Ethical Decision Making in Business

This assignment focuses on ethical decision-making in business. It provides a range of resources, including academic articles and books, to understand the complexities of ethical considerations in business practices. Students are expected to analyze real-world cases and apply frameworks for ethical decision-making.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Create a plan for the collection of primary and secondary data............................................3
1.2 Present the survey methodology and sampling frame used .................................................4
1.3 Design a Questionnaire for a business problem....................................................................5
TASK 2............................................................................................................................................6
2.1 Create information for decision making by summarising data ...........................................6
2.2 Analyse the results to draw valid conclusions....................................................................10
2.3 Analyse the data using measures of dispersion ..................................................................11
2.4 Explain how quartiles, percentiles, and the correlation coefficient are used to draw
conclusions................................................................................................................................12
TASK 3..........................................................................................................................................12
3.1 Produce graphs using spreadsheets and draw conclusions accordingly..............................12
3.2 Create trend lines in spreadsheet graphs to assist in forecasting business information.....17
3.3 Covered in PPT...................................................................................................................18
3.4 Produce a formal business report........................................................................................18
TASK 4..........................................................................................................................................20
4.1 Use appropriate information processing tools ....................................................................20
4.2 Prepare a project plan for an activity and determine the critical path.................................20
4.3 Use Financial tools for decision making.............................................................................21
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Business decision making is the essential process carried out by organisation in order to
carry out the task in effective and efficient manner. There are number of options available for
management, they have to choose from these choices and select the best out of it. These decision
helps in achieving the final objectives and aims at appropriate mode. There are number of
financial tools that aids in finding out profitability and productivity of the business enterprise.
Amongst all techniques available NPV and IRR is adopted as a most effective as it aids in
finding out the final returns of company. The company included in this report is Friends for food,
which is a well established restaurant in UK and is planning to open a branch at various places in
London. The report highlights the several sources from where data can be collected and is
utilised by company to make important decisions. There are number of information tools
available to management to carry out the research work for their restaurant. It also throw light on
framing of business report that underlines recommendation for the restaurant. Use of percentiles,
quartiles and correlation coefficient is also adopted by business firm to take feedbacks from their
clients that is beneficial in decision making process.
TASK 1
1.1 Create a plan for the collection of primary and secondary data
Food For friends is planning to open its new branch in the city, hence they require
opinions and views of clients in the market area. It is very beneficial for them to take accurate
and correct decisions in future. There may be several areas where they are lacking behind and
after considering their view points it will help them to improve their area of focus(Aharoni,
Tihanyi, and Connelly 2011). For this, they want to collect data from various sources and
majorly there are two sources available which is described below:
Primary source: it refers to collecting data or information from clients directly. As this method
delivers most reliable and authentic information to management. It helps in knowing the idea and
taste of customers in market place. The researcher directly contacts their target market and
himself take data that is required. Number of primary sources are:

 Survey: In this method the researcher approaches their clients face to face and collect
relevant data accordingly. They have set questions or scope that is included in their
survey.
 Observation: It is highly reliable method under which, perceiver observes the persons and
note down their observation and than conclude it according to their objectives and aims.
Secondary sources: in this type of source of data collection, researcher collects information or
data from already collected sources that is magazines, journals etc. it may not provide full data to
food for friends as the information is based on past period of time(Ferrell, and Fraedrich, 2015).
1.2 Present the survey methodology and sampling frame used
Research process is conducted to collect all needed things from clients in market place. It
is beneficial for Food for friends restaurant to take needful and required part that can be consider
in planning process. It is important for observer to select target people on which research process
is conducted. After this, they make certain criteria to reach final set target.
Survey methodology: It involves certain methods through which survey process is
conducted. Management of restaurant have taken decision regrading it. There are number of
ways available manager have to pick the most effective one that yields sustainable outcomes
(Zionts, 2012). Food for friends have selected primary source for collecting data especially
through questionnaire.
Sample Framework: there are several methods available for selecting sample. Methods
include stratified sampling, random sampling or cluster method. Under this certain number of
people are choose from total population, and than research process is carried out. The number of
focus group of people is 50. The major aspects included under this are:
 Find out the quality of products and services deliver by restaurant.
 It is profitable to expand their business by introducing new branch.
 To consider any recommendation from clients in order to make improvements if
necessary(Ford, and Richardson, 2013).
 Various issues related to profitability and productivity of restaurant.

1.3 Design a Questionnaire for a business problem
Questionnaire is considered as an important primary source in which, several questions
are framed and is asked to fill up by clients. There are some advantages associated with it, time
and cost effective. People fill up the form and submit it to researcher, than the process of finding
out conclusion on certain focus aspect is carried out. This helps in finding out the interests and
opinions of consumer (Vercellis, 2011).
QUESTIONNAIRE
Name of a person:
Postal Address:
Email id:
Gender:
1.) Is it beneficial to open new branch by restaurant in city?
 Yes
 No
2.) Is people satisfied with the decision?
 Yes, they are
 No, they are not
 Moderate
3.) Is Food For Restaurant is delivering good quality of services?
 Yes
 No
4.) what type of food you prefer in restaurant?
 Vegetarian
 Non vegetarian
5.) Is people satisfied with the prices offer by restaurant in different foods items?
 Yes
 No
6.) Are you pleased with the environment of restaurant?

 Yes
 No
7.) Do you think Food for Friends is doing well in food industry?
 Yes
 No
8.) Is staff members behave properly with customers?
 Yes
 No
9.) Do you think customer services of restaurant is good?
 Yes
 No
10.) what do you want to suggest for food for friends restaurant?
…......................................................................................................................................................
..........................................................................................................
TASK 2
2.1 Create information for decision making by summarising data
1.) Is it beneficial to open new branch by restaurant in city?
Particulars Respondents
Yes 30
No 20

2.) Is people satisfied with the decision?
Particulars Respondents
Yes, they are 20
No, they are not 15
Moderate 15
3.) Is Food For Restaurant is delivering good quality of services?
Particulars Respondents
Yes 40
No 10

4.) what type of food you prefer in restaurant?
Particulars Respondents
Vegetarian 20
Non- vegetarian 30
5.) Is people satisfied with the prices offer by restaurant in different foods items?
Particulars Respondents
Yes 35
No 15
6.) Are you pleased with the environment of restaurant?
Particulars Respondents
Yes 45
No 5

7.) Do you think Food for Friends is doing well in food industry?
Particulars Respondents
Yes 48
No 2
8.) Is staff members behave properly with customers?
Particulars Respondents
Yes 42
No 8

9.) Do you think customer services of restaurant is good?
Particulars Respondents
Yes 49
No 1
2.2 Analyse the results to draw valid conclusions
Year Sales Net Profit
2009 3600 1100
2010 4150 1200
2011 6500 1690
2012 4800 1850
2013 5992 1760
2014 8600 2000
2015 5600 1750
2016 7890 1896
2017 8000 2100

Particulars Sales Net profit
Mean 6125.78 1705.11
Median 5992 1760
Mode 3600 110
Mean: It is calculated by dividing the total of present sales for certain time period with
series of years. Hence, the average is determined through this process. This helps in evaluating
the financial position of organisational system. The mean of sales is 6125.78 net profit is
1705.11. This provide food for friends the base for taking decisions effectively and efficiently
(Gigerenzer, and Gaissmaier, 2011).
Median: it refers to the mid value of any data which is gathered. Similarly, it is also used
to take proper decisions by researcher. Median of sales and net profit is 5992 and 1760
respectively. Food for Friends have to focus on certain important areas which they can derive
after calculating mean, mode, median. These are measures of central tendency.
Mode: Most recurring value is known as mode of any data series. The mode for sales is
3600 and for net profit is 110. All these measures helps in taking the proper decision so that
outcomes are determined in appropriate mode.
2.3 Analyse the data using measures of dispersion
Year Sales Net Profit
2009 3800 1250
2010 5000 1500
2011 5600 1780
2012 4950 1800
2013 5900 1650
2014 6000 1590
2015 6690 2000

2016 6500 1960
2017 7000 2000
Minimum Value 3800 1250
Maximum value 7000 2000
Standard Deviation 2262.74 530.33
Coefficient of Correlation 0.86 0.75
2.4 Explain how quartiles, percentiles, and the correlation coefficient are used to draw
conclusions
In order to conclude the collected data and information Food For friends have utilised
various technologies to come into final results. Quartiles, percentiles, correlation coefficients
helps in finding out the condition of current market. It is needed to keep a check on market
situation so that company can take decisions related to it. Food for Friends is coming up with
new branch in London city, therefore it become essential to examine various factors in accurate
manner. The business environment is dynamic in nature and keeps on changing with time, hence
it is crucial to draw conclusions in proper mode (Groebner, 2011).
Quartiles: quartiles are classified into 3 parts and is named as upper, interquartile and
lower level. Each phase has its own % fixed limits that is 25% for lower quartile, 75% for upper
and 50% for interquartile.
Correlation coefficient: this is calculated in between range of 1 to -1. hence, it is used to
find out outcomes or end result in positive or negative.
Percentiles: this concept is used to change over the collected data into percentage form.
This converted style is used to represent data in proper format. On the other hand, it is useful to
make comparisons between data of two years (Tzeng, and Huang, 2011).

TASK 3
3.1 Produce graphs using spreadsheets and draw conclusions accordingly
1.)
Is it beneficial to open new branch by
restaurant in city?
Respondents
Yes 30
No 20
Interpretation: From the above graph it has been concluded that 30 people are in favour of new
branch which has been opened by Food For Friends restaurant. Whereas remaining 20
respondents are not in favour.
2.)
Is people satisfied with the decision? Respondents
Yes, they are 20
No, they are not 15
Moderate 15
Yes No
0
5
10
15
20
25
30

Interpretation: it has been interpreted from above graph that 20 respondents are satisfied with the
decision of opening new branch of restaurant. Where as 15 people are not satisfied and
remaining are in moderate situation.
3.)
Is Food For Restaurant is delivering good
quality of services?
Respondents
Yes 40
No 10
Yes, they are No, they are not Moderate
0
2
4
6
8
10
12
14
16
18
20
Column B
Yes No
0
5
10
15
20
25
30
35
40

Interpretation: from above discussed graph it has been concluded that 40 people believe that
restaurant is delivering good quality of services to their clients and remaining oppose this idea.
Hence, restaurant should take some steps to consider this feedback.
4.)
what type of food you prefer in restaurant? Respondents
Vegetarian 20
Non- vegetarian 30
Interpretation: 20 respondents favours vegetarian food and remaining are non vegetarians, this is
a important source of information for restaurant.
5.)
Is people satisfied with the prices offer by Respondents
Vegetarian Non- vegetarian
0
5
10
15
20
25
30

restaurant in different foods items?
Yes 35
No 15
Interpretation: From the above graph it has been concluded that 35 people are satisfied with
prices offered by restaurant in serving products or services whereas remaining do not favour this
aspect.
6.)
Are you pleased with the environment of
restaurant?
Respondents
Yes 45
No 5
Yes No
0
5
10
15
20
25
30
35

Interpretation: From the above graph it has been interpreted that 45 respondents are pleased with
the environment of restaurant and remaining are not.
7.)
Do you think Food for Friends is doing well in
food industry?
Respondents
Yes 48
No 2
Yes No
0
5
10
15
20
25
30
35
40
45
Yes No
0
5
10
15
20
25
30
35
40
45
50

Interpretation: This is interpreted that 48 customers believe that food for friends restaurant is
performing well in their sector and remaining does not.
8.)
Is staff members behave properly with
customers?
Respondents
Yes 42
No 8
Interpretation: It has been interpreted that 42 respondents believe that staff members of
restaurant is behaving in proper manner but other do not favour this condition.
9.)
Do you think customer services of restaurant is
good?
Respondents
Yes 49
Yes No
0
5
10
15
20
25
30
35
40
45

No 1
Interpretation: 49 clients believe that restaurant is lending best customer services while only 1
believes this is not happening.
3.2 Create trend lines in spreadsheet graphs to assist in forecasting business information
Trend line is a graphical representation to find out the forecast of net profits and sales. It
helps in explaining the things that is causing profits or losses to the company. There are various
components available that leads to increase in profits or growth of the company. Trend line aids
in finding out the trend that goes from one year to another. This series of trend aids in coming to
conclusion related to net income and sales volume(.Maxwell, Jeffrey and Lévesque, 2011). The
future of Food for friends is highly depended on profits earned by them in particular period of
time. Thus, it becomes important to keep check on trend whether it is stable or is changing due to
some reasons associated with it.
Year Sales Net Profit
2017 7180 3500
2018 5660 2100
2019 8500 3550
Yes No
0
5
10
15
20
25
30
35
40
45
50

2020 8860 3600
3.3 Covered in PPT
3.4 Produce a formal business report
To,
Managing Director
23 February 2018
The above research is performed to know the beliefs and view of different type of customers or
respondents. There is very important to find out the results of this data collection. There are
number of sources available to collect the required data. Food for friends have opted primary
source for gathering data on the idea to open a new branch in UK. Hence, it is essential to study
the thoughts and view points of people to come into some conclusion. The system of feedback
assists in finding out strengths and various opportunities that are present in business
environment. These have to grab in time to enjoy first mover advantage. On the other hand,
there are strategies and policies available that has to be examined by the manager of restaurant.
So that new decision can be implemented in profitable way(Maxwell, Jeffrey,and Lévesque,
1 2 3 4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
3500
2100
3550 3600 Year
Sales
Net Profit

2011). Every business aims to earn huge profits and gains, therefore, it is indispensable to
consider views of clients. Every organisation need to carry out their operations in order to fulfil
the needs and wants of every customer in market place. Food For Friends have prepared
questionnaire in which 10 questions are included to note down the perspective of people. To
come on some figures and actual data it is important to adopt certain techniques like calculation
of quartiles, standard deviation, measures of central tendency (Mean, mode, median). To know
the performance of any business association, the managers have to look on net profits of
different years, so that final outcomes can be attained.
RECOMMENDATION
In order to attain high growth in market area, the management of Food for Friends should focus
on hiring experts in their company so that they keep check on performance of the system
regularly. The use of innovative and advanced technology system should also be introduced in
business organisational system. Moreover, marketing department of restaurant should make
proper attention on use of impressive and expeditious tools of advertisements (Zolfani, 2013).
CONCLUSION
From the report that has been prepared, it can be concluded that views of customers should be
taken into consideration while formulating certain plans and policies. The taste and preferences
does not remain stable with time, it keeps on changing and there is a need of regulating some
actions that can able to meet their requirements. There are number of competitors present in
market area and have maintain healthy and conducive relationship with final customers
(Zsambok, 2014).
TASK 4
4.1 Use appropriate information processing tools
Every company wants to improve and enhance their performance with time. Hence, they
adopt information tools for this purpose as it keep a track of work that is performed with time.
Food for Friends have to continuously improve and increase the productivity and performance
level to sustainable or significant level (Nowduri, 2011). The tools available for the same are

decision support system, transactional processing system, and managing information at proper
way. The practical use of these components in restaurant field is discussed below:
 Transactional system: there are variety of tasks and work which is performed in single
organisation. There is a need of coordinating their functions in such a manner so that all
these areas achieve final mission and vision of organisation. There are areas which need
full attention whereas others need to be ignored. This system aids in exploring such areas
that need full attention and care.
 Information Management: there are vast amount of data and substance available with
business which need to be compiled and stored in proper format. There is research and
development department in business that encourage performance of high and quality
level.
 System of decision support: Decision making system always keeps track on every
department in organisational system. There are various level in management system
performing distinctive functions and contain certain values. There is necessity to provide
coordination among these diverse activities. All these efforts will lead to gain huge
profits and financial income for the particular department (Pettigrew,2014).
4.2 Prepare a project plan for an activity and determine the critical path
There are number of activities performed by single business firm. Critical path is one the
method to evaluate several paths which is required to complete the task. Moreover, it also help in
estimating the time that is require to complete single task activity. There can be possibility when
some delay or performance level declines but this does not affect the complete working system.
In order to plan for some criteria, it is obligation of management to find out the most impressive
path. When critical path is drawn, the best selected is that they have longest route.

Path A: 1+4+7+8= 10days
Path B: 1+2+5+6+8= 15 Days
Path C: 1+2+3+7+8= 17 Days
According to the critical path which is obtained above, it can be obtained that the route
which is designated will be path C. It is among the longest path among all three. This provide
information for the way though which accomplishment of action can be done (Popovič, 2012).
4.3 Use Financial tools for decision making
Project
Discounting
factor Discounted cash inflow
Year
Cash
Flow 12.00% Present Value
0 -190000 1 -190000
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total P.V 181435.2
Initial investment
of year -190000
NPV -8564.8
IRR 9.94%

The above data which is calculated signifies the investment amount of 190000, this lead to
derivation of negative NPV that is -8564.8 where as IRR which is obtained is 9.94%. Business
organisation should always make efforts to increase their return amount. So that final objectives
can be earned in respective time period and helps in gaining huge amount of profits(Provost, and
Fawcett, 2013).
CONCLUSION
From the above report it has been concluded that research process conducted by any
organisation plays a vital role collecting the information and data. The Food For Friends
restaurant have adopted method of collecting relevant things through primary source that is
questionnaire. It has also been concluded that company have to regulate some financial tools and
techniques to measure the returns and profits earned by company in specific period of time. The
element which is adopted is NPV and IRR that is calculated to come to final returns. Restaurant
has taken decision to open its new branch in London, for this they have to know the interests of
consumers or final clients. Hence, it has been concluded that considering the interest of final
customers is very prominent .
REFERENCES
Books and Journals
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Education.

Ford, R. C. and Richardson, W. D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer
Netherlands.
Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
psychology. 62. pp.451-482.
Groebner, D. F., and et. al., 2011. Business statistics: A decision making approach. Prentice
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Online:
Business Decision Making. 2017. [Online]. Available through: <http://www.decision-making-
solutions.com/business_decision_making.html>