Decision Making in Business Operations

This assignment provides an overview of decision-making techniques and tools used in business operations. It includes references to relevant research papers, books, and online resources that discuss various approaches to making decisions, such as fuzzy multicriteria decision-making, balanced scorecard-based analytic network process, and naturalistic decision-making. The assignment also touches on the importance of trend lines in future forecasting and the use of financial tools for project feasibility estimation.

Business Decision Making

CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Creation of plan for collecting primary and secondary data..................................................1
1.2 Survey methodology and sample frame used........................................................................2
1.3 Designing of questionnaire....................................................................................................2
2.1 Calculation of measure of central tendency...........................................................................4
2.2 Calculation of measure of dispersion....................................................................................4
2.3 Evaluation of variances..........................................................................................................5
2.4 Determination of correlation coefficient...............................................................................5
TASK 2............................................................................................................................................5
3.1 Creation of graphs and charts................................................................................................5
3.2 Evaluation of trend lines for future forecasting.....................................................................7
3.3 Presentation for project..........................................................................................................8
3.4 Presentation of report for management..................................................................................8
TASK 3............................................................................................................................................8
4.1 Use of information processing tool........................................................................................8
4.2 Project plan for preparing Gantt chart and Critical path........................................................9
4.3 Financial tools for determining future.................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
It is a duty of business managers to collect various information and data which is related with an
organisation so that better and effective decision making become possible (Bhattacharya and et.
al., 2015). Business need a keen focus on all its long term objectives and aims through which all
targets get accomplish in a significant manner. This project signifies about Murano whom want
to open up another chain of their restaurant in London due to past year success rate and increase
of customer satisfaction. For this context, management need to collate information from market
by applying relevant method and creation of plan. Along with this, they need to disseminate such
data in a simple format so that it become understand for senior management and present it by
using appropriate graphs and charts. Moreover, for analysing the suitability and long term
sustainability of project, managers need to apply relevant financial approaches so that better and
appropriate decision making get promoted. All these factors will lead to evaluate in this project
for encouraging decision of management of Murano.
TASK 1
1.1 Creation of plan for collecting primary and secondary data
Social affair of data plans to accumulate information from open and meet up at a
particular decision (Franks and et. al., 2013). For this circumstance, Murano needs to open
another outlet of their hotel in London. As the hotel is a place which is accessible to the overall
public, no association has to know general perceivability regarding the advancement of new
motel. There should be suitably kept inefficient path so there is no confuse with respect to
delayed consequences of serve. There are two ways to deal with assemble to accumulate
information for handling any issue and pick up a particular decision which are stated as follow:
• Primary data
• Secondary data
Primary or fundamental data: Research under basic data is painstakingly fit. These data are as
per the examination of the affiliation (Wood and Williams, 2014). This data is versatile and
move as indicated by the situation. Hindrance of this technique is that is exorbitant and dreary. If
Murano restaurant applies this procedure at that point immediately they have to set illustration in
light of which they turn out with a result.
Secondary data: When data is accumulated by some office or experts of an affiliation then it is
assistant data. Generally, this technique is used when masses gauge is more. This strategy
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expects time and cost as a connection with fundamental data. Now and again there are chances
that data saved through discretionary data isn't ideal the necessity for the affiliation. Data picked
from the discretionary research may be non-stream which may end up being incorrectly for the
decision of the affiliation.
As Murano restaurant needs to open another motel in London and it is a basic decision
which cost giant store and time so the association should support both the procedures to examine
the customer slant.
1.2 Survey methodology and sample frame used
Inspecting configuration is a system for the overview. The number of inhabitants in
which examination to be done is inspecting outline. Murano eatery needs to first break down the
focused on groups of onlookers to whom they approach. Chosen open will be the general
population who visit inns much of the time and have an essence of various assortments of
nourishment.
Survey: Murano can utilize the poll as to know the perspective of open about their new opening.
Nowadays numerous lodgings and eateries are utilizing this procedure. This technique is
anything but difficult to approach individuals who visit inns and motels regularly.
Web-based social networking: Social media is extremely dynamic technique nowadays. The
upside of web-based social networking is that it is anything but difficult to reach and can without
much of a stretch get a return from people in general (Gaillard, 2014). As this strategy is
indifferent in nature there are odds of obliviousness by the general population.
Overview philosophy is a strategy utilized for the study. According to the prerequisite of a
circumstance, overview technique is utilized. In the wake of gathering study, there is factual
computation has been done which help in getting a choice whether Murano needs to open an inn
in London or not or of what kind. The example for the review ought to be chosen according to
the prerequisite of the association. While choosing test there ought not to be biased, else, it might
influence the consequences of a review.
1.3 Designing of questionnaire
Questionnaire includes various important articles which are helpful in determining several
people opinion and consideration. It is one of way for making things correct and appropriate so
that future oriented outcome become effective. This questionnaire is based on Murano restaurant
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whom want to open up another food chain in London and for this they need to estimates about
taste and preferences of their users.
QUESTIONNAIRE
Name:
E- mail:
Gender:
Age:
Address:
Q1. How many times you visit to restaurant within two months?
a) Less than 5 times
b) More than 5 times
Q2.Do you think that prices or range of products and services are acceptable to you?
a) Yes
b) No
Q3. Which is consider as best thing about Murano restaurant?
a) Location
b) Food
c) Ambience
Q4. What is your perspective for Murano restaurant?
a) Positive
b) Negative
Q5. Do you really think another chain provide benefits?
a) Yes
b) No
Q6. Provide ratings for restaurant?
a) Good
b) Moderate
c) Low
Q7. Which is one of a most convenient location for their new restaurant?
a) Seaside
b) Rooftop
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Q8. Do you like excitement offers and vouchers of a restaurant?
a) Agree
b) Disagree
Q9. Are the opening and closing hours of restaurant need to get expanding?
a) Yes
b) No
Q10. Provide any further suggestion or recommendations?
2.1 Calculation of measure of central tendency
Data creation is not an easy thing but it become simple by collate data from various
sources especially from diverse number of respondents make it easy to disseminate and take
beneficial decision making. This information creation is based on 90 respondents of Murano
restaurant which is based on evaluating decision making of another chain outlet.
Question R 1 R 2 R 3 Total
1 25 65 90
2 53 37 90
3 20 50 20 90
4 77 13 90
5 75 15 90
6 70 8 12 90
7 30 60 90
8 69 21 90
9 79 11 90
2.2 Calculation of measure of dispersion
Question R 1 R 2 R 3 Total Mean Median Mode
1 25 65 90 45 45 #VALUE!
2 53 37 90 45 45 #VALUE!
3 20 50 20 90 30 20 20
4 77 13 90 45 45 #VALUE!
5 75 15 90 45 45 #VALUE!
6 70 8 12 90 30 12 #N/A
7 30 60 90 45 45 #VALUE!
8 69 21 90 45 45 #VALUE!
9 79 11 90 45 45 #VALUE!
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Mean: It is an average of a series so that appropriate result or outcome could be gain in order to
maximise efficiency of business. This is one of most effective way of measure of central
tendency so that suitable results get drawn. This mean calculation is for Murano restaurant in
which more than 5 time visit of customers take place within two months which signifies that
hotel have good customer base.
Median: Another method is median which support in determine mid value of series. On the basis
of this technique, it get determine that business have various consents which made them different
from others out of which food quality is one of a best thing which attract and grab more and
more number of users.
Mode: This is consider as most occurring value or frequency of a series. This stated about how a
value lead to impact upon on a series. This stated that in Murano environment and ambience of
restaurant is good for which 20 respondents stated their same view.
2.3 Evaluation of variances
Question R 1 R 2 R 3 Total Variances Standard
Deviation
1 25 65 90 800 28.28427
2 53 37 90 128 11.31371
3 20 50 20 90 300 17.32051
4 77 13 90 2048 45.25483
5 75 15 90 1800 42.42641
6 70 8 12 90 1204 34.6987
7 30 60 90 450 21.2132
8 69 21 90 1152 33.94113
9 79 11 90 2312 48.08326
Variances: This is consider as changes or variations which arise in a series. Thus, their
computation is important for business to determine that how much changes arise in a series due
to change in customer taste and preferences so that suitable strategies get frame.
Standard Deviation: One of a most convenient thing in measure of dispersion in which all
differences which comes in a frequency distribution table get determine. Although, it is
important for business to evaluate all frequent changes properly so that suitable judgement lead
to get carried down.
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2.4 Determination of correlation coefficient
Question R 1 R 2 R 3 Total Correlation
Coefficient
1 25 65 90 -1
2 53 37 90
3 20 50 20 90 -0.54909
4 77 13 90 1
5 75 15 90
6 70 8 12 90
7 30 60 90
8 69 21 90 -1
9 79 11 90
Correlation coefficient: This is a relationship between two variables of a series so that each
other impact get evaluated properly. It is important to evaluate the relationship in an appropriate
frame so that suitable business decision making lead to get drawn up.
TASK 2
3.1 Creation of graphs and charts
1. On an average more than 65 respondents stated that they visit to restaurant more than 5
times within two months. This signifies many customers like taste of products and
services of restaurant which enable them in enhance profitability and productivity.
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2. This graph stated that food is best thing about restaurant which signifies that Chef are
well trained and they know variety and taste of customers properly. Thus, it is consider as
best thing about restaurant and enable them in creating suitable customer base.
3.2 Evaluation of trend lines for future forecasting
Yes No
0
10
20
30
40
50
60
70
80 75
5
Column B
Linear (Column B)
Another chain of restaurant provide benefits to most number of customers which stated that it
enables in creating customer base in future context as well. Thus, future forecasting for this
perspective is helpful and support in decision of another outlet for Murano.
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Yes No
0
10
20
30
40
50
60
70
80
90 79
1
Column B
Linear (Column B)
Murano opens in morning at 11:00 a.m. And close at 10 p.m.; therefore, various individuals want
that they need to expand their timing. This will help them to improve their customer base. From
above presented graph, almost 79 individuals are in favour of this statement but remaining
individual are not favouring it.
3.3 Presentation for project
3.4 Presentation of report for management
The Management
Murano Restaurant
Dated: 15th January 2018
Subject: Recommendation for a new restaurant chain
The rapid change in customer taste and preference make it difficult for many organisations to
sustain into keen competitive world. Thus, there are various situation arise in front of an
organisation which impacted there business operations adversely and not consider as supportive
essential. Thus, for this context, Murano restaurant conduct a survey for determine their various
users’ perspective properly. From the stated survey, it get evaluated that management need to
change their location of restaurant and operate at such place from where users easily reach and a
sense of heel get promoted. Along with this, staff behaviour need to get improvise as well which
stated that more and more training need to provide each and every employee of a company.
Moreover, chef work are appropriate which stated that there is no need to modify chef of
restaurant. They are providing best and quality products with all will which stated that
appropriate bonus have to provide to cooking team. This lead to motivate them and continuously
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enable management towards growth and development. Hence, taste and suitable skill cooking
team are key determinants of restaurant which not need to get alter or modify. There are several
places which need more and more attention.
Thank You
XYZ
TASK 3
4.1 Use of information processing tool
There are various information processing tool are determine by business managers at each level
which enables them in order to disseminate each and every context properly (Hartman and et. al.,
2014). It is important for an organisation to evaluate each and every concept properly and utilise
it into business operations for better and appropriate decision making. Murano can apply relevant
information processing tool into business so that better and appropriate information processing
tool get manage:
 Management information system: It is a mechanized database which stores information
and offers data to administration with the goal that they can take the choices. It causes
them in operations work ((Tjader and et. al., 2014).. They can make short reports with
respect to deals, generation and so on. Individuals can likewise assess their execution by
contrasting genuine information and standard information with current year when
contrasted with past information. So they can take remedial activities to enhance them.
Supervisor can take choices too. Murano have to use MIS into business so that better
and relevant information get transfer to higher authority.
 Decision support system: It is an application which helps in assessing the business
information and after that present it to the clients of the organization. It is valuable to
the company. An organization can check the incomes and costs of the organization. A
firm can assess the results of their choices. They can make reports and can take normal
and future choices. Administration additionally encourages them to contrast standard
execution and genuine execution, can check incomes and costs of present year with that
of a year ago which causes them to take remedial activities. So it is an extremely
helpful, pertinent, doable programming which gives many advantages to the
organization.
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4.2 Project plan for preparing Gantt chart and Critical path
It is an arranging device which sets starting and consummation dates of every
undertaking and distinctive exercises. So Murano can apply this procedure as it gives diverse
advantages
• Check advance – Company can analyse advance of exercises .Thus they can take
restorative activities in the event that they are any deviations.
• Clarity – Manager can without much of a stretch check the advance of errands so
consequently they can recognize the components which needs change.
• Time administration – They would so be able to their action in appropriate time. So it
builds the proficiency of representatives.
• Coordination – Through appropriate utilization of the assets and exercises, occasions
there is legitimate coordination amongst managers, resources and colleagues. It builds the vitality
level of them
• Motivation – It builds the confidence, zeal and energy. As beginning and consummation
dates are settled.
• Achieve targets – Organization can without much of a stretch accomplish the goals
effectively as they can check their advance auspicious. So they can finish their exercises in time.
Basic way strategy: It is a technique which incorporates imperative and non-essential
exercises to build proficiency and adequacy of a firm. It additionally diminishes the time in
finishing the exercises. Murano eatery can apply this and can take distinctive advantages -
• Reduces time – It helps in lessening time of exercises. So in this way it expands
efficiency of workers and administration.
• Increases inspiration – It expands the inspiration level of workers and along these lines
they can without much of a stretch accomplish their goals.
• Evaluate execution – They can without much of a stretch assess their execution.
Administrators can take remedial activities to enhance them.
Various activities which included in project of Murano restaurant are stated as follow
which need to consider by management in an appropriate frame while starting such project.
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Name of activity Time duration Predecessors
Market scope 4 days
Location for restaurant 3 days 1
Finance 7 days 1
Return on investment 5 days 3
Target market 9 days 1, 2
Advertisements 12 days 3,5
Decision layout 4 days 6
Implementation of project 7 days 7
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4.3 Financial tools for determining future
Finance is a basic need of every business which have to understand by managers and
management of a company so that appropriate decision making get promoted (Solomon, 2014).
It is a duty of business managers to invest in a suitable frame so that better result output could be
gain. For analysing future aspects of business it is important for them to use two best suited
methods which stated as follow:
Net present value: Whenever business invest into an activity it is important for them to
determine the present sum value in contrast to future value when it has been invested at a
compound interest rate. Murano needs to determine the present value of their investment so that
beneficial decision lead to carried down effectively.
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Internal rate of return: It is a process of capital budgeting so that profitability of business
investment get determine. It is completely associated with all internal factors of business and
their influences without considering external elements. Murano have to utilise this method
properly so that better decision making get encourage.
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%
From this project investment, the initial investment is all about 125 interest rate with a
investment of 15000 but in return, company is gaining IRR of 9.94% along with their net present
value of project is also in negative terms which stated that this project is not feasible with present
context.
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CONCLUSION
It get evaluated from this project that business is nothing but a form of various activities
which need appropriate judgement for making things correct and appropriate. There are various
important decisions are related with an organisation which need more appropriate focus.
Managers have to evaluate all factors properly especially customers so that products and services
get render by taking them in consideration. Although, for this context, primary data is helpful in
which questionnaire get applied so that various respondents opinion get underpin. Along with
this, information creation is helpful in order to make it easy and simple and for more clear
comparison various charts and graphs are best. Further, trend line is helpful in future forecasting
so that ethical work get done. With help of financial tools feasibility of project get estimated in
order to gain better results.
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REFERENCES
Books and Journals:
Bhattacharya, A. and et. al., 2015. Green supply chain performance measurement using fuzzy
ANP-based balanced scorecard: a collaborative decision-making approach. Production
Planning & Control. 25(8). pp.698-714.
Franks, D. M., and et. al., 2013. Conflict translates environmental and social risk into business
costs. Proceedings of the National Academy of Sciences. 111(21). pp.7576-7581.
Gaillard, E., 2014. Transnational Law: A Legal System or a Method of Decision Making?.
Arbitration International. 17(1). pp.59-72.
Hartman, L. P. and et. al., 2014. Business ethics: Decision making for personal integrity and
social responsibility. New York: McGraw-Hill.
Kahraman, C. and et. al., 2015. Fuzzy multicriteria decision-making: a literature review.
International Journal of Computational Intelligence Systems. 8(4). pp.637-666.
Mardani, A. and et. al., 2014. Fuzzy multiple criteria decision-making techniques and
applications–Two decades review from 1994 to 2014. Expert Systems with Applications.
42(8). pp.4126-4148.
Pettigrew, A. M., 2014. The politics of organizational decision-making. Routledge.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer
Berlin Heidelberg.
Shepherd, D. A. and et. al., 2012. Thinking about entrepreneurial decision making: Review and
research agenda. Journal of management. 41(1). pp.11-46.
Smith, W. K., 2014. Dynamic decision making: A model of senior leaders managing strategic
paradoxes. Academy of Management Journal. 57(6). pp.1592-1623.
Solomon, M. R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper Saddle
River, NJ: Prentice Hall.
Tjader, Y. and et. al., 2014. Firm-level outsourcing decision making: A balanced scorecard-based
analytic network process model. International Journal of Production Economics. 147.
pp.614-623.
Wood, M. S. and Williams, D. W., 2014. Opportunity evaluation as rule‐based decision making.
Journal of Management Studies. 51(4). pp.573-602.
Zsambok, C. E., 2014. Naturalistic decision making. Psychology Press.
Online:
Tools Used to Process Information. 2017. [Online]. Available through
:<https://itstillworks.com/tools-used-process-information-6982095.html>.
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