Blackfriars Restaurant Expansion Plan

This assignment analyzes the proposed expansion of Blackfriars Restaurant. It examines customer satisfaction, quality service perceptions, and financial projections using techniques like IRR and time scheduling. The analysis also incorporates a network diagram for project planning and emphasizes the importance of business decision-making for organizational effectiveness.

BUSINESS DECISION
MAKING

INDEX OF TABLES
Table 1: Mean, mode and median value of collected data...............................................................4
Table 2: NPV.................................................................................................................................18
Table 3: IRR...................................................................................................................................19

ILLUSTRATION INDEX
Illustration 1: Formula used for calculating mean...........................................................................5
Illustration 2: Median calculation formula (If number of respondents are even)...........................7
Illustration 3: Formula to evaluate Standard Deviation...................................................................8
Illustration 4: Example to calculate quartiles of collected data.......................................................9
Illustration 5: Formula for correlation...........................................................................................10
Illustration 6: Customers' satisfaction with organization's restaurant ...........................................11
Illustration 7: Blackfarias restaurant's reputation..........................................................................12
Illustration 8: Quality services to be focused on............................................................................13
Illustration 9: Customer dealing services of organization.............................................................14
Illustration 10: Trend lines for forecasting....................................................................................15
Illustration 11: Time schedule.......................................................................................................17
Illustration 12: Critical path for project plan.................................................................................18
Illustration 13: Network diagram...................................................................................................19

INTRODUCTION
Decision making in business entity is process for planning on operations that impacts on
entity's effectiveness. In this regard, planning is created for management of business activities
and increasing its efficiencies. This report is to understand business decision making process for
Blackfrias restaurant. It is food and accommodation services provider organization of UK that
wants to expand its entity through establishing new branches. However, different data collection
methods and survey methodology is to be described. Including this, various tools and techniques
for decision making involving dispersion, trend lines can be expressed through this assignment.
Moreover, some information processing and financial to be explained that affects organization's
effectiveness. Hence, learners are able to understand significance of business decision making
process for its expansion and improving efficiency through this report project.
TASK 1
1.1 Data collection methods
There are different kinds of methods are used for collecting data at primary and
secondary level. In this process, information are gathered at first time through primary data
collection while collecting data through secondary collection method are done by using ready
materials such as newspaper, government publications and so on (Anderson and et.al., 2015). In
brief, methods for data collections can be understood as:
Primary data collection:- Under this data collection method, researcher conducts survey
which of several kinds like sample random, cluster, simple random sampling and organizing
interview regrading business performances. Thus, collected data through primary level has
neither any connection with past activities and future intentions. Therefore, current position of
organization and its market value is obtained through this process. In this process, primary data
collection is a technique for presenting actual organization's performance therefore further
decisions can be made in future time regarding business operations (Cleary, Horsfall and Hayter,
2014).
Secondary data collection:- In this regard, data are collected through prepared material
as analysing business performance by different financial and non-monetary tools. For example;
recognizing profit and loss account, balance sheet, income statements for organization's
1

effectiveness. Including this, he also identifies production and distribution of goods as well
inventory management functions.
Thus, data are collected through theses above mentioned methods that effect
organization's effectiveness also generates various ideas for implementing plans through
forecasting and decision making process (Ford and Richardson, 2013). In addition to this,
primary and secondary data collection methods are applied for analyzing business' performance
and further preparing plans. Hence, data collecting methods are useful for better quality services
as well making decisions to improve its efficiency at high level.
1.2 Survey methodology and sampling frame
Survey is primary data collection method in which researcher prepares questionnaire
consists of a list for asking views respondents related to organization's performance. In this
process, Blackfrias restaurant's actual performance is determined for presenting market value as
well (Blackfrias restaurant, 2016). However, survey method is applied for selecting people
related to business' quality services. In accordance to this, researcher of entity chooses 20
respondents randomly through asking questions presented in questionnaire.
Sampling frame:- From all of the people, choosing respondents through sample framing
is essential for presenting actual business performance. In this regard, selecting respondents
through sampling and conducting survey (Goetsch and Davis, 2014). Therefore, survey is
organized through selecting sample people randomly.
1.3 Questionnaire
Questionnaire is consists of a list of questions regarding presenting business performance.
For which, researcher of Blackfrias restaurant prepared following questionnaire that proceed to
making decisions for organization's effectiveness:-
Name:
Q.1 In which of the following age group you are belonged to?
 15-25
 26-35
 36-50
 Above 50
2

Q.2 How about restaurant's services facilities?
 Effective
 Satisfactory
 Ineffective
 Unsatisfactory
Q.3 At how much time you visit Blackfrias for taking advantage of its services?
 2-3 times weekly
 3-4 times in a week
 Monthly
 Rare
Q.4 Which service of the entity attracts to you the most?
 Variety in food
 Accommodation
 Customer dealing
Q. 5 In your opinion, is given order for food through online reaches out to customers?
 Yes
 No
Q.6 Comment on Blackfris customer dealing services.
 Attractive
 Satisfactory
 Ineffective
Q.7 According to you, which service facility is required to be focused on by organization?
 Innovations in food
 Accommodation facilities
 Both services
 None of these.
3

TASK 2
2.1 Information for decision making
Expansion of Blackfrias is possible through determining estimation of average collected
data. Under which, different tools are used for interpreting quality of organization for further
operations such as mean, median and mode. In this regard, all the three interpretations are as:
 Mean:- It is data interpretation method for determining average of overall collected
information conducted in a variable. Therefore, recognizing this data, further decisions
can be made in future time. However, planning including forecasting and decision
making is done through estimating average for organization's effectiveness.
 Median:- Under this data interpretation, mid value of the variable is selected as median
on the basis of which further decisions are made for operating business activities (Taylor,
Bogdan and DeVault, 2015). In accordance to this, it is considered as data estimation and
evaluation process for recognizing production and distribution system of Blackfrais
restaurant. Therefore, calculating median is also great tool for business decision making
process.
 Mode:- In this process, repeated data are considered as goal and actual organization's
performer makes decisions for further business operations. In accordance to this, mode is
frequency tool for decision making related to business organization's effectiveness (Tun
and et.al., 2016).
2.2 Data interpretation
Decision maker of organization evaluates mean, median and mode for analyzing
production and distribution system of restaurant services. In this process, following information
has been gathered as well remains able to steeping towards further decision making process.
Thus, these tools can are presented as below for identifying Blackfrias restaurant's production
and distribution system:-
Table 1: Mean, mode and median value of collected data
Year Sales Profit
2010 15000 3000
2011 18000 3600
4

2012 22000 4400
2013 28000 5600
2014 32000 6400
2015 36000 7200
2016 40000 8000
Mean 27285.71 5457.14
Median 28000 5600
Mode 0
SD
9357.96070
5807
Q1 20000
Q2 28000
Q3 34000
Correlation 1
Mean:- As per this data interpretation, it is analysed that from year 2010 to 2016, there
are different earning is gained for providing restaurant's services. However, this sales pieces are
15000, 18000, 22000, 28000, 32000, 36000 and 40000 sequentially for 2010 to 2016. It is
recognized that organization has gained continuous profit regarding business operations that
affects further implementation. Formula used for evaluating mean is as:
5

Illustration
1: Formula used for calculating
mean
(Source: Data estimation
formula, 2016).
Here, sigma denotes summation of overall collected data
x refers to respond/selected rank by respondents of UKCBC
And, N= total number of respondents
However, for making decision in future time, average of this collected data is evaluated
that is considered as decision making tool for further time. Therefore, mean is determined
through dividing sum of collected data to total number of years. In this regard, average of
collected data is calculated as 27285.71 that is effective for carrying on entity and improving its
efficiency. Thus, organization has enough fund to be used for establishing its new branch in
London that impacts on its effectiveness.
Mean (Sales)= [(15000+18000+22000+28000+32000+36000+40000)/7] = 27285.71
Mean (Profit)= [(3000+3600+4400+5600+6400+7200)/7] = 5457.14
It is interpreted that average of sales for operations is 27285.714 and same for profit is
5457.14 which is effective and shows good financial performance of the enterprise. However, on
avaerage, Blackfrias restaurant's sales and profit is quite effective therefore, it can make decision
for its further expansion.
Median:- For calculating this data, all collected information are split ed into two parts as
well mid value is obtained that is considered as decision-making tool for further implementation.
In accordance to this, mid value of variable is 28000 therefore, in future time, firm can expand its
business entity that affects its productivity and profitability.
6

Formula to evaluate median:
If total number of respondents are odd then used formula is:
Median= [(n+1)/2)th term)]
Here,
Median (Sales)= [(7+1)/2)th term)]= 4th term= 28000
Median (Profit) = 5600
On average 28000 of sales, Blackfrias gains profit of 5600 which is favourable for its
expansion and investment on its operations. Therefore, it can be analysed that decisions can be
made for restaurant's effectiveness in the future time.
For even number of respondents, used formula is:
Illustration 2: Median calculation formula (If number of respondents are even)
(Source: Data estimation formula, 2016).
Thus, through calculating median, further decisions can be made for implementing its
quality services. However, it is estimation for operating business activities in future time that is
interlinked with its efficiency and effectiveness for proper management regarding organization's
existence.
Mode:- It is evaluated as frequency of repeated data in given data of variable. However,
there is no similar selling price is obtained in any year. Therefore, mode value is on sales and
profit is determined as zero. But according to analysing all years' performance, it is identified
that Blackfrias has achieved continuous growth that is effective and action oriented thing for
7

further years' transaction. Thus, it can be forecast that restaurant can increase its efficiency as
well quality services through establishing new branch as well making decisions for improving its
efficiency at high level.
2.3 Dispersion (Standard deviation)
Under this data interpretation, variances are presented of different collected data. It
measures spread out numbers obtained in the given variable (Wright and et.al., 2016). However,
it is so complex to determine standard deviation of any variable for making decisions regarding
further business operations. It is evaluated through following formula as:-
Where, ∑= sum of all data set
x= Value in data set
X (bar)= mean of the data set
n= number of data points
Thus, variance between overall set data is calculated through this process that leads to
make decisions for business operations. However, standard data of presented variable is
measured as 9357.96. On the basis of this variation, different ideas are generated for
implementing further action plans to gain organization's effectiveness and its expansion through
preparing plan for setting up its new branch. Hence, dispersion is effective for operating business
activities and making decisions for business plans in future time.
8
Illustration 3: Formula to evaluate Standard
Deviation

2.4 Qurtiles, percentiles and correlation
Quartiules/percentiles:- It is measured in three divisions for analyzing profit margin of
25%, 50% and 75%. However, overall collected data is divided into three segments per 100.
Therefore, 25th percentile is known as first quartile (Q1), middile is as second qurtile and finally
third refers to third quartiles. In general, these are particular kinds of quantiles. As per data
interpretation, it is recognized that the three quartiles are measured as 20000, 28000 and 34000
which performs good earning potential of organization on the basis of which further decisions
can be made to operate business activities. In this process, it is determined that Blackfrias
restaurant can improve its service quality for future decision making process. It can be forecast
that organization can enhance its performance in future time to operate business activities.
Quartiles is evaluated as:
Correlation:- It presents relationship between two variables that shows organization's
performance. According to this data interpretation, correlation is measured between sales and
profit margin. However, for each year from 2010 to 2016, overall relation is measured between
both the variables. As profit is earned by Blackfrias restaurant is 20% for all years then lastly
correlation is calculated as 1 which presents quite effective performance of organization as per
which further decisions are made in future time for adequate production and distribution
facilitated by entity. It is considered that an ideal company has correlation of 1 and of positive
9
Illustration 4: Example to calculate quartiles of
collected data
(Source: Quartiles' example, 2016).

figure. In this regard, the present organization's correlation is quite effective that is useful for
firm's further operations.
Used formula to calculate correlation is:
TASK 3
3.1 Graphical representation
Thematic analysis
Theme 1: Customer satisfaction with organization's restaurant
Effective 7
Satisfactory 8
Ineffective 3
Unsatisfactory 2
10
Illustration 5: Formula for correlation
(Source: Used formula to evaluate correlation, 2016).

Interpretation:- Researcher of the organization collects data for analysing customers'
views on service qualities of Blackfrias hotel. According to data interpretation, it is analysed that
respondents are quite attracted towards restaurant's services. 8 out of 20 respondents are satisfied
with overall services provided by organizations. Thus, it can be forecast that in future time,
organization can attract consumer as well can maintain their attraction through innovations for
effective sustainability for long time periodicity.
Theme 2: Blackfarias restaurant reputation
2-3 times weekly 9
3-4 times in a week 7
once in a month 2
Rarely 2
11
Effective Satisfactory Ineffective Unsatisfactory
0
1
2
3
4
5
6
7
8
9
Illustration 6: Customers' satisfaction with organization's restaurant

Interpretation:- Under this research, analyst ask respondents' frequency to visit
organization that presents restaurant's reputation. It is recognized that 9 out of 20 respondents are
come to organization as 2-3 times in a week for taking advantage of hotel services. It is identified
that entity has good reputation as well its services are attractive to pull customers effectively.
Theme 3: Quality services to be focused on
Innovations in food 3
Accommodation facilities 10
Both services 5
None of these. 2
12
2-3 times weekly 3-4 times in a week once in a month Rarely
0
1
2
3
4
5
6
7
8
9
10
Illustration 7: Blackfarias restaurant's reputation

Interpretation:- In this research process, analyst asks respondents views on focusing on
quality services for organization's effectiveness. In this process, it is analysed that entity requires
to focusing on accommodation facilities at high level. Although, customers are attracted towards
its service qualities but it is needed to be concentrated on accommodation/ staying facilities that
will be able for its effectiveness at high level.
Theme 4: Customer dealing services of organization
Attractive 7
Satisfactory 9
Ineffective 4
13
Innovations in food
Accommodation facilities
Both services
None of these.
0
2
4
6
8
10
12
Illustration 8: Quality services to be focused on

Interpretation:- Researcher asks for customer dealing services of Blackfrais restaurant
that affects on organization's effectiveness. In accordance to this, respondents are highly satisfied
with customer dealing services at high level however, 9 out of 20 respondents are properly
satisfied with hotel services as well workers' performance for making decisions regarding
organization's effectiveness.
3.2 Trend lines for forecasting
14
Attractive Satisfactory Ineffective
0
1
2
3
4
5
6
7
8
9
10
Illustration 9: Customer dealing services of organization

Interpretation:- According to trend line method, it is analysed that sales and profit of
organization has increased at high level continuously. However, it is indicated that entity's
efficiency can enhance in the future time. In this regard, by making decisions and preparing
plans further business operations can be efficient to sustain organization's position as well
gaining continuing growth at high level.
3.3 Power point presentation
Enclosed in ppt.
3.4 Business report
To
The Board of directors
Blackfrais
As per the data interpretation, it is analysed that organization has earned quite effective
for providing hotel services. However, decisions can be made according to analyzing current
position of organization. In this regard, various tools and techniques are obtained for decision-
making process to expand Blackfrais restaurant's new branch in London. Therefore, conducting
survey and presenting questionnaire to ask customers; views on quality services of entity is
15
1 2 3 4 5 6 7
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
15000
18000
22000
28000
32000
36000
40000
f(x) = 4321.43x + 10000
Column C
Linear (Column C)
Illustration 10: Trend lines for forecasting

described. In addition to this, researcher collects data through survey method and further
manager/decision maker of organization analyzes current position on the basis of which further
decisions are made. Hence, planning including forecasting and decision-making is done through
this process that impacts on organization's effectiveness. Including this, various ideas are
created for improving efficiency and better quality of services at high level. Thus, business and
competitive strategies improving ideas are presented that impacts on organization's growth.
TASK 4
4.1 Appropriate information processing tools
Different level managers of Blackfrias restaurant uses various tools for exchanging data
including Transaction Processing System (TPS), Management Information System (MIS) and
Decision Support System (DSS). However, top level managers as executives, CEO, COO uses
TPS system for transacting information as well making decisions for organization's
effectiveness. In this regard, information are exchanged form place to another through this
process system to communicate effectively (Yu, 2013). Including this, MIS system is used by
middle level managers of Blackfrias restaurant including marketing, sales, HR and different
managers who coordinates each other and makes decisions for further implementation.
Moreover, through DPS system, low level managers of organization gains data and information
to be followed on well gains guidelines for contributing in business operations effectively. Thus,
different kinds of transaction information systems are used for making decisions as well
exchanging data effectively that affects business operations.
4.2 Project plan and critical method
16

17
Illustration 11: Time schedule

Critical path method:-
Project is plan to start on 2nd October and is to be completed on 6th November. In this
schedule, for all tasks of the project, an appropriate time is set as for analysing the business
performance, formulating and implementing strategies as well evaluating performance.
Therefore, data can be collected properly on which further decisions are made for organisation's
effectiveness.
Network diagram:-
18
Illustration 12: Critical path for project plan

Interpretation:- It is analysed that project manager of the organization set timing for a
particular activity that is interlinked with projecting and to be reached out to set target.
Therefore, on the basis of this planning procedure, specific goal is achieved effectively.
4.3 Financial tools for decision making
Financial tools are components to present economic position of organization on the basis
of which decisions are made in future time. It includes tools such as profit and loss account,
income statements, cash flow, fund flow and several techniques that are useful for making
decisions regarding funding (Zsambok and Klein, 2014). In accordance to this, investment
appraisal techniques are used for decision making on investment as Net Present Value (NPV),
Internal Rate of Return (IRR), Pay Back Period method and so on. Therefore, estimation for
returm on investment is created thereby project can be selected for business operations.
However, through NPV, present value is analyzed by which further decisions can be made for
proper investment.
NPV:- It is considered as estimating net present value of investment is presented through
this method (Cleary, Horsfall and Hayter, 2014). In this regard, net present value is that method
to reflect to return on projecting for proper investment.
Table 2: NPV
Initial investment 190000 PV
19
Illustration 13: Network diagram

Cash inflow(1st year) 50000 56000
2nd year 64000 80281.6
3rd year 58000 81485.824
4th year 70000 110146.3552
Total Pv 327913.7792
NPV 137913.7792
Interpretation:- Through this data interpretation, it is evaluated that initial investment for
organization is 190000 and cash inflows for all four further years are different such as 50000,
64000, 58000 and 70000 respectively. Inlcuing this, profit percentage for each year is determined
as 12%. In addition to this, present value is determined by the formula as [cash inflow of the year
(1+profit percentage)^number of year]. Therefore, present value for all four years are evaluated
as 56000, 80281.6, 81485.82 and 110146.35 respectively that is quite increasing and effective for
organization's development. However, it can be forecast that project planning related to
expansion of Blackfrais restaurant will be succeed that affects its further business operations.
Thus, net present value is evaluated by deducting total sum of present value with initial
investment so for this project, NPV is calculated as 137913.7792 therefore, further investment
can be effective for business organization.
IRR:- It is investment appraisal technique for forecasting related to projecting and return
on it. In accordance to this, return profitability percentage is determined that affects on
organization's further implementation (Goetsch and Davis, 2014). However, internal rate of
return on projection is obtained that creates idea for investing and return on it.
Table 3: IRR
Initial investment -190000
Cash inflow(1st year) 50000
2nd year 64000
3rd year 58000
20

4th year 70000
Total cash inflow 242000
IRR 30.51%
Interpretation:- According to this data interpretation, it is eventuated that return on
investment as IRR would be 30.51%. Therefore, organization can make decision for investing
fund according to IRR approach. It is forecast that percentage for return is quite high and
effective therefore proper implementation can be gained however project would be succeed
effectively.
CONCLUSION
With the help of this report, it is concluded that decision making regarding is essential
for expansion of Blackfrias restaurant and improving its efficiency. In this regard, different
research methods and questionnaire is presented for asking views of customers relate to quality
services of organization thereby further decisions can be made to create innovations. However,
significance of business decision making is obtained that affects on entity's effectiveness in
future time. Including this, investment appraisal techniques and financial tools are understood to
present actual performance of organization and selecting best appropriate project for
organization's effectiveness through this assignment.
21

REFERENCE
22

Data estimation formula. 2016. Available through: <http://formulas.tutorvista.com/math/mean-
median-mode-formula.html>. [Accessed on 21st October 2017].
23