Ethical Decision Making in Business

This assignment delves into ethical decision-making within the context of business studies. It examines various models and frameworks employed by students to navigate complex ethical dilemmas. The focus centers on understanding how empathy and narcissism influence ethical decision-making processes in a business environment. Students are expected to analyze provided literature and scholarly articles to develop a comprehensive understanding of this critical topic.

BUSINESS
DECISION
MAKING

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
Use of plan in collecting data through primary and secondary format.......................................1
1.2 Use of sampling method and survey methodology...............................................................2
1.3 Use of questionnaire in relation to data.................................................................................3
2.1 Creation of information on the basis of questionnaire..........................................................4
2.2 Use of mean, median and mode and its analysis...................................................................5
2.3 Data using measure of dispersion with including standard deviation...................................6
2.4 Benefits of quartile, percentile and correlation coefficient in business context....................6
TASK 2............................................................................................................................................7
3.1 Preparation of charts, graphs in making a valid conclusion..................................................7
3.2 Creation of trend lines in future forecasting.......................................................................11
3.3 Business presentation..........................................................................................................12
3.4 Formal business report to senior authority..........................................................................12
Task 3.............................................................................................................................................12
4.1 Information processing tools ..............................................................................................12
4.2 Formation of critical path management..............................................................................13
4.3 Benefits of financial tools in relation to make beneficial decision.....................................14
CONCLUSION .............................................................................................................................15
References .....................................................................................................................................17

INTRODUCTION
Decision making one of the most significant part in the company in order to make their
decision making. It is also a critical part which required to collect various information from the
different sources from the market and make decision more effective for the future success
(Zimmerman and Yahya-Zadeh, 2011). This element is useful for as new business venture to
understand the overall environment and tries to develop their products and service more popular
in the market. This part is related with the Murano which is a small business and operate in the
city of London. The present report is talking about the various aspects of management decision
making by using different tools and techniques such as questionnaire. Along with this gathered
data will be analysed and evaluated by suing various graphs, charts, tables to make their decision
more effective (Brown and et. al., 2010).
TASK 1
Use of plan in collecting data through primary and secondary format
Primary data: By using this research method all information is collect regarding the topic.
It is collected personally by any individual which may be quantitative and qualitative form. The
data which is collected by person is unique for his research project as no one else access it
(Gigerenzer and Gaissmaier, 2011). It takes more time, cost and efforts as all data collected
personally to make report. There are various methods of collecting primary data such as:
• Questionnaires
• Interviews
• Observations
• Case study
Therefore, it is most important for researcher to select appropriate method which help him in
acquiring more and more information related to the topic.
Secondary data: Through this method the existing information or data can be collected by
available source (Provost and Fawcett, 2013). It is gathered by someone else and data was
collected for different purpose. It involves less cost, less time and less efforts as it is being
reused. There are some sources of secondary data which are as follows:
• Previous research
• web information
• Government report
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• Books
• Journals
• Census
• Libraries
By using all these sources researcher can collect applicable information on the topic. It is most
faster process for collecting information or data only requires right source from where data can
be collected (Lunenburg, 2011).
1.2 Use of sampling method and survey methodology
Research is one of the difficult task one has to perform because an effective research provides an
effective data which leads to the generation of an effective decision (Zolfani and et. al., 2013).
Effective research leads an organization to the optimum utilisation of resources, better
understanding of market which ultimately leads the company to the path of profit-making. There
are various ways by which the research process took place but that too is depending on the needs
and requirements of company. Some of the most prominent methods are as follows:
Sampling method: - Through this method company randomly select some sample from a bigger
amount so as to have a rough idea about the whole group. It should be done in the precise
manner so as to cover each and every characteristic (Fassin and Buelens, 2011). Types of this
method are mentioned below.
1)Random Sampling
2)Cluster Sampling
3) Stratified Sampling
Survey methodology: - This technique should also be used in an adequate manner because of its
preciseness. In it random sampling has been done on the 78 respondents of a restaurant which are
having different characteristics that can give precise results to the company. It is also having
different ways for its application.
1)Survey Monkey
2) Social Media
3) Questionnaire
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1.3 Use of questionnaire in relation to data
Questionnaire is a helpful to analysing collected data from the respondents. This is one of the
most suitable tool where researcher can identify their problem. In the given report Murano need
to collect various information in order to meet their targets in an effective manner.
Questionnaire
Name
Age
Gender
Q.1 Which age group are you belonging?
A) 18-24
B) 24-32
C) 32-45
D) Above 45
Q.2 Are visited ever in the Murano restaurant?
A) Yes
B) No
Q.3 How much time you visit in a month at Murano restaurant?
A) One time
B) Two time
C) Three time
D) More than three time
Q.4 Are you satisfied with the price of the product offered by the Murano?
A) Satisfied
B) Highly satisfied
C) Dissatisfied
D) Highly dissatisfied
Q.5 Do you think product quality is up to the mark?
A) Agree
B) Highly agree
C) Disagree
D) Highly disagree
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Q.6 What is the most attractive element at Murano coffee?
A) Price
B) Product
C) Place
D) Promotion
Q.7 Do you thing Murano store location are attractive?
A) Yes
B) No
Q.8 Which mode of transport you prefer for visit?
A) Public transport
B) Private transport
C) Any other
Q.9 Please rate our services as par the given scale?
A) *****
B) ****
C) ***
D) **
E) *
2.1 Creation of information on the basis of questionnaire
Creating information as par the questionnaire, researcher is required to carry out their collected
information and meet and represent these data and analyse in an appropriate manner.
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From the above table, R represents the response to gain competitive advantage which enables to
meet their financial targets (Milovic, 2012). In this way, this is way management required to
keep their focused on the management and make their decision in an effective manner.
2.2 Use of mean, median and mode and its analysis
It is essential for a company to use different types of tools and methods to measure the data and
expected result.
Mean: This is one of the most usable tool in which a company make their critical decision
making. In the context of a Murano, the firm having historical serious of data to gain the average
of these data which beneficial for the company.
Median: It is another mathematic approach where a company required to determine the mid
value of the given series. This will help to construct a valid conclusion which helps to make
provide an appropriate recommendation.
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Interpretation: As par the above given data such as mean, median and mode an effective and
appropriate conclusion will be developing which help to beneficial for the Murano decision in
the near future. The mean value of age group is 26, median is 25 which guide the company to
create strategies on such targets which fall under 18-24. These information shows that Murano
offer its product to such customer and gain competitive advantage in the market.
2.3 Data using measure of dispersion with including standard deviation
Standard deviation is related with the gap between the centre value and the as compare to
the middle value. These all aspects are help to make decision beneficial for the company in order
to make provide long term growth. There are following data of Murano, these are:
2.4 Benefits of quartile, percentile and correlation coefficient in business context
Apart from research there are also other methods which helps a company in effective
decision-making. But these are not the techniques they are the tools of effective decision-making
which helps a firm in understanding the market well and also gives the idea of working of tools
in that market, so the tools are listed below: -
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1) Quartile: - It helps in understanding the range of the population in which it lies. Basically this
tool helps the firm in measuring the range of population which comprises the people of different
characteristics plus it works in quarters like Q1, Q2, Q3 etc. so it shows the different aspects of
people in different quarters in which they are lying.
2)Percentile: - This tools shows the whole data in the most precise form and that is percentage
(%). It helps in better understanding of the data because whenever the size of data reduces its
understanding increases automatically.
3)Correlation coefficient: - It is one of the trickiest yet effective tool of decision-making. In it
degree of changes in two series are being measured but it only shows the linear relationships
non-linear are not being measured through it. Its range lies from -1.0 to 1.0 that shows the
preciseness of data, if the outcome is more than 1.0 and less than -1.0 then there is definitely an
error in calculation.
TASK 2
3.1 Preparation of charts, graphs in making a valid conclusion
This part one of the most significant aspects which is related with the presenting data in a
way which can provide effective interpretation. In this report thematic finding has been used and
make information more effective.
Theme 1: Customer age group as par the response
Findings: From above given chart, it has been interpreted that the majority of the customer are
fall under the age group of 18-24 which is quite high as compare to other groups. It shows that
company required to focused on the such age group which can provide competitive advantage.
Theme 2 Customer response of Murano store visit.
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Findings: According to the given chart, it has been analysed that there are 55 respondents who
already visit Murano resurgent. On the other hand, 23 respondents are not visited their store. This
is not good for the company which required to improve their performance level and enhance the
customer satisfaction.
Theme 3 Customer frequency at Murano restaurant
Findings: This question one of the most significant question which is related with the customer
frequency on the company which is very crucial. 18 respondents out of 78 are visit one time, 20-
two times, 20 three times and rest of them more than three times. The importance of customer
foot prints at the store is very crucial for the company. As par the given information there are 20
respondents who visit three time in a month. These staff are very crucial for the enterprise and it
provide the competitive position in the market. So that they can maintain their position in the
market.
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Theme 4 Customer satisfaction level on the company products.
Findings: From the above information, there are large number of customer are satisfied with the
products offered by the company which approx. 55. Whereas, there are 23 respondents are not
agreeing with this argument. It shows that company required to interpret these data in order
increase the satisfaction level. The role of customer satisfaction is very critical for the entity
because its shows the actual position of the company.
Theme 5 Customer opinion on the product quality offered by the company.
Findings: As par the mentioned graphical presentation in which 25 customers are agree, 35
highly agree, 15 disagree and rest of them highly disagree. Therefore, this is the responsibility of
the company is communicating with its loyal customer on regular basis and maintain their
quality standards.
Theme 6 Customer opinion on the marketing elements of Murano.
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Findings: According to the above mentioned information, it has been interpreted that there are
15 respondents said that company needs to focused on price. 28 customers are arguing that
Murano should be increase the product price. In modern business environment, price place a
critical role in the company and make them more effective in order to increase the revenue and
profitability of the company.
Theme 7 Customer opinion on the Location of the company.
Findings: This is significant for a company to determine the location. Murano is operating their
store in various location which should be strategic. From the above given information, there are
60 respondents who agreeing that it is good for them.
Theme 8 Mode of transport used by customer to visits Murano restaurant.
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Findings: According to the above given information, there are 48 respondents which using
public transport, 20 are using private transport and rest of them 10 using any other mode.
Theme 9 Performance level of Murano restaurant as par customer.
Findings: From the above data, there are 25 customers who agreeing the Murano service
excellent, 18 said very good, 8 respondents said satisfactory level and rest of them arguing that
Murano customer service poor.
3.2 Creation of trend lines in future forecasting
Figure 1
Findings On the basis of above data, it shows that in the last few years’ company perform
extremely well and as par the basis of trend line their growth and development also growing I the
next two to three years.
Figure 2
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Findings: According to the above given graph, it has been interpreted that the number of
customer growing which is very good for the company. These information shows that; a Murano
develop appropriate strategies in order to provide a long term growth.
3.3 Business presentation
3.4 Formal business report to senior authority
The Admiration
Murano Restaurant
Dated: 10 October, 2017
Subject: Recommendation
According to the collected information it has been clearly determine that 18-20 years is the
potential target market for the company. Therefore, company required to conduct feedback
and identity their customer changing needs to its target. Further, there are various critical
elements such as product, price, place and promotion. On the basis of finding, the majority
of the respondents are required to increase the product quality. Additional, there are various
respondents which wants that company required to increase its product range in order to
enhanced customer satisfaction. Murano is operating their business in the United Kingdom
which wants to expands its operations in to other countries. For this, cited firm also need to
select an appropriate tools and techniques which can meet their short and long term gaols.
Task 3
4.1 Information processing tools
Information is one of the tool for each and every company in to make their decision more
effective. There are variety of information which related with different department such as
finance, hr, marketing, customer service (Ogunfowora, Bourdage and Nguyen,, 2013). Therefore,
collected these data and process for the management also significant.
Encoding of data is a systematic process in which information must be identified. There are
following stages involves in this project. These are:
 Input
 Output
 Storage
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As par the above communication process having large number of benefits and support the
operational activities of the company.
 Maintain communication in the longer run.
 Coordination various activities.
 Availability of data for decision making in short notice.
 To make decision more effective.
The significant of these information is essential in the context of Murano and make carry out
their business operation smoothly. So instance, enterprise need to present various data which are
related with financial statement such as balance sheet, trading account etc. Cited firm can use
information processing tool to make critical decision in a more effective manner (Zavadskas and
Turskis, 2011).
4.2 Formation of critical path management
Project management is one of the tool in which a manager can easily manage all activities
and operations in an effective manner (Fernando and Chowdhury,2010). A PMP related with the
forecasting all activities in advance in order to meet their research aims and objectives.
Therefore, this is the responsibility of a company to implement these activities in an effective
manner.
There are various tools and techniques can be use by researchers and manage all activities. Gantt
chart is a process of palling all operation task in advance with given a time line. In the case of
cited organization, there are following activities can be involving:
Figure 1: Activities
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Figure 2: Gantt Chart
Figure 3: Network Diagram
Gantt Chart provide a clear direction in a given time frame. This is the responsibility of a project
manager to organize the overall work at the workplace. They can easily demonstrate the overall
work which is very crucial and also monitor the progress of the report.
4.3 Benefits of financial tools in relation to make beneficial decision
This is one of the most complex and competitive decision relating to the investment. It is
essential for an enterprise is to evaluate all investment proposal and its expected return (De
Cremer, Mayer and Schminke, 2010). In the context of Murano restaurant having new project
and they need to identity the good rate of return in the near future. There are two types of project
given in order to determine the commercial feasibility of a project.
 Traditional approach
 Modern approach
Both methods are help to understand the project and its profitability for the future. There are
following calculation is given:
Project
Initial investment 190000
Cash flow Year 1 50000
Year 2 64000
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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%
The NPV of the above given project which is negative internal rate of return. This project will
not provide 12% annual. Therefore, Murano required to not want to go for this project and meet
their long term targets.
CONCLUSION
From the above mentioned report it has been concluded that the role of decision making
very crucial in the business current and future performance. In the research completed by the use
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of primary and secondary data collected from the different sources. Apart from that mathematical
tools have been used to determine the feasibility of project beneficial for the company or not.
The gathered data, present data in an effective manner through thematic representation. In this
report the use of graph and chart for develop forecasting the future growth of the company.
Critical path also has been used by the researcher in order to make their decision effective and
attaining short and long term targets.
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References
Books and Journals
Zimmerman, J. L. and Yahya-Zadeh, M., 2011. Accounting for decision making and control.
Issues in Accounting Education. 26(1). pp.258-259.
Brown, T. A., and et. al. B., 2010. Ethics and personality: Empathy and narcissism as
moderators of ethical decision making in business students. Journal of Education for
Business. 85(4). pp.203-208.
Gigerenzer, G. and Gaissmaier, W., 2011. Heuristic decision making. Annual review of
psychology. 62. pp.451-482.
Provost, F. and Fawcett, T., 2013. Data science and its relationship to big data and data-driven
decision making. Big Data. 1(1). pp.51-59.
Lunenburg, F. C., 2011. Decision making in organizations. International journal of
management, business, and administration. 15(1). pp.1-9.
Zolfani, S. H., and et. al., 2013. Decision making on business issues with foresight perspective;
an application of new hybrid MCDM model in shopping mall locating. Expert systems
with applications. 40(17). pp.7111-7121.
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.
Milovic, B., 2012. Prediction and decision making in health care using data mining. Kuwait
chapter of arabian journal of business and management review. 1(12). pp.126-136.
Ogunfowora, B., Bourdage, J.S. and Nguyen, B., 2013. An exploration of the dishonest side of
self‐monitoring: Links to moral disengagement and unethical business decision making.
European Journal of Personality. 27(6). pp.532-544.
Zavadskas, E. K. and Turskis, Z., 2011. Multiple criteria decision making (MCDM) methods in
economics: an overview. Technological and economic development of economy. 17(2).
pp.397-427.
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.
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De Cremer, D., Mayer, D.M. and Schminke, M., 2010. Guest Editors’ Introduction: On
Understanding Ethical Behavior and Decision Making: A Behavioral Ethics Approach.
Business Ethics Quarterly. 20(1). pp.1-6.
Online
Lannon, R,. 2017 8 Steps To Making Better Business Decisions. 2012. [Online]. Available
Through: < https://www.batimes.com/articles/8-steps-to-make-better-business-
decisions.html>. [Accessed on 12th October 2017].
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