Financial Evaluation of Projects Fitz and Naushaba
Added on 2019-12-03
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BUSINESS DECISION-MAKING
Table of ContentsINTRODUCTION.....................................................................................................................................3TASK 1 ABILITY TO USE VARIETY OF SOURCES FOR DATA COLLECTION..............................3Plan for collecting data for WWT.........................................................................................................3Conducting secondary research for obtaining information...................................................................4Survey methodology..............................................................................................................................5Sample size............................................................................................................................................5TASK 2 UNDERSTANDING RANGE OF TECHNIQUES TO ANALYSE DATA EFFECTIVELY.....6....................................................................................................................................................................7Analysis of data to draw valid conclusions...........................................................................................7Value of semi-interquartile range..........................................................................................................8Suitable calculations to draw realistic conclusion and valid recommendations...................................9Calculation of standard deviation and range.........................................................................................9TASK 3 ABILITY TO PRODUCE INFORMATION IN APPROPRIATE FORMATS FOR DECISION-MAKING.................................................................................................................................................10Charts and diagrams ...........................................................................................................................10..................................................................................................................................................................10..................................................................................................................................................................11Trend line ...........................................................................................................................................15.............................................................................................................................................................15Formal business report........................................................................................................................15 TASK 4 ABILITY TO USE SOFTWARE GENERATED INFORMATION.........................................16Paths through the network...................................................................................................................16Critical path and duration ...................................................................................................................18TASK 5 INVESTMENT APPRAISAL TECHNIQUES..........................................................................19Capital Investment Appraisal technique:.............................................................................................19 Net Present Value Evaluation.............................................................................................................19Internal Rate of Return Method:.........................................................................................................19Pay Back of the Project:......................................................................................................................20Recommendation:................................................................................................................................21Conclusion ..............................................................................................................................................21REFERENCES.........................................................................................................................................22
INTRODUCTIONFor every organization it is necessary to take effective decisions as they are directly linked withits success and supports in development. But before taking any decision it is required for enterprise tocarry out market research in order to determine feasibility of the overall plan which is being developed.Firm has to gather data from primary and secondary source as they provide direct support in expansion(Clark, 2012). By allocating funds in the right proposal it is possible for organization to increase itsprofitability and market share. In the present report worldwide tobacco is carrying out market researchin order to understand the nature of the market structure and the consumers. Firm is interested inlearning about different things on E-cigarettes such as demographic profiles, consumption patterns, andcultural issues linked with customer preferences. Furthermore for this, plan has been prepared forcollecting information through primary and secondary TASK 1. ABILITY TO USE VARIETY OF SOURCES FOR DATA COLLECTIONPlan for collecting data for WWTFor taking appropriate decisions it is necessary to collect data from the sources present with thefirm that can support in knowing about the preferences of customers in relation with the use of E-cigarettes. Both primary and secondary sources used for the study are effective and on the basis of thisWWT can know income level, age of people consuming cigarettes. Primary and secondary sourcesused for the study are discussed below: Primary source: For the present study effective primary source is questionnaire through whichinformation has been gathered which is linked with age, income and consumption pattern of thepeople in relation with E- cigarettes (Cohen and et. al., 2013). This source is more effective ascompared with secondary one as information gathered is not used in previous studies and datacollected is reliable. Furthermore this source will help in knowing how much time an individualspends in a shop while consuming E- cigarettes and with the help of this overall market demandcan be determined easily. Secondary source: It is the another source adopted for the present study to collect informationwhere different books, journals and online articles have been used so as to acquire informationabout different shops that are offering e-cigarettes in the market. In short the secondary researchcan provide support to the primary one in conducting study.
QuestionnaireName: Age15-2020-2525-3030 and above GenderMaleFemaleIncome (weekly) 300 - 400 Pound400 – 500 Pound500 Pound and aboveSpending power (Weekly)10 Pound12 Pound15 Pound and aboveHow much E-cigarette do you consume on weekly basis?Four in a weekSix in a week More than seven You buy E-cigarettes from Specialized storesSupermarkets How much time do you spent per week in a shop?210 minutes315 minutes420 minutes and aboveDoes social issues are linked with customer preferences?YesNoYou go E-cigarette shop with Family Friends Groups Other (Pls Specify)What social and cultural issues are face by you during consumption of E-cigarettes?.................................................................................................................................................................................................................................................Conducting secondary research for obtaining informationIn London different stores are present that are offering E-cigarettes which are The Vape.co, ECL
etc. The Vape.co is one of the most famous company located in London and its shops is located in 102East Barnet Road London (Correia and et.al, 2012). Main products sold by Vape.co are ecab mini,vanilla e liquid, aqua RBA atomizer etc. Furthermore main competitors of Vape.co that are offeringsame type of products are V- revolution e-cigarettes and ECL. Electronic cigarette London was the firstcompany in the country to launch E- Cigarette including its kit and other accessories. After consideringthe demand in the market and carrying out product research firm introduced this product in the market.Firm directly import product from factories that are producer of high quality. Whereas V- revolutionalso sells e-cigarettes, e- liquid and wide ranges of accessories to serve its market in unique manner.Market share of ECL is 22.89m $ and its revenue on an average in the year 2013 was 3.1 million $.ECL is the major competitor of Vape.co due to which its financial performance has been taken intoconsideration. Furthermore marketing policy of organization is totally different from others where e-cigarettes are promoted by the marketers with the help of online websites and physical stores. Thisdirectly helps organization in attracting large number of customers towards highly differentiatedproducts (Johnson and Clark, 2006). Operations strategy of the entity takes into consideration theeffective ways adopted by management for carrying out operations as per need of customers. All theoperations are carried out by firm with the help of its stores and online so this increases businessefficiency. Survey methodologySurvey methodology is beneficial for the present study as it is on the basis of this accurateinformation that can be acquired regarding use of E-cigarette in the market. Furthermore in this regard,questionnaire and interview has been considered so as to obtain important information from therespondents. Such type of methodology posses’ face to face interaction and in turn data collected isreliable. Therefore with the help of information collected company can easily take different decisionsthat are linked with development (Kaplowitz, Hadlock and Levine, 2004).Sample sizeIn the present study sample size of 100 people has been chosen so that consumption of E-cigarette can be known easily. Furthermore the sample size has been chosen keeping in view therequirement of the study. On the other hand, to determine the validity of the data information has beencollected from reliable source like questionnaire has been used, no baseness and manipulation ispresent in the research. Furthermore in literature review information published which is very old is notconsidered (Kotzab and et.al, 2011). So in this way it can be said that data collected is valid. For
collecting data both primary and secondary sources it have been considered through which accurateinformation can be gained in relation with e-cigarette market and data has been analysed with the helpof statistical tools like mean, mode, median etc. TASK 2 UNDERSTANDING RANGE OF TECHNIQUES TO ANALYSE DATA EFFECTIVELYAge group Population (f)Mid value (x) (fx)CumulativefrequencyUnder 109545910 – 20 years8151201720 – 30 years7251752430 – 40 years7352453140 - 50 years 7453153850 – 60 years7553854560 – 70 years5653255070 – 80 years3752255380 – 100 years19090540123456789100102030405060Analysis of data to draw valid conclusionsMean = ∑fx∑f
= 192554= 35.64Median = L + ∑f2−cffmedianclass∗cw= 30 + 542−247∗10= 34.28Mode = L + fm−fp2fm−fp−fs∗cw = 0 + 9−011∗10=8.18Standard deviation = √∑fx2∑f−¿¿¿ = 192554−(35.64)2= 22.69Mean 35.6481481481Median 34.28Mode8.18Lower Quartile 7Upper Quartile 54.50Value of semi-interquartile rangeSemiinterquartilerange=(Q3−Q1)/2¿5 4.5−7/223.75Quartile and percentilePercentile and quartile can be defined as the value of variable on the basis of its position inpopulation. Precise segregation of data size can be done through the computation of quartile andpercentile.
Correlation and coefficientIt is computed to depict the relationship between two more variables. If positive correlation exists then both the variables tend to move together (Montier, 2010). If correlation between variables is negative, variables tend to offset each other. And zero correlation shows change in one variable which do not affect other variable. Calculation of standard deviation and rangeStandard deviationStandard deviation of present data size is 22.69. It is comparatively low which represents lowerfluctuation in the present data size. Standard deviation = √∑fx2∑f−¿¿¿ = 192554−(35.64)2 = 22.69RangeFrom the computation of the range of present data size it can be noticed that gap between highest andlowest variable is of 100. R ange=h ig h estva lue−lo w estva lu e¿100−0100
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