Critical Understanding of Organisational Decision Making

This assignment requires a thorough understanding of organisational decision making, involving the use of questionnaires, statistical data analysis, and interpretation. The goal is to determine the outcome of a survey by applying appropriate methods and tools, such as trend lines and financial information. This process enables senior management to conclude whether a project is feasible and generate revenue and profit in future aspects.

Business Decision Making

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Plan for collecting primary and secondary data...............................................................1
1.2 Survey methodology and sampling frame used................................................................2
1.3 Design a questionnaire.....................................................................................................3
2.1 Creation of information....................................................................................................4
2.2 Determination of mean, median and mode.......................................................................5
2.3 Evaluation of measure of dispersion................................................................................6
2.4 Determination of quartile and correlation coefficient......................................................6
TASK 2............................................................................................................................................7
3.1 Creation of graphs and charts...........................................................................................7
3.2 Formulation of trend lines................................................................................................9
3.3 Presentation....................................................................................................................11
3.4 Formal business report...................................................................................................11
TASK 3..........................................................................................................................................11
4.1 Use of software generated information in decision making process..............................11
4.2 Use of Gantt Chart and network diagram.......................................................................12
4.3 Financial tools interference for decision making...........................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business require more and absolute consideration and inspection of various number of
activities so that better and appropriate judgement lead to carried down (Barlett, 2016). In this
consideration, it require critical inspection so that better and absolute working lead to carried
down. Management need to work in an appropriate frame by considering all major and
associated aspects. For this relation, they required to organise a survey and collect appropriate
information through that. It will also enables to interpret the results properly which further
manage in evaluating the things effectively. Moreover, data interpretation will lead to
disseminate the information data properly for making it better understandable. The software
generated information will enables in evaluating the aspects in better concentrative manner. Such
all aspects will going to bring out for Food For friends whom want to open up another outlet in
London, UK.
TASK 1
1.1 Plan for collecting primary and secondary data
Planning is an important aspect for every research or data which enable and facilitate to
collect information from diverse sources (Beach and Lipshitz, 2017). There are mainly two kinds
of data get determine which support in deriving best and appropriate judgement. Food For
friends want to organise a survey which clearly focus on opening of another outlet in London,
UK. Thus study could utilise the primary or secondary information so that better and effective
judgement lead to carried down.
 Primary data: These are such kind of data which gather through raw sources and highly
based on personal interaction process. Primary study facilitate an option to carried down
appropriate results which enable in evaluating aspects clearly which could be utilise in
the form of feedback. Various approaches for gather primary source of data is
questionnaire, personal interviews etc.
 Secondary data: These are such data which already lead to take place and have
concluded by any other individual. These data could be in the form of company records
or profile which could be analyse and assess easily and get from any internet sources
(Blondel and Müller-Rommel, 2016).
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Food For friends study lead to involve about primary data process in which questionnaire survey
lead to organise properly. The plan for collecting primary source of information define as follow:
 Determine the cause or problem
 Select appropriate method for study
 Evaluate or select the target audience
 Analyse the data
 Conclude the decision
1.2 Survey methodology and sampling frame used
Surveys play an important role in order to gain and collect appropriate information from
diverse number of individuals. Survey define and simplify various kinds of methods which
facilitate an option to bring out positive and appropriate reflection (Drucker, 2017). Thus,
following are the several number of survey methodologies which could be utilise by each and
every individual so that they lead to work in better and appropriate frame. Questionnaire: This is a primary form of data collection process where several number
of questions get asked to an individual. This enable in providing personal response of
each and every individual so that better and appropriate understanding could be
promoted.
 Survey Monkey: Another data collection method depicts about survey monkey where
information gather through online medium or by creating questionnaire through digital
source. This get deliver through messages which enable in gaining response of every
person properly
With all these aspects, several more number of considerations which support in selecting the
sample is sampling frame (Goleman, 2017). There are various kinds of sampling frame could be
utilise by management of FFF which are:
 Random sampling
 Cluster sampling
Out of various kinds of survey methods and sampling frame, FFF will going to adopt
questionnaire method and random sampling technique which enable them to target 80
respondents by distributing a questionnaire includes 10 questions.
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1.3 Design a questionnaire
Questionnaire is a survey which enable and support to collect data from various number
of individuals at one time. This process is helpful in taking response of various individuals so
that better and appropriate working lead to get done (Rao and Tilt, 2016). Food For friends
restaurant want to gather information from their customers about services and opening of new
chain. This consist 10 questions with open ended close ended, ratings etc. This could be done on
80 respondents of a company:
QUESTIONNAIRE
Name:
Age:
Gender:
Q1. What about the quality of products which provided by Food For friends?
a) Good
b) Excellent
c) Bad
Q2. Does Food For friends enable to fulfil all needs and wants of their users?
a) Yes
b) No
Q3. How often you visit to restaurant in a month?
a) Once
b) Exceptionally twice
Q4. Do you have any kind of complaints regarding price and values?
a) Agree
b) Disagree
Q5. Have you ever realise that beverages are not appropriate in quality standard?
a) Agree
b) Disagree
Q6. Have you ever find the problem which associated with staff behaviour?
a) Agree
b) Strongly Disagree
c) Neutral
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Q7. Provide ratings of Food For friends restaurant?
a) 1
b) 2
c) 3
d) 4
e) 5
Q8. Do you refer Food For friends to others?
a) Yes
b) No
Q9. Which location is convenient for Food For friends new chain?
a) Near to sea side
b) Rooftop
Q10. Any further and appropriate suggestion...
2.1 Creation of information
This information creation is based on Food For friends restaurant survey which organise
with a single and clear motive to determine about taste and preference of customers. For this
consideration, management want to analyse the information which provided by the customers of
a restaurant (Rothman, 2017).
Rating R1 R2 R3 R4 R5
1 40 20 20
2 50 30
3 59 21
4 42 38
5 56 24
6 42 22 16
7 10 10 10 20 30
8 60 20
9 40 40
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This information stated that company need to work on their staff behaviour as they need
more and more training. Many individuals define that goods and services are high quality
standard in nature which support in made individuals satisfied. Seaside is convenient location for
Food For friends restaurant which enable them to attract wide range of individuals. This
consideration enable them to gain competitive advantage and made an association differ from
others. Thus, chances of managing and enhancing better outcome become possible in frame.
2.2 Determination of mean, median and mode
Mean: This is considered as an average value which has to be comprehend by superiors;
therefore, they will be able to acquire an effective judgement for business (Sekaran and Bougie,
2016). Mean portrays as an average of frequency distribution; thus, this will be understand by
manager in an effective as well as efficient way. According to gathered data and information it
has been determined that quality of items are much significant so that there are many clients who
visited this place two times in a particular month. This will help to gain attention of numerous
persons towards them. As a result, profits and market share of an association will get enhanced.
Median: This is a mid value of table and helps superior to maintain significant working
at workplace (Measures of Central Tendency, 2013). It is required for manager to identify it
suitably; thus, they will easily promote positive outcomes which is advantageous for an
enterprise. As per collected information, it has been examined that price of products and services
of Food For Friends is much effective which assist them to maintain customer base.
Mode: With assistance of this, employer will easily identify repetitive frequency which is
connected with series (Shapiro and Stefkovich, 2016). This aids to find out those respondents
who belongs to same kind of group. As indicated by collected data as well as information it has
been evaluated that quality of food and beverages is much appropriate which help them to
capture attention of numerous people. As a result, sales and production of an enterprise get
improved.
Rating R1 R2 R3 R4 R5 Mean Median Mode
1 40 20 20 26.6666666667 20 20
2 50 30 40 40 #VALUE!
3 59 21 40 40 #VALUE!
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Rating R1 R2 R3 R4 R5 Mean Median Mode
4 42 38 40 40 #VALUE!
5 56 24 40 40 #VALUE!
6 42 22 16 26.6666666667 22 #VALUE!
7 10 10 10 20 30 10 10 10
8 60 20 40 40 #VALUE!
9 40 40 40 40 40
2.3 Evaluation of measure of dispersion
Standard Deviation: This helps to define that how much the group members are different
from mean value of any team or group (Wheelen and et. al., 2017). From gathered data and
information, it has been examined that behaviour of staff members of an association is so polite.
This will help company to maintain their brand image at marketplace. Along with, they will
easily take benefits from rivals at competitive world.
Variances: By calculating this, manager will easily determine variations amongst
frequency. Therefore, they will easily reduce it by formulating some strategies or policies. From
above data it has been concluded that, complaints of people are much less which help them into
their retention. Additionally, if any issues are facing by them, they sort them out immediately
and this enables them to gain attention of other people.
Rating R1 R2 R3 R4 R5 Variance Standard deviation
1 40 20 20 133.3333333333 11.5470053838
2 50 30 200 14.1421356237
3 59 21 722 26.8700576851
4 42 38 8 2.8284271247
5 56 24 512 22.627416998
6 42 22 16 185.3333333333 13.6137185711
7 10 10 10 20 30 0 0
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Rating R1 R2 R3 R4 R5 Variance Standard deviation
8 60 20 800 28.2842712475
9 40 40 0 0
2.4 Determination of quartile and correlation coefficient
Rating R1 R2 R3 R4 R5 Correlation
Coefficient
1 40 20 20 0.9754172691 relationship
between 1 and 6
2 50 30
3 59 21
4 42 38 1 relationship
between 4 and 8
5 56 24
6 42 22 16
7 10 10 10 20 30
8 60 20
9 40 40
Correlation coefficient: It is must for manager to set some connection amongst two or
more elements; therefore, they will be able to acquire best and effective decision for an
organisation (Zavadskas and et. al., 2016). This will assists organisation to attain coveted targets
within limited period of time. It has been examined that quality of products and services of an
affiliation is much appropriate which will help to acquire attention of numerous individuals
towards them. There are many people who visited this place more than two times in a month
with their friends or families.
Quartile: This will be classified into four parts which will help superior to understand
entire things in a significant manner. From above gathered data as well as information, it has
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been comprehended that location of restaurant need to be much appropriate for their new outlet
as this helps to gain attention of numerous people towards them. As a result, profits and
productivity of an affiliation will get enhanced.
TASK 2
3.1 Creation of graphs and charts
Theme 1: Quality of products and services of Food For Friends is much appropriate
Good Excellent Best
0
5
10
15
20
25
30
35
40
Column B
Interpretation: Quality of goods and services of company is much appropriate which aid
to gain attention of numerous individuals towards them. From above graph, it has been analysed
that almost 40 individuals are favouring this argument but, 20 people are termed it as an
excellent and remaining respondents considered it as a best.
Theme 2: Food For Friends is able to accomplish desires of clients
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Yes No
0
5
10
15
20
25
30
35
40
45
50
50
30
Column B
Interpretation: Organisation conduct research on regular basis so that they will be able to
know about needs and wants of clients. Thus, they will accomplish it within limited period of
time. From above graphical representation, it has been examined that almost 50 respondents are
favouring this argument but remaining people are entirely against of this,
Theme 3: Many people visited this place one time only
Once Exceptionally twice
0
10
20
30
40
50
60
59
21 Column B
Interpretation: There are many people who visited Food For Friends repetitively. This
will aid them to enhance their profits and sales effectively. From above graph, it has been
presented that almost 59 individuals visited this place only one time, but 21 respondents visited
here more than 2 times.
3.2 Formulation of trend lines
Theme 4: There is no complaints of clients regarding prices of items
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Agree Disagree
36
37
38
39
40
41
42
43
42
38
Column B
Linear (Column B)
Interpretation: Quality of products and services of organisation is much effective which
help to capture attention of numerous people towards them. Along with, they are fulfilling
requirements of clients as per their desires. It has been evaluated that almost 42 individuals are
favouring this statement, but remaining are entirely against of this.
Theme 5: Quality of food and beverages is much effective
Agree Disagree
0
10
20
30
40
50
60 56
24 Column B
Linear (Column B)
Interpretation: Quality of food and beverages of company is much appropriate which aid
to acquire attention of numerous people towards them. From above graph it has been examined
that almost 56 respondents are favouring this argument but 24 answerers are totally disagree with
this.
Theme 6: Behaviour of staff members are much quite
10

Agree Strongly disagree Neutral
0
5
10
15
20
25
30
35
40
45 42
22
16
Column B
Linear (Column B)
Interpretation: Staff members of company are much trained and their behaviour is much
pleasant regarding customers. From above graphical representation stated that almost 42
respondents are agree with this statement, but 22 individuals are strongly disagree with this,
remaining persons are neutral on this argument.
3.3 Presentation
3.4 Formal business report
The Management
Food For Friends
Dated: 2nd April 2018
Subject: Report regarding customer preference for new chain
A major thing which need to understand by every business organisation whom major task is to
generate profit is all about customer taste and preference. There is a need to understand about
customer preference properly by hospitality industry so that better and effective delivery of
services lead to take place. Food For Friend want to open up another chain in London, United
Kingdom for which thy organise a survey properly. This investigation get done through
questionnaire survey which provide responses of 80 individuals.
On the basis of gather information, seaside is appropriate location for new chain in London.
Although, products range are affordable in nature as well as quite improvement is essential
regarding staff behaviour. Many customers provide rating 5 to the organisation which simplify
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that services and quality of products are highly appreciable.
Although, another chain is profitable for a company which could be started in coming years.
This information and decision depicts through primary source of information. Questionnaire
enable in gaining responses of various individuals which directly influence the judgement lead
to carried down by senior management.
Thanks and Regards
XYZ
TASK 3
4.1 Use of software generated information in decision making process
Food For Friends need to open another chain in London for which they have to
comprehend different areas appropriately. For this viewpoint, they have to trade data legitimately
from base level directors to senior administration of an organization. This empower them to
develop and expand their working towards right heading. Henceforth, fitting programming
framework need to embraced by supervisors of an organization with a specific end goal to
encourage things successfully (Zeng, Chen and Li, 2016). In this manner, by and large FFF could
use two appropriate framework which are:
Management information system: It is a handling of data through PCs and other programming
which empower and encourage to take better choice which empower to develop and oversee
different working tasks. FFF administration would use this instrument keeping in mind the end
goal to expand viability and proficiency through breaking down different deviation and supporter
based on arrange poll review. Along these lines, administration evaluated that this thought is
useful and fitting for business achievement and development.
Decision support system: Another framework is choice emotionally supportive network or DSS
which essentially worked and make for senior administration of an organization. This will reflect
for senior administration with a specific end goal to take helpful judgement which aid more
qualified development and improvement. FFF eatery need to actualize this product also which
empower chiefs to comprehend and translate old information legitimately (Barlett, 2016).
4.2 Use of Gantt Chart and network diagram
Business is a composition of various number of activities where it is really important to
evaluate major consideration associated with it. For managing big or vast projects, there is a need
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to utilise appropriate and suitable method which enable in gaining better and appropriate
judgement. Project management need appropriate and better understanding of the project so that
task lead to divide properly (Beach and Lipshitz, 2017). Hence, organisation or Food For Friends
will going to utilise several tools and techniques which enable in determine better and
appropriate decision for their new project development and growth as well as analysing number
of days lead to complete such projects: Gantt Chart: This idea essentially for the substantial ventures in which every last action
get separated according to the criteria and characterize tome outline with the goal that
better related working complete. Accordingly, this will support to do and play out the
things on characterized day and age with the goal that better and suitable working and
assignment achievement complete.
 Critical Path system: Another method for determining the time duration for completing
the project is critical path system or network diagram. In this aspect, mainly, shortest
path for completing the project get evaluated which enable in accomplish project on time
and on define time frame as well.
Name of activity Time period Predecessors
Scope in market 3 days
Location for the
restaurant 5 days 1
Investment 5 days 1
Return on investment 4 days 3
Target market 8 days 1, 2
Advertisement 10 days 5
Lay out for decision 3 days 6
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1+2+5+6+7 = 21 days
1+5+6+7= 19 days
1+3+4 = 8 days
4.3 Financial tools interference for decision making
Fund consider as spine of each business association which need to comprehend and use
by administrators of an organisation in a superior way. There is a need to organize adequate cash
at the season of venture with the goal that better related return could wind up conceivable. In this
viewpoint, Food For Friends eatery support two noteworthy sources which are:
 Net present value
 Internal rate of return
The internal rate of return is define as a metric which enable and support in determining
the capital budgeting for estimating the profitability of the investment. Internal rate of return is a
discount rate that makes the net present value (NPV) of all cash flows from a particular project
equal to zero. Although, internal rate of return is completely based and include all internal
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aspects only neither the external influences like inflation cost etc. All these aspects enable and
support in determining the cost in an appropriate and suitable manner of course.
This is define as a formula which facilitate and enable in calculating the IRR of the
project so that effective and better assessment. This will facilitate and support in calculating the
IRR so that appropriate investment would get done.
Below is a calculation for Food For Friends which define about net present value and
internal rate of return so that project estimation get determine and identify in better course of
manner:
Project
Discounting
factor Discounted cash inflow
Year Cash Flow 12% Present Value
1 50000 0.893 44645
2 64000 0.797 51020.8
3 58000 0.712 41284.4
4 70000 0.636 44485
Total present value of
five years 181435.2
Initial investment of
year 190000
Net present value
(Total discounted
cash inflow – initial
-8564.8
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investment)
Internal rate of return 9.94% Net present value: The NPV of an undertaking is negative in setting of positive
speculation (Blondel and Müller-Rommel, 2016). This connotes administration not have
to execute this venture further as it will made negative impact on business and its
concerning activities
 Internal rate of return: Another device is to IRR which is 9% and low also with
contributing rate. Sustenance For Friends need to drop down this venture on visit premise
as it won't bring out worth for an organization.
CONCLUSION
It get concluded from the project that business decision making is not a easy thing for any
organisation and there is a need of critical understanding. Whenever an organisation want to
focus on big or future oriented judgement appropriate survey need to conclude on it with
appropriate inspection of each and every essential element. Thus, this section starts with
organising a survey and determine the outcome with it by using questionnaire method. On the
basis of gather information, statistical data used to get disseminate which further required to get
understand with appropriate interpretation. Moreover, with appropriate utilisation of graphs and
charts data become interesting to understand by senior management of a company. Trend line
provide future consideration on the basis of collected information. Financial information enables
in concluding that project is feasible in nature or not which assist in gaining and generating
appropriate revenue and profit in future aspect.
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