Business Decision-Making Assignment: DG Fashions

Business Decision-making

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Plan for data collection..........................................................................................................1
1.2 Survey methodology and sampling frame.............................................................................1
1.3 Questionnaire.........................................................................................................................2
TASK 2............................................................................................................................................4
2.1 Calculation of mean, mode and median.................................................................................4
2.2 Explain the significance of the central tendency results........................................................5
2.3 Calculation of range and standard deviation..........................................................................6
2.4 Calculation of quartile, percentiles and correlation coefficient to draw useful information. 7
TASK 3............................................................................................................................................8
3.1 Column graph for sales, cost and profit data.........................................................................8
3.2 Forecasting future sales and profit of DG Fashion................................................................9
3.3 Power Point Presentation.....................................................................................................10
3.4 Formal report........................................................................................................................15
TASK 4..........................................................................................................................................16
4.1 Information processing tools................................................................................................16
4.2 Project management.............................................................................................................16
4.3 Assessing project viability of new expansion project..........................................................18
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In current uncertain and competitive world, managers need to make precise and informed
business decisions for ensuring long-lasting survival. It involves number of decisions like
product development, expansion and others. The current research study focuses in the area of
decision making for a new clothing retail firm DG Fashions expansion in Wembley Central.
Although, the company had gained good popularity for its strong competitive position at
affordable rates. In this regards, both primary and secondary data will be gathered and examined
thoroughly using statistical methods of central tendency and dispersion. However, for the
financial appraisal, financial viability will be assessed through investment appraisal method to
examine the viability of the expansion project.
1.1 Plan for data collection
There are two sources from where DG Fashion can extract needed information, primary
and secondary data sources.
Primary data: This method collects data from first hand sources through the use of
observation, experiments, surveys, observation, interview, schedule and others. Thus, such
sources are not subjected to any kind of processing and manipulation (Solomon 2014). In order
to assess people’s perception, demand and preferences for expanding DG Fashion in Wembley
Central, target respondents, consumers will be surveyed through questionnaire. The key benefit
of the method is it produce reliable information, sin contrast, it is time-saving and costlier way of
data collection
Secondary data: Data that is gathered by someone else other than the original user is
known as secondary data includes books, magazines, trade journals, online publications,
company’s own records, industry reports and statistical documents. However, on the other side,
secondary dataset will be gathered through DG Fashion’s past 10 years sales, cost and profit
records. It will help to examine company’s performance and to make informed decisions. It is an
economical and time-saving method of gathering needed data set.
1.2 Survey methodology and sampling frame
Survey methodology: It is a primary data collection method wherein an original survey of
the actual respondents is carried out who are supposed to have desired set of information. It is
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considered as highly effective information that produces relevant information regarding socio-
economic characteristics, product features, consumer opinion, motives, and attitude and
satisfaction level as well. Questionnaire is the best way which consists of number of questions
which selected sample respondent need to respond. It is simpler, cost-effective and easy to
administer (Solomon, 2014). Thus, for DG Fashion’s expansion in Wembley central, it is
decided to survey people via questionnaire to get an idea about their like, dislike, price
sensitivity, purchasing preferences, pattern, income level and other needed information.
Sampling frame: Finding difficulties in studying the universe or population, sampling
introduced. It is a way wherein a sample comprising group of people are taken out who will be surveyed
by the company. There are two ways to choose a sample, random and non-random sampling. First method
identifies each and every unit of the population equally and similar probability, unlike this, in later, every
unit has less or more likelihood to be included in the sample selection. Here, it is decided to select sample
of 175 people using random-sampling method to avoid biasness in the sample selection.
1.3 Questionnaire
Name:
Town:
Gender: M ( ) F ( )
Age:
 18 and below
 19 – 25 years
 26 – 32 years
 Above 32 years
From Where, do you often purchase apparel?
 Online shopping
 Independent shops
 High street brands
 Doesn’t matter
How often do you purchase clothing products?
 1-5 times a year
 5 -10 times a year
 Once in a month
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 2 – 3 times per month
 4-7 times per month
 More than 7 times in a month
How much do you generally spend on cloth shopping?
 £0 - £20
 £20- £40
 £40- £60
 £60 - £80
 £80 - £100
 £100- £120
 £120 - £140
Which are the two most important factors in your clothing shopping?
 Quality
 Comfort
 Color
 Material
 Brand
 Price
 Style
With whom, do you prefer shopping clothing items?
 Friends
 Family
 Partner
 Colleague
 Alone
 Can’t say
Whenever you purchase any cloth item, do you:
 Always prefer visiting again the shop
 Every time try different shops
 Visit in a shop due to window display
 Prefer locations with attractive discounts
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 Others
If there is a new cloth brand coming to your city, which would you expects:
 Celebrity’s style design
 Organic material
 Premium quality
 Reasonable charges
 Others
TASK 2
2.1 Calculation of mean, mode and median
Weekly expenditures Number of customers (F) Mid value FX CF
0-20 19 10 190 19
20-40 27 30 810 46
40-60 39 50 1950 85
60-80 26 70 1820 111
80-100 22 90 1980 133
100-120 23 110 2530 156
120-140 19 130 2470 175
∑F = 175 ∑FX = 11750
Average: In descriptive statistics, it is the most important statistical measures of central tendency
which find out average of the given number or series (Zheng and et.al., 2016).
Average = ∑FX/∑F
= 11,750/175
= £67.14
Thus, average weekly expenditure in Wembley Central by one customer on shopping
behavior is found to £67.14.
Median: It is the mid value that means value that is equal to 50% of the data-series.
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