Designing a Winning Business Plan for Murano Restaurant

The assignment content discusses the importance of understanding investment appraisal techniques and project plans for Murano restaurant's business decision making. It emphasizes the need for ethical considerations in data collection and conducting surveys, as well as adequate planning for decision-making and expansion. Additionally, it highlights the requirement to implement effective techniques for investment planning and further decisions. The content also provides references to various studies and resources on business decision making and related topics.

BUSINESS DECISION
MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for the collection of the primary and the secondary data for the “Murano”.................1
1.2 Presenting of the survey methodology and using of the frame.............................................2
1.3 Questionnaire for the given business problems in the assignment.......................................3
TASK 2............................................................................................................................................5
2.1 Summarisation of the data and the information for decision making...................................5
2.2 Conclusion...........................................................................................................................11
2.3 Measures of dispersion for the business scenario given.....................................................12
2.4 Use of the quartiles, percentiles and correlation in deducing of meaningful conclusion....15
TASK 2..........................................................................................................................................16
3.1 Deducing of meaningful conclusion in respect to the information derived........................16
3.2 Creating trend lines for assisting the forecasting for particular business information........17
3.3: Presentation in respect to the information deduced from the above information..............18
3.4 Business Report...................................................................................................................22
Task 3.............................................................................................................................................23
4.1, 4.2.......................................................................................................................................23
4.3..............................................................................................................................................26
CONCLUSION..............................................................................................................................29
RECOMMENDATION.................................................................................................................29
References......................................................................................................................................31

Index of Tables
Table 1: Estimated Cash flow........................................................................................................26
Table 2: Net present value.............................................................................................................27
Table 3: Payback period.................................................................................................................28
Table 4: Internal Rate of Return....................................................................................................29

Illustration Index
Illustration 1: Using formula to calculate mean of collected data.................................................12
Illustration 2: Formula for evaluating median on odd number of respondents.............................12
Illustration 3: Formula for evaluating median on even number of respondents............................13
Illustration 4: Using formula to calculate Standard deviation.......................................................13
Illustration 5: Mean, median and mode.........................................................................................14
Illustration 6: Qurtiles....................................................................................................................16
Illustration 7: Visiting new restaurant's factors.............................................................................17
Illustration 8: Trend line for forecasting on Murano restaurant's operations................................18
Illustration 9: Gantt chart for project plan.....................................................................................25
Illustration 10: Network diagram...................................................................................................25
Illustration 11: Used formula for calculating NPV........................................................................27
Illustration 12: Formula for evaluating IRR..................................................................................28

INTRODUCTION
The achievement of success in an organization is best described with the formation of the
decision for the better operation in the society. The availability of the success and the better
management of the resources are determined with the decision made on the finance and the other
operation. The report in here has properly described the importance of the business decision
making. The business decision making here have made proper association for smooth completion
of the report.
TASK 1
1.1 Plan for the collection of the primary and the secondary data for the “Murano”
The plan for the better completion of the research work is developed through the smooth
preparation of the research methodology. The availability of the success and the better
management of the research for the understanding of the situation of “Murano” are ensured. The
plan is created for the smooth development of the acquiring of data for the better completion of
the data for the success in the research work. It is evident that the better plan for the smooth
completion of the research work always demands the support of proper plan in collection of data.
As supported by Heeley et al. (2016 p.149), the two for of collection data are the primary and the
secondary data, that marks the receiving of the information and the completion of the required
objective for the completion of the research objective. The primary data are collected in first
hand basis and secondary data are collected in the basis of other researcher's work.
Data collection methods: Information are gathered through primary and secondary data
collection. It can be described as below: Primary data collection method: In this method, information are gathered through
conducting survey, face to face interview etc by which actual market position of Murano
restaurant can be identified. However, variety of ideas are generated for improving
quality services and effectiveness of the entity (Dillman, Hao and Edwards, 2016). Secondary data collection: On the other hand, under secondary data collection method,
information are collected by using ready and prepared materials. For example; analysing
financial reports of the entity for decision making regarding further years.
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 Survey (Questionnaire): In this research, researcher is to collect data as customers'
views on services provided by Murano restaurant. Therefore, researcher is to select
respondents randomly for analysing their opinions on food and accommodation services
for conducting survey (Heeley and et.al., 2016). For this purpose; he is to prepare
questionnaire consists of questions regarding restaurant's services to identify their
satisfaction level with them. Therefore, data is to be collected in this form for conducting
survey and preparing strategies to maximize their satisfaction level with its services
efficiently.
Plan for the collection of data through the secondary research online process is as follows:
Secondary
Research
Online
Design of
Questionnair
e
Distribution
of
Questionnair
e
Summary of
the answers
Data analysis Conclusions
1 week 1 week 1 week 3 days 6 days 3 days
The plan is very easy attainable as for the logical sequence. The survey for the secondary
methods is well in strategy and properly staged. The availing of the stages require observing of
the results and the better availing of the success results.
1.2 Presenting of the survey methodology and using of the frame
In the methodology section there are two kinds of methods that are to be used in for the
better achieving of the goal. The data collection that mostly deals with the interpretation of data
from reliable source and various websites, which helps in the understanding of the views and the
facts that helps in the understanding of the secondary research methodology. The quantitative
data collection methods are this method which deals with the smooth collection of data with
numeric inclusion of that. The support of the research project is thus based on the better
collection of both the data collection methods. The data collection for the quantitative method
survey will be done. The survey answers would then be converted in numbers for the viability of
the research work. However, as argued by Dowling et al. (2016, p.434), both the methodologies
have its merit and demerits, as the quantitative research deals with large sample size for better
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assumption of the answers and the qualitative survey is more of subjective in nature and seems
difficult to interpret the answers.
Sampling is done through different methods as; systematic, random sampling, cluster
sampling and so on. In systematic sampling method, respondents are selected systematically in a
sequence as well in random sampling, researcher selects respondents unsystematic ally. While, in
cluster sampling method, he conducts survey with a group of people for collecting data (Business
Decision Making, 2016). Thus, in this research process, researcher is to collect data through
selecting respondents randomly for collecting their views on services provided by Murano
restaurant. Therefore, random sampling is to be used for data collection process and further
making decisions to implement their satisfaction level with its services on large scale.
There will be near about 20 respondents for the issue of solving the sampling size. As
supported by Dillman et al. (2016, p.220), the operation of the frame is to understand the smooth
completion of the work and the better results in the research work. The sample size consisted of
people from the age of 18 to 48 including both male and female in the society. The prime
objective concerning this research understands the views of the people in the society regarding
visiting new hotels and restaurants. The research also clearly identifies the status of the factors
that determines the factors that changes the taste and the preferences of the people in the society.
In this research there are generally two prime variables those would help in the better
understanding of the research work.
1.3 Questionnaire for the given business problems in the assignment
As supported by Attard et al. (2016, p.311), the aim of the research is easily attained with
the help of the determination of the aims in the research. The preparation of the questionnaire
takes real hardship over the researcher, but ensures smooth and accurate calculations of the work.
It is evident that the rise in the better evaluation of the support helps in the proper gaining of the
answers through the research done. The closed question asked to the consumers and the people
of the society is for the better supporting of the aim of the research as to simulate the answers
with tin the specific boundary of fulfilling the work. However, there will be o qualitative
information collected for the fulfilment of the information required for the proper finishing of the
research work.
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Survey Questionnaire
The survey questionnaire to be designed for conducting the analysis on the Murano
restaurant could be provided as follows:
Q1: In which age group do you belong?
 17 – 24 years
 25 – 34 years
 34 – 48 years
Q2: what is your sex category?
 Male
 Female
Q3: what is the annual income of your family?
 10k to 20k
 21k to 31k
 32k and above
Q4: How frequently do you visit any restaurant?
 In a week
 One time in two weeks
 One time in a month
 Very less
Q5: what is your per visit spending?
 £10 to £20
 £22 to £52
 £53 and above
Q6: Do you want to try visiting new restaurants?
 Yes
 No
Q7: What can induce you for visiting any new restaurant?
 Reviews of customers
 Friends and family recommendation
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 Work or home proximity
 Brand awareness
Q8: Which factor is the most relevant one to you when you visit any restaurant?
 Atmosphere factor
 Customer service units
 Prices changes
 Menu list and choices
 Location of the place
 All of the above mentioned
Q9: Would you spend more to receive better quality service and food?
 Yes
 No
Q10: Are you interested in recommending the restaurant to your friends as well
as family?
 Yes if I am satisfied with the experience
 No if my expectations have not been met
TASK 2
2.1 Summarisation of the data and the information for decision making
Q1: In which age group do you belong?
17 – 24 10% 1
25 – 34 70% 2
34 – 48 20% 3
Q2: what is your sex category?
Male 65% 1
Female 35% 2
Q3: what is the annual income of your family?
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10k to 20k 25% 1
21k to 31k 50% 2
32k and above 25% 3
Q4: How frequently do you visit any restaurant?
In a week 25% 1
One time in two weeks 55% 2
One time in a month 10% 3
Very less 10% 4
Q5: what is your per visit spending?
£10 to £20 20% 1
£22 to £52 65% 2
£53 and above 15% 3
Q6: Do you want to try visiting new restaurants?
Yes 85% 1
No 15% 2
Q7: What can induce you for visiting any new restaurant?
Reviews of customers 25% 1
Friends and family recommendation 45% 2
Work or home proximity 25% 3
Brand awareness 5% 4
Q8: Which factor is the most relevant one to you when you visit any
restaurant?
Atmosphere factor 15% 1
Customer service units 15% 2
Prices changes 25% 3
Menu list and choices 15% 4
Location of the place 20% 5
All of the above mentioned 10% 6
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Q9: Would you spend more to receive better quality service and
food?
Yes 80% 1
No 20% 2
Q10: Are you interested in recommending the restaurant to your
friends as well as family?
Yes if I am satisfied with the experience 90% 1
No if my expectations have not been met 10% 2
This transformation had been sufficiently done in order to analyse the answers. The
analysis conducted through quantitative data regards to the variability as well as location. As per
the observation of Choi and Lee (2016, p.20742), the location could be defined through the
measurement of mean, mode and median of the respective data set. Variability is supposed to be
derived from the standard deviation. Representing the data through pie charts, line and bar
graphs it would be easier to present the data and read through the analysis.
Percentage of each of the answers is needed to be calculated through dividing the
frequency to total number of the answers or responses for any question which are to be twenty in
number according to this survey.
Depending on the percentages computed for each of the responses, it could be stated that
all the answers together make 100%.
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(Source: learner)
Through the above analysis, it could be stated that 70% of the respondents had agreed
that the age limit would be since 25-34 years.
Figure 2: Sex Category
(Source: learner)
Mainly, there are male respondents who visit restaurants.
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Once in every two weeks the customer visits the restaurants which are quite often.
It could be stated that per visit spending has been mainly ￡21 to ￡50.
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Customers want to try new restaurants of same food quality and prices.
Mainly, the recommendations received from family and friends have induced customers
to visit the restaurant.
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Prices affect mostly when any customer gives it a thought of visiting any restaurant.
Customers are ready to spend more prices in order to receive better quality services and
food.
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The customers would only recommend the restaurant to others if they are completely
satisfied with the services and food quality offered by the restaurant.
2.2 Conclusion
For making accurate conclusions as er the analysis conducted above, there must be a
relationship between the age and interest for spending more in order to get better quality
products and services. The question that refers to the age of respondents has been question 1.
Two of the ten questions have been identified to be significant for deriving the correlation
coefficient. These could be question 1 and question 3 as well as question 1 and question 5 that is
the last visit spending on the restaurants. The correlated values could be derived as follows:
Correl Q1,Q5 0.645
Correl Q1,
Q3
0.131
From the above correlation analysis, it could be stated that question 1 and question 5 has
high correlation that implies they are highly related to each other whereas correlation between
question 1 and question 9 are not too correlated and hence it exerts low value. Other intrusive
conclusions could be drawn from the values represented as well as graphics in previous section
would be presented. Income of the customers highly affects the visits to the restaurants of a
particular consumer. People would visit the restaurants only if their income level permits and
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they find affordable to make the visits and enjoy better quality food and service. According to
the age limits, the customers would make their visits like older people often feel reluctant to visit
any restaurant more than once and hence the individuals like adolescents and middle aged group
feel necessary to visit restaurants for various purposes.
2.3 Measures of dispersion for the business scenario given
Standard deviation had been always an essential measure of dispersion. According to the
observations of Scheffler et al. (2016, p.585), it basically measures the error and variances from
the mean value obtained from the data. The descriptive statistics that have been computed for
each of the questions is presented below and is observed to b e strong between questions 4, 7 as
well as 8. This is because all these questions have 4 answers each.
For estimation of collected data, mean, median, mode and standard deviation are to be
evaluated for using following formula:
 Mean: It is average on collected data which is calculated by using formula as:
Illustration 1: Using
formula to calculate
mean of collected
data
 Median: For evaluating median, used formula is:
(For even number of respondents, formula is):
Illustration 2: Formula for evaluating median on odd
number of respondents
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For odd number of respondents, median is calculated by using following formula as:
Illustration 3: Formula for evaluating median on
even number of respondents
Mode: It is considered as data collected frequently. However, repeated information on any
question is mode on which further decisions are made for business operations.
 Standard deviation: It is to present difference between actual and expected data which
is evaluated by using formula as:
Illustration 4: Using formula to calculate
Standard deviation
 Range: It is obtained as minimum and maximum range on collected overall data.
However, the minimum respond in the list of collected data is considered as minimum
range while the maximum data out of them is considered as maximum range.
 Quartiles (Percentile): The overall collected data is segmented into three parts at the
rate of 25%, 50% and 75%. However, resulted data indicates as Q1, Q2 and Q3
respectively. Thus, further decisions are made for improving them and increasing
effectiveness at high level.
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Illustration 5: Mean, median and mode
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The above different tables of standard deviation also contain other specific measures such
as the maximum as well as minimum values within the data set, the standard error and variance.
The use of standard deviation for the analysis has been done here for signifying variance from
stated mean which becomes the first measure of all calculations.
2.4 Use of the quartiles, percentiles and correlation in deducing of meaningful conclusion
In a similar way, the percentiles and quartiles have been used to enrich the conducted
analysis in the presented report. As per the statements of Slaughter-Acey et al. (2016, p.621),
percentiles are considered to be the summarised measures that express the ranks as the
percentages ranging from 0% to 100%. Quartiles have been used for the above analysis.
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Determination of the 50th, 25th and 75th quartile is performed depending on the stated objective
of above conducted analysis.
Illustration 6: Qurtiles
The values which are obtained through derivation of the percentiles and quartiles exert
same amount for few questions this is because the questions do have same answers. The second
most reason following this would be considered as that the quartile value has been calculated for
25% whereas the percentile value for 30% and they are quite close within the data set.
On the basis of collected data, it is recognised that respondents are satisfied with food and
accommodation services of Murano restaurant. Besides this, it can be forecast that their interest
can be sustained for longer time period. Thus, new branch can be start up that affect its financial
positions.
TASK 2
3.1 Deducing of meaningful conclusion in respect to the information derived
For drawing out meaningful and valid conclusions, findings have been presented utilising
representative instruments such as charts and graphs. Pie charts, line and bar diagrams are
evidently done for every question. A pie chart has been done for question 9 since this kind of
chart illustrates better results in an easier and convenient way for valid interpretation. All the
questions had been presented using bar charts since they consist of limited options in order to
receive possible answers. Bar charts could also be possible for questions 4 as well as 7.
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Illustration 7: Visiting new restaurant's factors
The necessary illustration of question 7 through this bar chart would not contribute a lot
for analysing this case. Relevant charts for managing other questions have been provided within
Task 1.
3.2 Creating trend lines for assisting the forecasting for particular business information
To understand the value of an asset's or a trend for ongoing operation, trend lines are
made. It is evident that the use of the trend lines is common enough to get proper view of the
operation in coming years.
Months No. of visitors
January 1200
February 1400
March 1300
April 1600
May 1800
June 2000
July 2500
August 2000
September 2400
October 1900
November 1700
December 2000
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The trend line for the above table is as follows:
Illustration 8: Trend line for forecasting on Murano restaurant's operations
3.3: Presentation in respect to the information deduced from the above information
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3.4 Business Report
Managing Director
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Murano Restaurant
United Kingdom
Researcher collected data for analysing customers' views on food and accommodation
services of the restaurant. However, it is recognised that customers are satisfied with its services
at most which can be sustained and increased. On the basis of this interpretation, it is suggested
to entity that it should invest fund on establishing new branch. Therefore, by implementing
strategic plans, organisation's financial position can be enhanced at maximum level.
This document is essentially considered to be a business report that is to be presented to
the board of directors. The whole document along with the presentation has been prepared to
assess the analysis in a more detailed way.
The report consists of many sections out of which the first section reveals the objectives
and aims of the conducted research, methodology as well as the survey along with the
justification for choosing the methodology of the research. Second section consists of a
questionnaire based on which the research is to be conducted followed by the third section where
the entire analysis is being conducted. The last section of the conducted study draws out essential
conclusions as well as recommendations to improve the services provided by the managers.
The report prepared in a professional way to be presentable to the board of directors and
weigh up probable pros and cons of concerned project. This would be more beneficial since it
would offer opportunity to take more informed choices and decisions and the facts that are
relevant is needed to be stated in the analysis to hold further research.
Task 3
4.1, 4.2
It is through preparation of Gantt chart and Network diagram that the minimum duration
required to complete the project is estimated.
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Illustration 9: Gantt chart for project plan
The Gantt chart presented indicates schedule of activities that are required to be carried
for effective completion of project. A specific timeline is allotted to all the activities so as to
wind up the operations in specified duration.
Illustration 10: Network diagram
The network diagram presented above indicates critical path that is minimum duration
required for completion of project.
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As per the critical path, the project would be implemented and completed in duration of
60 days.
4.3
It is through adoption of capital budgeting techniques that financial feasibility of the
project into consideration is judged. The estimated cash flows into different years are presented
below:
Table 1: Estimated Cash flow
Year Cash flows (in £'s)
0 (Initial investment) -190000.00
1 50000.00
2 64000.00
3 58000.00
4 70000.00
Net present value
The technique helps in determining present value that can be generated through future
inflow of cash flows. NPV is evaluated by using following formula as:
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Illustration 11: Used formula for calculating
NPV
Table 2: Net present value
Year
Amount (in
£'s) Pv factor @ 10%
Present value of cash
flows
1 50000.00 0.91 45454.55
2 64000.00 0.83 52892.56
3 58000.00 0.75 43576.26
4 70000.00 0.68 47810.94
Total present value 189734.31
Initial investment -190000.00
Net present value -265.69
As per the net present value, the project is not a viable for investment. The negative
present value indicates that the organisation should not make investment into the project into
consideration.
Payback period
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The payback period estimates minimum duration in which initial investment is recovered
by the organisation.
Table 3: Payback period
Year Cash flows (in £'s) Cumulative cash flow
0 (Initial investment) -190000.00 -190000.00
1 50000.00 -140000.00
2 64000.00 -76000.00
3 58000.00 -18000.00
4 70000.00 52000.00
Payback period (in years) A + B/C 3.26 years
It is seen that the project into consideration would take 3.26 years for recovery of initial
investment made. Further, it is seen that total life of project is 4 years that results in positive cash
generation for some of the months. Henceforth, the project should not be considered for
investment purpose.
Internal Rate of Return:
The IRR is estimated to ascertain total rate of return that the project can generate by
equating NPV to zero. However, IRR is calculated by using following formula as:
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Illustration 12: Formula for evaluating IRR

Table 4: Internal Rate of Return
Year Cash flows (in £'s)
0 (Initial investment) -190000.00
1 50000.00
2 64000.00
3 58000.00
4 70000.00
Internal Rate of return (IRR) 10%
A total return of 10% is considered to be low in nature. Henceforth, the project is not
considered to be suitable for investment purpose.
It can be said that the above investment option is not suitable since sufficient cash flow is
not generated during its life time.
CONCLUSION
It is concluded that business decision making is essential for forecasting and
implementing strategies for effectiveness of any enterprise. In this regard, different tools of
decision making for Murano restaurant is are described that for increasing satisfaction level of
customers with food and accommodation services. However, data collection methods, sampling
and questionnaire is described for effective decision making. Including this, estimation on
collected data using mean, median and mode are identified for analysing market position of the
restaurant. Moreover, collected data are presented systematically in graphical presentation for
further decisions and implementing plans. However, investment appraisal techniques and project
plans for the restaurant has been understood for further implementations effectively. Therefore,
deep knowledge regarding business decision making has increased for Murano restaurant
effectively through this report.
RECOMMENDATION
For project plan and business decision making, below mentioned recommendations are
required to be followed on as:
 Ethical considerations should be considered for data collection and conducting survey.
 Adequate planning should be implemented for decision-making and expansion of Murano
restaurant.
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 The best and effective technique should be implemented for investment planning and
further decisions.
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