Business Decision-Making Models

This assignment requires students to delve into scholarly literature concerning models of business decision-making. It spans various aspects like ethical considerations, cognitive biases, information seeking, and the impact of business processes on decision outcomes. Authors like Cronan, Fassin, Fernando, Ford, and Gigerenzer are cited, demonstrating a focus on contemporary research and practical applications.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collecting primary and secondary data.................................................1
1.2 Survey methodology and sampling frame used....................................................................2
1.3 Design a questionnaire..........................................................................................................2
2.1 Creation of information.........................................................................................................4
2.2 Determination of measure of central tendency.....................................................................5
2.3 Evaluation of measure of dispersion.....................................................................................6
2.4 Use of quartile and correlation coefficient for decision making...........................................7
TASK 2............................................................................................................................................8
3.1 Creation of graphs and charts for information dissemination...............................................8
3.2 Use of trend line in future forecasting.................................................................................10
3.3 Creation of power point......................................................................................................11
3.4 Formal business report........................................................................................................11
TASK 3..........................................................................................................................................12
4.1 Use of software generated information...............................................................................12
4.2 Prepare a project management plan with critical path........................................................12
4.3 Use of financial tools in order to take decision...................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Every right decision support business to grow and get develop so that better and effective
gain get promoted (Barry and Edgman-Levitan, 2012). Thus, crucial decisions aspects are
essential in an organisation for making their sustainability appropriate and effective. For
effective and appropriate judgement, business need to consider their stakeholders properly in
which customers are major one. Although, without support of users none of an association gain
success. This project is based on Food for Friends whom want to open up another outlet in
London. For this perception, management need to conduct a research by consulting primary and
secondary source of information properly. Moreover, choosing the best survey method will
support in evaluate all factors properly. Along with this, questionnaire will support in determine
basic data for purpose and its analysis evaluate use of statistics properly. Graphical presentation
will lead to disseminate each and every consent properly in order to maximise productivity and
better judgement. Internal rate of return and net present value work as a beneficial financial tool
in order to articulate effectiveness and feasibility of project.
TASK 1
1.1 Creation of plan for collecting primary and secondary data
Planning is an important tool for every concern business whenever any project gets
executed (Brynjolfsson, Hitt and Kim, 2011). Thus, every data collection process for business
problem have a definite plan which need to follow by an association properly for managing and
successful implementation of task. Food for Friends determine two major types of data collection
which are: Primary data: This kind of information are raw in nature which never get exist in any
report or consent. Thus, research need to determine primary data properly so that better
and appropriate decision could be placed on the basis of various respondent’s opinion. It
is constituting as best approach for measuring context properly.
 Secondary data: These are such kind of data and information which highly based on
previous results and reports. Hence, this data increase chances of duplication. Business
organisation financial records inspection consider as secondary data which support in
taking beneficial and appropriate judgement.
Food for Friends have to create an appropriate plan for collecting both these data. Primary data is
helpful for analysing every individual aspect properly by conducting questionnaire survey. On
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the other hand, secondary data get evaluated through financial information of a company in order
to evaluate feasibility of project.
1.2 Survey methodology and sampling frame used
Survey is a part of study through which business and problem get appropriate solution so
that better and effective gain get promoted (Craft, 2013). There are various methods determine
by researcher whenever any problem get determine properly. Out of them, it is a duty of research
to use and apply relevant one so that problem get resolve in an appropriate frame. Various kinds
of approaches for survey are stated as follow: Online survey: One of method of survey methodology is online survey through which
business become able to collate information through diverse sources (Cronan and et. al.,
2011). Thus, online survey is a beneficial approach for determine various people aspects
properly in order to take appropriate outcome. It is usually for large and wide
organisations whom have customer base all around the globe. Questionnaire: Another approach which support in survey is questionnaire through
which more than 1-person opinion get evaluated properly. This approach enables in better
and effective gain from various people so that suitable decision leads to get carried down.
Questionnaire includes various questions on which customer’s opinion and perspective
need to be critically understand.
 Interview: Another method is interview which consider as survey methodology through
which an individual perspective for define problem get evaluated properly. Thus,
interview need to be focus on a single issue and nothing else.
This project includes questionnaire survey by using random sampling method in which
various respondent’s opinion and perspective get define in an appropriate frame. This approach
is beneficial for long term context so that better and effective results could be gain. It includes
various questions which organise on 80 respondents of London whom spent holidays on
weekends with their family.
1.3 Design a questionnaire
Questionnaire is a survey approach which depicts various questions about a define
problem so that better and appropriate judgement lead to be carried down. It supports in gain
better and effective results by considering various respondent’s opinion. Food for Friends uses
questionnaire approach in their study for evaluating and determine appropriate judgement in
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order to open another outlet in London. This includes 10 questions which are open ended, close
ended and includes rating as well. This frame on 80 respondents whom spent their weekend with
family, friends on off side of city.
QUESTIONNAIRE
NAME:
AGE:
GROUP:
Q1. Opinion related with products and related offerings?
a) Positive
b) Negative
Q2. Do you appreciate the interior design of restaurant?
a) Yes
b) No
Q3. Please state about your pricing category or consider as convenient one?
a) More than €30
b) Between €15 to €25
c) More than €40
Q4. Any problem which associate with staff work and their operations?
a) Yes
b) No
Q5. Do you find location convenient for you to reach easily?
a) Yes
b) No
Q6. Do you really prefer this restaurant to your friends, family and relatives?
a) Agree
b) Neutral
c) Disagree
Q7. Do you really want restaurant to base on a theme?
a) Agree
b) Disagree
Q8. Whom are consider as best competitor for Food for Friends?
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a) Balti Palace
b) Murano
Q9. Please provide rating for a restaurant from 1-5?
a) 1-2
b) 2-3
c) 3-4
d) 4-5
Q10. Any further suggestion or recommendations?
2.1 Creation of information
It is important for a study to determine and evaluate whole information in an appropriate
manner so that better and effective results would be derive (Fassin and Buelens, 2011).
Information creation is not an easy thing because it states about various aspects properly and
effectively and their dissemination at one place essentials for better decision making. Thus, this
information creation context is for Food for Friends whom need and want to gain appropriate
judgement in order to enhance productivity and better results outcome.
Ratings R1 R2 R3 R4
1 63 17
2 50 30
3 17 47 13
4 33 47
5 37 43
6 33 25 22
7 42 38
8 38 42
9 15 30 30 5
This information will lead to support FF in order to determine values properly through
which areas for improvement get done properly. It is essential to improve such areas which not
develop properly so that future constraints get control properly for managing and enhancing
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better results. FFF have to evaluate each aspect properly so that possible changes could be
marked and get done.
2.2 Determination of measure of central tendency
One of an approach or method in statistics which further support in decision making
process is measure of central tendency (Fernando and Chowdhury, 2010). This is considering as
best approach in order to take better and effective judgement so that chances of negative
influences get reduces. This method includes mainly three kinds: Mean: It is an average of a series which need to consider by managers and management
of a company in an appropriate manner. Mean is helpful for decision in business context
so that appropriate and future gain get control as well as chances of uncertainty get
reduces. Mean need to determine by FFF properly for managing vast range of operations
and produce definite operation. Median: Another method is median which support in define mid value of a series
properly (Ford and Richardson, 2013). Median is helpful for better and effective decision
making so that frequency which state in mid of the series determine. FFF need to
determine median of a series properly so that they can manage every decision with
effective pro and con estimation. Mode: Measure of central tendency never depicts about actual outcome of a project and
only predicts about average of a series. Mode is a type of measure of central tendency
which signifies about most occurring and influencing value of a series. It is important to
understand mode of a series properly so that repetitive value of a series get evaluated
properly.
Ratings R1 R2 R3 R4 Mean Median Mode
1 63 17 40 40 #VALUE!
2 50 30 40 40 #VALUE!
3 17 47 13
25.6666666
667 17 #VALUE!
4 33 47 40 40 #VALUE!
5 37 43 40 40 #VALUE!
6 33 25 22
26.6666666
667 25 #VALUE!
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7 42 38 40 40 #VALUE!
8 38 42 40 40 #VALUE!
9 15 30 30 5 20 22.5 30
Offerings of a company reflect positive aspect in which customers agree with products
and services of a company. Moreover, many people stated that location is not convenient in
nature which need appropriate focus on it. This will support in gain better results so that more
and more number of users lead to easily reach over there. Most customers also prefer restaurant
to others through which chances of better results lead to get enhance properly.
2.3 Evaluation of measure of dispersion
Another thing which associates with stats is measure of dispersion in which dispersion
means scatter of values in different context (Frey, Schulz-Hardt and Stahlberg, 2013). Measure
of dispersion includes various associates properly like standard deviation and variances properly.
Deviation support in determine difference of a series as well as variances consider as values
differentiation. Food for Friends need to use measure of dispersion properly so that business
become able to determine variations which arise in a series and frequency properly for
appropriate judgement.
Ratings R1 R2 R3 R4
Standard
Deviation Variances
1 63 17
32.5269119
346 1058
2 50 30
14.1421356
237 200
3 17 47 13
18.5831464
864
345.333333
3333
4 33 47
9.89949493
66 98
5 37 43
4.24264068
71 18
6 33 25 22
5.68624070
31
32.3333333
333
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7 42 38
2.82842712
47 8
8 38 42
2.82842712
47 8
9 15 30 30 5
12.2474487
139 150 Standard Deviation: It is a quantity measuring and stated about members of a group
differ from the mean value of a series. It is important to determine the distance or
deviation which arise in a series properly so that better and appropriate judgement lead to
be carried down. It is important for staff to maintain appropriate and ethical behaviour
with all customers properly. This consent for FFF need a little bit modification so that
chances of successful implementation of strategy get done.
 Variances: It is a matter of quality which being differentiate or differ from a series
(García-Peñalvo and Conde, 2014). Business need to evaluate all variances and variation
of series properly so that effective gain could be maximising as well as better results get
promoted. Food for Friends need to estimates about all variances properly so that
appropriate gain for new outlet get maximise. In such context, more and more variation in
working get promoted due to major competitors of market like Balti Palace. Thus,
suitable strategies need to frame in order to gain competitive advantage.
2.4 Use of quartile and correlation coefficient for decision making
Some other and major tools for measure of dispersion are quartile and correlation
coefficient (Gabrielsson and Gabrielsson, 2013). It is important to consider these objects into
business properly so that chances of appropriate and better gains get promoted in a suitable
frame. Food for Friends can consider quartile and correlation coefficient into business properly
which lead to maximise chances of effective gains. Correlation coefficient: It states about relationship between two variables. For effective
understanding about bonding of two major variables of a series, it is important to
determine correlation coefficient of a series properly so that suitable gains get promoted.
Thus, correlation coefficient constitutes as beneficial outcome for every business. FFF
need to evaluate all aspects relations properly in order to enhance productivity as well as
future output.
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 Quartile: There are four major groups which divided whole population according to the
distribution of values of a particular variable. Thus, quartile is a helpful measure in order
to evaluate about every consent properly for better and effective judgement.
Ratings R1 R2 R3 R4
Correlation
coefficient
1 63 17 1
Relation of
offerings
with design
2 50 30
3 17 47 13
-
0.14826277
11
Relationship
between
price and
reference
4 33 47 1
Relationship
between
staff
behaviour
and location
5 37 43
6 33 25 22
7 42 38 -1
Relationship
between
theme and
competitors
8 38 42
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TASK 2
3.1 Creation of graphs and charts for information dissemination
R1 R2
0
10
20
30
40
50
60
70 63
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Theme 1: Offerings made positive impact on customers
Interpretation: Offerings are ultimate thing for a business through which vast number of users
get attracted. Thus, it is important to determine about impact of offerings on customers. Food for
Friends users signifies that offerings are excited in nature and thus made positive impact.
1 2
0
10
20
30
40
50
60
50
30
Theme 2: Interior design is attractive and appropriate in nature
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Interpretation: One of a major thing which enables in order to enhance user base is interior
design of a restaurant. FFF have good infrastructure as well as interior design so that more and
more number of users get attracted towards. This will support in gain better and effective results.
0.5 1 1.5 2 2.5 3 3.5
0
5
10
15
20
25
30
35
40
45
50
17
47
13
Theme 3: Prices need to be appropriate and suitable in nature
Interpretation: Usually food chains have more and more competition and thus, it enforces them
to frame suitable price for their products and services. FFF signifies that prices need to be low in
nature so that outlet prosperity gets enhance in nature for better and effective outcome.
3.2 Use of trend line in future forecasting
Trend lines are helpful in order to determine future properly so that chances of high
appropriate and suitable judgement get maximise effectively. It is important to determine trend
line properly so that suitable decision making get promoted in order to maximise productivity
and profitability.
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1 2
0
5
10
15
20
25
30
35
40
45
50
33
47
Theme 4: Staff behaviour need to get improve
Interpretation: A major factor which will support in future gains are staff behaviour. It is
important to maintain appropriate staff behaviour so that business become able to deal with
various options properly and effectively. Staff behaviour need to get improvise properly for
better and appropriate user base.
1 2
34
35
36
37
38
39
40
41
42
43
44
37
43
Theme 5: Location need to frame at appropriate place
Interpretation: One of a major and appropriate thing which is associated with users is location. It
is a moral duty of manager to frame location at such context where reach consider as convenient
in nature. Thus, FFF need to change and placed their restaurant in such area where more and
more people easily reach over there.
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3.3 Creation of power point
3.4 Formal business report
The Management
Food For Friends
Dated: 23rd January 2018
Subject: Information related with new outlet in London
There are various aspects are related with business which need to understand by an association
properly so that better and effective decision making get promoted. It is important to gather
various context effectively which associates with new outlet chain in order to maximise
productivity and enhance profitability. On the basis of collected data for Food For Friends it get
evaluated that company products and interior design are appropriate in nature which support in
gain every users focus over on restaurant. Along with this, restaurant should have to be based
on a theme which enables in making better and appropriate outcome. Major competitors of a
FFF are Balti Palace whom USP need to evaluate properly to provide a keen competition.
Location need to change for new restaurant as well as staff behaviour need to get modify. All
these things have to include by management while open another outlet for gain better and
suitable outcome.
Thanks
XYZ
TASK 3
4.1 Use of software generated information
There are various kinds of information processing tools utilise and adopted by business.
In such consent, management determine two major kinds of information processing tools which
are: Management information system: It is a computerised store data which support senior
management in order to take better and effective judgement (Gigerenzer and Gaissmaier,
2011). Senior management become able to evaluate every consent properly by using such
store information so that chances of duplication get reduces. Decision support system: This system is for senior management of a company in order to
take better and effective decision so that chances of risk get minimise. FFF can use this
application into business for considering better and effective decision.
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4.2 Prepare a project management plan with critical path
FFF need to determine and start a project with suitable plan so that better and effective
gains chances get maximise. Project management plan stands for various activities and operation
management structure which support in better and effective decision (Hwang and Yoon, 2012).
For this aspect, there are mainly two major techniques get evaluated which are:
 Gantt Chart: This is a technique which support in divide the task frame with suitable date
and number of days’ completion. This is one of a best tool for project management plan
so that better and appropriate gain get determine and project get accomplish within define
number of days.
 Critical Path system: A critical path system is helpful in order to determine shortest path
for project. This consent is helpful in order to maximise productivity and chances of
better associated results as well.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for decision 3 days 6
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4.3 Use of financial tools in order to take decision
It is important to determine feasibility of project through an investigation for gaining
better results (Isik, Jones and Sidorova, 2013). Thus, business need to evaluate all aspects
properly so that chances of better and effective gain get promoted (Maxwell, Jeffrey and
Lévesque, 2011). Finance is a life blood of every business and thus, without finance a business is
nothing. Hence, it considers as an important factor or element for FFF in order to take beneficial
judgement. For performing this section, two major financial tools get determine which need to
include in this project stated as follow:
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%
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 Internal rate of return: On the basis of this project determination, it clearly state that rate
of return of a project is not favourable. According to invested rate with 12% but return
rate is only about 9.94% which depicts non feasible project.
 Net present value: This project present value is negative in nature which also constitute
non feasibility about project.
CONCLUSION
It gets concluded from the project that business decision making is not a easy thing and it
comprises various aspects and context properly. Plan is an essential element for collecting
primary and secondary data by using random sampling method through questionnaire on several
respondents. Moreover, through information creation measure of central tendency and dispersion
support in analysing better and effective gain. Moreover, it is important to analyse every aspect
properly for better and appropriate decision making. Graphs and charts are helpful in order to
disseminate every context effectively so that appropriate working get promoted as well as trend
lines support in future forecasting. Although, for appropriate judgement another aspect if
information transformation for which valid tools need to get applied with support of project
management plan. Moreover, financial tools enable in effective and appropriate judgement for
determining feasibility for concern project for an organisation.
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REFERENCES
Books and Journals
Barry, M. J. and Edgman-Levitan, S., 2012. Shared decision making—the pinnacle of patient-
centered care. New England Journal of Medicine. 366(9). pp.780-781.
Brynjolfsson, E., Hitt, L. M. and Kim, H. H., 2011. Strength in numbers: How does data-driven
decisionmaking affect firm performance?.
Craft, J. L., 2013. A review of the empirical ethical decision-making literature: 2004–2011.
Journal of Business Ethics. 117(2). pp.221-259.
Cronan, T. P and et. al., 2011. Decision making in an integrated business process context:
Learning using an ERP simulation game. Decision Sciences Journal of Innovative
Education. 9(2). pp.227-234.
Fassin, Y. and Buelens, M., 2011. The hypocrisy-sincerity continuum in corporate
communication and decision making: A model of corporate social responsibility and
business ethics practices. Management Decision. 49(4). pp.586-600.
Fernando, M. and Chowdhury, R. M., 2010. The relationship between spiritual well-being and
ethical orientations in decision making: An empirical study with business executives in
Australia. Journal of Business Ethics. 95(2). pp.211-225.
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.
Frey, D., Schulz-Hardt, S. and Stahlberg, D., 2013. Information seeking among individuals and
groups and possible consequences for decision-making in business and politics.
Understanding group behavior. 2. pp.211-225.
Gabrielsson, P. and Gabrielsson, M., 2013. A dynamic model of growth phases and survival in
international business-to-business new ventures: the moderating effect of decision-
making logic. Industrial Marketing Management. 42(8). pp.1357-1373.
García-Peñalvo, F. J. and Conde, M. Á., 2014. Using informal learning for business decision
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Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
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Hwang, C. L. and Yoon, K., 2012. Multiple attribute decision making: methods and applications
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Isik, Ö., Jones, M. C. and Sidorova, A., 2013. Business intelligence success: The roles of BI
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