Business Decision Making Analysis for Brits College

This assignment analyzes a business proposal to build new classrooms at Brits college using financial tools such as Net Present Value (NPV) and Internal Rate of Return (IRR). The NPV is positive, indicating the project should be accepted, while the IRR indicates that the funds should be internally invested. The report concludes that business decision-making is a crucial skill for managers, and the proposed project will take 45 days to complete.

Business Decision
Making

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task-1..............................................................................................................................................3
1.1................................................................................................................................................3
1.2 ..............................................................................................................................................4
1.3................................................................................................................................................4
Task-2 .............................................................................................................................................6
2.1 ...............................................................................................................................................6
2.2................................................................................................................................................7
2.3 Measures of Dispersion.........................................................................................................9
2.4 Quartiles & Percentiles......................................................................................................10
Task-3............................................................................................................................................11
3.1..............................................................................................................................................11
3.2 Scatter graph and Trend Line..............................................................................................12
3.3 Presentation..........................................................................................................................14
3.4 Business Report...................................................................................................................22
Task-4 ...........................................................................................................................................23
4.1..............................................................................................................................................23
4.2 .............................................................................................................................................24
4.3 NPV & IRR..........................................................................................................................26
Conclusion.....................................................................................................................................27
References......................................................................................................................................28
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INTRODUCTION
Business decision making is very essential elements in the present scenario. Decision
making is the key function of business managers. There are various financial tools available in
order to take effective and beneficial decisions. Also data analysis can be made on the basis of
many statistical tools which helps in decision making. Effective decision making will contribute
towards the success of an organization. The present research report is based on the various
decision making aspects to be evaluated by Brit College with an object to increase the number of
enrollments (De Maio, and et.al., 2016).
TASK-1
1.1
Data interpretation is an activity which involves a systematic gathering , arranging ,
analysis and evaluation of data in order to take effective decisions. Data are the primary input for
any decision making exercise. The primary data is the one which are collected from the field or
from the people. The secondary data is collected and recorded by someone else and are used for
the purpose of making analysis. Examples are annual reports, trends analysis etc. Hence for the
purpose of collection of primary and secondary data the following methods are to be used-
Primary Data - The primary data is the one which are collected from the field or from the
people. The various sources of collection of primary data are-
 Personal Interviews- Interviews of the various students of the college as well as others
will be conducted in order to analyze the possible solution in different situations.
 Emails- Interview questionnaires can be mailed to the students and their responses can be
analyzed to draw the necessary inferences.
 Telephones- Students can be contacted through telephones and their responses can be
collected.
 Observation- By observing the actions and concerns of the students one can make the
necessary analysis. Personal observation method could be used for collection of required
data.
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 Simulation- This process involves the imitation of the real world process over the period
of time (De Maio, and et.al., 2016).
Secondary Data – The various sources for the collection of secondary data for Brit College are-
 Internal Sources- These are mainly used by the organizations to conduct marketing
applications. These can be results of marketing activities conducted, admission
enrollments records of previous years, various costs information, reports and feedback,
and students feedback.
 External Sources- These are usually collected for financial applications. The various
available sources are books, magazines, journals, newspapers, library and through
internet.
1.2
The survey will be conducted by using online survey methodology. The questionnaires
will be mailed to the prospective and present students. On the basis of the responses given by
them a structured data will be collected. This data will be used for making further analysis and
business decisions will be taken. It is the best data collection technique as the data will be
collected directly from the students (De Maio, and et.al., 2016).
Sampling Frame- In order to collect data from the students a sample of 50 students will
be taken as per random sampling technique. In this method there are random selections of
student and hence the problem of biased selection will be avoided.
1.3
For the purpose of framing questionnaire we will select the various issues and on that
basis conclusions will be drawn and the necessary marketing strategy will be framed.
For the purpose of marketing Brits College questionnaire for the students is as follows-
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Q.1 How many lectures have you attended in this college?
1) 1-30 lectures
2) 31-60 lectures
3) More than 60 lectures
Q.2 After graduation what are your future goals?
1) Undecided
2) Join employment
3) Pursue Higher Education
4) Others
Q.3 Are you satisfied with the teaching faculty in the college?
1) Yes
2) To a certain extent
3) No
Q.4 Is there any improvements required in the college?
1) Yes (specify)
2) No
3) Cannot say
Q.5 Do you find the college faculty to be bias?
1) Yes
2) No
3) Cannot say
Q.6 Are the courses offered in the college sufficient to accommodate the present interest
areas of the students?
1) No
2) Yes
3) Up to a certain extent
Q.7 Are you able to find a good job after graduation?
1) Yes
2) No
3) Haven't searched for a job
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TASK-2
2.1
Graph showing relationship between achievement grades and satisfaction level is as follows
40 28 30 29 27 39 25 18 35 45
0
5
10
15
20
25
30
35
40
45
50 47
22
36
32
40
33
29
16
40
44
The above prepared graph shows level of satisfaction of the students on the X Axis and
on the Y Axis it provides information about the achievement grades which are achieved by the
students of Brits college. From this graph it can be clearly analysed that there is nor any kind of
appropriate relations are there in terms of positive or negative. It can be assessed that when
satisfaction level of students fluctuate then achievement grades as well and due to this
management of college cannot take effectual decisions. When visualizing the overall graphs then
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it has been said that in compare to satisfaction level grades of achievement of students are
higher.
Mean- This is the average of the data collected. It can be given by: Total of the Observations
Number of observations
Mean (Y) 339/10 = 33.9
On the basis of mean value it can be determined that on an average what outcomes
generated are there in both the sections like achievement grade and consistency of satisfaction. In
the achievement grade of students within Brits college there is mean value is 33.9 which shows
that college not able to meet with the objective to enhancing the student marks and grades on
consistent basis. Moreover, student achieve average marks and grades are 33.9 only from whole
data set.
2.2
Calculation of Median value:
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The value which provides information to the Brits college regarding to the middle value
of overall data set is considered as median in the statistical tools. From the current solution of
Median value it can be said that students achieve 34.5 grades average. It can be visualized that
up to the fifth series the students are unable to achieve marks up to the middle value. Below the
fifth and from onward sixth series there are students achieve and meet with the middle value.
Calculation of Mode value:
Mode is the value of item with the highest frequency. In the given case mode for the purpose of
achievement grades will be 40. As the achievement grade 40 is repeating two times that is the
highest number of times, hence the mode will be 40. From this calculation of mode value it can
be clearly analysed that most of the students achieve 40 marks among all available in Brits
college.
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2.3 Measures of Dispersion
This measure denotes the deviations of the observations from the mean point. In the given case
the deviation of satisfaction level is -74 and that of achievement grades is 9 (Wankawala, Chen
and Vimala, 2016).
Standard Deviation- It is the measure of the deviations of the values from that of the mean. It
measures the volatility of the values. On the basis of the calculations it can be shown that the
standard deviation of achievement grades is more than that of the satisfaction level. Hence
achievement grades are more volatile than that of the satisfaction level.
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Analysis of Standard deviation:
By considering the above calculation it can be clearly assessed that mean value deviate in
case of achievement grades is from 9.18 and in the satisfaction level deviates from 7.67. Average
value achievement is like 33.9 and at this position deviation value is 9.18 which indicates that
there is huge difference arises between both. On the basis of this analysis it can be assessed that
Brits college is not too much efficient for enhancing the level of grades in appropriate manner.
Due to this satisfaction level also not better and for that management needs to take effectual kind
of actions.
2.4 Quartiles & Percentiles
Quartile/ Percentile X (satisfaction) Y (achievement grades)
1st quartile/25th percentile 27.25 29.75
2nd quartile/50th percentile 29.5 34.5
3rd quartile/75th percentile 38 40
Quartiles- This values represents the 25% , 50% and 75% of the values of three different
quarters. In the given case values of the different quarters have been shown which are such as
27.25, 29.5 and 38 for lower, middle and upper quartile respectively in case of satisfaction level.
Apart from this, when talking about the achievement grades then at the lower, middle and upper
quartile values arises are like 29.75, 34.5 and 40 respectively. Along with this, lower quartile
shows 25th percentile, middle and upper quartile shows to the 50th and 75th percentile respectively
and due to which values are equal in every stage of quartile and percentile.
Correlation of Coefficient
Particulars Achievement grades Satisfaction level
Achievement grades 1 0.78
Satisfaction level 0.78 1
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Correlation of coefficient provides information to the Brits college then between
achievement grades and satisfaction level there is which kind of relationship. Generally outcome
of correlation is always in between -1 to +1. At the present scenario the value is 0.78 which
shows that if satisfaction level of gets change then achievement grades as well in same direction.
For example if level of satisfaction of students increase by 1 then grades of them will also
enhance by 0.78.
TASK-3
3.1
Line Graph
40 28 30 29 27 39 25 18 35 45
0
5
10
15
20
25
30
35
40
45
50 47
22
36
32
40
33
29
16
40
44
A c hiev em ent G rades (Y )
Bar Graph
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40
28
30
29
27
39
25
18
35
45
0 5 10 15 20 25 30 35 40 45 50
47
22
36
32
40
33
29
16
40
44
A c hiev em ent G rades (Y )
Interpretation and Analysis
Above mentioned line and bar graph shows that achievement grades of Brits college are
going in increasing way or whether decrease. From both the charts it can be interpreted that at
the satisfaction level of 40 students of Brits college achieve 47 grades. Apart from this, when
satisfaction reduce up to 28 then grades also from 47 to 22. When it the students are more satisfy
and level shifts from 28 to 30 then same condition arises in the grade achievement which is like
improve from 22 to 36. Hence, it can be said and analysed that when the students having more
satisfaction from the services and education provided by Brits college then they capable to
achieve more number of marks and grades.
3.2 Scatter graph and Trend Line
Scatter Graph
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15 20 25 30 35 40 45 50
0
5
10
15
20
25
30
35
40
45
50
A c hiev em ent G rades (Y )
Trend Line
40 28 30 29 27 39 25 18 35 45
0
5
10
15
20
25
30
35
40
45
50 47
22
36
32
40
33
29
16
40
44f(x) = -0.103030303x + 34.4666666667
Achievement Grades (Y)
Linear (Achievement Grades
(Y))
Interpretation and Analysis
From the scatter plot it can be clearly identified that the Brits college when provide better
services then students become more satisfy which lead to improve their grades. In opposite to
this, when if the students are not satisfied and their level reduces then level of grades
achievement also reduces. By the trend line it can be analysed that achievement grades level is in
the declining trend which indicates that the students not able top improve their grades on
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consistent basis. It can be forecasted that the achievement grades of students in Brits college will
decline continuously basis as the satisfaction level fluctuate.
3.3 Presentation
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15

16

17

18

19

20

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3.4 Business Report
Formal Business Report
To,
The Chief Executive Officer
Brits College,
Date: 1st June 2017
Introduction- The present report is made to analyze the reason for falling in the number
of enrollments in the Brits college. The report of the college has been presented and analysis
has been shown by using various graphs and trend lines.
Methodology- For presenting the analysis data has been collected from primary and
secondary sources. Also various statistical methods have been used for the purpose of drawing
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conclusions.
Findings- From the above graphs it has been analyzed that the achievement grades of
the students showing an increasing trend. Also satisfaction level is improving in the given
context. Both these factors are increasing due to the improved services provided by the college.
It is the result of these constant improvements in services of the Brits College that the students
are deriving greater satisfaction. It is the result of this satisfaction in the services that they have
been able to achieve higher grades. This in long run is beneficial for the college and help in the
increase in the strength of the students in future. Therefore it can be said that the college is
making constant efforts to attain its objective to increase the students strength. It can be found
from the report and analysis that due to changing in satisfaction level there are achievement
grades of students are also changed in same direction. It can be estimated that in the future the
students achieve marks and grades in reducing trend which is native for the Brits college.
Conclusion- As the achievement and satisfaction levels of the students are constantly
rising we can conclude that the same trends will follow in the near future. Also the services of
the colleges have been improving constantly. It can be suggested to the CEO of Brits college
that he needs to improve services, education level and facilities for students by which they
become more satisfy. Ultimately, the students achieve higher grades and increasing way which
will be highly beneficial for the college.
TASK-4
4.1
In order to take various business decisions Brits college can use various tools available
which are Transaction Processing Systems, Management Information Systems, Executive
information Systems. Utilization of these tools can help in making various decisions which are
explained as follows:
1. Transaction Processing Systems- This system can be used by the college to record the
different routine transactions such as enrollments of the students, accounting of fees etc.
These systems also helps to generate receipts and vouchers required for carrying out
regular business operations. Thus implementation of TPS will ensure proper recording of
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inputs, processing of those data, and generating useful structured output. Installation of
TPS will make the operations faster. TPS helps to the company for recording all kind of
financial as well as non monetary kind of transactions in the effectual manner. When it
going to take decisions or make changes in the business aspect then able to analyse
transacted data. On the basis of that data past performance can be assessed which is
effectual base for decision making for the upcoming periods.
2. Management Information systems- These systems are used by the managers to generate
reports. These reports are used to take various business reports. Thus these systems are
used for an effective and efficient decision making processes. This kind of information
processing tool provide management oriented data and required information which is one
of the highly appropriate. For instance, in case management not able to make the
effective decisions then by assessing business information which are required it capable
to make fruitful decisions at the workplace.
3. Executive Information systems- This system will facilitates the management in efficient
and effective decision making. The decisions will be based on the analysis of the reports
generated by the system. Along with above discussed information processing tools other
is EIS which is supportive for the higher level of managers as well as authorities. In the
college there is chief executive officer, chief financial officer etc. have to take business
decisions that how grades of students will improve in effectual manner. Fir this kind of
decisions of the Executive information systems provide fruitful and reliable data to the
individuals.
4.2
Gantt Chart – It represents finishing and starting date of any project.
9 steps on the basis of that Gantt chart and network diagram is prepared which are such as
follows:
Activity Immediate predecessors Time (in Days)
Foundation - 4
Framing Foundation 10
Plumbing Framing 9
Electrical Framing 6
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Wall Board Plumbing and electrical 8
Siding Framing 16
Paint Interior Wall board 5
Paint Exterior Siding 9
Fixtures
Paint Interior and Paint
Exterior 6
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Interpretation- The network diagram has been made to analyze the maximum duration required
to complete the tasks. All the activities which are highlighted are on the critical path of the
diagram. This diagram shows the minimum period of time required to complete the given
project. The total of the days for the completion is 45 days. Hence the above project can be
completed in the minimum period of 45 days (De Maio, and et.al., 2016.).
Critical path: 1+2+6+8+9
On the basis of assessed path of critical time duration will be 4+10+16+9+6 = 45 days.
4.3 NPV & IRR
Years Cash Flows DF DV
2015 -550000 1.000 -550000
2016 90000 0.8929 80357.14
2017 110000 0.7972 87691.35
2018 180000 0.7118 128120.45
2019 205000 0.6355 130281.21
2020 250000 0.5674 141856.71
13.12% 18306.83
IRR = 13.12%
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Net Present Value- This value helps in determining the net present value of the given cash flows.
Net present value is the determining factor for the acceptance of a proposal. The present values
of the cash flows are calculated by discounting them at discount rate. Then the from the
cumulative value the initial investment is deducted. The remaining amount is the net present
value. In the given case net present value is £ 18306.834 which is positive. Hence the proposal
should be accepted (Wankawala, Chen and Vimala, 2016).
IRR- It is the rate of return earned by the organization to analyze its earnings. IRR in the given
case is more than the discount rate and hence the funds of the company should be internally
invested.
CONCLUSION
Business decision making is one of the most important skills of the managers. It is based
on the analysis made by using various statistical tools. The same tools have used in this report
and business report have been given to the managers of Brits college. The projects have been
analyzed as the NPV is positive the project should be accepted. The new project of building new
classrooms will take time period of 45 days in order to complete the project on time.
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REFERENCES
Books & Journals
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Wankawala, P., Chen, I. and Vimala, K., Sap Se, 2016. HANA based multiple scenario
simulation enabling automated decision making for complex business processes. U.S. Patent
9,292,405.
De Maio, C., and et.al., 2016. A framework for context-aware heterogeneous group decision
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Kimbrough, S.O. and Lau, H.C., 2016. Business Analytics for Decision Making. CRC Press.
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