Business Decision Making & Project Analysis

This assignment delves into the realm of business decision-making, examining ethical considerations and project analysis techniques. Students are tasked with evaluating project feasibility by calculating the Net Present Value (NPV) and Internal Rate of Return (IRR). The importance of Critical Path Management in identifying the shortest project completion path is also emphasized.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Create a plan for collecting primary and secondary data......................................................1
1.2 Present the survey methodology and sample frame used......................................................2
1.3 Design a questionnaire for collection of data........................................................................2
2.1 Information creation and summarisation by using various values........................................4
2.2 Use of measure of central tendency for result.......................................................................5
2.3 Data analysis by using measure of dispersion.......................................................................8
2.4 Use of quartile, percentile and correlation coefficient for valid decision.............................8
TASK 2..........................................................................................................................................11
3.1 Formulation of graphs and charts to present the findings...................................................11
3.2 Creation of trend line in better future forecasting...............................................................15
3.3 Business presentation (Covered in power point presentation)............................................16
3.4 Formal business report........................................................................................................17
TASK 3..........................................................................................................................................17
4.1 Use of information processing tool.....................................................................................17
4.2 Project plan for the activity and critical path......................................................................18
4.3 Financial methods use in decision making..........................................................................19
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

INTRODUCTION
In every business, an entrepreneur have to take some big and essential decisions which
are helpful and promote sustainability of an enterprise. It is a duty of managers to present every
report of regular operation in front of senior management through which they become enable in
taking a beneficial decision for betterment and growth (Ferrell and Fraedrich, 2015). This
assignment is based on Murano restaurant who want to organise another restaurant in London.
For gaining appropriate information about this, a research get conducted in which collection of
primary and secondary data get done. Once the information get gather its analysis have to done
in an adequate manner. Along with this by using measure of central tendency and measure of
dispersion, appropriate decision for future also take place. Charts, graphs make the presentation
more interesting as well as trend line will support in future forecasting. Calculation of NPV and
IRR enable in measuring feasibility of project.
TASK 1
1.1 Create a plan for collecting primary and secondary data
Data collection is not a easy task for the research and require proper planning
management through which adequate information can gather easily (Ford and Richardson, 2013).
There are mainly two sort of data are identify which are: primary data and secondary data.
Murano hotel managers have to prepare a proper plan for collecting primary and secondary
information and utilise it in proper business project execution.
Primary data: This is such sort of data which collected first time for a specific problem or
purpose. The best way to collect primary data is survey, research by preparing questionnaire.
This primary data collection require appropriate plan for collecting data through various sources.
1. Identify the cause for which research is commencing
2. Choose suitable methodology
3. Targeting population
4. Time duration for a research
5. Budget allocation
This process have to follow by the managers of Murano and then start collecting data from
various number of respondents. Moreover time duration of this research is of one month and
random sampling method has been used for selecting diverse number of respondents.
1

Secondary source: Another major source of data is secondary source of information. These are
such sort of information which are already collected for a specific purpose. Some major
techniques from which this process become easy is books, journals, articles etc. This process also
require some more time for investigation because it get done through various articles and internet
sources (Groebner and et. al., 2011).
1.2 Present the survey methodology and sample frame used
There are various survey methods are identify which are helpful in collection of data
(Laudon and Laudon, 2013). The survey methodology is a process through which various sort of
data can easily gather by using different tools and techniques. The various methods of survey
are:
 Survey Monkey
 Questionnaire
 Social media
All these are some helpful method through which managers of Murano hotel can execute the
process in an adequate manner. For this research random sampling frame has been used in which
several respondents of a company get selected and research get done on them. All such people
are going to fill the questionnaire and provide their own views and opinion about services of a
company. The selected sampling for the research is describe as below:
Method for sampling Simple random sampling approach
Size of the selected population 90
Age group 20- 35 years
Instrument of sample Questionnaire
Location London area
This research will support to Murano management in relation to take adequate steps for
their new venture concept. Thus, this will aid them in working in an adequate manner as per the
user needs and wants.
1.3 Design a questionnaire for collection of data
Below is the questionnaire for Murano restaurant which get fill by 90 customers. This is
one of the suitable approach in relation to measure their view and different aspects:
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QUESTIONNAIRE
Name:
Age:
Gender:
Q1. How often you visit in the Muarano hotel?
(a) Once in a week
(b) Two to three times in a month
(c) Hardly visit
Q2. Do you ever found difficult to visit to restaurant? Yes No
Q3. Do you like to prefer new outlet of Murano?
1) Yes
2) No
Q4. Describe the quality of food in one word?a) Excellentb) Neutralc) Not so good
Q5. Which is the best source of promotion for the new outlet? Social media TV advertisement Newspaper
Q6. Are the products quality adequate to value of money? Agree Disagree
Q7. Who prefer this restaurant to you?
1. Friends
2. Family
3. Relatives
Q8. Is there any need of more improvement regards ambience, services and their quality?1. Yes
3

2. No
Q9. Which is the most influencing factor in restaurant? Hygiene Cost of dishes Nearness to house Ambiance
Q10. Any adequate suggestion for improvement?
2.1 Information creation and summarisation by using various values
Information creation is an essential thing through which management become able to
conclude and take a beneficial decision for the firm (Maxwell, Jeffrey and Lévesque, 2011). This
information get summarise on the basis of questionnaire of Murano restaurant which organise on
90 respondents.
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. How often you visit in the Muarano hotel?
A) Once in a week 50
B) Two to three times in a month 30
C) Hardly visit 10
Q2. Do you ever found difficult to visit to restaurant? Yes 40 No 50
Q3. Do you like to prefer new outlet of Murano?
1) Yes 70
2) No 20
Q4. Describe the quality of food in one word?
a) Excellent 30
b) Neutral 45
c) Not so good 15
4

Q5. Which is the best source of promotion for the new outlet? Social media 75 TV advertisement 5 Newspaper 5
Q6. Are the products quality adequate to value of money? Agree 65 Disagree 25
Q7. Who prefer this restaurant to you?
1. Friends 41
2. Family 32
3. Relatives 17
Q8. Is there any need of more improvement regards ambience, services and their quality?
1. Yes 48
2. No 42
Q9. Which is the most influencing factor in restaurant? Hygiene 15 Cost of dishes 25 Nearness to house 20
 Ambiance 30
This is a summarisation of data through which management become able to measure all
such areas which really required to get improve and more efficiency. Along with this, they also
become aware about the best source of promotion for their product or services.
2.2 Use of measure of central tendency for result
For concluding a helpful decision for business mean, median and mode are the best
approaches (Nowduri, 2011). Mean is helpful in measuring the descriptive factors effect on
frequency series of table. Another essential tool of central tendency is median which aid in
assisting the mid value or impact of trend analysis on business. Mode is the most repetitive
frequency of the series for gaining the better and effective outcome.
Q1. How often you visit in the Muarano hotel?
D) Once in a week 50
E) Two to three times in a month 30
5

F) Hardly visit 10
Mean 30
Median 30
Mode #VALUE!
Interpretation: Number of respondents who used to visit at restaurant in a week are more as
compared to others. This signifies that the satisfaction level of users are obtain.
Q2. Do you ever found difficult to visit to restaurant? Yes 40 No 50
Mean 45
Median 45
Mode #VALUE!
Interpretation: Management have to improve their services in such areas where customer really
want. It is difficult for many people to reach to the restaurant in an appropriate manner. Thus,
authority have to take this factor in account and then take location related decision for new
establishment.
Q3. Do you like to prefer new outlet of Murano?
3) Yes 70
4) No 20
Mean 45
Median 45
Mode #VALUE!
Interpretation: Most of the respondents are really waiting for new outlet opening by Murano.
This signifies that they are going to generate more and more profit by the business through
service more quality and range of products.
Q4. Describe the quality of food in one word?
d) Excellent 30
e) Neutral 45
f) Not so good 15
Mean 30
Median 30
6

Mode #VALUE!
Interpretation: Quality of products are neutral according to most number of users. Excellence
quality of products have to be deliver by management in their new outlet which aid in
differentiate both ventures with each other.
Q5. Which is the best source of promotion for the new outlet? Social media 75 TV advertisement 7 Newspaper 8
Mean 30
Median 8
Mode #VALUE!
Interpretation: According to a survey question through which a major thing et determine which
is the use of appropriate strategy for marketing. Social media is a best platform for this consent
on which management have to work and use this method for making their restaurant aware to
everyone.
Q6. Are the products quality adequate to value of money? Agree 65 Disagree 25
Mean 45
Median 45
Mode #VALUE!
Interpretation: Most of the people are agree about the concept of value of money. They think
that organisation is serving quality products in exchange of money.
Q7. Who prefer this restaurant to you?
4. Friends 41
5. Family 32
6. Relatives 17
Mean 30
Median 32
Mode #VALUE!
7

Interpretation: Youngsters are the best targeting market for the company. According to the
survey group, it get clearly identify that most people prefer this restaurant after the opinion of
their friends.
Q8. Is there any need of more improvement regards ambience, services and their quality?
3. Yes 48
4. No 42
Mean 45
Median 45
Mode #VALUE!
Interpretation: Their is no need to improve the quality of services of products and services
which offer by management to their customers.
Q9. Which is the most influencing factor in restaurant? Hygiene 15 Cost of dishes 25 Nearness to house 20 Ambiance 30
Mean 22.5
Median 22.5
Mode #VALUE!
Interpretation: Ambience of restaurant is appropriate and influence most of the people to visit
to such hotel. This will support in generating more and more money.
2.3 Data analysis by using measure of dispersion
Measure of dispersion is used to measure the variances or variations which are taking
place in frequency series. Management have to apply this concept in business and analyse the
scatter of their calculation.
Deviation between 2 and 3 question:
Standard
deviation
27.018512
1722
Interpretation: Deviation between both of these series is high as this signifies that management
have to take some appropriate actions against this thing.
8

2.4 Use of quartile, percentile and correlation coefficient for valid decision
Quartile and percentile are the useful measure through which fluctuation between two
series get measure. Along with this, with the help of correlation coefficient it et determine that
the series have appropriate relation or not. Thus, this is helpful in measuring the actual
performance of a company.
Q1. How often you visit in the Muarano hotel?
G) Once in a week 50
H) Two to three times in a month 30
I) Hardly visit 10
Quartile 20 Percentile 20
30 30
40
36.666666
6667
50 50
Interpretation: Hardly visit have low range of data where as most people visit at restaurant
within a week once. This signifies that they are delivering good quality products and services.
Q2. Do you ever found difficult to visit to restaurant? Yes 40
 No 50
Quartile 42.5 Percentile 42.5
45 45
47.5
46.666666
6667
50 50
Interpretation: In this series variations are high in number which signifies that management
have to improve their location and visit at such places which is easily accessible.
Q3. Do you like to prefer new outlet of Murano?
5) Yes 70
6) No 20
Quartile 32.5 Percentile 32.5
45 45
9

57.5
53.333333
3333
70 70
Interpretation: New chain of restaurant will really going to increase competition in market. This
get analyse through by gaining response of various people while asking about new outlet.
Q4. Describe the quality of food in one word?
g) Excellent 30
h) Neutral 45
i) Not so good 15
Quartile 22.5 Percentile 22.5
30 30
37.5 35
45 45
Interpretation: Neutral quality of goods and services signifies that management have to improve
their quality of products a little bit. This enable them in doing all the things in corrective manner.
Q5. Which is the best source of promotion for the new outlet? Social media 75 TV advertisement 7
 Newspaper 8
Quartile 7.5 Percentile 7.5
8 8
41.5
30.333333
3333
75 75
Interpretation: Social media is a best platform in modern time for promoting any new
innovation in market. This concept have to adopt by Murano hotel in relation to maximise their
sales of new venture as well as make it aware by every user.
Q6. Are the products quality adequate to value of money? Agree 65
 Disagree 25
Quartile 35 Percentile 35
10

45 45
55
51.666666
6667
65 65
Interpretation: Satisfaction level arise when the product have equal weight according to value
which asked for that. Murano hotel offering good quality products to their users and this is the
reason that most user think that products are as per value which asked for that.
Q7. Who prefer this restaurant to you?
7. Friends 41
8. Family 32
9. Relatives 17
Quartile 24.5 Percentile 24.5
32 32
36.5 35
41 41
Interpretation: Friends daily visit at restaurant identify in giving references.
Q8. Is there any need of more improvement regards ambience, services and their quality?
5. Yes 48
6. No 42
Quartile 43.5 Percentile 43.5
45 45
46.5 46
48 48
Interpretation: Management have to improve several number of things in their restaurant which
are related with range of products. Murano have to increase their number of products which are
rendering by them to target users.
Q9. Which is the most influencing factor in restaurant? Hygiene 15 Cost of dishes 25
 Nearness to house 20
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 Ambiance 30
Quartile 18.75 Percentile 18.75
22.5 22.5
26.25 25
30 30
Interpretation: Environment is so good in nature because it is a most influencing factor in
restaurant. Thus, management have to use different sort of themes in their new outlet.
TASK 2
3.1 Formulation of graphs and charts to present the findings
1.
Interpretation: Number of users who used to visit at restaurant once in a week are high in
number. Hence, management have to keep focus on such number of users which are their regular
customers.
2.
12
1
2
3
4
0102030405060
50
30
10
Bar chart
Once in week
Two to three times in a month
Hardly ever

Interpretation: As per this, many people are not able to visit to Murano due to difficulty in
accessibility. Thus, management have to identify such area or location which can be easily
reachable to their target users.
3.
Interpretation: Many user think that new venture will be provide high quality products and
services like previous one. Thus, management have to start it in a minimum time manner.
4.
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Yes No
0
10
20
30
40
50
60
40
50
Column B
70
20
Yes
No
Excellent
Neutral
No so good
01020304050
30
45
15
2 D line area

Interpretation: Goods have average quality and thus, management have to modify them
according to requirement. This will support them in performing all things in an adequate manner.
5.
Interpretation: Social media is a best platform where restaurant can conduct their promotional
activity. It is helpful for them in according to modern time world where vast users use internet as
the best thing to go everywhere.
6.
Interpretation: Products are good quality in nature and the capacity of goods and services are
according to value which spent by user on it.
7.
14
Social media TV advertise Newspaper
0
10
20
30
40
50
60
70
80 75
7 8
Column B
0.8
1
1.2
1.4
1.6
1.8
2
2.2
010203040506070
65
25
Scatter
0.5
1
1.5
2
2.5
3
3.5
01020304050
41
32
17
Scatter with straight line

Interpretation: Most of the people get attracted and use products of Murano by taking reference
through their family and friends. This signifies that restaurant is for the every age group
personalities.
8.
Interpretation: Several things have to improve by management or keep their focus more on
service quality. Hence, they have to increase products range, quality of services and many more
things which can attract users.
9.
Interpretation: Environment of restaurant is appropriate which lead to influence many people
over there.
3.2 Creation of trend line in better future forecasting
2.
15
Yes No
39
40
41
42
43
44
45
46
47
48
49 48
42
Column B
Hygiene
Cost of dishes
Nearness to house
Ambiance
010203040
15 25 20 30
Graph

Interpretation: According to this trend line it get analyse that if management will not lead to
improve their accessibility then they have to suffer heavy loss because it lead to increase chances
of shift.
5.
Interpretation: According to this trend line, it get clearly measure that company have to use
Social media because it aid in managing all the work in an appropriate manner. Social media is a
best thing through which company can increase their number of customers.
3.3 Business presentation (Covered in power point presentation)
16
Yes No
0
10
20
30
40
50
60
40
50
Column B
Linear (Column B)
Social media TV advertise Newspaper
0
10
20
30
40
50
60
70
80 75
7 8
Column B
Linear (Column B)

3.4 Formal business report
The Management
Murano Hotel
Date: 26th September 2017
Subject: Evaluation of user taste and preference
Customers taste and preferences are not same all the time and get vary according to time. Thus,
for analysing this perspective, questionnaire have been prepared through which proper
identification of customer opinion analyse. This get done by using response of 100 respondents
on the basis of random sampling. Moreover, with the help of data creation it get analyse that
many people will lead to visit at new restaurant as well. Along with this, management have to
apply new revolutionary technique of promotion in business as well which is social media. This
will support in grabbing more and more number of customer in restaurant. A major thing which
have to take in account for this project is to situated at such location from where every one can
reach properly. This is the major thing on which management have to work because mostly
things are getting done in right direction and not require to alter.
TASK 3
4.1 Use of information processing tool
Information in business is an essential thing which have to take in account by
management. On the basis of messages adequate decision can be carried down. Encoding and
decoding of messages are a part of information processing (Pettigrew, 2014).
Murano hotel have to use the information processing tool in an adequate manner so that
they can pass each and every information in an appropriate manner. Moreover, they have to store
all the information properly so in case of requirement managers can use them.
Information processing tool is helpful for an organisation success and make a smooth flow of
communication as well (Popovič and et. al., 2012). In such context, Murano hotel have to
identify various number of benefits which are according to information processing tool:
 Communication
 Fulfil the gap between different culture
 Availability of information at any time
 Facilitate a proper coordination between every organisation.
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BY using information processing tool, management can make a better communication sector
through which they can take beneficial decision. Murano hotel have to take this concept in
account and smooth the functioning of project properly.
4.2 Project plan for the activity and critical path
Every project require several number of activities which used in their execution.
Management have to divide the whole facts and things of new project implementation into many
smaller parts and set a time period for them as well (Tzeng and Huang, 2011). Murano hotel
want to open another chain in London and for this they have to determine different operations
and task. On the basis of time duration, project have to get done properly. Critical path method is
suitable terminology for this relation which aid in finding out the shortest path for task.
Following are the number of activities which require in implementing this plan process properly.
Name of activity Time period Predecessors
Preparation 6 days
Business Planning 5 days 1
Recruitment and
Selection 10 days 1
Installation of peripherals 15 days 2, 3
Development of Norms 5 days 4
Assessment 10 days 5
Continuous Testing 5 days 6
Policy documentation 4 days 7
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1+2+4+5+6+7+8 = 33 days
1+3+4+5+6+7+8 = 34 days
First critical path is the smallest way to complete this project. It is an helpful measure
through which management become able to do this project in an appropriate manner.
4.3 Financial methods use in decision making
For identifying feasibility of project, it is essential for management to use several
investment appraisal techniques which are helpful in finding out the answer of growth (Vercellis,
2011). Thus, management have to determine their financial statement through which adequate
actions can be derive. Murano hotel have to use two basic approach for this consent through
which they can analyse the appropriateness of project.
19

Two basic approaches are: internal rate of return and net present value. Following is the
statement of Murano restaurant which signifies the initial investment of the project with number
of years.
Project
Initial investment 190000
Cash flow Year 1 50000
Year 2 64000
Year 3 58000
Year 4 70000
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total present value of
five years 181435.2
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
investment) -8564.8
Internal rate of return 9.94%
20

Net present value of the project get determine through deduct cash flow from the initial
investment of project. It is helpful in determine the growth and development of business through
which proper actions and recommendations can be gain. On the basis of Murano net present
project value termed that it will lead to reflect adverse affect on the business. Thus, management
have to show more concern towards their business and work in an appropriate manner to
maintain positive growth.
On the other hand, internal rate of return for the project is also low which signifies that
this project is not beneficial for their future context. Management have to determine such project
which provide them higher rate of return.
CONCLUSION
It get concluded from the above report for better and effective decision making
management have to conduct an appropriate survey on the users of product. By this, they can get
various opinion and view which enable management to take a beneficial decision. For this
purpose, management have to conclude the opinion by using central tendency and measure of
dispersion. Moreover, charts and graphs presentation support in making the calculation
understandability easy and appropriate. Along with that a formal business report is helpful in
showing all things in front of management properly. Moreover, net present value and internal
rate of return is essential element for analysing project feasibility. Critical path management
enable in identifying shortest path for project.
21

REFERENCES
Books and Journals
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Hall/Pearson.
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making. Journal of Business Venturing. 26(2). pp.212-225.
Nowduri, S., 2011. Management information systems and business decision making: review,
analysis, and recommendations. Journal of Management and Marketing Research. 7.
p.1.
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739.
Tzeng, G. H. and Huang, J. J., 2011. Multiple attribute decision making: methods and
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Vercellis, C., 2011. Business intelligence: data mining and optimization for decision making.
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Online
Tools Used to Process Information. 2017. [Online]. Available through
:<https://itstillworks.com/tools-used-process-information-6982095.html>. [Accessed on
26th September 2017]
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