Business Decision Making: Plan for Data Collection and Statistical Techniques

This report focuses on Business Decision Making for Centaur Limited, a UK-based telemarketing organization. It covers the plan for collection of primary and secondary data, statistical techniques for data analysis, and the use of graphs and charts for reaching conclusions. The report also includes the interpretation of financial statements and ratios for aiding business decision making.

BUSINESS
DECISION MAKING

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Develop a plan for collection of both primary and secondary based data. Identify the
appropriate survey methodology and sampling the frame for explaining data collection
methods. .....................................................................................................................................3
Assess the different type of statistical techniques, methods and tools which would help to
examine data collected and aid the business decision making procedure as well. .....................6
Develop graphs and Charts with the help of spreadsheet for reaching a conclusion which
would be based on information about the company. ..................................................................9
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The report takes in account Business decision making which would help in critical decision
making for the betterment, growth and welfare of the company. It also is useful for business to
generate various opportunities through quantitative and qualitative analysis. In the prepared
report as under the company taken in Centaur limited that is a UK based and is a Business to
consumer telemarketing organisation as well (Bruni-Bossio, 2018). The following developed
report consist of information and data collecting sources such as secondary and primary sources
by the assessment of it as how firms would be making best use of such sources. Further, with the
assistance and help of financial records such as Cash flow statement, analysis is carried out and
perform various type of ratios which are calculated and interpreted for understanding monetary
positioning of the business. Also, with the help of graphs and charts presentation the above
information can be represented for asserting conclusion and some recommendations can be
provided.
TASK
Develop a plan for collection of both primary and secondary based data. Identify the appropriate
survey methodology and sampling the frame for explaining data collection methods.
Collection of information: Data collection can be explained as a medium of collecting
information which can be explained to be fruitful as well as useful for the companies. It states the
importance of collection, measurement, analysing the data which would be related to various
sources that can serve as a helpful tool for recording relevant answers against the problems
which are faced by an enterprise. These are assimilated in a structured format as well as
unstructured form as well. There are two basis of data collection and sources as well such as
Primary and secondary data (Engel, Ramesh and Steiner, 2020).
Primary data: It is a pure information which is collected by specialised analysts. Such type of
information is least demanded against multitude of data. The researcher of the organisation
would be accumulating data through association, correspondence, overview or few analyses. It
takes place in a unique manner when a certain subject, services and goods are having a strong
brand image or are famous in the market or competitive environment and there are many
assumptions being made according to the necessity. The organisation Centaur limited is

collecting information for accumulation of its feedbacks from users, primary sources in such a
way that would contribute in enhancement of business. For this, it should examine about its
targeted markets and their product and services which the consumers will be incurring more
likely. The aim for collecting information must be defined more clearly and in a precise manner
and the assessment of customers must be understood (Escadas, Jalali and Farhangmehr, 2020).
There are following policies for essential data sources are:
 Assessment and Questionnaires: It is done after reflecting necessary reactions, the
specialist is required to record and disregard. It is necessary to direct a pioneer
concentration on where the enquiries are being addressed by experience and further
demand to investigate the policies that are not sufficient.
 Interviews: It is considered as a tool which records essential and required information
which would be performed between two persons. In this method there are two sort of
group of people accumulated as one where one would be asking questions and other
would be addressing it for responding towards enquiries. This can be performed in two
ways such as face to face interview and vital interviews as well (Gibbs and Flotemersch,
2019).
Secondary data: Optional information is sorted and collected from various sources which can
be explained as gathering data as per their need and want for exploration. The data is then shifted
from need for the basement and shortlisted from present gathered sources. Information might be
collected from internal sources which have been gathered earlier for the exploring reason.
External sources are those sources that are away from the association and gathering of
information from those sources as are indicated by the need of assessment. Inward sources
further take in account:
 Profit and loss statement
 Sales figure
 Balance sheet
 Inventory records
 Previous marketing studies
In the occasion that the data collected won’t be adequate and sufficient for leading an
assessment, then at point, the material can be sorted and gathered from external sources
which would be incorporated:

 Business, professional association and trade
 Corporate findings
 Government sources
 Universities
Types of secondary data:
 Articles, Journals and books: With the proper guidance of journals, books and
articles are being distributed one can find out market related exercises and functional
that are being completed by a company through some stretch of time period. It
further provides related direction about patterns and accomplishment which would
help to form a relationship with the business. It additionally provides assistance with
getting their encounter in setting up of associated enterprise. In this way, optional
data would be fruitful for having data about the working of companies in competitive
environment. It would also have less possibilities to have a record of frequent
mistakes to take place in the information collected as it is being used by specialised
persons and distributed by individuals having experience (Güçdemir and Selim,
2018).
 Government distribution: It is counted as a type of data which would be expressing
whether business is moral in its practices and is not associated with any unfair
practices or activities or exercises as well. In such manner, it would fill the area of
fair practice and gain strength in the eye of law. Consumers are present as well as
connected with the companies, Records prepared are being checked before and then
distributed by the public authorities in a precise manner. Generally, it is useful for
financial investor for settling down on successful decision in the minimum process
for making things work out (Karami, Ojala and Saarenketo, 2020).
 Internal records: They can be explained as a kind of record which is prepared by
internal appointed staff persons working inside the company for outside consumers
for example number of financial backers, clients which are connected, business
status, likely arrangements, budgets being prepared for monetary purposes. It is
necessary for business administrators to examine by assuming any kind of variety
which is being recorded and taken in account for clients it would be assisting with by
inspecting related extension and development with some stretch of time period.

 Websites: It is a kind of auxiliary information through which data can be sorted for
instance, local created by the company for better accessibility through consumers.
Site assist with getting data which would be serving valuable insights in relation to
business like what are its advantages and limitations related to records, monetary
places of a connected enterprise in the economy irrespective of whether commitment
of client has been expanded or not. It then provides data about forthcoming proposals
of the enterprise over years.
Data sampling: It can be explained as a measurable statistical tool which is helpful to
choose, control and decompose representative subset of data for differentiating patterns and
examples within the larger index of data that is being examined (Maggioni, Sands, Kachouie and
Tsarenko, 2019). It further helps to enable informative researchers as well as data analyst to sort
small information related to factual population for building and running logical models in a faster
mode whereas delivering and providing accurate as well as reliable findings too. Few models are
used and adapted here are as follows:
Mode: It can be explained as highest number which is occurring on a repetitive basis.
Standard deviation: It can be explained as a tool which can be helpful in assessing how much
information is being dispersed from mean value recorded. It is thus square root of variance.
Mean: It can be defined as average of all data which would be collected by the analyst. It can be
calculated by summing of the information and further dividing it by a total quantity of
observations.
Assess the different type of statistical techniques, methods and tools which would help to
examine data collected and aid the business decision making procedure as well.
Cash flow statement: It can be explained as a significant tool for checking assets by
following the association's income. This assertion incorporates three sorts of exercises, for
example, working, money management and supporting action, which helps in deciding the
association's exhibition. It is much of the time used to make cash figures to upgrade temporary
preparation.
It shows where the cash is coming from and helps in noticing the inflow and outpouring of
money. Inflow of money addresses for a business comes from every one of the three exercises.
The assertion additionally represents the money inflows, the expense of paying for business
exercises, and funding at a given second. The information which can be gained from the income

proclamation of Darling Ingredients Limited will help the executives in pursuing basic decisions
about controlling business undertakings.
As a general rule, associations need to cause the equilibrium of positive income any other way
the association might have to get money to have a major effect on the business.
The types of cash flow statement:
 Investing activities: It can be defined as an activity which records the benefits and
misfortunes which can be caused because of the buy and offer of property, plant, or
equipment (PPE), and hence reflects general changes in the association's money position.
Capital consumption is a more significant detail of this sort of movement. It is the money
that a business puts resources into fixed resources like structures, vehicles or land, and
some more. The extension of capital use implies that the association is monetarily
anticipating future exercises. Regardless, it likewise focuses to a decrease in authoritative
income (Minciu, Berar and Dobrea, 2020).
 Operating activities: These activities help to generate and produce income and the cash
which has been spent on conveying things or overseeing cash. It incorporates stock
trades, interest portions, charge portions, delegate compensations, and rent portions. In it,
the income proclamation starts by recording the net benefit from the general profit which
can be portrayed from the pay explanation of the organization. This can gauge the
interests of the association. After this, it records non-cash exchanges including functional
exercises, and converts them into cash exchanges. A ventures income ought to show good
certain incomes for its functional exercises. If not, organizations might find it challenging
to deal with their everyday business exercises (Mason, Narcum and Mason, 2020).
 Financing activities: It can be explained as income in monetary terms and the pay
between the association and its proprietors and tenants. Money related movement
incorporates trade, including commitment, worth, and benefit. In these trades, close assets
are recorded when assets are raised (for instance, from monetary patrons or banks), and
dynamic assets are recorded when benefits are paid.
Interpretation of cash flow statement
From the cash flow statement of Darling ingredients Inc. and subsidiaries it can be
observed that the organisations operating income of the company has increased on a constant
basis over a period of time of last 3 years. It can thus be noticed that the profits and revenues

related to business concern has increased the operating profit of the company. Capital expenses
of firm has also declined expect of the investing based activities in an organisation has been
observed as negative due to increase in overall investment of the firm. Finance related activities
in a company have also resulted to be negative due to change in exchange rates prevailing in
international marketplaces and the company has also repurchased the stock from market. The
company has also paid and covered its long term debts that have further caused finance related
activities to be adverse and negative.
Current ratio = Current assets / Current liabilities
In year 2022 = 1089014 / 752684
= 1.44 Times
In year 2021 = 986994 / 675305
= 1.46 Times
From the above computed ratio, it can be asserted that the business current ratio has declined
slightly due to increase in current liability of a company and a less rise in the current asset of
business company. The ratio is 1.44 at the time which suggest that the company has more of
current assets when compared with the present obligation of the organisation.
Net profit Margin = Net Profit / Sales * 100
In year 2022 = 657290 / 4741369 * 100
= 13.86%
In year 2021 = 300330 / 3571923 * 100
= 8.40%
Interpretation: From the above computed net profit it can be interpreted that the organisation net
profit has raised over the period of time. It has also increased due to increase in sales related
areas of a business and the net revenue of the company has also risen. The revenues of the
organisation have increased due to decline in the expenses and increasing sale in business areas.
Debt-equity ratio = Debt / Equity
In year 2022 = 2033259 / 3347758
= 0.61 Times
In year 2021 = 1983817 / 2954209
= 0.67 Times

Interpretation: From the above calculated ratio it can be concluded that the business is making
use of more of equity when compared to debts of the organisation. In the following case it can be
observed that the debt of company would be consisting of more of equity and lesser of debts. Im
ideal situation and case business must use more of debts and lesser portion of equity the reason
being equity is considered as a permanent liability on related company whereas debt is paid after
a specific duration.
Develop graphs and Charts with the help of spreadsheet for reaching a conclusion which would
be based on information about the company.
Interpretation: From the above computed net profit it can be asserted that the businesses net
profit has raised over a period of time. It has also increased due to increase in sales of Darling
ingredients and net profit of the business related concern has also raised. The revenue of the
business has increased due to decrease in expenses and a rise in sales of the business concerns.

From the above computed ratio, it can be asserted and reached over a conclusion that the
Darling Ingredients current ratio has slightly declined due to increasing current liability of the
company and a less increase in current asset of the business related companies. The ratio so far
calculated resulted to be 1.44 times which suggest that the darling ingredients has more current
asset present in the company when compare with current obligation of the organisation.
From the above developed pie chart it can be asserted that Darling ingredients would be
using more equity as compared to debts of the organisation. In the following case, it can be

observed that the company which is comprising of debt equity mix would be having less debt
and more equity. In an ideal case the business would be using more specific for a point of time.
CONCLUSION
From the report prepared above it can be concluded that it is necessary for every company to
identify effective and accurate sources of information. It is useful for every business to have
reliable information which would help to ascertain and predict decisions as well. It would help to
have an idea about net profit earned and performance being rendered by the company over a
period of time in a business for time being.

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