Business Decision Making Report: Murano Restaurant Expansion in London

This report provides a comprehensive analysis of business decision-making for Murano, a restaurant chain planning to expand with a second branch in London. The report begins with an introduction to the importance of business decision-making and the need for systematic planning. Task 1 focuses on data collection, differentiating between primary and secondary sources and outlining a plan for each, including survey methodology and questionnaire design. Task 2 delves into data summarization, utilizing measures of central tendency (mean, mode, median) and dispersion to analyze sales and profit data. It also explores quartile, percentile, and correlation analyses. Task 3 involves graphical representation of data using spreadsheets and trend analysis, which is covered in a PowerPoint presentation, and a formal business report. Task 4 focuses on information processing tools, project planning, and tools to assess project viability, which are crucial for making informed decisions about the expansion. The report concludes with a summary of findings and recommendations, supported by a list of references.

BUSINESS DESCISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for collecting primary and secondary data....................................................................1
1.2 Survey methodology and sampling frame.............................................................................2
1.3 Designing a questionnaire.....................................................................................................3
TASK 2............................................................................................................................................5
2.1 Summarising of the data........................................................................................................5
2.2 calculation using mean, mode and median...........................................................................7
2.3 Analysis of data through measures of dispersion..................................................................8
2.4 Analysis based on quartile, percentile and correlation..........................................................8
TASK 3............................................................................................................................................9
3.1 and 3.2 Graph using spreadsheet and trend analysis............................................................9
3.3 Covered in ppt.....................................................................................................................10
3.4 Formal business report........................................................................................................10
TASK 4..........................................................................................................................................10
4.1 Information processing tools...............................................................................................10
4.2 Project plan..........................................................................................................................11
4.3 Tools to analyse the viability of of project..........................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Business decision making is a crucial task which is essential to be taken with a great care
and a systematic thinking process. The organisations undertake various business decisions so that
they can have a blue print according to which they can move. These decisions are related to
routine activities and major ones are concerned with the expansion or new set ups. Thus, it is a
pervasive activity which is required to be developed at each and every stage for making a
successful move (Anderson and et. al., 2015). In the present report, Murano, a restaurant chain is
going to establish its second branch for expansion purpose in London. The said place is having
great opportunities to develop and a highly competitive environment where it is necessary to
make a pre plan so that a right decision can be made for the desired purpose. The report will
discuss the market research and its related activities that are essential to be taken. For this
purpose, primary and secondary data has been collected which will be analysed on later stages
through Investment appraisal techniques. Thus, an elaborated interpretation will be made from
analysis which is a base for taking various decisions for new business.
TASK 1
1.1 Plan for collecting primary and secondary data
Data collection is the foremost function which needs to be done after formulating and
deciding about the sources (Black, 2011). The data collection is done through two types of
sources which includes primary and secondary method . The collected data is a raw material
which is utilised for making a study on related topic. In the present situation, Murano is going to
expand its business in London where it is essential to take certain decisions which are of
considerable importance. Thus, the board of directors in stated organisation want to have a
complete report which has an elaborated discussion about research, market conditions and other
areas where company can use its strength for successful establishment. For this purpose, they are
also interested in knowing the viability of their decision of expansion so that the business can be
set up in right manner. Thus, management is making a report by conducting research for which
the required data has been collected. Primary and secondary; both the methods are useful for
desired purpose in stated condition. Thus, in the present research, various modes of data
collection have been referred (Ferrell and Fraedrich, 2014).
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Primary data is a that type ofassemblage where information generate by the
questionnairs. Primary data is an original research that is obtained by the first hand investigation.
Company generates information by the current market position where information generate
questions feedback forms and many more techniques. Primary data is that information which is
collected and used by researcher for the first time. Primary data is generated from the market
survey with the help of respected customers. Researcher frames the questionnaire according to
current market problems (Frey, Schulz-Hardt and Stahlberg, 2013). On the other hand, secondary
data is also generated by the researcher where information isnot newwhich means researcher
collect the content from the , books, journals, online articles etc.. In this report, secondary data
will be gathered from the annual report of company. In the current scenario, researcher generates
data from external or internal records of organisation. The records are monetary in order to
identify problems of company. Data collection is most important part of any business analysis
where collect proper information and use them in research project. Most of the research project
would be based on appropriate information which are authentic and essential for the company
(Weygandt and et.al., 2014).
1.2 Survey methodology and sampling frame
Survey methodology: In present scenario survey is completed by the questionnaire where
researched that method on online. Online questionnaire survey are easier way to distribute
questionnaire from the highly selected peoples. This survey methodology is help to reduce time .
Sampling frame: sampling is a most essential part of any research methodology where
sampling is define number of interacting customers. Which means sampling is a way to identify
only those number of customer which are facing some issues. Researcher decided taking sample
from the overall population. Sample data are collected with the help of sampling method (Yu,
2013).
Stratified sampling method: This is the another way to sampling identifying. In this
methodology sample data are to be determine on the basis of demographic factor. Sample is
chosen as per the age of people gender their income of the people etc.
cluster sampling method: In this sampling method data are to be selected on the basis of
geographical area. This method is focus on different groups of the geographical areas. In this
data sampling data collected through review of the general public.
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Convenience sampling method: In this sampling method data are to be selected in order
to convenience or understandable for the researcher. Which means data sample should be
specific and understandable (Zsambok and Klein, 2014). Where researcher use those data
effectively. In this method of sampling there is not any parameter is framed. Convenience data
sampling is very east way to gen rating information because in this methods data should be find
out easily and more easier to understanding. Most of the researcher are used this data sampling
methods in research report.
Simple random sampling methods : In this data sampling , this method is very easy
methods to over all other methods. This method of amplifying is mainly used by the researchers .
It is a very easy too generating information and easy to understandable. As according to
sampling method there are parameter does not used. This method is free and sample data find out
randomly (Ford and Richardson, 2013).
With the help of all data sampling methods in present case researchers would take 20
people data is to be taken and used simple random sampling which is more useful to this report.
1.3 Designing a questionnaire
QUESTIONNAIRE
Name
Age
Income
1) How often do you visit restaurants to eat?
 Twice a week
 Once a week
 Twice a month
 Once in six months
2) Generally on what occasions do you visit restaurants?
 Celebration with friends
 To have dinner or lunch with family
 To enjoy the holiday
 Without any special occasions
 Others
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3) Which of the aspect in a restaurant is most significant for you?
 Ambience and presentation
 Quality and taste of food
 Price of the food
 Variety in food
 Service quality
4) Which type of restaurant you would like to visit?
 Modern
 Traditional
 Mix of modern and traditional
 Doesn't matter
5) On which source of recommendation do you mostly rely before visiting a new restaurant?
 Friends
 Family members or relatives
 Online advertisements
 Blogs and other review sites
 Others
6) Will you be ready to pay extra money for high quality of food?
 Yes
 Probably
 No
7) Would you return the food if it is not as per your expectation level?
 Definitely
 Most probably
 Neutral
 Definitely not
8) Does price of food is the major factor that can affect your decision to visit restaurant?
 Strongly agree
 Agree
 Neutral
 Disagree
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 Strongly disagree
9) At what time you generally visit the restaurants?
 For breakfasts
 For lunch
 For Dinner
10) What suggestion you would like to give for a new restaurant_________________________
TASK 2
2.1 Summarising of the data
Theme 1: Quality and taste of food is the major factor to attract customers.
Which of the aspect in a restaurant is most significant for you? Frequency Percentage
Ambience and presentation 5 25
Quality and taste of food 7 35
Price of the food 6 30
Variety in food 1 5
Service quality 1 5
Ambience and presentation
Price of the food
Service quality
0
5
10
15
20
25
30
35
25
35
30
5 5
Which of the aspect in a restaurant is most significant for you
Percentage
Findings and analysis: Above graph shows that 35% of customers have favoured to the
quality and taste of food as the major factor in attracting them towards restaurant. However, 30%
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of the customers have agreed that price matters more for them while having food in any
restaurant. Third preference favoured is towards ambience and presentation of restaurant which
attract them for having food. However, 5% of customers have given their response in the favour
of varieties present in food. Similarly, 5% of participants have favoured services provided by
restaurant staff that is the major factor for attracting customers towards the place.
Theme 2: Price is the major factor that affect decision of visiting in restaurants.
Does price of food is the major factor that can impact your decision to
visit restaurant? Frequency Percentage
Strongly agree 7 35
Agree 8 40
Neutral 1 5
Disagree 2 10
Strongly disagree 2 10
35
40
5
10
10
Do the price of food is a major factor that can impact your decision to visit restaurant?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Findings and analysis: Above theme has represented about the perception of customers
related to price charged by restaurants that affect their decision for visit. As per the analysis, it is
evident that 75% of customers' decision is affected by prices charged by restaurants. While, 5%
of customers have given a neutral response. In this analysis, 20% of respondents have said that
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price does not matter for them as they give more preference to other attributes presented by
restaurants in affecting their decision for having a visit in any restaurant.
2.2 Calculation by using mean, mode and median
Year Sales Profit
2008 1280 250
2009 1320 280
2010 1350 320
2011 1330 310
2012 1420 340
2013 1460 365
2014 1500 380
2015 1580 420
2016 1650 450
Table 1: Secondary data analysis
Sales Profit
Mean 1432.222 Mean 346.1111
Standard Error 42.12342 Standard Error 21.5345
Median 1420 Median 340
Mode #N/A Mode #N/A
Standard Deviation 126.3703 Standard Deviation 64.60349
Sample Variance 15969.44 Sample Variance 4173.611
Kurtosis -0.79195 Kurtosis -0.66041
Skewness 0.583124 Skewness 0.195769
Range 370 Range 200
Minimum 1280 Minimum 250
Maximum 1650 Maximum 450
Sum 12890 Sum 3115
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Count 9 Count 9
The above descriptive statistics of sales and profits can be used for making various
interpretations. Analysis has been made on the basis of mean, mode and standard deviation. As
per the above figures, mean determines and demonstrates about the average sales of business.
The above table shows that mean of sales is 1432 while mean of profit is 346. Thus, it is
apparent that the mean of sales is greater than mean of profit.
2.3 Analysis of data through measures of dispersion
The analysis based on measures of dispersion refers to results that are based on standard
deviation and standard errors. As per the above table, it is evident that the standard error of sales
and profit is 42.12 and 21.53 respectively. In addition to this, the standard deviation of sales is
126.37 while for profit, it is 64.60 or 65. On this basis, it can be interpreted that in the future,
there is possibility of deviation in sales up to 126.37 while, the chances of deviation in profit
figure is 65 that may go up or come down.
2.4 Analysis based on quartile, percentile and correlation
Quartile: Quartile demonstrates various figures of sales and profit as per the different
quarters. As shown in the below table, sales figure for first quartile is 1330 while for profit is
310. Similarly, in the second quarter, sales is 1420 while profit is 340. On the other hand, sales
volume in last quarter is 1500 and profit volume is 380.
Table 2: Calculation of quartile
Quartile Sales Profit
Q1 1330 310
Q2 1420 340
Q3 1500 380
Percentile: Percentile is a measuring tool in statistics which indicates values of a
percentage as per the observation made for a group. Thus, the value of 25th percentile of sales
and profit is 1330 and 310. However, 50th percentile of sales and profit is 1420 and 340
respectively. 75th percentile for sales and profit is 1500 and 380.
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Table 3: Calculation of percentile
Quartile Sales Profit
25th 1330 310
50th 1420 340
75th 1500 380
Correlation: Correlation; as the name suggests, it is a statistical tool that helps in
determining relation between two variables. In addition to this, it also shows fluctuations that can
come among various figures which are represented with the help of positive or negative values.
Table 4: Calculation of correlation
SALES(£) Profit(£)
SALES(£) 1
Profit(£)
0.9849352209
1
Correlation between sales and profit is 98% which shows that there is a highly positive
correlation between both the variables.
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