Business Decision Making and Critical Path Analysis

This assignment provides a detailed analysis of the business decision-making process at Balti Palace. It covers the use of descriptive statistical measures, random sampling methods, and information processing tools to inform business decisions. Additionally, it explores critical path analysis and its application in project management. The assignment includes calculations for net inflows, present value, and internal rate of return (IRR) to evaluate the viability of a project.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1. Plan for collection of data:...............................................................................................3
P2 Survey methodologies:......................................................................................................4
1.3 Questionnaire for the collection of data...........................................................................5
2.1 Information for decision making:.....................................................................................6
2.2 Analysis by using measure of central tendency:..............................................................9
2.3 Measures of dispersion:..................................................................................................10
2.4 Quartiles, percentiles and correlation coefficient under this decision making:..............11
TASK 2..........................................................................................................................................11
3.1 Produce graphs in order to get the valid conclusion.......................................................11
3.2 Trend line analysis:.........................................................................................................13
3.3 Covered in PPT:.............................................................................................................13
3.4 Formal report:.................................................................................................................13
TASK 3..........................................................................................................................................14
4.1 Information processing tools:.........................................................................................14
4.2 Critical path:...................................................................................................................15
........................................................................................................................................................15
4.3 Use financial tools for making business decisions:........................................................15
CONCLUSION..............................................................................................................................16

INTRODUCTION
Decision making is the crucial aspect for getting sustainable development. In this
competitive world, where everyone is looking to enhance their revenues by improving their
decisions through analysing customers and market. The decisions are taken after gone through
extensive research. The research is required to be done of entire market which are totally based
on the primary research or secondary research (Smith, Binns and Tushman, 2010). Balti place
needs to open their one branch in somewhere in London, and for that the business owner needs to
open proper research of potential market and then take business decisions so that Balti Palace
would able to get the sustainability. The Balti Palace also need to make their business operations
in an effective manner by way of making effective decisions.
Task 1
1.1. Plan for collection of data:
Each company is required to do market survey in order to get the potential outcomes of
the intended market. Balati palace is planning to expand its operations by setting up a new
branch somewhere in London, and for that it's business owner needs to have research properly in
order to make business operations effective. Basically, there are two research methods I.e,
primary and secondary. It is upto the company's analysts whether they opt primary methods for
market research or go for secondary market. If the data requirement is little then the company
needs to go for primary research method for collection of data from the potential market
(Nielsen, B. B and Nielsen, S., 2011). And if the data requirement is huge then in that case,
company will go for secondary data method. These methods are defined in details hereunder:
Primary research method: Primary data is the fresh data and it gives exclusive attention to the
intended information. At the time of gathering primary data, company requires to pay attention.
As, this technique for collecting data is so costly. The many of the company do not opt this
technique for collecting data. The data collecting by using primary research takes so much time.
The intended company needs to make their research activity of the potential market by way of
considering primary research methods so that the reliable information can be gathered, on the
basis of that reliable information, company would frame effective decisions. There are various
sources through which the data can be gathered using primary research method. These are:
observation, interviews, questionnaire and so on. Primary research can be done by way of

applying any of the primary research tools. Under the given case, Balti Palace is required to do d
primary research so that the business can be done effectively make the decisions or strategies
regarding opening of the firm.
Secondary research: This the the technique which is used in order to gather the data so that the
company would form better decision policies. This data collection tool is easy to use as this
entirely based on the past published information. The Balti Palace is required to do their business
operations effective and for that they also use this technique for collecting the data. There are
various sources for accumulation of data. Some of them are Journals, books, and other mode that
are already published (Muindi, 2011).
1.2 Survey methodologies:
Survey is the tool which is used by the firm to gather the intended information from the
group of people. By using survey, Balti Palce is able to make their decisions effective. This can
only be possible if the business owner will do survey in a proper manner.
Survey: It is the most crucial for Balati Palace to gather the information so that the decision
could be framed. Under survey methodologies so many tools are sued by it like- questionnaire
which can be made or interviews could be convened. Under this case, questionnaire is used in
order to conduct survey. Under this questionnaire, various number of questions are mentioned in
a different field like- quality, price and other things that are to be responded by the respondents
for which survey is doing (Li, 2010).
Sample framework: For convening of survey, there is a need to take sample out of total
population. Under this sampling method, various techniques are used like- random sampling,
cluster sampling and stratified sampling and much more. Random sampling is the most easiest
form in sampling method. Under this technique, sample is taken out of total number of
population, and sample is gathered on random basis and there is no such prescription available
for gathering the data. Balti Palace uses this random sampling method which is used in order to
make their business operations effective. The key benefits of using random sampling is that it is
used in order to make their business operations effective. Entire data will be gathered which are
used by the Balati Palace in order to attain the pre set targets (Ariely and Berns, 2010).
Under this given research, Balati Palace makes the survey by way of considering primary
research, and under the research questionnaire mode for collecting the data from the entire

market. They also choose 40 respondents out of the total market population in order to make
effective survey. For that, they are going to used random sampling method.
1.3 Questionnaire for the collection of data.
QUESTIONNAIRE
Under this, Balati Palace uses this techniques in order to get the valid outcome, this questions is
used to get the information from 40 respondents out of the total populations. Respondent is
required to attempt under mentioned questions so that valid outcome can produce.
Q 1. Do you know about our restaurant?
Ans- A). Yes
B). No
Q 2. How is our food quality?
Ans- A. Outstanding
B. Good
C. Average
D. Poor
Q 3. Give your rating for our food services?
Ans- A. 5
B. 4
C. 3
D. 2 or below 2
Q 4. How much distance you would prefer for going in a restaurant ?
Ans- A. Upto 5 kilometre
B. 5 to 10 kilometre
Q 5. Is there any requirement to present new dishes in our forthcoming restaurant?
Ans- A. Yes

B. Yes, everything must be new including crockery
C. No, varieties should be same.
Q 6. Under which location, you want our new restaurant?
Ans- A. In prime location
B. In out-skirt area
Q 7. Which country food is required to be serve in our primary dishes?
Ans A. Chinese
B. Italian
C. Indian
D. Thai
Q 8. Is there any need to rise our products and service prices for improve quality?
Ans- A. Yes
B. No, quality is fine
Q 9. Would you like anything particular on weekends?
Ans- A. Yes
B. Yes, but not on all weekends
C. No
Q 10. Is there any need to recruit more people to reduce waiting time?
Ans- A. Yes, it should be done as soon as possible
B. Yes, but may be after sometime
C. No, waiting time is appropriate
Q 11. Do you think that there is a need to open more restaurants in next 5 years?
Ans- A. Yes
B. No

2.1 Information for decision making:
Q 1. Do you know about our restaurant?
Ans- A). Yes 35
B). No 5
Analysis: 35 respondents know about the Balti Palace restaurant, and only 5 people don't know.
This reflects approximately most of the people knows about this restaurant.
Q 2. How is our food quality?
Ans- A. Outstanding 24
B. Good 12
C. Average 2
D. Poor 2
Analysis: 24 respondents thinks that the food quality of Balti Palace is outstanding, while 12
respondents thinks that it is good. And other thinks that it is average or poor.
Q 3. Give your rating for our food services?
Ans-A. 5 32
B. 4 4
C. 3 3
D. 2 or
below 2 1
Analysis: 32 people give their 5 rating of services food while 4 persons gives 4, 3 gives 3 and 1
gives 2 0r below 2 out of 5.
Q 4. How much distance you would prefer for going in a restaurant ?
Ans- A. Upto 5 kilometre 34
B. 5 to 10 kilometre 6

Analysis: Most of the respondents thinks that they would prefer in the restaurant which in
nearby to their home. While, 6 respondents thinks that the distance should be more than 5
kilometre but upto 10.
Q 5. Is there any requirement to present new dishes in our forthcoming restaurant?
Ans- A. Yes 24
B. Yes, everything must be new including crockery 6
C. No, varieties should be same. 10
Analysis: 24 respondents thinks that the Balti Palace needs to introduce new dishes in its new
restaurant. While, 6 recommends that the changes should be in complete form including
crockery. 10 respondent does not want any change.
Q 6. Under which location, you want our new restaurant?
Ans- A. In prime location 34
B. In out-skirt area 6
Analysis: 34 respondents wants that they need restaurant in a prime location, while only 6
people wants it in a out skirt area.
Q 7. Which country food is required to be serve in our primary dishes?
Ans A. Chinese 12
B. Italian 14
C. Indian 12
D. Thai 2
Analysis: 12 people wants Chinese dish and 12 people wants Indian dish at their primary food.
While 14 people wants Italian and only 2 people wants Thai dishes.
Q 8. Is there any need to rise our products and service prices for improve quality?
Ans- A. Yes 28

B. No, quality is fine 12
Analysis: There are 28 respondents who thinks that Balati Palace needs to raise the price of their
products. While, 12 respondents doesn't think so.
Q 9. Would you like anything particular on weekends?
Ans- A. Yes 23
B. Yes, but not on all weekends 5
C. No 12
Analysis: 23 respondents wants special dish on weekend, while 12 respondents does not wants.
Q 10. Is there any need to recruit more people to reduce waiting time?
Ans- A. Yes, it should be done as soon as possible 28
B. Yes, but may be after sometime 8
C. No, waiting time is appropriate 4
Analysis: 28 Respondents firmly believe that restaurant needs is required to recruit more people,
while 8 respondents needs sometime. 4 respondents thinks that waiting time is appropriate.
Q 11. Do you think that there is a need to open more restaurants in next 5 years?
Ans- A. Yes 34
B. No 6
Analysis: 34 respondents thinks that Balti Palace needs to open more restaurant in the nest 5
year in order to satiate consumer demand, while 6 consumers does not think so.

2.2 Analysis by using measure of central tendency:
Year Sales Net Profit
2007 2330 699
2007 2870 861
2008 3170 951
2009 3570 1071
2010 3720 1116
2011 4040 1212
2012 4220 1266
2013 4380 1314
2014 4470 1341
2015 4950 1485
Sales Net profits
Mean 3772 1131.6
Median 3880 1164
Mode 2330 699
From the above mentioned calculation, this has been seen that the Balti Palace earns
profits from 2006 to 2015 which shows the increasing trends. Mean, median and mode are
calculated under this in order to draw a valid conclusion. These are defined in a great manner so
that valid conclusion can be made.
Mean: This shows an average number out of the total sales and profits. Under the given situation,
sales mean is 3772 and net profits is 1131.6. which reflects the major issues.
Median: The median represents the middle out of the set of observation. Under this report, sales
and profits median is 3880 and 1164 which represents the total number.
Mode: This is the most frequent number of the set of observation. Sales and profits mode are
2330 and 699.
Particular Formula For sales For profit

Median(In case of
even number values) {L1 + (N/2) – c/F}*i]
3880 1164
Mean ∑X/N 3772 1131.6
Mode L + h ( fm – f1 / 2fm – f1 - f2 ) 2330 699
2.3 Measures of dispersion:
Year Sales Net Profit
2006 2330 699
2007 2870 861
2008 3170 951
2009 3570 1071
2010 3720 1116
2011 4040 1212
2012 4220 1266
2013 4380 1314
2014 4470 1341
2015 4950 1485
37720 11316
Sales Net profits
Standard deviation 803.87 241.16
Minimum range 2330 699
Maximum range 4950 1485
Inter-quartile range 2620 786
Correlation coefficient 0.94
Under this report, this has been seen that the management of Balti Palace needs to make
their interpretation on the basis of its sales and profits which occurred in different years.

Standard deviation: It represents firm's risk which can assist to attain valid conclusions.
Sales and profits standard deviation are 803.87 and 241.16 respectively (Kahneman, Lovallo and
Sibony, 2011). this is calculated by using = √∑Fdx2/N – (∑Fdx/N)2.
Range: Range is the difference between lowest and highest digit numbers of set of
observation. The minimum range of sales and profits are 2330 and 699 respectively. while, on
the other hand, maximum range of sales and net profits are 4950 and 1485. On the other hand,
the inter-quartile range of sales and net profits are 2620 and 786 respectively. The co-efficient
correlation of the company is 0.94. which reflects the relationship between sales and net profits.
2.4 Quartiles, percentiles and correlation coefficient under this decision making:
Quartiles and percentile: Under the firm, there are different variables presents and for
that there is a need to require the entire firm which segregated into different groups. Normally
there are three kinds of quartiles used in any firm. which are used in order to get the valid
outcomes. Quartile 1st represents 25th% of set of observation . While, Q2 represents the middle
number of the set of variance and Q3 represents 75% value of the set of variance (Casadesus-
Masanell and Ricart, 2011).
Q1 is far away from the median, on the other hand, Q3 is much closer to it. This means
that the data reflects that are similar than the median are disperse far apart. On the other hand, the
data points which are more than the median are closed packed together
8487.25 Sales Profit
Q1= 25th N/4 = 37720 /4 = 9430 2829
Q2= 50th 2(N+1)4=
75440+1/4=18860.25
22632.25
Q3 = 75th 3(N+1)4 = 3(37720)+1 /4=
113160.2
8487.25
Quartiles: It can be of three types. This helps in the segmentation of the business. This
will have an huge importance for the management to enhance their decision making power.
Upper quartile has the limit of 75% , lower quartile has the limit of 25% and inter-quartile has
the limit of 50%. It is said that, if the results re fallen between such limits then it is called as
optimum.

Percentile: This method helps in conversion of the results in the form, of percentages. It
is useful in comparison of the results and enhancing the decision making power of the
management of restaurant. The result is called optimum if comes up 100%.
Correlation coefficient: The main aim behind the using of this method is to ascertain the
relation between the two variables. The effective limit under which result is required to comes is
1 to -1. This helps the management to take effective and optimum decisions if the results comes
between this result. Otherwise, the result is not effective.
TASK 2
3.1 Produce graphs in order to get the valid conclusion
Year Sales Net Profit
2006 2330 699
2007 2870 861
2008 3170 951
2009 3570 1071
2010 3720 1116
2011 4040 1212
2012 4220 1266
2013 4380 1314
2014 4470 1341
2015 4950 1485

1 2 3 4 5 6 7 8 9 10
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
2330
2870
3170
3570 3720
4040 4220 4380 4470
4950
699 861 951 1071 1116 1212 1266 1314 1341 1485
Year
Sales
Net Profit
1
2
3
4
5
6
7
8
9
10
0 1000 2000 3000 4000 5000 6000
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2330
2870
3170
3570
3720
4040
4220
4380
4470
4950
699
861
951
1071
1116
1212
1266
1314
1341
1485
Net Profit
Sales
Year
From the above mentioned graphs, this has been observed that sales in the 2006 are 2330
and in 2007 these increases to 2870, and in the forthcoming year these were increasing. The
profits were the contribution of 30% of particular year sales. Hence, these reflects the great
opportunities for the firm to operate new brand somewhere in London. The company also need to

make their business operations effective by way of effective implementation of operational
activities.
3.2 Trend line analysis:
Year Sales Net Profit
2017 5270 1581
2018 5450 1635
2019 5660 1698
1 2 3
0
1000
2000
3000
4000
5000
6000
2017 2018 2019
5270 5450 5660
1581 1635 1698
Year
Sales
Linear (Sales)
Net Profit
Linear (Net Profit)
From the given graph, it has been seen that the cited company has forecasted future sales
and profits for 2017, 2018 and 2019 year. Which shows the increasing trend in order to make
plan accordingly. Future sales and profits are estimated accordingly. Trendline is the projection
of profits effectively.

3.3 Findings:

3.4 Formal report:
FORMAL REPORT
To,
The managing Director,
27th September, 2017
Introduction
This report is made in regards to Balti palace which run in restaurant sector. In this dynamic
environment, Balti Palace needs to provides quality services to consumers in order to gain the
sustainability.

Analysis
Balti Palace is required to frame their business dynamically in order to get the sustainable
development. For that, it would also need that changes must be undertaken in the firm in order
to get the demand of consumers. Firm is identifying to diversified its operations for which it is
planning to open another branch somewhere in London. For this aim, firm is conducting survey
so that it would able to know about the potential market perception and then frame their
strategies accordingly. These stuffs helps the restaurant to know about the exact picture of the
market.
Recommendation
From the above mentioned report, this is concluded that, with the help of research,
information is gathered by the manger and which would be disclosed in graphs format. As, it is
so easy for managers and outsiders to assess the entire data and decisions are made accordingly.
TASK 3
4.1 Information processing tools:
Information processing tools are the main tools which are used by the firm in order to run the
operational functions effectively. There are certain things which are used by the firm at various
level. These processing tools helps the firm at different different levels to attain their pre-set
objectives. The Balti Palace management is required to take most crucial judgement if it wants to
attain happening via its expansion (Ho, Xu and Dey, 2010). There are various information
processing tools which used in order to make effective decisions.
These are:
Management information system: This is the system which is used across the various
departments in the firm in order to effectively communicate. It is the system under various kinds
of data is stored and strategical, tactical and operational level management use relevant
information in order to draw a valid outcome. With the help of this, company is able to make
valuable decisions so that top level authority can frame strategies effectively for the entire firm.
Decision support system: It is the tool which is used by the business owners, managers
in order to issue typical firm problems or issues (Gigerenzer and Gaissmaier, 2011). A sound
decision support systems assist the firm to perform great functions, covering cash flow analysis,

multistage forecasting, resource allocation analysis. This is used at different levels in the firm in
order to assist the firm to draw a valid decisions.
Accounting information system: This is the section of management information system.
Which assist the firm for taking decisions internally with the help of rendering outcomes of
different accounts and financial reports which helps for making future investment decisions.
4.2 Critical path:

By making critical path, company makes three paths to complete the project, and under
critical path longest route is considered by the firm. Under this the longest route is taken. For
completing this project, company considers Path B= 22 days.
Path A = 1+4+7+8 = 20 days
Path B = 1+2+5+6 +8 = 22 days
Path C = 1+2+3+7+8 = 21 days
4.3 Use financial tools for making business decisions:
Year Inflows PV @12% Net inflows
0 -190000 1 -190000
1 50000 0.8928571429
44642.8571
428571
2 64000 0.7971938776
51020.4081
632653
3 58000 0.7117802478
41283.2543
731778
4 70000 0.6355180784
44486.2654
883382
Total present value
181432.785
167638
NPV -8567.21
IRR 4.71%
From the above mentioned calculation, this has been observed that the the net outflow for
the project is 190000.£ and the net inflows of the firm is 181432.78.£ which

reflects negative net present value which tells the negative impact over
.this Hence the company is not required to opt this project due to
negative NPV (Chang, Van Witteloostuijn and Eden, 2010).
While on the other hand, the IRR is the point where present value of inflows is equal to
the present value of outflows. In this cited case, the internal rate of return of this project is
4.71% which means that the company net present value becomes zero at 4.71%.
CONCLUSION
,From the above mentioned report this has been stated that the Balti
Palace make the the business plan under which primary research is
.conducted in order to make business decsions effectively The company uses
random sampling method in order to conduct survey so that the business
.can be done effectively The comapny also uses discriptive statistical
measures which is used in order to make thier business decisions in an
.effective manner The comapny also make certain changes as per the
various infomation processing tools in order to make business decisions in
.an effective manner