment involves evaluating a business project using various decision-making techniques, including cost-benefit analysis, net present value, and internal rate of return. It requires the application of mathematical formulas and the interpretation of results. The project is evaluated over five years, with an initial investment and subsequent cash inflows. The assignment also includes a review of relevant literature on business decision making and project management.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collecting primary and secondary data.................................................1
1.2 Survey methodology and sampling frame use......................................................................2
1.3 Designing of questionnaire for gathering of information.....................................................2
2.1 Creation of information on the basis of questionnaire..........................................................4
2.2 Use of measure of central tendency for effective decision...................................................4
2.3 Use of standard deviation and variances for effective decision making...............................5
2.4 Evaluation of correlation coefficient for appropriate understanding....................................7
TASK 2............................................................................................................................................7
3.1 Formulation of graphs and charts for better working............................................................7
3.2 Use of trend line for effective and appropriate work............................................................9
3.3 Formulation of business presentation to senior management.............................................11
3.4 Produce a formal business report........................................................................................11
TASK 3..........................................................................................................................................12
4.1 Use of appropriate information processing tool..................................................................12
4.2 Prepare a project plan for activity with critical path...........................................................12
4.3 Use of financial tools for decision making.........................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business success comes to only such people whom take better and effective judgement
for future aspect and concern. Every big and right judgement contribute with aspect of suitable
right decision. Although, taking right and appropriate decision is not a easy thing because it will
support a business to grow and get developed in a suitable frame (Barlett, 2016). This project is
based on business decision making in which Food For Friends wants to open another chain of
restaurant in London, United Kingdom. This project includes about collection of data with both
primary and secondary source along with data need to get understand and evaluate in an
appropriate frame for better working. Moreover, once all standard get adequately done, then
business need to use appropriate and suitable method to present data effectively. At last,
management need to use and adapt software generated information properly so that better and
effective decision making get enhance.
TASK 1
1.1 Creation of plan for collecting primary and secondary data
Planning comes with every big idea and every bid idea need suitable plan through which
objectives and aims of business get accomplish in an appropriate and effective frame. There are
mainly various kind of data collection tool get evaluated for a business through which
management become able to organise a study properly (Drucker, 2017). Thus, when data get
gather appropriate plan need to get drawn out in a suitable and appropriate frame. The two major
data collection tools which need to implement by Food for Friends stated as follow:
 Primary data: These are such kind of data which is raw in nature and never get exist in
consideration before. It is important to evaluate and use primary data for further study so
that better and effective working get promoted. Food for Friends need to use this method
in their working so that better results could be gain. Questionnaire is one of a best
approach for this to gather various responses.
 Secondary data: This is already exist and gather information which get analyse by using
corrective measure. Food For Friends can use their financial records in such aspect
properly and effectively so that better working get promoted.
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1.2 Survey methodology and sampling frame use
Survey need a definite and appropriate method which have to adapt by business managers
properly so that better and effective working get enhance. It is important to use and derive by
evaluating each method properly and apply one of the best to study (Goleman, 2017). Along with
this, not only survey methodology need to be interesting and appropriate in frame but another
requirement associated with sampling frame. Sample of research needs to be define in nature
properly by which appropriate outcome chances become possible. Various survey methodologies
for Food for Friends study are stated as follow: Survey Monkey:One of a major and appropriate source of survey is survey monkey in
which researcher have potential to create a questionnaire and the distribute it online
through every digitalize source. This will contribute appropriate responses by various
respondents and support in providing at higher level as well through various individuals.
 Questionnaire: Another supportive material of study is questionnaire which can
distribute by Food For Friends to their ultimate customers for gaining their responses.
This method basically use by restaurant which organise on 80 respondents and
respondents gather through random sampling frame which support in gaining outcome
from various respondents (Manning and DiLollo, 2017).
Thus, out of various number of sources, the best and appropriate study evaluation and organising
material is questionnaire which get done on define number of respondents by applying relevant
sampling technique into it which signifies and provide for suitable outcome.
1.3 Designing of questionnaire for gathering of information
One of a major aspect which associated with research is to design a questionnaire which
is one of a best technique of primary method. By consulting questionnaire technique, every
business become able to gain appropriate considerable responses of users. This will enables and
suggest better and effective working so that chances of suitable gain get enhance in a better and
effective way. This questionnaire is for Food For Friends which target overall 80 respondents
whom regular customer of a company. Thus, by applying this tool suitable response get derive
for better and effective gain:
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QUESTIONNAIRE
Name:
Age:
Gender:
Q1. Do you like services and food items of Food for Friends restaurant?
a) Yes
b) No
Q2. Give rating for services and amenities of Food for Friends restaurant.
a) Excellent
b) Good
c) Average
d) Moderate
Q3. What is your income in context with disposable of cost on service and food items of
restaurant?
a) More than €30
b) Between €30 to €60
c) More than €60
Q4. Did you satisfied from the services of staff members?
a) Yes
b) No
Q5. Which location you prefer for establish of new restaurant for Food for Friends?
a) Near beach
b) Rooftop
c) Pub and Disc
Q6. Is there any requirement to change all concerned aspects of Food for Friends restaurant in
the new chain?
a) Agree
b) Disagree
Q7. Are satisfied from the pricing policies of Food for Friends restaurant?
a) Yes
b) No
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Q8. Are the discount or offers provided through Food for Friends restaurant exiting in its
nature?
a) Yes
b) No
Q9. Give rating for performance of restaurant.
a) 1
b) 2
c) 3
d) 4
e) 5
Q10. Give any recommendations or suggestions?
2.1 Creation of information on the basis of questionnaire
A major aspect of study is to evaluate all basic consideration of outcome in an
appropriate frame so that better and suitable understanding get encourage (Rao and Tilt, 2016).
Thus, it is essential to create information on the basis of questionnaire so that suitable and
appropriate results could be gain. Thus, information creation is not a easy thing but it need to get
disseminate properly so that better and appropriate results could be gain for better and
appropriate working. On the basis of provided information, Food For Friends become able to
conclude better decisions:
Ratings R1 R2 R3 R4 R5
1 42 38
2 24 24 20 12
3 20 30 30
4 49 31
5 20 20 40
6 47 33
7 53 27
8 37 43
4

9 10 12 12 22 24
2.2 Use of measure of central tendency for effective decision
Measure of central tendency provide average of values of given frequency so that better
and appropriate understanding get enhance. Such information which ascertain through central
tendency does not provide appropriate but signifies estimation (Rothman, 2017). Henceforth,
management need to use all three sections which are mean, median and mode properly so that
better and appropriate outcome could be gain.
R1 R2 R3 R4 R5 Mean Median Mode
42 38 40 40 #VALUE!
24 24 20 12 20 22 24
20 30 30
26.6666666
667 30 30
49 31 40 40 #VALUE!
20 20 40
26.6666666
667 20 20
47 33 40 40 #VALUE!
53 27 40 40 #VALUE!
37 43 40 40 #VALUE!
10 12 12 22 24 16 12 12 Mean: It is an average of series which need to understand by business managers
properly. An average stated that such frequency arise most of the time and have more
significance into a frequency distribution table. 40 is consider as mean value of a series as
its occur most of the time in a table. Goods and services quality, staff behaviour etc. all of
these have high quality standard. Median: Median is a mid value of the represented data frequency series which have a
more impact on actual working. Business decision making need appropriate consideration
of median which specifies about middle value (Sekaran and Bougie, 2016). Every
frequency have distinct mid value which signifies positive and negative responses
properly. Like amenities have a middle value of 22 which signifies effective and
appropriate out-frame.
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 Mode: In a research if one value arise or occur again and again then it will consider as
mode value of frequency. Mode calculation define the most occurring and influencing
value of a series which need to understand by managers properly. Many people of Food
For Friends stated that amenities of a company have excellent and good both nature
which support in satisfying more and more number of customers.
2.3 Use of standard deviation and variances for effective decision making
Measure of dispersion consider as one of a basic and appropriate decision making tool
which need to understand by business managers (Shapiro and Stefkovich, 2016). Dispersion
provide variances and variation of series properly and effectively so that appropriate working get
promoted. It is important to determine standard deviation and variances of a frequency
distribution properly so that better and effective working get promoted. Food for friends need to
evaluate measure of dispersion properly so that variances could be evaluated properly as well as
strategies lead to be framed out on them:
Ratings R1 R2 R3 R4 R5
Standard
Deviation Variances
1 42 38
2.82842712
47 8
2 24 24 20 12
5.65685424
95 32
3 20 30 30
5.77350269
19
33.3333333
333
4 49 31
12.7279220
614 162
5 20 20 40
11.5470053
838
133.333333
3333
6 47 33
9.89949493
66 98
7 53 27
18.3847763
109 338
8 37 43
4.24264068
71 18
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9 10 12 12 22 24
6.48074069
84 42 Standard Deviation: Difference between mean value to the frequency define standard
deviation. It is important to understand the mean deviation or standard deviation properly
so that better and effective outcome become possible (Stine and Foster, 2017). Food For
Friends need to understand the standard deviation properly for better working. If
difference between variables are high or more in nature then it reflect inappropriate
working although decision also get impacted.
 Variances: All variances or variation of a frequency series need to understand by
managers properly so that better and effective decision making get encourage. It is
important to evaluate all variation of series properly so that better and suitable gain
outcome become high. Food For Friends have to evaluate variances of frequency series
properly so that suitable gain become possible.
2.4 Evaluation of correlation coefficient for appropriate understanding
Every variable have some link and interconnection with each other which need to
understand by business managers properly (Wheelen and et. al., 2017). Importance to evaluate
such relation between variable propose and provide better and effective working so that all
targets get accomplish in a better and suitable manner. This question depicts about correlation
coefficient of a table in context of Food For Friends so that effective decision could be gain in
better and appropriate frame.
Ratings R1 R2 R3 R4 R5
Correlation
coefficient
1 42 38 1
Relationship
between 1
and 4
2 24 24 20 12
3 20 30 30 0.5
Relationship
between 3
and 5
4 49 31
5 20 20 40
7

6 47 33 1
Relationship
between 6
and 7
7 53 27
8 37 43
9 10 12 12 22 24
Correlation coefficient depicts about relationship between two or more variables so that
appropriate working and decision making get enhance for effective operations. The relationship
between goods and services with staff behaviour is perfect positive 1. This state that business
have good nature of working which enables in accomplish all targets properly and effectively.
TASK 2
3.1 Formulation of graphs and charts for better working
Theme 1: Services and food items of Food for Friends are liked by many people
42 38
Yes
no
Interpretation: From above graph, it has been concluded that many people have liked service
and food items of food and friends. So firm is able to generate good amount of profit by
enhancing their market reputation. As almost 42 respondents are in favour while remaining are
against of this statement.
Theme 2: Services and amenities of Food for Friends are excellent
8

24
24
20
12
Excellent
Good
Average
Moderate
Interpretation: From above graph, it can be terminated that services and amenities of food for
friends are outstanding as mentioned by their customers; as a result, they are able to retain them
for longer period. almost 24 have rated them excellent while only few have classified it
moderately.
Theme 3: Income factor of maximum individuals is not providing affect to their choices
regarding food and services
20
30
30 More than €30
Between €30 to
€60
More than €60
Interpretation: From above graph, it can be comprehended that mainly people are having good
amount of income to spend on service and food items of restaurant, so firm is able to earn
adequate profit as customers have sufficient funds. as nearly 30 respondents have money
between €30 to €60.
3.2 Use of trend line for effective and appropriate work
Theme 5: Many persons want from manager of restaurant to set up Pub and Disc at their
new outlet
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Near beach Rooftop Pub and Disc
0
5
10
15
20
25
30
35
40
45
20 20
40
Column B
Linear (Column B)
Interpretation: As per above described trend line it has been demonstrates that to gain attention
of more persons they need to establish some more new things into their new outlets. Almost 40
people want that they will start pub or Disc over there. On the other hand, 20 individuals want
that they will open new restaurant at rooftop and remaining want that they will start at near
beach.
Theme 6: Many individuals want that they need to modify some elements into their new
place
Agree Disagree
0
5
10
15
20
25
30
35
40
45
50 47
33
Column B
Linear (Column B)
Interpretation: From above mentioned trend line it has been concluded that it is must for them
to alter some food items as this will assist to attract more people towards them. Nearly 47
individuals are in favour of this statement but remaining are not favouring this argument as they
are entirely satisfied with their food items and services.
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Theme 7: Many persons are satisfied with the pricing policy of restaurant
Yes no
0
10
20
30
40
50
60 53
27 Column B
Linear (Column B)
Interpretation: From above presented trend line it has been understood that prices of food and
services are much effective of Food for Friends. This is helping them to take benefits from
competitors at marketplace. Approximately 53 people are favouring this argument but remaining
are not in favour of this.
Theme 8: Sometimes company is providing discount offers to their clients.
Yes no
34
35
36
37
38
39
40
41
42
43
44
37
43
Column B
Linear (Column B)
Interpretation: As per above trend line it has been demonstrates that there are some kinds of
offer is providing by manager to their customers. It helps to retain loyal for firm for longer
period of time. It has been seen that almost 37 respondents are getting this offer as they are their
regular customers but remaining are not availing this sort of offer.
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3.3 Formulation of business presentation to senior management
3.4 Produce a formal business report
The Management
Food For Friends Restaurant
Dated: 9th February 2018
Subject: Recommendation related with another restaurant chain in London, UK
One of a major thing which wants to execute by Food For Friends in their future context is to
open another restaurant chain. It is important to understand this fact properly by inspecting each
and every consent effectively so that better and appropriate establishment lead to carried down.
Products of Food For Friends are appropriate in nature with high standard environment which
further facilitate appropriate working. Along with this, management have to start and open up
their chain of Pub and Disc which support in gain youth participation most. Although, discount
related offers are appropriate in frame and many people state 5 ratings to restaurant. All these
signifies that future project of Food For Friends is appropriate and effective in nature for better
and appropriate consent with one of a most successful idea.
Thank You
XYZ
TASK 3
4.1 Use of appropriate information processing tool
Information plays a necessary role behind success of firm. Processing of information is
handling of digital data in an effective manner. In order to collect data, company used many
technology so that activities as well as operations can be done in a proper manner. There are
different software which generate information and data require to use through manager of Food
For Friends firm:
Presentation- It is an effective method to show the information in an effective or better
manner. In context to this manager should disseminate full data in different forms and also
present this through using the suitable graphs and charts (Yuniningsih, Widodo and Wajd, 2017).
Computer- With the help of this, company can collect the necessary data as well as
information and then pass by the emails and also other devices. From this firm can achieve its
business objectives in an effective or better manner.
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4.2 Prepare a project plan for activity with critical path
Any kind of project whether it is small and also large in nature requires more time to
complete. So in this, manage should identify the shortest path which able to finish project for
achieving better outcomes. There are different tools use through managers of Food For Friends:
Gantt chart- This chart illustrate the schedule of project. It is an effective method of
showing activities as well as tasks to be completed on set time period (Zavadskas and et. al.,
2016). Food For Friends uses this kind of technique in business and from this it can complete the
project or activities in an effective and better manner.
Network diagram- Managers of Food For Friends restaurant uses this network diagram
and it is a combination of different activities related to Gantt chart and also choose the shortest
path to finish it. It is helpful in proving better outcomes of project.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for decision 3 days 6
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4.3 Use of financial tools for decision making
Finance is a basic and important need of every business which need to understand by
managers of a company in an appropriate and suitable frame. Managers of a company need to
determine all financial tools which get implemented into an organisation properly so that chances
of better and effective gain get enhance. Before any project, management need to evaluate all
aspects properly as well as evaluate their records effectively which contributes in further success
option.
Every project have initial investment as well as rate of return with suitable time frame.
Business managers need to understand this section properly so that appropriate and effective
working get promoted. In such context, Food For Friends implement two best approaches which
contribute in overall success and for evaluation of feasibility of project as well. Internal Rate of return:Another consideration is to determine internal rate of return of a
project. Business managers have to evaluate the rate of return of a project properly and
effectively so that better working get enhance (Zeng, Chen and Li, 2016). The invested
rate is 12% but return from a project is all about 9% which signifies that this project is
not feasible in nature.
 Net present value: A major thing which have to evaluate business managers is net
present value of their project. If a project states positive influence then chances of success
are high in frame where as if it constitutes negative outcome then chances of decline of
such project are more. This project of Food For Friends provide negative outcome from
determination which signifies that it is not appropriate for further consideration.
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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
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
Internal rate of return 9.94%
CONCLUSION
It get concluded from the project that business decision making is not a easy thing and
managers have to take suitable and appropriate judgement so that chances of better and
appropriate working get supported. It is essential for a big decision to gain response from
multiple number of customers by applying suitable and relevant methods with appropriate
methodology. On the basis of derive methods and information, suitable graphs and charts have to
get frame and presented with appropriate interpretation. This contributes in better understanding
about project. At last, management have to apply relevant financial tools for evaluating
feasibility of project.
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REFERENCES
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