Business Decision Making Analysis

This assignment delves into the multifaceted process of business decision making. It examines various theoretical frameworks, including heuristics, multiple criteria decision making, and naturalistic decision making. The analysis considers ethical implications, the role of data science in informed decisions, and practical examples from diverse business contexts. Academic sources like journals (Journal of Business Venturing, Decision Support Systems) and books (Ethical Decision Making: A Review of the Empirical Literature) are central to this exploration.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Create a plan for the collection of primary and secondary data for business problem.........3
1.2 Present the survey methodology and sampling frame used ................................................4
1.3 Design a questionnaire for a business problem....................................................................5
TASK 2............................................................................................................................................6
2.1 Create information for decision making by summarising data using representative values.6
2.2 Analyse results and draw conclusion..................................................................................10
2.3 Analyse data using measures of dispersion ........................................................................11
TASK 3..........................................................................................................................................11
3.1 Produce graphs using spreadsheets and draw valid conclusions........................................11
3.2 Create trend lines to assist in forecasting business information ........................................18
3.3 covered in PPT ...................................................................................................................19
3.4 Produce a formal business report .......................................................................................19
TASK 4..........................................................................................................................................20
4.1 Use appropriate information processing tools.....................................................................20
4.2 Prepare a project plan for an activity and determine the critical path................................21
4.3 Use financial tools for decision making .............................................................................22
CONCLUSION..............................................................................................................................22
REFERENCES..............................................................................................................................23

INTRODUCTION
Business decision making is a very important process carried out by management level to
choose among number of choices. There are number of options available in the business
environment, management have to make decisions to carry out scanning and select the best one.
The chosen alternative should deliver final outcome or results. There are number of instruments
available to study the investment premise, they are NPV and IRR. These are formulated by
business organisation to determine profitability and financial gains. The company which is
included in this report is food for friends which is a established restaurant in UK and render
number of services to their customers. This assignment throws light on importance of collection
of data through primary and secondary sources. These are collected to produce a plan and is
concluded through help of examining of data and producing results through calculation of
correlation, percentiles and quartile.
TASK 1
1.1 Create a plan for the collection of primary and secondary data for business problem
Food for restaurant is among the high-grade restaurants in UK , that deliver services like
hotel booking, serving variety of food to final customers. In order to open a new branch in
London, it is very essential to take opinions from customers and take into consideration while
making plans and procedures (Aharoni,, Tihanyi, and Connelly 2011). The data is assembled in
various ways by mangers of organisation. Researcher have to collect data from two major
sources that is primary and secondary source. This help in finding out the tastes and preferences
of customers in market place.
Two major sources of data collection which is mentioned below:
Primary source: The data which is collected from these primary sources is first hand and
fresh. The information collected from this type of source is authentic and reliable. The reseracher
himself take information from clients by contacting them at particular time frame. It is necessary
to know the views of clients related to food industry, as it helps them to preapre plans
accordingly. Various sources available to collect primary data is mentioned below:
 Observation: This is a commonly used method to collect data, in which reseracher
observe their source of people and collect data in accordance to their value points.

 Questionnaire: Under this, number of questions are framed by researcher in order to
know the view points of respondents. This is how information or data is collected from
the targeted audience. Food for friends conduct this procedure to know about interests of
people (Ferrell and Fraedrich, 2015).
 Survey: in this type of procedure, researcher ask certain questions from their clients and
than carry out process of knowing customer satisfaction.
Secondary Sources: It refers to information or data collected from the sources which
have already been accumulated for once. It is gathered from newspapers, magazines, or business
journals. Under this process, the information which is accumulated is not useful in finding out
the interests or views of people directly. Food for friends can gain number of information fr9om
these sources but does not help in gaining direct view points of clients(Zsambok, 2014).
1.2 Present the survey methodology and sampling frame used
The basic motive behind carrying out research process is to take information and data
from the clients(Zolfani, and et. al., 2013). This is very important to select the targetted audience
in efficient manner because than only the correct and accurate information can be attained.
Hence, it is the responsibility of researcher to draft plans properly and accurately.
Survey Methodology: This process identifies the selection and survey methods or tools
through which proper outcomes or results can be attained in proper mode. The manger of Food
for Friends chooses to carry out their research process from primary source of data collection. In
this, questionnaire and survey methods can be used in decision making process. In this, different
type of questions are framed that render information of their area(Ford, and Richardson 2013).
Sample Framework: there are number of ways through which research can be
conducted, it is up to the researcher and clients to choose that method that will yield them best
results out of their process conducted. There are sampling methods available out of which,
random sampling process is among the most efficacious way. In this, around 20 people are
selected and than, series of questions are put on and their answers are recorded. The types of
questions which can be formulated by Food For Friends restaurant can be:
 To find out the opinions of clients in market regarding products offered by restaurant.
 To record complaints of consumers that may arise(Zionts, 2012).

1.3 Design a questionnaire for a business problem
Questionnaire is used to collect data in primary mode. In this some number of questions
are included that has to be filled by target audience. The answers which are noted helps in
concluding the decision which has to be carried out. It is drawn by researcher in which 10 to 12
questions are included(Gigerenzer, and Gaissmaier, 2011).
QUESTIONNAIRE
Name of candidate:
Permanent Address:
Email id:
Gender:
1.) Whether the restaurant is working hard to provide better services to customers?
 Yes
 No
2.) What's the requirement to open a new branch in UK?
 For profit
 To become top restaurant
 first choice of customers
3.) Is Food for Friends is delivering best services?
 Yes
 No
4.) Technology or tools adopted by restaurant is efficient or not?
 Yes
 No
5.) Is food delivered by restaurant is healthy?
 Yes
 No
6.) Is clients are happy with the decision of expanding new branch in city?
 Yes

 No
7.) Is restaurant is fulfilling the needs of people?
 Yes
 No
8.) Staff members are maintaining healthy relationship with customers?
 Yes
 No
9.) Is restaurant services are perfect?
 Yes
 No
10.) Any suggestions for the Food For Friends?
…......................................................................................................................................................
.............................................................................................................................
TASK 2
2.1 Create information for decision making by summarising data using representative values
1.) Whether the restaurant is working hard to provide better services to customers?
Particular Respondents
Yes 16
No 4
2.) What's the requirement to open a new branch in UK?
Particulars Respondents

For profit 12
To become top restaurant 6
First choice of customers 2
3.) Is Food for Friends is delivering best services?
Particular Respondents
Yes 15
No 5
4.) Technology or tools adopted by restaurant is efficient or not?
Particular Respondents
Yes 11
No 9

5.) Is food delivered by restaurant is healthy?
Particular Respondents
Yes 19
No 1
6.) Is clients are happy with the decision of expanding new branch in city?
Particular Respondents
Yes 13
No 7

7.) Is restaurant is fulfilling the needs of people?
Particular Respondents
Yes 10
No 10
8.) Staff members are maintaining healthy relationship with customers?
Particular Respondents
Yes 17
No 3

9.) Is restaurant services are perfect?
Particular Respondents
Yes 18
No 2
2.2 Analyse results and draw conclusion
Year Sales Net Profit
2009 4000 1200
2010 5050 1180
2011 5100 1700
2012 4040 1690

2013 6700 1799
2014 6500 1860
2015 5680 1755
2016 7200 1899
2017 8000 2000
Particular Sales Net profit
Mean 5807.78 1675.89
Median 5680 1755
Mode 4000 1200
Mean: it is derived by taking averages of the data collected. It is used to find out the data
that are used in past period of time(Groebner, 2011). It helps management level to take decisions
regarding such collected data. The formula for calculating mean is to calculate sum of amount
that are there in sales column and than divide it with the sum of present sales in number of years.
The mean for the sales is 5807.78 and net profit is 1675.89.
Median: it refers to determining the middle value of the collected data. Management for
food for friends have to calculate median that helps in making the decision smoothly. The
median for sales of the year ending is 5680 and median of net profit is 1755.
Mode: the repeating value in collected data is known as mode. It can be determined by
applying formula. It can also attained from previous data of Food for friend restaurant. The value
of mode of sales is 4000 and for net profit is 1200( Maxwell, and Lévesque, 2011).
2.3 Analyse data using measures of dispersion
Year Sales Net Profit

2009 4500 1280
2010 5150 1300
2011 6200 1500
2012 5500 2000
2013 6900 1400
2014 6500 1500
2015 5520 2100
2016 6600 1865
2017 7280 1980
Max range 6900 2100
Minimum range 4500 1280
Coefficient correlation 0.12
Standard deviation 1965.76 325.27
TASK 3
3.1 Produce graphs using spreadsheets and draw valid conclusions
1.)
Whether the restaurant is working hard to
provide better services to customers?
Respondents
Yes 16
No 4

Interpretation: From the above graph depicted the conclusion can be drawn that 16 people are in
favour that restaurant is working hard to deliver better services to people and 4 candidates are not
in favour hence, restaurant have to look after the problems of remaining members and try to
improve it.
2.)
What's the requirement to open a new branch
in UK?
Respondents
For profit 12
To become top restaurant 6
First choice of customers 2
Yes No
0
2
4
6
8
10
12
14
16

Interpretation: From the above interpreted data, we can conclude that 12 respondents are in
favour of opening new branch and 6 believes that they want to become top most restaurant and
remaining believes it is a first choice of customer.
3.)
Is Food for Friends is delivering best services? Respondents
Yes 15
No 5
For profit
To become top restaurant
First choice of customers
0
2
4
6
8
10
12
Yes No
0
2
4
6
8
10
12
14
16

Interpretation: From the above graph which is created, the conclusion which can be drafted is
that 15 people believes that Food For Friends is delivering best services and reaming said no,
hence it is important to look out such issues carefully by management.
4.)
Technology or tools adopted by restaurant is
efficient or not?
Respondents
Yes 11
No 9
Interpretation: From the above graph it is concluded that 11 people believes that the tools or
technology adopted by the restaurant is not effective and remaining do not favour this process.
Yes No
0
2
4
6
8
10
12

5.)
Is food delivered by restaurant is healthy? Respondents
Yes 19
No 1
Interpretation: From the above data it is being concluded that 19 respondents favours that this
restaurant is delivering healthy products to clients and only 1 people does not favour this
concept.
6.)
Is clients are happy with the decision of
expanding new branch in city?
Respondents
Yes 13
No 7
Yes No
0
2
4
6
8
10
12
14
16
18
20

Interpretation: It being concluded from the above graph that more than 50% people is happy with
the decision of restaurant expansion. Whereas on the other hand 7 people are not happy with the
decision.
7.)
Is restaurant is fulfilling the needs of people? Respondents
Yes 10
No 10
Yes No
0
2
4
6
8
10
12
14
Column C

Interpretation: From the above data it is concluded that 10 respondents that restaurant is fulfilling
the needs of final customers and on the other side 10 people believes that they are not satisfying
their needs. There fore, restaurant should take care about the needs properly.
8.)
Staff members are maintaining healthy
relationship with customers?
Respondents
Yes 17
No 3
Yes No
0
1
2
3
4
5
6
7
8
9
10

Interpretation: It is being interpreted that staff people of restaurant is maintaining good
relationship with the clients 17 people believes this and remaining oppose this concept.
9.)
Is restaurant services are perfect? Respondents
Yes 18
No 2
Yes No
0
2
4
6
8
10
12
14
16
18

Interpretation: From the above data that is highlighted it is observed that restaurant services are
perfect according to 18 respondents and 2 clients are not in favour of this.
3.2 Create trend lines to assist in forecasting business information
Trend line is a graphical representation that is produced to forecast sales and net profit
that are attained by food for friends restaurant in future period of time (Nowduri, 2011). It is very
helpful for the management level to interpret performances and profitability of the business
organisation. It helps in focusing the key areas that produce huge financial gains for the industry.
It is required to calculate such process as it aids in decision making process.
Year Sales Net Profit
2017 7180 3500
2018 5660 2100
2019 8500 3550
2020 8860 3600
Yes No
0
2
4
6
8
10
12
14
16
18
Column C

1 2 3 4
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
3500
2100
3550 3600 Year
Sales
Net Profit

3.3 covered in PPT
3.4 Produce a formal business report
To,
Managing Director
22 February 2018
The scientific research approach is carried out to calculate the interests of customers, clients of
the restaurants in market area. This helps them to produce such decisions that will help them to
carry out such processes that renders profitable and productive ideas. The research preparation
assist in calculating facts and figures that depict the customer's point of view regarding certain
issues and aspects. On the other hand it is also helpful in finding the strategy of other
competitors in business environment. The feedbacks and point of view gives by customers are
taken important part of decision making process of friends for food restaurant. It also explain
the weaknesses, strengths, associated with the goods and products of this restaurant. Business
environment is dynamic in nature, it keeps on changing with time. Hence, it becomes important
for management to take into consideration all those factors that influence their decisions. Any
feedback from final customers are taken very seriously by company as it provide path to make
improvements in certain areas where it is required. The method of collecting data is primary
sources which is used by researcher. Random sampling is also adopted in which data is gathered
for 20 clients, whose views are recorded. The questionnaire formulated by researcher carries 10
questions asking different aspects that are recorded and than final decisions are taken in
appropriate manner. Various statistical techniques are also adopted by observer to calculate
mean, mode median, standard deviation, dispersion. Sales and Net profit for the year is also
calculated in efficient mode.
RECOMMENDATION
In order to increase the performance of Food and Friends and maintain their growth in business
market, there is need of employing experts in organisation. Use of several tools and methods are
formulated in order to collect relevant data from final customers. Hence, these methods should
be implemented in proper format otherwise false results can be produced. Various digital
technologies should be implemented in order to improve process of advertisements of products.
CONCLUSION
From the report that has been prepared it is noted that suggestions and recommendations plays a

very important role in Food and Friends restaurant. The research process also helps in
considering the key areas that has to be focused by management.
TASK 4
4.1 Use appropriate information processing tools
The most important focus of these information tools is to enhance the productivity of
people of friends for food restaurant. These tools play a vital role in increasing the productivity
at significant level. Effective communication system helps in building a proper link between
everyone in organisational system(Pettigrew, 2014). It also aims in establishing conducive and
healthy relationship between consumers and management. There are number of information tools
available, manager have to examine such alternatives and choose the best one from these. These
include decision making product, transactional processing phase and information management.
Usage of all these systems in restaurant is mentioned below:
 Transactional System process: There are several departments available in single
organisation. There is need to coordinate functions and activities in order to gain final
outcomes in effectual and efficient manner. The information and data which are gathered
from various sources and is designed in correct and appropriate format(Vercellis, 2011).
 Decision support: under this process, decisions are taken promptly. The decisions should
be profitable and according to vision and mission of company. It guides in taking
decisions that aids in gaining final outcomes and gains. The scope should be made to
maintain good and healthy relationship of management and customers.
 Information Management: there are number of procedures available in information
system that are implemented in organisational system that has to be properly
implemented in respect of attaining final set targets in particular time frame(Popovič,
and et. al., 2012).
4.2 Prepare a project plan for an activity and determine the critical path
Critical path is a tool which is adopted by management level to find out importance on
choosing the long path that focus on wrapping of work in given time period. It is very much
effective process adopted by management to calculate time period which are involved in

completing that particular task. If the time gets delayed due to some reason, it is not possible that
whole condition gets impacted.
Path A: 1+4+7+8 = 10Days
Path B: 1+2+5+6+8 = 15 Days
Path C: 1+2+3+7+8 = 17 Days
The critical path which is created above highlights that the organisation will select that path
which is longest. Thus, path C will be selected having 17 days of completion of task. The work is
attained in proper format and in given time frame(Provost and Fawcett, 2013).
4.3 Use financial tools for decision making
Project
Discounting
factor Discounted cash inflow
Year
Cash
Flow 12.00% Present Value
0 -190000 1 -190000
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total P.V 181435.2
Initial investment -190000

of year
NPV -8564.8
IRR 9.94%
In accordance to calculation of NPV and IRR, the investment is done of 190000(Tzeng, and
Huang, 2011). The resulted NPV is negative with amount 8564.8 on the other hand, IRR
calculated is 9.94%.
CONCLUSION
From the above report it has been concluded that decision making is a vital process which
is carried out by the management. Research is being carried out on certain topic which enhance
the decision making process. There are several factors available in business environment that
impact the operations in effective manner. There are number of financial tools or techniques that
are adopted by management system that is NPV and IRR which helps in finding out net profit
and returns of particular time period. On the other hand there are majorly two sources available
through which data can be collected and after that interpretation process has to be carried out.
This report also focuses on the techniques adopted by food For friends restaurant in order to
increase their efficiency and effectiveness.