Business Decision Making and Statistics

The provided assignment is about business decision making and statistics, which includes financial tools such as IRR (Internal Rate of Return) and NPV (Net Present Value). The assignment aims to ascertain the profitability of projects to make informed investment decisions. It discusses various methods for decision making in international economic relations, including multiple attribute decision making and data mining techniques.

Business Decision
Making

Table of Contents
INRODUCTION..............................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collection of data .................................................................................1
1.2 Presentation of survey methodologies and formulation of sample frame.............................2
1.3 Designing of questionnaire to attain the respondents...........................................................3
TASK 2............................................................................................................................................5
2.1 Summarisation of data through using representative values mean, median and mode.........5
2.2 Evaluation of the results of research to draw important conclusions....................................8
2.3 Evaluation of data using measures of dispersion..................................................................9
2.4 Contribution of quartiles, percentiles and correlation coefficient to draw results..............11
TASK 3..........................................................................................................................................11
3.1 Formulation of graphs and pie charts to draw conclusions through survey........................11
3.2 Creation of trend lines to assess future trend......................................................................18
3.3 Poster...................................................................................................................................19
3.4 Preparation of formal report for publication in Retail Times magazine.............................19
TASK 4..........................................................................................................................................20
4.1 Various information processing tools used various level of management..........................20
4.2 Development of network diagram to determine critical path..............................................21
4.3 Application of financial tools to improve decision-making regarding investment in project
...................................................................................................................................................23
CONCLUSION..............................................................................................................................24
REFERENCES..............................................................................................................................26

INRODUCTION
Technology is essential part of normal life of individuals. It is observed that individuals
of the society prefer to conduct their functions with the aid of technologies to save their time and
cost. Adoption of innovative technologies within the organisation provides the opportunity is to
influence the buying behaviour of customers. There are many other benefits which are derived
by organisation includes high productivity, good administration, improved quality of products,
effective distribution channels etc. Advancement of technology evolved multi-channel shopping
which results in providence of products through use of online platforms. It reduces the
attractiveness of small shops because customers can purchase products from their homes now.
Amazon is e-commerce company which is known as largest internet retailer in terms of revenue
and market capitalisation (Bayne and Woolcock, 2011).
In the present report explain about, formulation of plan to ascertain the views of
respondents, presentation of research methodologies and sample framing, preparation of
questionnaire, interpretation of data with the help of mean, median and mode, evaluation of data
using measures of dispersion, use of quartiles, percentiles and correlation coefficient to draw
conclusions. Also, creation of trend line to ascertain information about future trends, application
of information processing tools to improve communication and use financial tools to choose best
profitable alternative.
TASK 1
1.1 Creation of plan for collection of data
In today's era main role is played by the technology in advancement of business
activities. Implementation of new technologies not only helps in development of internal
structure and strength of organisation but also evolves new channels of conducting business. Use
of internet to conduct their business functions is most effective platform which is emerged to use
of technologies. It provides the opportunity is to provide their products worldwide through using
internet facilities and online platforms. There are many organisation which adopts this
technology and develops many channels in providence of their products and services.
Amazon is an electronic commerce and cloud computing organisation which was
founded in 1994. It terms of revenue and market capitalisation and revenue considered as largest

internet retailer. Amazon serve their functions worldwide. Almost all the products are provided
by Amazon except few. The main products in which organisation deals includes food, furniture,
electronics, books, software's, toys and jewellery.
It has been observed after the success of online shopping, huge adverse impact is faced
by high street shops and malls on their business. To ascertain the amount of impact of
technological innovation research is conducted with the help of primary and secondary methods
to grab the views of respondents and collect the information from market through analysing the
past sales and revenue data of organisation. Also, tries to find out how online platform changes
the shopping habit of consumers, factors which supports in this process, the reasons which
provides support to accept the changes and the socio-economic impact of technological
innovation and evolution of multichannel shopping.
Primary method: The process which is used as per this method includes collection of
information directly from respondents by the way of their views and feedbacks. It is most
reliable and accurate information free from bias. The results attained from the information
collected with the help of primary method is true in nature. Here, Direct research related topics
and questions are asked to respondents. The various tolls of primary method are defined below:
 Interview: It is also called as personal interview where researcher makes face to face
interaction with respondent to know their views. It helps in interpretation of information
from their facial expressions and attitudes (Ferrell and Fraedrich, 2015).
 Questionnaire: Most common primary method used to collect data. It includes
formulation of research questions on the basis of objective. Mainly which is used in
research process is close-ended questionnaire where different options are attached with
questions.
Secondary sources: The main sources which are used to collect the information by
researcher includes newspapers, articles and magazines. All these sources are such where the
information is already published from where it is gathered as per research requirement. The main
benefit which is received by researcher includes saving of time and cost.
1.2 Presentation of survey methodologies and formulation of sample frame
Amazon is organisation which uses digital plat form to conduct their business activities.
To make their business more effective and improves their decision-making management of
organisation decided to the take the views of customers upon the technologies are used by them.

In this regard, research is conduct with the aim of collecting information about different aspects
such as:
 Impact of technological advancement and multi-channel shopping upon business
performance of shops and malls
 Impact of technology regarding influencing consumer behaviour
 Determination of the factors which drive changes
 Impact of digital platform upon the economic and social development
Survey methodologies: This includes about the method which is used for the purpose of
conducting research effectively. In this regard, main method which helps to attain the actual
views of respondents is primary method where questionnaire is prepared having 10 different
research questions. Here, actual views are attained regarding importance of implementation of
technology within the organisation regarding improvement of profitability and sales and
influencing the behaviour of consumers. It improves the decision making of manager which
contributes in determination of actual position of in market (Ford and Richardson, 2013).
Sample frame: Here, describe about the methods which are used regarding selection of
the respondents from total population. There are many methods are present which can be used in
this regard includes random, cluster and stratifies. The main two categories under which all these
methods are defined includes probability and non probability sampling. All the methods have
their different functions in the process of research attached with various types of benefits. In the
present report, Random sampling method is used by researcher to select respondents. With the
helps of this method 30 respondents are selected to know their views about the research
questions. The collected information is analysed with the help of different statistical tools like
Mean, Median and Mode (García-Peñalvo and Conde, 2014).
1.3 Designing of questionnaire to attain the respondents
Questionnaire
Name:
Gender:
Age:
E-mail:

Q1. What product you buy most from online platform?
 Electronic
 Clothing
 Furniture
Q2. which mode of you like most for shopping?
 Offline through shops
 Online
 Door to Door
Q3. Does technological innovation and multi-channel shopping reduce the attractiveness of high
street shops?
 Agree
 Disagree
 Cant say
Q4. Do you think technological advancement effectively contributes in expansion of business
worldwide?
 Highly effective
 Moderate
 No effect
Q5. Does emergence of multi-channel shopping influence the consumer behaviour related
shopping?
 Highly influential
 Average
 Not impact
Q6. Do you think risk is associated with the use of online mode of buying?
 High risk
 Average amount of risk
 Low risk
Q7. Does innovation and online platform helps Amazon to grow effectively in future period of
time?
 Yes
 No

 Cant say
Q8. Does price of online products are low in comparison to high street shops and malls?
 Agree
 Disagree
 Cant say
Q9. Are you satisfied with the fact that online technology overrides businesses of offline
organisations?
 Highly satisfied
 Satisfied
 Dissatisfied
Q10. What you want to recommend for development of future operation of Amazon?
TASK 2
2.1 Summarisation of data through using representative values mean, median and mode
Q1. What product you buy most from online platform?
Particulars
No. of
respondents
Electronic 14
Clothing 10
Furniture 6
Total 30
Mean 10
Median 10
Mode 2
Q2. which mode of you like most for shopping?
Particulars
No. of
respondents
Offline 11

through
shops
Online 15
Door to
Door 4
Total 30
Mean 10
Median 11
Mode 3
Q3. Does technological innovation and multi-channel shopping reduce the attractiveness of high
street shops?
Particulars
No. of
respondents
Agree 14
Disagree 10
Cant say 6
Total 30
Mean 10
Median 10
Mode 2
Q4. Do you think technological advancement effectively contributes in expansion of business
worldwide?
Particulars
No. of
respondents
Highly
effective 12
Moderate 10
No effect 8
Total 30
Mean 10
Median 10

Mode 4
Q5. Does emergence of multi-channel shopping influence the consumer behaviour related
shopping?
Particulars
No. of
respondents
Highly
influential 8
Average 13
Not impact 9
Total 30
Mean 10
Median 9
Mode 8
Q6. Do you think risk is associated with the use of online mode of buying?
Particulars
No. of
respondents
High risk 13
Average
amount of
risk 9
Low risk 8
Total 30
Mean 10
Median 9
Mode 5
Q7. Does innovation and online platform helps Amazon to grow effectively in future period of
time?
Particulars
No. of
respondents
Yes 15
No 9

Cant say 6
Total 30
Mean 10
Median 9
Mode 3
Q8. Does price of online products are low in comparison to high street shops and malls?
Particulars
No. of
respondents
Agree 11
Disagree 10
Cant say 9
Total 30
Mean 10
Median 10
Mode 2
Q9. Are you satisfied with the fact that online technology overrides businesses of offline
organisations?
Particulars
No. of
respondents
Highly
satisfied 10
Satisfied 15
Dissatisfied 5
Total 30
Mean 10
Median 10
Mode 0

2.2 Evaluation of the results of research to draw important conclusions
Number of
respondents
Rank given
by
Respondents
(out of 5)
1 2
2 3
3 5
4 1
5 1
6 2
7 3
8 4
9 1
10 1
11 2
12 3
13 3
14 2
15 1
16 5
17 3
18 2
19 1
20 4
21 3
22 5
23 2
24 1
25 4
26 2
27 1
28 3
29 4
30 2
Mean
2.53333333
33
Median 2

Mode 0
Mean: It is refers as the process under which average is calculated of the data which is
present in a series. The formula which is used in this regard includes total of values present in a
series divided by the number of data. In the present, mean is calculated of the ranks which are
provided 30 respondents as 2.5333333333.
Median: For calculation of median need to arrange the data in chronological order. It
includes the procedure about the calculation of middle value from the data present in a series.
The median from above mentioned series is attained as 2 (Groebner and et. al., 2011).
Mode: It is refers as the value which present most frequent times in a series. The value of
mode which is attained from the above series as 0.
2.3 Evaluation of data using measures of dispersion
Number of
respondents
Rank given
by
Respondent
s (out of 5)
1 2
2 3
3 5
4 1
5 1
6 2
7 3
8 4
9 1
10 1
11 2
12 3
13 3
14 2
15 1

16 5
17 3
18 2
19 1
20 4
21 3
22 5
23 2
24 1
25 4
26 2
27 1
28 3
29 4
30 2
Minimum 1
Maximum 5
standard
deviation
1.30604254
39
Correlation
coefficient
0.07797711
71
Range: It can be of two types minimum and maximum. Comparison of both figures helps
in determination of the facts which contributes their efforts in determination of such values. The
minimum range from above mentioned series is 1 and maximum range is 5 (Hwang and Masud,
2012).
Standard deviation: It is important method which improves the decision making of the
manager regarding the risk which is associated with the operation of their functions. From the
above mentioned series which depicts the data of the ranks which are provided by respondents
standard deviation is calculated as 1.3060425439.

2.4 Contribution of quartiles, percentiles and correlation coefficient to draw results
Quartiles: It is important statical term through which information is provided regarding
division of observation into four different intervals. Such division is based on moral values and
about how it is compared with set of observations. This will provides the opportunity to
understand about the median of central tendency (Maxwell, Jeffrey and Lévesque, 2011).
Percentile: One of the important aspect which includes the process of conversion of
results into percentage form through multiplication with hundred. It makes the comparison
process more easier which makes the analysis process more effective.
Correlation coefficient: This method helps in determination of relation which is present
between two variables. The results are called optimum and effective if they comes between the
limit of 1 to -1. If the value is attained as 1 then it indicates about position increased by one
variable ( Schmoldt and et. al., 2013.).
TASK 3
3.1 Formulation of graphs and pie charts to draw conclusions through survey
Q1. What product you buy most from online
platform?
Frequency
Electronic 14
Clothing 10
Furniture 6
Electronic Clothing Furniture
0
2
4
6
8
10
12
14
16 14
10
6 Column B

Q2. which mode of you like most for
shopping?
Frequency
Offline through shops 11
Online 15
Door to Door 4
11
15
4
Offline through shops
Online
Door to Door

Q3. Does technological innovation and multi-
channel shopping reduce the attractiveness of
high street shops?
Frequency
Agree 14
Disagree 10
Cant say 6
Q4. Do you think technological advancement
effectively contributes in expansion of business
Frequency
Agree Disagree Cant say
0
2
4
6
8
10
12
14
16 14
10
6 Column B

worldwide?
Highly effective 12
Moderate 10
No effect 8
Q5. Does emergence of multi-channel
shopping influence the consumer behaviour
related shopping?
Frequency
Highly influential 8
Average 13
12
10
8
Highly effective
Moderate
No effect

Not impact 9
Q6. Do you think risk is associated with the
use of online mode of buying?
Frequency
High risk 13
Average amount of risk 9
Low risk 8
8
13
9
Highly influential
Average
Not impact

Q7. Does innovation and online platform helps
Amazon to grow effectively in future period of
time?
Frequency
Yes 15
No 9
Cant say 6
High risk Average amount of risk Low risk
0
2
4
6
8
10
12
14 13
9 8
Column B

Q8. Does price of online products are low in
comparison to high street shops and malls?
Frequency
Agree 11
Disagree 10
Cant say 9
15
9
6
Yes
No
Cant say
Agree Disagree Cant say
0
2
4
6
8
10
12 11 10 9
Column B

Q9. Are you satisfied with the fact that online
technology overrides businesses of offline
organisations?
Frequency
Highly satisfied 10
Satisfied 15
Dissatisfied 5
10
15
5
Highly satisfied
Satisfied
Dissatisfied

3.2 Creation of trend lines to assess future trend
Trend Line: It is defined as straight and curved line which is drawn over trend chart
which provides some pattern and direction regarding time series data. The main importance
behind the formulation of this chart is asses the future trend on the basis their performance in
current and past years (Solomon, 2014).
year Sales profit
2018 175000 45000
2019 215000 50000
2020 260000 65000
From the above mentioned trend line chart observed that sales and profit of organisation
is increased with effective rate in future years. The amount of sales is increased year by year
from 2018 to 2020 which is 175000, 215000 and 260000. Simultaneously, the amount of profit
also increased which is observed in year 2018 as 45000 and attained the mark of 65000 in 2020.
So, it is clear from the analysis of the above figures that through adoption of online platform the
profits and sales are increased with effective rate (Stine and Foster, 2014).
3.3 Poster
3.4 Preparation of formal report for publication in Retail Times magazine
To
Real Time Magazine
1 2 3
0
50000
100000
150000
200000
250000
300000
2018 2019 2020
175000
215000
260000
45000 50000 65000
year
Sales
Linear (Sales )
profit
Linear (profit)

Date: 4th June 2018
Subject: Impact of advance technology and multi-channel shopping on high street shops and
malls
Introduction
Amazon is internet retail organisation which provides types of product. To provide their
function this organisation uses innovative technologies and online platform which has great
impact upon the buying behaviour of customers. It is observed that also having negative impact
upon the business of shops and malls. To ascertain the extent of impact research is conduct
under which primary and secondary methods are used to collect information.
Methodologies
The methods which are used to carry their research activities includes random sampling
methods and primary method. Through application of Random sampling method 30 respondents
are select from total population. On the other hand for collection of information from such
selected respondents questionnaire is prepared to attain their views.
Findings
This will includes the description about the results and conclusions which are analysed
from collected information. The different methods which are used to interpret information and
gather effective results includes the method of mean, median and mode. Also the different
methods of measures of dispersion. It is find out from the analysis of information that there is
huge importance of technological innovation and multichannel shopping to grow in market and
attain sustainability in operations. Also, consumers are liked to shop the products online as it
saves their time and cost.
Recommendations
It is recommended to the business that very important to bring continuous changes in the
processes through implementing new techniques of working to improve the number of sales and
profit. So, high street shops and malls need to adopt current trends to attain sustainability.

TASK 4
4.1 Various information processing tools used various level of management
The main purpose of implementing information processing tools at different levels of
organisation is to bring effective communication channels through which work of different
departments are transformed as more coordinated. Such different tools are named as TPS, MIS
and DSS (Tufféry, 2011). All these tools are having their different roles in organisation for
accomplishment of common objectives of organisation such as large number of profitability,
sales and satisfaction of the demands of customer. So, the function of different type of tools are
defined below:
Transaction processing system(TPS): It is important information processing system in
context with business transactions. It contributes efforts in process of collection, modification
and retrieval of transaction data. The main features of this systems includes performance,
reliability and consistency. This method is also known as real time processing.
Management information system(MIS): It is computerised system which stores the data
of financial information. This will be further organised and programmed the information in such
type that it aids in production of regular reports regarding the operational functions which are
happens at every level of management in a organisation. This will provides the opportunity to
obtain special reports from the system easily.
Decision support system(DSS): It is effective system which provides support in decision
making process to the management of organisation (Tzeng and Huang, 2011). It is an automated
system which analyse the large number of data and compile the information present in different
database to attain some useful conclusions which helps in designing of solutions of the issues
which are present in organisation to attain desired results.
4.2 Development of network diagram to determine critical path
Critical Path: This method is used for the purpose of scheduling different set of project
activities. This technique is used with the integration of program evaluation and review
technique(PERT). It a project modelling technique used in all form of projects such as
construction, aerospace and defence, software development, research projects, product
development, engineering, plant maintenance etc. It helps in determination of the different paths
which are evconcepts of marketing and apply to your selected destinaolved in performance of

particular project (Vercellis, 2011). It provides the opportunity regrading assessment of total time
period required to complete project. The longest path is selected which takes most time to
complete. The different aspects which are included under CPM model are defined below:
 list if activities required to complete project
 Time duration required to complete each activity
 Ascertainment of dependencies between the activities
 Determination of end points

Path A: 1,4,6,10= 8+6+1= 15 Days
Path b: 1,5,7,10= 8+4+4+1=17 days
Path c: 1,5,8=8+4+6=18 days
Path d: 2,4,6,10= 2+6+3+1=12 days
Path e: 3,6,10=2+3+1=6 days
From the analysis of above network diagram identified that 5 different paths are required
to accomplish whole project. These paths are defined as Path A takes 15 days to complete, Path
B takes 17 days to complete, Path C takes 18 days to complete, Path D takes 12 days to
complete, Path E takes 6 Days. The longest period of time required on completion of Path C
which is 18 days. Timely completion of this path helps to complete whole project.
4.3 Application of financial tools to improve decision-making regarding investment in project
The main aim behind the implementation of financial tool is to determine the profitability
which is associated with project (Yager and Kacprzyk, 2012). It improves the decision-making
of the manager is to select the best alternative which maximise their profits and benefits. The
main two financial tools which contributes in assessing the whole project includes NPV and IRR.

Through determination of NPV manager understood abut the time period under which their
invested amount is recovered and calculation of IRR helps to ascertain the information about rate
of return from which earned profits on carrying the activities of the project n future period of
time.
Year
Cashflo
ws
P.V@10
% Present value
0 -15000 1 -15000
1 8000
0.90909
1 7272.727273
2 10000
0.82644
6 8264.46281
3 5000
0.75131
5 3756.574005
4 5000
0.68301
3 3415.067277
total pv 22708.83136
NPV 7708.831364
IRR 23%
NPV: The formulation which is used to determine includes subtraction of the amount of
inflows of cash and from the amount which is initially invested in project. The NPV of above
mentioned project is 7708.831364. It shows at the end of 4 years the total invested amount in
project is recovered successfully with the profit of 7708.831364. So, as per NPV project is
profitable (Yu, 2013).
IRR: The rate of return which is associated with carrying of the project in future year is
about 23% which quite high. So, high amount of profits are generated through acceptance of
project (Zolfani and et. al., 2013).
CONCLUSION
It has been concluded from the above report that evolution multi-channel shopping has
huge impact upon the business and profitability of high street shops. After emergence of online
platform customer like to buy the products through using of online channels as it provide various
discount offers and also saves their time. Research is conduct with the help of primary method to
gather the views of respondents about impact of technological innovation on business of small
organisations. Methods of mean, median and mode are used to analyse the information and
gathering of important results for improvement of decision making. TPS, MIS and DSS are such
information processing tools which are essential to adopt at various levels to bring coordination.

IRR and NPV are financial tools through profitability of projects is ascertained to make
appropriate investments.