Decision Making and Project Evaluation

This report discusses the importance of primary research methods, such as close-ended questionnaires, to collect true and reliable information. The Balti Palace expansion plan in London is analyzed using mean, median, mode, and range to interpret past figures. NPV (Net Present Value) and IRR (Internal Rate of Return) are used to determine the viability of the project. Various references from books, journals, and online sources are provided for further reading.

Business Decision
Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Sources of data collection....................................................................................................1
1.2: Research methodologies and sampling framework.............................................................2
1.3: Questionnaire designing ......................................................................................................3
TASK 2............................................................................................................................................5
2.1: Designing data with the help of representative values.........................................................5
2.2: Evaluation of data those are collected from research .........................................................7
2.3: Analysing measure of dispersion.........................................................................................8
2.4: Advantages of using quartile, percentile and coefficient correlation...................................9
TASK 3............................................................................................................................................9
3.1: Different charts and graphs..................................................................................................9
3.3: Covered in PPT..................................................................................................................15
TASK 4..........................................................................................................................................17
4.1: Use of information methods system in decision-making...................................................17
4.2: Critical path .......................................................................................................................17
4.3: Various investment appraisal tools....................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
The main objective of organisation is to attain success through providence of their
different business functions. It is an obligation upon management to take effective decisions
which help to bring effectiveness in their operations. Decision-making is the process which helps
in selection of the best alternative out of many. NPS and IRR are the main techniques which help
to understand about the most profitable project. Also, there are many statistical tools like mean,
median and mode which help to draw important conclusion from collected information. Through
this, a large number of benefits are gathered by organisation like competitive advantage, higher
market share, large amount of profits, building a strong brand image, etc. Balti Palace is a
restaurant which provides diversified cuisine in London (Rothman, 2017).
In the present report explain about, application of primary and secondary sources of data
collection to ascertain the views of respondents. Through designing of sample framework and
research methodologies respondents are select from total population.,Formulation of close-ended
questionnaire helps to attain real views of respondents. There are many information processing
and financial tools are used to enhance decision making power.
TASK 1
1.1: Sources of data collection
At present, Balti Palace provides their services in London. It provides various types of
good quality food items to attract a large number of individuals. Main aim of restaurant is to
expand their operations to improve their sales and profitability. In this regard, management of
restaurant is decided to open a new branch in London. This can be achieved through effective
decision making regarding different aspects (Sethi and Zhang, 2012).
To check the viability of their move, management decided to collect the information from
market and respondents about their current services and position in market through application of
primary and secondary sources of data collection. It helps the management to improve their
decision making power.
Primary source: It is considered as important method which helps to calculate first hand
information.. This method is used by the researcher to collect opinions directly from respondents.
Information which is collected from such respondents is true and the most reliable regarding
research topic. One of the major advantages of using this method is that information is free from
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biases. It provides an opportunity to manager to effectively make their crucial decision. There are
many methods which includes under primary sources are survey, questionnaire, telephone etc.
Questionnaire: It is a document which includes set of research questions regarding
business issues. This can of two types i.e. open ended and close-ended. Open-ended
questionnaire provides freedom to respondents to provide their opinions as answer. But, on the
other hand, close-ended questionnaire attaches with different options in which one is selected by
respondents.
Survey: One of the best methodof primary research, helps to attain information through
gestures of respondents because it involves face to face interaction. It takes more time to collect
information in comparison to other methods (Pourshahid, Richards and Amyot, 2011).
Telephonic: It helps to ascertain the information through telephonic conversation with
respondents. Also, it saves the time and cost of researcher.
Secondary source: This method helps in collection of the past information which already
published in some other sources like magazines, newspapers, etc. One of the major advantage of
this method is to save the time and cost of researcher. This method does not provide the most
reliable information in comparison to primary method.
1.2: Research methodologies and sampling framework
To attain success in their expansion plan, need to collect information.It contributes to
take effective decisions regarding setting up of their new restaurant in London. In this regard,
researcher needs to adopt the best research methodologies. It provides an opportunity regarding
solving the issues which arise while implementing the plan in real scenario. It provides an
opportunity to the researcher to select an appropriate number of respondents from total
population. Such different types of research methods are given as below:
Descriptive: This method includes the methodologies of survey and study which helps in
identification of facts regarding their current affairs which they want to achieve from their
research work. It includes collection of new information to interpret important results. On the
other hand, analytical research includes the use of data which is published to evaluate
information for research purpose (Nooraie, 2012).
Exploratory research: This method of research is important which has main objective is
to find out new areas of research. Under this research methodoptions are not provided with
research questions.
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Qualitative and quantitative: Quantitative research includes collection of information
in the form of quantitative terms. Such results are more accurate for decision making. Qualitative
research includes the collection of information from respondents through their attitudes,
behaviours, etc.
Research methodologies: There are two main methods which are known as primary and
secondary available in front of the researcher of Balti Palace. In the present case, primary
method is select because it is most suitable for decision making about opening of new branch in
London. From the large number of available tools, questionnaire is adopted for primary research.
In this regard, 10 different research questions are framed to check the viability of their move,
current position, business issues, customer preferences etc. All such questions are attached with
options from which answer is select by respondents (Sinha and Labi, 2011).
Designing of sample framework: This includes about the adoption of best method
which helps the researcher regarding selection of respondents from total population. Such
different methods are known as cluster, stratifies and random. In present report, Random
sampling method is the best to select respondents. 60 respondents are selected to carry out
research and gather important information about:
 Viability of move of opening new branch in London
 Determination of best place in London for setup
 Current preferences and views of customers
1.3: Questionnaire designing
Questionnaire: It is the important technique of primary method. This includes formulation
of research questions on the basis of their objectives. This is classified into two types open-ended
and close-ended.
Open-ended helps in in attainment of actual views of respondents as answer as it provides
freedom to provide opinions.
Close-ended questionnaire provides multiple answers from which one is select by
respondents as per their choice (Kacprzyk and Fedrizzi, 2012).
The main purpose behind the formulation of questionnaire is to understand about current
market trends, behaviour of customers, competitors and attainment of recommendations.
Questionnaire
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Name:
Occupation:
Age:
Gender:
Q1. Does opening of another branch in London of Balti Palace a viable move?
 Yes
 No
Q2. What place you suggest for set up of new restaurant in London?
 Near tourist places
 Outside area
 In main city
Q3. How many times you visit Balti Palace in a month?
 Once
 Twice
 Thrice
Q4. What you like the most in Balti Palace which attracts you to visit here?
 Good quality food
 Fast services
 Ambience
Q5. Did you think any changes are need to make by Balti Palace in their new restaurant?
 Yes
 NoCan’t say
Q6. Which dish is your favourite in Balti Palace?
 Italian
 Chinese
 French
Q7. What you feel about the pricing policies adopted by Balti Palace?
 Highly satisfied
 Satisfactory
 Dissatisfied
Q8. Do you think expansion helps Balti Palace to improve their brand image?
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 Yes
 No
Q9. Does Balti Palace have adequate amount of funds to open new branch?
 Yes
 No Can’t say
Q10. What you want to suggest for sustainability in their operations?
TASK 2
2.1: Designing data with the help of representative values
Q1. Does opening of another branch in London of Balti Palace is viable move?
Particulars
No. of
respondents
Yes 45
No 15
Total 60
Mean 30
Median 30
Mode 0
Q2. What place you suggest for set up of new restaurant in London?
Particulars
No. of
respondents
Near tourist
places 23
Outside area 15
In main city 22
Total 60
Mean 20
Median 22
Mode 1
Q3. How many times you visit Balti Palace in a month?
5

Particulars
No. of
respondents
Once 32
Twice 20
Thrice 8
Total 60
Mean 20
Median 20
Mode 0
Q4. What you like most in Balti Palace which attracts you to visit for having food?
Particulars
No. of
respondents
Good
quality food 30
Fast services 20
Ambiance 10
Total 60
Mean 20
Median 20
Mode 0
Q5. Did you think any changes need to made by Balti Palace in their new restaurant?
Particulars
No. of
respondents
Yes 22
No 25
Can’t say 13
Total 60
Mean 20
Median 22
Mode 9
Q6. Which dish is your favourite in Balti Palace?
6

Particulars
No. of
respondents
Italian 25
Chinese 7
French 28
Total 60
Mean 20
Median 25
Mode 25
Q7. What you feel about the pricing policies adopt by Balti Palace?
Particulars
No. of
respondents
Highly
satisfied 12
Satisfactory 32
Dissatisfied 16
Total 60
Mean 20
Median 16
Mode 12
Q8. Do you think it helps Balti Palace to improve their brand image?
Particulars
No. of
respondents
Yes 42
No 18
Total 60
Mean 30
Median 30
Mode 6
Q9. Does Balti Palace have adequate amount of funds to open new branch?
7

Particulars
No. of
respondents
Yes 35
No 18
Can’t say 7
Total 60
Mean 20
Median 18
Mode 0
2.2: Evaluation of data those are collected from research
Year Sales Net Profit
2008 2490 900
2009 2510 1190
2010 2550 1390
2011 2600 1470
2012 2690 1580
2013 3150 1650
2014 3450 1750
2015 3750 1990
2016 3950 2260
2017 4100 2400
Mean 3124 1658
Median 2920 1615
Mode 2490 900
Mean: It is the calculation of average of past figures of sales and net profit of Balti
Palace from 2008 to 2017 to ascertain amount which incurred over a period of time. It helps to
take prompt decisions through the use of precise average figures. The mean of sales and net
profit is 3124 and 1658 (Tzeng and Huang, 2011).
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Median: This method helps in segregation of values present in a series as upper and
lower half of data. Through application of this tool, middle value of sales and net profit is
calculated by Balti Palace. Median of sales and net profit is 2920 and 1615.
Mode: This tool is used by Balti place to ascertain the figure from given series of sales
and net profit which occurs most number of times. Mode of sales and net profit is 2490 and 900.
2.3: Analysing measure of dispersion
Year Sales Net Profit
2008 2490 900
2009 2510 1190
2010 2550 1390
2011 2600 1470
2012 2690 1580
2013 3150 1650
2014 3450 1750
2015 3750 1990
2016 3950 2260
2017 4100 2400
Minimum 2490 900
Maximum 4100 2400
Standard
deviation
641.616015
3169
464.107267
2945
Coefficient
correlation
0.93775096
72
Range: This method helps in ascertaining minimum and maximum values of sales and
net profit from the given series. It helps to find out the reasons which reduces their sales and net
profit and framing of important solutions. The minimum range of sales and net profit is 2490 and
900. Maximum range of sales and net profit is 4100 and 2400.
Standard deviation: It is used to ascertain the risks associated with project. Standard
deviation sales and net profit is 641.6160153169 and 464.1072672945.
Standard deviation: √∑Fdx2/N – (∑Fdx/N) 2
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2.4: Advantages of using quartile, percentile and coefficient correlation
Quartile: This method is used to understand about the deviations in a series. This method
is best because no need to take any mathematical obligations (Xu, 2015).
Percentile: It helps in resolving issues which are present in actual. One of the most
important percentile is 25th.
Correlation coefficient: This method used to understand the relationship between two
variables. The results are optimum if falls in between the range of 1 to -1 (Cosgrove and
Rijsberman, 2014).
TASK 3
3.1: Different charts and graphs
Q1. Does opening of another branch in London
of Balti Palace a viable move?
Frequency
Yes 45
No 15
Yes No
0
10
20
30
40
50 45
15 Column B
Q2. What place you suggest for set up of new
restaurant in London?
Frequency
Near tourist places 23
Outside area 15
In main city 22
10

23
15
22
Near tourist places
Outside area
In main city
Q3. How many times you visit Balti Palace in
a month?
Frequency
Once 32
Twice 20
Thrice 8
32
20
8
Once
Twice
Thrice
Q4. What you like the most in Balti Palace
which attracts you to visit here?
Frequency
Good quality food 30
11

Fast services 20
Ambiance 10
Good quality food Fast services Ambiance
0
5
10
15
20
25
30
35
30
20
10
Column B
Q5. Did you think any changes are need to
make by Balti Palace in their new restaurant?
Frequency
Yes 22
No 25
Can’t say 13
Yes No Cant say
0
5
10
15
20
25
30
22
25
13 Column B
Q6. Which dish is your favourite in Balti Frequency
12

Palace?
Italian 25
Chinese 7
French 28
25
7
28 Italian
Chinese
French
Q7. What you feel about the pricing policies
adopted by Balti Palace?
Frequency
Highly satisfied 12
Satisfactory 32
Dissatisfied 16
12
32
16
Highly satisfied
Satisfactory
Dissatisfied
13

Q8. Do you think expansion helps Balti Palace
to improve their brand image?
Frequency
Yes 42
No 18
Yes No
0
5
10
15
20
25
30
35
40
45 42
18 Column B
Q9. Does Balti Palace have adequate amount
of funds to open new branch?
Frequency
Yes 35
No 18
Can’t say 7
35
18
7
Yes
No
Cant say
14

3.2: Trend line
This line provides tendencies which helps in evaluation future course of actions. Such
lines are used regarding representation of the variables about their support and time taken in
future period to show changes.
Year Sales Net Profit
2017 4100 2400
2018 4250 2490
2019 4350 2560
2020 4500 2600
1 2 3 4
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2017 2018 2019 2020
4100 4250 4350 4500
2400 2490 2560 2600
Column A
Linear (Column A)
Column B
Linear (Column B)
Column C
Linear (Column C)
The above trend line chart is formulate by the management of Balti Palace is understand
about the future figures of their sales and net profit. From this forecast, it is attained that sales
and net profit of restaurant is increased with constant rate. It means that customers are satisfied
with their present services. It shows large number of funds are present to start new branch in
London (Shapiro and Stefkovich, 2016).
3.3 PPT
Covered in PPT
3.4 Formal Report
Report
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To,
The Restaurant Manager
Date: 16th April, 2018
Subject: Collection of information from respondent to check the viability of their expansion
move in London
Introduction
Balti Palace is a restaurant which provides their services in London. The main objective
of organisation is to expand their operations for earning large number of profits. In this regard,
they decided to open another branch in London. To ascertain the viability of their move need to
take their views of customers and their current preferences. Research plays an important role in
collection of important information. Primary and secondary sources are helpful to collection
first hand and past information which improves overall decision making.
Methodologies
Random sampling method is used for selection of 60 respondents from total population.
On the other hand, Close-ended questionnaire is formulate through use of primary method
which contains 10 different questions about research topics. These questions are asked to attain
the views of respondents for accomplishment of their desired results.
Findings
As per the views attained through 50 respondents, it is observed that customers are in
favour of opening of new branch in London. They also satisfied with their current services and
quality of food items. To attain success there is need to make some changes according current
preferences and trends which helps in attraction of new customer's.
Conclusion
It has been concluded from the above report that through opening of new restaurant large
number of benefits are gathered like competitive advantage, higher market share, good brand
image, more satisfaction of customers’ needs, etc.
TASK 4
4.1: Use of information methods system in decision-making
Such tools have huge importance for improving communication process within the
organisation. The main tools which includes under this are Decision support systems,
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Transactional processing system and management information system. All such systems have
their different functions and advantages. In used by the management of Balti Palace for removal
of communication gaps and ascertaining coordination in their business activities. It provides the
opportunity regarding improvement of overall performance of restaurant (March, 2013).
Management information system: It modern system which helps to carry out the
information in more organised manner about the activities of all department which are working
within the restaurant. Through application of such computerised system special reports are
easily generated regarding performance.
Transactional processing system: It provides the opportunity to the management of
restaurant is to calculate the transactions which are happen on regular basis. It provides the
opportunity to draw important conclusions through interpretation of such day to day functions
(Crowfoot and Wondolleck, 2012).
Decision support system: The main function of this system is to provide support to the
manager regarding effective decision making about their future operations. This will provides the
opportunity regarding attainment of competitiveness and driving out their competitors out of the
market.
4.2: Critical path
Critical Path: It is an effective method which provides information about time period
which is taken by the different aspects of project to complete. Through application of this
method, decision making capacity is enhanced to complete such path first which has longest
duration. It provides an opportunity regarding accomplishment of their project within stipulated
period of time. If paths are not selected on the basis of time period then it is not possible to
complete their project as per the given time frame (Saaty and Peniwati, 2013).
Path A: 1+4+7+8 = 10 Days
17

Path B: 1+2+5+6+8 = 15 Days
Path C: 1+2+3+7+8 = 17 Days
As per the above calculation of paths, observed that path C takes the longest time to
complete which is 17 days. So, the management needs to first complete this path to achieve their
desired objectives. It helps in improving their working efficiency.
4.3: Various investment appraisal tools
Project
Discounting
factor Discounted cash inflow
Year
Cash
Flow 12.00% Present Value
0 -190000 1 -190000
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total P.V 181435.2
Initial investment
of year -190000
NPV -8564.8
IRR 9.94%
It is observed from the above calculation that the initial investment in project is 190000.
The NPV is attained as negative of 8564.8. IRR is observed as 9.94% which is attained from the
above project.
CONCLUSION
In the present report explain about, one of the best to collect information is primary
method. To collect true and reliable information researcher of Balti Palace formulate close-ended
questionnaire which helps to attain the actual responses of respondents. To draw important
conclusions method of mean, median and mode is used to interpret information from past figures
of organisation. It is interpreted from the views of respondents that expansion plan of Balti
18