Decision-Making in Business Expansion
Added on 2020-10-22
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BUSINESS DECISIONMAKING
Table of ContentsINTRODUCTION...........................................................................................................................3TASK ONE .....................................................................................................................................3A) Producing spreadsheet of descriptive statistics for showing..................................................32. Histograms of age and spend The Median Income and the Interquartile Range....................63. Correlation coefficient between total income and spend........................................................9B) Producing short presentation entitled ‘Our Existing Customer' having graphicalrepresentations...........................................................................................................................10Covered in ppt...........................................................................................................................10TASK TWO...................................................................................................................................10A) Formal plan for conducting robust sample of potential customers in new market..............10B) Listing secondary sources of data........................................................................................10C) Justifying Survey Methodology and Sampling Frame.........................................................11D) Drafting questionnaire for approval.....................................................................................12TASK THREE...............................................................................................................................14A) Making analysis of payback and discounted payback ........................................................14B) Analysis of Net Present Value and its superiority over payback analysis...........................15C) Decision-making based on financial criteria........................................................................16D) Preparation of Gantt chart for completing project on time..................................................16CONCLUSION..............................................................................................................................17REFERENCES..............................................................................................................................19
INTRODUCTIONBusiness decision making is related for making plan and strategies for improving theperformance and profitability of the firm. Business decision making is important forimprovement of various operations of the firm. Hayward Home- style will form part of this studywhich is involved in the business of bespoke kitchens for customers in Northern USA market. Itemploys over a thousand people in US. This company want to grow its business in newgeographical market. This report will include a spreadsheet of descriptive statistics of theprimary data collection which shows the information of customer , their age , income etc. Also ,it will provide information about the customers in the target market. Furthermore, this reportwill give detailed explanation of the possible secondary sources of data. Moreover, it will proveanalysis of payback and discounted payback.TASK ONE A) Producing spreadsheet of descriptive statistics for showingCustomerIDAgeSpend ($)Annual Income($)GenderA171,60212,500FB222,69115,900MC291,45637,000MD192,53027,500FE2589731,000MF169812,000FG291,75341,000MH202,36516,250MI332,11832,000MJ2182517,500FK291,81734,000FL351,53848,000F3
M181,43515,000MN1637600FO261,89228,500MP411,53956,000FQ281,58237,500FR311,25837,550MS252,84631,000FT271,98333,500MU221,07327,000MV281,59438,550FW2468223,000MX221,00521,500MY351,39646,500FZ272,17333,525F1. Mean age and spend, and the Standard Deviations of variablesAgeSpend ($)Annual Income($)GenderMean25.576921545.57729014.421.5Standard Error1.241802138.66272496.9240.1Median25.51560.5310001.5Mode22#N/A310002StandardDeviation6.33197707.043812731.860.5099024
Sample Variance40.09385499910.91.62E+080.26Range252809554001Minimum16376001Maximum4128465600025
The above table consists of age, income earned, spend and gender elements. Forcomputing this, male is given 1 and for female is 2. Mean-The mean is the central value of discrete set of numbers which is attained byincorporating formula of sum of values divided by number of values. It can be said that meanvalue attained in terms of age is 25.57 and spend is 1545.77 which states that people within ageof 25 spent nearly 1545.77 in effective manner.Median-The median is taken as the mid value of the data set which is taken into account. Itdivides the data into equal halves such as upper half and lower half and as a result, mid value isattained in a better manner. It can be analysed that mid value of age comes to 25.5 and of spendcomes to 1560.5 which divides age and spend in two equal halves in effective manner.Mode-It is another useful statistical method which takes into data set and carries out value thatoccurs most frequently in data. It provides clarity in large data as to which value occursfrequently helping to analyse data in the best manner possible. Mode of age is 22 highlights thatcustomers of age 22 makes more purchases and spend is zero as no value is occurred more thanonce.Standard deviation-Standard deviation is one of the important part in the statistics as it shows how muchvalue is dispersed from mean. The standard deviation of age is 6.33 and of spend is 707.04showing clearly that mean value will deviate in the future and firm will be able to attain profits innew market of Brazil.2. Histograms of age and spend The Median Income and the Interquartile RangeAge-BinFrequency6
162215267318363More1Spending-BinFrequency371598.811160.651722.497
2284.26More4Median Income-The median income as listed in above statistics shows that age of 25.5 and of spendcomes to 1560.5 and median annual income comes to 31000.Interquartile RangeQuartile 121.251119.25Quartile 225.51538.5Quartile 3291873.25Interquartile Range 7.75754Trend AnalysisSpend ($)Annual Income ($)1602125002691159001456370008
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