Business Decision Making Process Analysis

The provided document is a detailed analysis of the business decision making process, focusing on various techniques for data collection and analysis, as well as the use of software-generated models. The context defines the role of business decision making in strategy formulation and planning. A range of techniques are analyzed to ensure effective decision making processes. Statistical information and data are utilized to make informed decisions, with a focus on using software-generated models to support growth models.

BUSINESS DECISION
MAKING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for the collection of primary and secondary data..........................................................1
1.2 The survey methodology and sampling frame used..............................................................2
1.3 Questionnaire for a given business problem.........................................................................3
TASK 2............................................................................................................................................5
2.1 information for decision making by summarising data using representative values............5
2.2 Evaluation of results to draw valid conclusions in an organisational context......................7
2.3 the data using measures of dispersion to information a given business scenario.................8
2.4 Quartile percentiles and the correlation coefficient to draw useful conclusion....................9
TASK 3..........................................................................................................................................10
3.1 Produce graphs using spreadsheets and draw valid conclusion..........................................10
3.2 Create trend lines in spreadsheet graphs to assist in forecasting for specified business
information................................................................................................................................14
3.3 Business presentation using suitable software and techniques to disseminate information
effectively..................................................................................................................................15
3.4 Produce a formal business report........................................................................................15
TASK 4..........................................................................................................................................16
4.1 Use of appropriate information processing tools................................................................16
4.2 Prepare a project plan for an activity and determine the critical path.................................17
4.3 Use financial tools for decision making..............................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................20

INTRODUCTION
Business decision making is a process which is used to manage important decision
subjected to development and growth of organisation. Business decision making depends helps
managers to determine the success of organisation by managing plans and strategies. Murano
restaurant is the selected organisation in present study (Rothman, 2017). This report is able to
define the use of variety of source for the collection of data both primary and secondary data.
Range of techniques and data are analysed for the business purpose. Information is produced in
an appropriate format for decision making in organisational context. Use of software generated
information subjected to decision making is defined in this context along with elaborating the
dimensions of decision making process.
TASK 1
1.1 Plan for the collection of primary and secondary data
Growth and development is the main objective of every organisation. Effective decision
making strategies and plans lead an organisational structure towards sustainable success. All the
basically the aims and objectives define vision and mission of business. Decision making process
helps to analyse the performance and strength of organisation (Levy, Weitz and Grewal, 2012).
This process basically contains critical analysis and analysis of data. As per given scenario,
Murano restaurant wants to explore its organisational chain at famous destination and location in
the UK. Managers want to get results for exploring business with the help of decision making
process. Data and information will be collected through various sources which are discussed as
below:
Primary data: These data are considered as original data which are directly collected
from the group of people, individual or first source. Information are collected form the direct
sources as a first hand. Information and data which are collected from direct resources remain
more efficient and relevant in order to make accurate decision making plans and strategies (Yang
and et. al., 2011). Organisation has to pay large amount of investment to get the information by
primary data
Secondary data: This is another source of collecting information and data. This is also
considered as a supportive source of gathering information. Secondary data approach is
considered as the cost effective approach because primary research has already been done in
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secondary data. Business reports, statistical data and prior performance reports are main
supporting or secondary tools which are considered in secondary data.
Research: This is one of the ways to collect relevant and important information with the
help of in-depth research and analysis. It contains a large amount of cost while implementing
research methodology to gain information and data (Cosgrove and Rijsberman, 2014). Research
methodology is considered as a more practical and realistic approach which helps to gain
accurate information and data.
Questionnaire: This method is applied by the organisation to get specific and
categorised result by distributing questionnaire to public or group of people. It is a set of
questions and suggestions with multiple choices. Individuals fill up the questionnaire as per their
priorities.
Public opinion polls: Opinion polls are the most common and practical methods to
determine mind set of public and individuals. There are some revenant aspects presented in from
of public and group of people (Routledge.Sinha and Labi, 2011). With the help of pooling
method, organisation has become eligible to gain relevant information from public.
1.2 The survey methodology and sampling frame used
Survey methodology is one of the relevant approaches which is used by the organisation
to gain relevant and practical information from the relevant resources. There are different types
of researches defined as below:
Descriptive research: A brief research and practical scenarios are analysed in this
research methodology. It helps to analyse the data and information from ground level. This is
also considered as a complete research in order to maintain ethical order and accuracy in making
strategies and plans. Descriptive research is related to particular subject or project. Practical and
analytical research is done in respect of understanding the factors of subject and projects.
Exploratory research: This research methodology helps to bifurcate the nature of
subject and the project in order to determine the effective plans and strategies. Figures and
results which remain close to the project and subjects are considered in decision making process.
Qualitative and quantitative: Countable and measurable information and data are
considered in quantitative research. Results and figures which are related to size, nature and
length of the project are the examples of quantitative research (Tzeng and Huang, 2011).
Qualitative research works around identifying the virtue, nature, reasons, opinions and
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motivation. This research helps to evolve hypothesis or ideas in respect of potential quantitative
research. This is considered as semi structured techniques due to lack of statistical and
measurable information and data.
Sampling framing: This is one of the important tools which helps to determine the
nature and mind set of customers by using sampling method. This method is basically opted by
the organisation to gain positive aspects and results. There is a specific group is opted and
variables are evaluated with the subject to one single subject or project.
Random sampling: This method is a part of sampling method which helps to analyse
same potential and equal probability in respect of tasks and projects. Basically, this approach is
used to analyse the straightforward probability and sampling strategy (Pourshahid, Richards and
Amyot, 2011). This method is considered to be effective and beneficial to evaluate critical path
and detect the problems associated with tasks and projects. Few prospect are keep in
consideration while conducting the research;
 Customer price
 Quality and facilities
 Treatment given by staff members
1.3 Questionnaire for a given business problem
Inquiry to determine the mind set of customers and public experience and satisfaction
subject to opening new Murano restaurant
QUESTIONNAIRE
Name:
Age:
Gender:
Occupation:
Q1: Should Murano explore the size of organisation?
(a) Yes
(b) No
Q2: Would the expansion plan will be effective for the organisation?
(a) Yes
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(b) No
(c) Neutral response
Q3: Are you satisfied with the pricing strategies of Murano restaurant?
(a) High
(b) optimum
(c) Low
Q4: What kind of cuisine you prefer in Murano restaurant?
(a) Thai
(b) Chinese
(c) Italian
(d) Other
Q5: Which attractive factors gain the customer's attraction as per your perspective?
(a) Environment
(b) Multiple-cuisine
(c) Hospitality
Q6: Do you any kind of alteration in services related to hospitality?
(a) Yes
(b) No
Q7: Are the cookery standards up to the mark?
(a) Yes
(b) No
Q8: Do you agree that Murano is able to met the customer criteria?
(a) Yes
(b) No
(c) Neutral response
Q9: At which location, new restaurant should be located?
(a) Central location
(b) Prime location
(c) Shopping Mall
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(d) Metro stations
Q10: What are required changes and plans as per suggested by your opinion?
Ans.
TASK 2
2.1 information for decision making by summarising data using representative values
Q1: Should Murano explore the size of organisation?
Particulars Respondents %
(a): Yes 75
(b): No 25
Total 100
Mean 50
Median 50
Mode 0
Q2: Would the expansion plan will be effective for the organisation?
Particulars Respondents %
(a) Yes 66
(b) No 32
(c) Neutral response 2
Total 100
Mean 17
Median 17
Mode 0
Q3: Are you satisfied with the pricing strategies of Murano restaurant?
Particulars Respondents %
(a) High 34
(b) optimum 58
(c) Low 8
Total 100
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Mean 33
Median 33
Mode 2
Q4: What kind of cuisine you prefer in Murano restaurant?
Particulars Respondents %
(a) Thai 35
(b) Chinese 25
(c) Italian 33
(d) Other 7
Total 100
Mean 20
Median 20
Mode 5
Q5: Which attractive factors gain the customer's attraction as per your perspective?
Particulars Respondents %
(a) Environment 56
(b) Multiple-cuisine 36
(c) Hospitality 8
Total 100
Mean 22
Median 22
Mode 4
Q6: Do you any kind of alteration in services related to hospitality?
Particulars Respondents %
(a) Yes 69
(b) No 31
Total 100
Mean 50
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Median 50
Mode 7
Q7: Are the cookery standards up to the mark?
Particulars Respondents %
(a) Yes 66
(b) No 34
Total 100
Mean 50
Median 50
Mode 32
Q8: Do you agree that Murano is able to met the customer criteria?
Particulars Respondents %
(a) Yes 59
(b) No 31
(c) Neutral response 10
Total 100
Mean 20.5
Median 20.5
Mode 1
Q9: At which location, new restaurant should be located?
Particulars Respondents %
(a) Central location 30
(b) Prime location 28
(c) Shopping Mall 39
(d) Metro stations 3
Total 100
Mean 21
Median 21
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Mode 0
2.2 Evaluation of results to draw valid conclusions in an organisational context
Growth and development strategies depends upon accurate and effective strategies in
respect of effectiveness in actions and plans. Accurate results and reports are required favourable
results and aspects. Murano wants to expand the business in the UK. It is required to analyse the
profitability of Murano restaurant. Below are some income related figures are defined in order to
determine profitability of organisation. Sales and profit records of last 10 years are analysed
below:
Year Sales (£) Net Profit (£)
2008 2100 1140
2009 2350 1470
2010 2500 1550
2011 2475 1720
2012 2375 1890
2013 2700 870
2014 2750 2000
2015 3250 2160
2016 3350 2500
2017 3800 990
Mean 3300 2330
Median 3300 2330
Mode 3250 2160
Mean: this is considered as simplest method which helps to calculate an average figure
amongst one. This method is used to measure probability and expected value which refers
towards measure of the central tendency (Mean, Median, Mode and Range. 2017). As per the
above calculating mean is calculated for sales is £3300 and £2330 for profit. It helps to bifurcate
the probability distribution and the random variable characteristics by distribution. It is
calculated as per below formula;
Mean: ∑X/N
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Median: it indicates towards find out mid value or point subject to bifurcating
distribution of determined values of quantities. This helps to determine the middle values and the
data in respect of two middle two numbers. In statistical language median is considered as
middle value As per the above calculation median of sales is calculated as £3300 and median for
profit was calculated as £2330.
Median: [L1 + (N/2) – c/F*i]
Mode: it is considered as a group of data which indicates towards repetitive frequency of
figures and data. Most common value is considered as a mode of which repeats often in the
series. As per above calculation mode of sales is calculated as £3250 and £2160 for profit.
Mode: L + h ( fm – f1 / 2fm – f1 - f2 )
2.3 the data using measures of dispersion to information a given business scenario
Year Sales (£) Net Profit (£)
2008 2100 1140
2009 2350 1470
2010 2500 1550
2011 2475 1720
2012 2375 1890
2013 2700 870
2014 2750 2000
2015 3250 2160
2016 3350 2500
2017 3800 990
Sales (£) Net Profit (£)
Maximum range 3800 2500
Minimum range 2100 870
Standard deviation 534.79 528.07
Correlation coefficient 0.170519714
Range: this helps to find out maximum and minimum number among the figures
available to determine range. It is known as a set of data which define the difference between the
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largest and smallest figures in series. As per above calculation there are some figures are defined
in respect of range. Maximum range was calculated as £3800 and minimum range was calculated
as £870.
Standard deviation: this is one of the statistical methodology which define the quantity
of total member of group. It indicates that how numbers are spread in series. It is denoted as σ
which is sign of Greek letter sigma. As per above analysation of data of sales and profit
following results come across. Standard deviation for sales is calculated as £534.79 and standard
deviation for profit is calculated as £528.07.
σ : √∑Fdx2/N – (∑Fdx/N)2
Variances: in statistical form the arithmetic mean of the squares of the deviations of all
the values found in set of numbers from their arithmetic mean. Square root and variance are main
elements to determine measure of dispersion.
Variances: S2 = ∑(X – X )2 / n-1
2.4 Quartile percentiles and the correlation coefficient to draw useful conclusion
Quartile: this is considered as a better measure of accurate dispersion than the range. It
disregards the observation on the tails (Saaty and Peniwati, 2013). There is a sample of
difference from sample form population and calculation their quartile deviation. Values are also
find quiet sufficient different. Quartile deviation is based upon the lower quartile which is
denoted as Q1 and the upper quartile is denoted as Q3 this is calculated as per following formula:
Q.D. = Q3−Q1 / 2
Percentile: it is considered as an equal deviation of an amount which is expressed on a
scale from 0 to 100. the 90th percentile of a figure is all amount between 0% and 90%. any values
which in series are considered in series are sorted in groups of equal frequency. As per the
statistics 25th percentile is considered as one of the essential part which gives 50th percentile of
75th can be a third quartile.
Correlation coefficient: Relevant figures are considered to calculate coefficient
correlation in order to determine average figures. This is considered as a free unit of
measurement (Nooraie, 2012). This method is basically used to determine the readability and
strength of both the figures. This is used to determine the dispersion of two or more sets of data.
It is calculates as per following formula;
Coefficient of Quartile Deviation= Q3−Q1/2/ Q3+Q1/2 = Q3−Q1/Q3+Q1
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TASK 3
3.1 Produce graphs using spreadsheets and draw valid conclusion
Q1: Should Murano explore the size of organisation?
Q2: Would the expansion plan will be effective for the organisation?
11
(a): Yes (b): No
0
10
20
30
40
50
60
70
80 75
25
Column C
66
32
2
(a) Yes
(b) No
(c) Neutral response

Q3: Are you satisfied with the pricing strategies of Murano restaurant?
Q4: What kind of cuisine you prefer in Murano restaurant?
Q5: Which attractive factors gain the customer's attraction as per your perspective?
12
34
58
8
(a) High
(b) optimum
(c) Low
(a) Thai (b) Chinese (c) Italian (d) Other
0
5
10
15
20
25
30
35
35
25
33
7
Column D

Q6: Do you any kind of alteration in services related to hospitality?
Q7: Are the cookery standards up to the mark?
13
56
36
8
(a) Environment
(b) Multiple-cuisine
(c) Hospitality
(a) Yes (b) No Total
0
10
20
30
40
50
60
70
80
90
100
Respondents %

Q8: Do you agree that Murano is able to met the customer criteria?
Q9: At which location, new restaurant should be located?
14
(a) Yes (b) No
0
10
20
30
40
50
60
70 66
34
Column D
(a) Yes (b) No (c) Neutral response
0
10
20
30
40
50
60
70
59
31
10
Respondents %

3.2 Create trend lines in spreadsheet graphs to assist in forecasting for specified business
information
As per the trend lines following figures are found.
Year Sales Net Profit
2017 3800 2500
2018 4000 2750
15
1 2 3 4
0
1000
2000
3000
4000
5000
6000
2017 2018 2019 2020
3800 4000
4500
5000
Year
Sales
Net Profit
(a) Central location
(b) Prime location
(c) Shopping Mall
(d) Metro stations
0
5
10
15
20
25
30
35
40
30 28
39
3
Respondents %

2019 4500 2800
2020 5000 3250
3.3 Business presentation using suitable software and techniques to disseminate information
effectively
COVERED IN PPT
3.4 Produce a formal business report
REPORT
To,
The manager of Murano restaurant
Date: 15th March 2018
Subject: “Analysis of information and data regarding introducing new restaurant chain in
London”
Introduction
Managers of Murano restaurant wants to explore the size of organisation in London and
want to open new restaurant chain at famous location of London. Initial information and data
are collected to ascertain the perspective of customers and public. Business decision making
process is used to analyse the effectiveness of the project plan.
Methodology
Survey methodology was used to analyse the collected figures and information. With the
help of statistical methods such as measure of central tendency and correlation methods are
used to critically evaluate the data.
Findings
there is a proper analysis done in respect of determine the effectiveness of proposed
plan. The survey was done with the help of 100 respondents. There was positive outcomes was
found in order to determine the mind set and perspective of customers. Results were bifurcated
in various categories. Most of the customers preferred to choose shooing malls to open a new
restaurant chain due to large amount of customers.
Recommendation
it is recommend that managers have to take care all the safety features in order to
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maintain ethical environment with in the organisation. Staff members also need to increase the
amount of staff members to control the flow of customers. Basic safety features also need to be
prescribed by the managers.
Conclusion
Over all the survey present positive picture in respect of exploring new restaurant chain
with in London. With the help of statistical analysis there favourable results are found in respect
of sales and profitability of organisation.
TASK 4
4.1 Use of appropriate information processing tools.
Various type of processing tools are used to analyse the effectiveness of project plans
such as
Management accounting system (MIS): this processing tools is based upon computer
based information system and processing system (Kacprzyk and Fedrizzi, 2012). There is a
computer based information is produced by this processing system which helps to analyse the
information in numeric form. Information which are produced by this system used in decision
making process.
Transactional procession system: this system helps to track transactional records in
order to maintain relevant information and data subject to make effective strategies and plans.
Practical information and relevant figures are analysed in this processing tool.
Decision support system: this processing tool helps to sort out the strategic equations
and subject to bifurcating make strategic plans. Decision support system basically used by
managers and senior level authorities of organisation.
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4.2 Prepare a project plan for an activity and determine the critical path
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4.3 Use financial tools for decision making
IRR: it states for internal rate of return. This is the part of capital budgeting. Helps to
analyse the potential impact of investments. IRR is considered as discount rate which makes the
process more fluent in respect cash flow.
NPV: It states for net present value (Sethiand Zhang, 2012). This method used to analyse
the investment cost after a particular period. All these information are used to make investment
strategies and plans.
Particular 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%
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CONCLUSION
This context define the role business decision making process in order to make effective
strategies and plans. There is a process of decision making process is defined in this context.
Variety of source for the collection of data both the primary and secondary are defined in
reference of Murano restaurant. Range of techniques are analysed the data for business purpose.
Statistical information and data are use to make appropriate format of decision making process.
Use of software generated subject to make effective decision making plans and growth models.
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